Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Lawn Care, Landscaping, and Property Management Forums > General Talk

General Talk If it doesn't fit anywhere else, post it here.

Pricing


General Talk

If it doesn't fit anywhere else, post it here.
Reply
 
Thread Tools Search this Thread
  #1  
Old 08-04-2010, 03:48 PM
picframer's Avatar
picframer picframer is offline
Andy
 
Join Date: Jan 2009
Location: Halifax, Nova Scotia
Posts: 2,885
Rep Power: 9
picframer will become famous soon enough
Default Pricing

People who know me will tell you I am one of the easiest guys going, rare that I get upset and am the type that would give the shirt off my back to help someone, well most of the time.

It must be the season or weather, not sure.

Following my other post about additional services, I ran an ad last Friday and have a pile of inquiries for post holes. Now I already know I have next to no competition other than one fence company and rental stores, checked online, yellow pages etc. The one company that does post holes is three times my rate, the way I look at it, if I am grossing $90 an hour plus and making, in my case about 50% profit before depreciation and taxes, then I am fine.

Now I know we all have clients try to beat us up a little on pricing, sometimes it's a game, I guess today I don't want to play. Three prospects wrote back to my reply saying they needed a better price, I took the dog for a walk to cool down and give this some thought, then I wrote the following

"Thank you for your reply to my estimate. I am already the cheapest in the city, in fact I believe there is only one company in the city that offers this service according to clients, the unit's we use is over $28,000 so in short, no I can not and will not offer a better price.

You can try a rental unit (hand held or tow) a mini excavator like ours can be rented for $450.00 a day plus $150.00 transportation from United, Hertz or CAT, I have done some research and am shocked at the number of personal injuries and back issues by people using the rental units, it would seem mainly due to a lack of experience."

I wanted to get my point across without being too strong, just bugs me I guess.

I've received two email replies both with about the same wording

"I understand, i would like to hire you , lets schedule a day and time when you are available next , thanks xxxxxx or call me at xxx-xxxx"

So I think there are times when we really have to stand our ground and not roll on pricing. I may be in a little different situation than most in that if I don't get new jobs it's not the end of the world, we have lots to do. I was just looking for something different to do with the excavators during August.

In any event...........just a thought
__________________
Andy
Halifax, Nova Scotia

Last edited by picframer; 08-04-2010 at 03:51 PM.
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 08-04-2010, 08:37 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,688
Rep Power: 10
Steve has disabled reputation
Default

Lawn care business tipsLawn Care Business Book
Andy,

In such a situation, do you think they were still shopping around and looking for a better price but couldn't find one or do you think you were able to explain to them why your price is what it is and that helped sell the service?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #3  
Old 08-05-2010, 06:04 AM
picframer's Avatar
picframer picframer is offline
Andy
 
Join Date: Jan 2009
Location: Halifax, Nova Scotia
Posts: 2,885
Rep Power: 9
picframer will become famous soon enough
Default

Quote:
Originally Posted by Steve View Post
Andy,

In such a situation, do you think they were still shopping around and looking for a better price but couldn't find one or do you think you were able to explain to them why your price is what it is and that helped sell the service?
I think a lot of people we deal with have the mindset we are in the car sales business, the price is not the price but the starting point for negotiations. In my case I know my costs, I know the competition and what they are charging, finally my price is my price. Although yesterday was an office day due to the weather, there are times when certain emails in response to my quote seem to rub me the wrong way, so I was thinking yesterday take a direct approach as you don't need the business and see what happens.

I have had people in the past respond they will simply rent the equipment, then they contact me a few days later saying they were not able to perform the work, my response is thanks for contacting us again and sorry to hear rock has hindered your ability to drill your holes, out rates for backhoes to dig the rock out is $85.00 per hour or a mini excavator starts at $105.00 per hour, we do not haul rocks away however we do have a trailer dump service which can haul 14,000 pounds per load for $225.00, plus HST

I will however dicker on some large wood cutting/chipping/excavation jobs, say those over $8,000 as I have room to move around.

