Originally Posted by DudleysLawnCare
You got to lose some money to gain some money (contracts). So although you might be working for nothing you'll be gaining as well.
the saying is it takes money to make money.
to say you have to lose money to gain money is a absurd comment.
businesses are profit centers not a roll of the dice and if you are not profiting then you are on a path to nowhere.
we live in a society where everyone wants to look like a big player but no one wants to spend the money.
sites that attract cheap azzes like living social, groupon. service magic and even craigslist are all a waste of time and are completely unneeded.
don't let anyone tell you that you need to participate in that crap to build your business because nothing could be further from the truth.
i could care less about other industries and what sites like that do for them because we are landscapers and it is like comparing apples to oranges as well as most normal thought processes for business do not apply to the landscaping industry.
stores sell products that all come from the same place and one store might be able to sell something a couple bucks cheaper because they buy larger quantities and get the product a little cheaper then a smaller store that moves less of a particular product.
now take landscapers, and to be more specific lets compare two similar companies.
they both are small and have one brand new truck.
they both have the same mowers and the same equipment and we all pay give or take a few bucks the same for all of the above.
insurance cost is about the same, payroll taxes are the same and both have the same amount of employees that get paid the same.
one guy charges $40.00 to cut a lawn and the other will cut the same exact lawn for $25.00. why is that?
the guy that cuts for $40.00 is charging the right price and his route is full and he puts his day in and makes a good living as well as has built a business with a desirable customer base.
the other guy that charges $25.00 has to run around like a chicken with his head cut off and do almost double the work to make the same money but as a result has to work longer hours and increase his payroll and also do double the billing and rely on double the amount of people to pay him in a timely manner.
the way it works out in the end is the dude who works less and prices his jobs correctly makes more money and has a better more efficent business then the cut throat dude who is twice as busy.
the morale of the story is cutting your prices and being more busy does not translate into profits and profits are why we go into business in the first place.
sales and gimmicks are good for retail businesses and food businesses but it does not work and is useless in the landscape industry.
i can cut my prices and make my phone ring three times more then it does now but why bother if at the end of the day it is gonna mean less profits and more hours and wear and tear on my business.