cut throats

[glassjoe]

im fairly new to the business. i currrently have to keep my job as a bricklayer because i just dont have enough accounts to quit that, i was doing fine, picking up accounts even in the slow season until recently. i was bidding my jobs at the "going rate" for this subdivision, even i little high as i have another income to rely on. i purposely didnt underbid anyone because i just think thats bad business. within the 3 months when i give an estimate the homeowner tells me they have gotten estimates for 15 to 20 less than mine. accounts here are genrally monthly, not by the cut. i see the guys who are underbidding, they have junk equipment, they are unlicensed in our county, junk trucks ect.
these guys cant be making more than 20,000 a year and they are happy with it. am i in a no win situation here?

[qualitylandscaping]

reply

Welcome to a competitive industry Joe! There is nothing we can do about the lowballers, that will work for food scraps[!] Get used to it or get out of the business, because it won't be changing anytime soon..[xx(]

Ohh by the way, welcome to the community!![]

[mebtx]

reply

Only 15 or 20 less that is not bad. I tend to find out that my comp. is under bidding me as much as 40%. Don't know how the hell they do it. Stand your ground and don't let people talk you down. Once they start they won't stop. The Lowballers will screw up sooner or later, sending those customers back into your hands.

[qualitylandscaping]

reply

Welcome to the community mebtx!![]

$15-20 less per cut is a huge amount..

[BergLawnCare]

reply

quality, that really is not that much considering that it is a monthly price and not weekly, it figures to around $5 cheaper per cut, but i agree with you that he either gets use to it or forget about the business cause those scrubs are always gonna be around, at least until people realize that there work quality sucks and then they call you back that is when you get to raise the price a little bit. people do not realize what they have until they aint got it anymore as far as work quality goes!!!

[mebtx]

reply

Thanks for the kind welcome. I was only stating that Turf maintenance is not the only place you will find low-ballers. I run a full service company, low-ballers are everywhere.

[glassjoe]

reply

thanks everyone,
any advice i get is appreciated
i was thinking of dropping my prices on any new accounts i get a
little bit, not to lowballer prices but enough to stay in competiton in this area, but then i'm
cheating my older already loyal customers. what do you think?
another ?, what has been the bset way to advertise, besides word of mouth for anyone?

[indmowing]

reply

Hi mebtx & glassjoe and welcome to this Fine forum []

You are so right mebtx. What you some people do not seem to realise is that is in EVERY business there are "low ballers" you have cheap shoes or expensive shoes. The middle range price shoes might be just as good as the high prices shoes, but the high priced shes have got a name tag. The general rule in life is you get what you pay for lol! Now there are home businesses cheaper then shops. The gent down the road who does mower repair and spare parts is cheaper then the shops... lower overheads!!! Now here in Australia you know we have franchises, not they are 99% of the time quite a bit more expensive then an independent business because they are paying fees to the big wig does that make us wrong and low ballers. OF COURSE NOT!!! Does that mean they do a better job because they charge more? GOD NO!!!

It is business, and not only in our business but in all businesses! I will go further on what Quality said and be so bold as to say, Get used to it or go get a job and work for someone else! You all want the better prices, you'll shop around looking for the best price on equipment or spare parts or whatever it may be. Competition is a wonderful thing!

Glassjoe, you have no competition when it comes to these kind of people. Most people prefer professionals and not businesses as your describe. Insurance is always a big thing, and you need to point this out to your customers. I presume you offer your customers a service they cannot themselves provide. Anyone can mow a lawn but it's the quality of that cut, the edges being done, etc. that is the work of a true pro. On that point, the ones you need to worry about are the low ballers who do a good job lol! We are in a severe drought here in Australia and you are lucky if you need to mow the lawn every 4 weeks, we are usually cutting every 2 at this time. People are struggling and need to pay their bills, so they are "low balling" they are atleast going home with something rather then sitting at home doing nothing!

But once the rains come and all goes back to normal, these customers will be left without a contractor. They don't even try and put the prices back up, they just never turn up again! [] We have explained this to some of our customers, those who are loyal are staying with their normal contractors, even throwing them a few dollars here and there. Those that are not, well that speaks for itself.

Well that's my say on that matter... rambling as usual lol

Take care all and all the best

Ebony
A Proud As Punch Aussie []

[qualitylandscaping]

reply

Happy Austrailia Day Ebony!![]

[CCLS]

reply

Like everyone else is saying, lowballers are just part of the game. My advice is if you want to get more money than them, then look, dress, and act like you are worth more. Get a nice truck not a beater, get t-shirts with your company name on it, do quality work and present yourself as a professional. The customers will come in time. When I started out my business, I charged what the big boys were charging not what the little half wit in the beater truck with his push mower in back was charging. And guess what, people were willing to pay my prices because I had a professional image and I conducted myself like the big boys did. I would have to say that the best thing you can do is sell your image. Give the customers a reason to pay you more than the scrubs.

[cole1980]

reply

CCLS is absolutely right. If you look professional, act as a professional, you will get paid as a professional. Don't cut your prices just because a one season wonder lowballs you. Explain, that you use top notch equipment, you are insured(if you are), give references if you have them. If they still don't like what you have to offer then move on. There are still many out there who will pay that $15 -$20 extra a month to get quality service.

[Wes60]

reply

I totaly dont see the reason in lowballing and underbidding other lcos on porpose. Now i know its cut throat in the biz but why mean there is pleanty of grass out there to cut.

[andersc1]

reply

glassjoe,
I know what it's like to be underbid by lowballers and one season wonders. And it's still a constant battle with myself not to change my bid just in order to get the account. But I always tell myself that the only person who is going to come out of that bidding battle a winner is going to be the homeowner getting off dirt cheap.

Impress the customer with your appearance, your professional manner, the quality of work, and promptness. If you tell someone your going to do something or your going to be some place at a certain time, then by all means DO IT!.. There's nothing more aggrevating to a person then to be told that someone will be there at a certain time, and have them show up a couple of hours late with no excuse and acting like nothing happened. Punctuality is important.

Like most others here have already said, your going to be underbid. That's just the nature of the profession. There are always going to be lowballers out there who are willing to work dirt cheap in order to keep that piece of crap truck and equipment in oil. Don't try and compete. Evaluate what you are charging, even you yourself said that you are pricing a little high, and make adjustments if needed. If your pricing is too high, then make adjustments to bring it back down to a normal cost. But don't try and bring it down to the level of the lowballers. You'll loose, they won't....

Curtis