In short you can take this approach if you know who your competition is and what their rates are.
__________________
Andy
Halifax, Nova Scotia
Reply With Quote
  #4  
Old 08-05-2010, 10:04 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,688
Rep Power: 10
Steve has disabled reputation
Default

Quote:
I have had people in the past respond they will simply rent the equipment, then they contact me a few days later saying they were not able to perform the work, my response is thanks for contacting us again and sorry to hear rock has hindered your ability to drill your holes, out rates for backhoes to dig the rock out is $85.00 per hour or a mini excavator starts at $105.00 per hour,
In such situations where a customer basically says, thanks but I'll do it myself, do you find you still want to work with them after wards if they call you for help? Or does that kind of set off a warning they will be difficult to deal with?

Quote:
we do not haul rocks away however we do have a trailer dump service which can haul 14,000 pounds per load for $225.00, plus HST
Can you explain this more? Would this be some outside service that performs the job?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #5  
Old 08-06-2010, 06:09 AM
picframer's Avatar
picframer picframer is offline
Andy
 
Join Date: Jan 2009
Location: Halifax, Nova Scotia
Posts: 2,885
Rep Power: 9
picframer will become famous soon enough
Default

Well to be honest, yes it quite often rubs me the wrong way and I really find no joy in having to fix a job someone else has started. What sometimes happens is the customer in this case will drill the holes in the wrong locations, I can't move a hole 3 or 4 inches so it has to be dug. In the case of trees/chipping, OMG I have seen some clients go out and buy a chainsaw or rent one only to call because they got themselves into trouble, well I can't drop everything and run to them and I don't, I have been called some interesting names because I wouldn't. It takes experience falling trees and I explain this, if you land a tree on a power line, car, house, you can't expect us to be there within an hour to fix it. I see this even in excavation.

I had a client that wanted a spot excavated out of a side hill so they could put a hot tub in, gave them a quote, response was they would rent an excavator themselves, i did ask if they had experience as this was not the spot for a beginner and they did not. Long story short, I think it was about two weeks after they called me, buddy had upset the rented excavator and wanted me to come by and bring it upright and finish the job, in this case I simply could not as I along with all our equipment was going 6 to 7 days a week, buddy freaked out on the phone.

When customers get themselves in a mess, quite often they try to make their problem ours, watch for this as they will sneak this in, it is not our problem and if you allow a client to make it your problem, you are headed for disaster.

I have had clients accept quotes over ours from other companies, call us after they were through as the results were poor at best, last year, maybe because it was our first year, we would go and fix it, this year I refuse. More often than not it costs more money to fix an issue then to do it right the first time.

In short I know my costs, I know except for mowing, I am generally lower than the competition as I do not have the overhead so I stick to my prices, at the same time there is always a cheaper way to do a project i.e. do it yourself and rent the equipment, some clients can and do acceptable work, most can't but they will not accept this until they get into trouble.
__________________
Andy
Halifax, Nova Scotia
Reply With Quote
  #6  
Old 08-06-2010, 11:00 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,688
Rep Power: 10
Steve has disabled reputation
Default

Andy,

I was thinking. If you get calls from customers who try to go the cheap way first, would it be worth your while to get them to give a testimonial after about what happened? Maybe take before and after shots? Then you could put this on your website and also when customers in the future do the same thing, you can say please, go to my website and read the section 'why we should have gone with you in the first place.'

Would that help seal the deal in such situations?


Quote:
When customers get themselves in a mess, quite often they try to make their problem ours, watch for this as they will sneak this in, it is not our problem and if you allow a client to make it your problem, you are headed for disaster.
This sounds very interesting and insidious. I bet a lot of newer business owners totally miss this. Can you tell us some things to look out for? How do customers try to do this?

Quote:
I have had clients accept quotes over ours from other companies, call us after they were through as the results were poor at best, last year, maybe because it was our first year, we would go and fix it, this year I refuse. More often than not it costs more money to fix an issue then to do it right the first time.
What is your view on the difference between customers trying to do it themselves at first vs. hiring someone else to do the job at first?

How does this effect you when coming in to fix the situation or refusing to get involved?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #7  
Old 08-07-2010, 02:01 AM
douglasmcintosh douglasmcintosh is offline
Junior Member
 
Join Date: May 2010
Posts: 3
Rep Power: 5
douglasmcintosh is on a distinguished road
Default hi andy

You have a battlefield in your town??
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
I Need Help Pricing This One! temeculagrassgators Online Lawn Care Estimator - Help me bid this job 15 08-13-2009 09:48 PM
pricing galaxy General Talk 5 08-27-2007 07:54 PM
Hello, I am new and need help with pricing! jones26r Introduce Yourself 17 08-18-2007 11:59 AM
Job Pricing bcnj Lawn Maintenance / Lawn Renovation 2 06-12-2007 08:18 PM
need help pricing a job vicman Lawn Maintenance / Lawn Renovation 5 05-12-2007 12:33 AM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
I'm BACK!
SuperiorPower
12-16-2014 11:08 PM
Today 01:58 PM
by SuperiorPower
6 194
These are the days on...
ExtremeLawncareServices
03-22-2014 10:12 AM
Yesterday 09:45 PM
by ExtremeLawncareServices
189 16,614
Georgia Boys!
Chilehead
12-18-2014 10:23 PM
Yesterday 09:36 PM
by Chilehead
2 82
Employee job training...
brookline
12-15-2014 08:15 PM
Yesterday 07:48 PM
by SuperiorPower
9 307
Hello from Md
homey
12-17-2014 06:55 PM
Yesterday 06:00 PM
by homey
5 164
Repair or replace the...
lxarth
12-17-2014 05:07 PM
Yesterday 05:44 PM
by stevef1201
7 208
Has Obamacare helped or...
Steve
12-18-2014 04:37 PM
Yesterday 05:43 PM
by stevef1201
3 102
what do you "love" to...
calebmoss
07-06-2011 10:05 PM
12-17-2014 05:09 PM
by Chilehead
28 8,941
What Fertilizer to Use?
acrajchel
04-07-2014 02:56 PM
12-17-2014 01:11 PM
by Steve
23 2,973
Grass hopper mower
ExtremeLawncareServices
12-05-2013 09:51 AM
12-17-2014 09:40 AM
by SuperiorPower
34 6,117
Peco Bagger
AGPS
11-18-2014 02:20 PM
12-17-2014 09:13 AM
by SuperiorPower
15 1,315
New to Gopher Haul-from...
323k13l
12-12-2014 10:34 PM
12-15-2014 02:58 PM
by Steve
3 289
hi
creteland
12-12-2014 09:06 AM
12-15-2014 01:45 PM
by Steve
5 291
New addition to my small...
googus
12-12-2014 07:36 PM
12-15-2014 07:47 AM
by googus
4 355
Ferris IS700Z
rmccutchan
12-14-2014 01:10 AM
12-14-2014 11:41 PM
by rmccutchan
4 263
Charge what the market...
Billy Goat
12-09-2014 12:39 PM
12-14-2014 06:39 PM
by biglee
20 806
Hi from IL
steveinil
11-25-2014 02:07 PM
12-12-2014 07:18 AM
by steveinil
4 806
Utility Company Right of...
eastsidelandcare
12-11-2014 04:54 PM
12-11-2014 04:54 PM
by eastsidelandcare
0 279
leaf removal
Double J LLC
10-03-2014 05:24 PM
12-11-2014 04:50 PM
by eastsidelandcare
33 4,078
suggestions on full lawn...
Brian3137
12-10-2014 07:18 PM
12-11-2014 03:41 PM
by Steve
6 391
new to me box truck
jrayb39667
03-06-2014 11:20 PM
12-11-2014 09:43 AM
by Sprinkler Buddy
18 3,367
Hello from SW FL!!
5StarLawnscaping
12-05-2014 02:35 PM
12-10-2014 02:45 PM
by WesleySnips
7 625
Echo pb200 blower fuel...
googus
12-06-2014 09:03 PM
12-09-2014 06:35 PM
by Steve
3 478
Facebook
element009
03-23-2011 09:36 AM
12-09-2014 06:24 PM
by Steve
36 9,807
Are you prepared for the...
Steve
12-02-2014 04:13 PM
12-09-2014 06:22 PM
by Steve
7 898
Email Address Name
Just Cuts
12-07-2014 09:49 PM
12-08-2014 03:15 PM
by Steve
3 427
Inspection form
stevef1201
12-07-2014 10:38 AM
12-08-2014 03:10 PM
by Steve
1 424
Truck, Trailer,...
hawthornelawncare
12-23-2011 01:01 AM
12-08-2014 12:37 PM
by jrs.landscaping
108 34,186
Back Pack Blower
Ian Lovejoy
11-09-2014 08:41 AM
12-07-2014 06:35 PM
by stevef1201
24 1,704
Innovation by mandate
bayoubandit
11-29-2014 01:33 PM
12-06-2014 03:27 PM
by SGL1
12 969
Trying something new,...
ExtremeLawncareServices
09-21-2014 10:07 PM
12-05-2014 11:06 AM
by Steve
9 2,258
Good help is hard to find
Hanks Lawn Care Services
11-19-2014 03:27 PM
12-04-2014 01:32 PM
by stevef1201
15 1,453
How many hours is too...
Just Cuts
12-04-2014 09:00 AM
12-04-2014 01:02 PM
by Just for Cuts
6 601
Does this sound like a...
googus
12-03-2014 07:47 AM
12-04-2014 12:37 PM
by Steve
5 681
New website
Chilehead
11-20-2014 04:39 PM
12-04-2014 12:27 PM
by Steve
14 1,225
New website
SGL1
12-02-2014 10:55 PM
12-03-2014 11:17 PM
by BLC7
19 855
Websites, how long...
Dan Tanner
03-09-2014 08:29 AM
12-03-2014 11:12 PM
by SGL1
21 3,236
I Want to buy old...
ExtremeLawncareServices
10-10-2014 11:04 PM
12-03-2014 10:36 PM
by ExtremeLawncareServices
8 1,868
GPS trackers for...
Billy Goat
12-02-2014 06:09 PM
12-03-2014 07:17 PM
by Steve
8 709
My site is on fronts page
tbtigers03
11-14-2014 05:58 PM
12-03-2014 06:31 PM
by SGL1
17 1,450
Hiring Subs over Temps
Billy Goat
12-02-2014 06:26 AM
12-03-2014 01:24 PM
by Steve
3 635
Thanksgiving cards
Steve
11-10-2008 11:57 AM
12-02-2014 11:11 PM
by SGL1
11 9,524
New parking area
ExtremeLawncareServices
11-07-2014 09:47 PM
12-02-2014 02:17 PM
by jrs.landscaping
12 1,483
Pressure Washing...
WesleySnips
07-31-2014 07:13 PM
12-02-2014 08:47 AM
by SGL1
6 1,499
old contracts
bayoubandit
11-29-2014 11:10 AM
12-01-2014 11:20 AM
by Steve
3 709
Hi to you NOTHERNERS
stevef1201
11-11-2014 05:56 PM
12-01-2014 10:54 AM
by Steve
9 1,278
Lawn care truck
Steve
10-10-2009 03:40 AM
12-01-2014 10:45 AM
by Steve
32 15,180
Intuit Quickbooks...
CDLAWNCARE
11-30-2014 10:19 AM
11-30-2014 10:19 AM
by CDLAWNCARE
0 616
Say Hello !!!
Steve
03-19-2007 12:18 PM
11-28-2014 01:36 PM
by Just Cuts
1,196 355,718
Hello from Kentucky
TRV
09-30-2014 06:42 PM
11-28-2014 10:49 AM
by Steve
13 2,324
» Popular Tags
4wd apartment bid apartment lawn care estimate applying bid bob villa bush care commercial decorating deliquentaccounts demonstration ditches edging employee problems ferris first truck four wheel drive gopherhaul grass hardscapes hills hiring how much to charge how to hydraulic installation introduction landscape services lawn lawn care lawn care busines plan lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care seo lawn care website lawn care website seo managing a lawn care business mulch mulch price past due patio install per hour charge podcast profit on employee reo scag v-ride scripts shell snow snow plowing sprayer starting a business starting a lawn care business start up lawn care business steve sulky toro tractor auger trailer mate pro tree truck new used landscape turfgrass consulting up sell employee walk behind won't return wright stander rh
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 02:00 PM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 02:00 PM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy