Lowballers!

Ric

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I kinda agrea with exotion. I'm in the same boat, I have no overhead other than gas and taxes. He can charge less. But still I do not lowball. Why would someone cut there own wages is wierd. But every business structure is different. People gotta start somewhere.

I'm the same way, I don't make payments on anything but as far as overhead goes if you have equipment you have overhead. It all cost money and it cost money too maintain it and use it and the more equipment you run the more overhead you have. Now Like exotion I don't run my business to get rich, I do it to pay my bills.
 

jekjr

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jekjr There are different ways in which one can lowball. You can lowball a competitor, or you can lowball a customer. and in a lot of cases when you lowball one you lowball the other. You say we bid for $45 we are there only a few minutes and that you're up and gone while they are still working on the same sized job. Now this is not to say that you are not doing the job but in a lot of cases the customer would rather see a business use a little more time to there yard because it makes them feel like there getting there moneys worth and that they care enough about there job and there yard to take that little extra time. Again not to say you are not doing the job but the end of your post reads Then they call us "Low Ballers. Always keep in mind that perception goes a long way in what one does.

I understand what you are saying. There are some customers that think you outta sweat all day long for. Minimum wage. We strive to do a quality job. If you go to a job with good equipment you can do a good job and get gone. I see operators at times that will spend much more time in a yard but not do any better job. In fact without the proper equipment I see them work twice as long and not do any better job.

Regardless of how long it takes however quality has to be #1.
 

exotion

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I understand what you are saying. There are some customers that think you outta sweat all day long for. Minimum wage. We strive to do a quality job. If you go to a job with good equipment you can do a good job and get gone. I see operators at times that will spend much more time in a yard but not do any better job. In fact without the proper equipment I see them work twice as long and not do any better job.

Regardless of how long it takes however quality has to be #1.

I agree. Has anyone checked out my pictures?
 

motoman

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Just a homeowner but seems like true cost review and break even points will eventually drive prices to a similar level among competitors. Some may not truly know their operating cost and be paying themselves a salary. No, I am not a bean counter.
 

DonCT

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Hi all:

Homeowner here.

As a philosophical question, how are you defining "lowball?' What I am seeing is simply a free market at work.

I used to work in service/retail, and I hear customers' complaints of price gouging in the industry all the time. I have always defined "gouging" as "charging more than the customer wants to pay." The remedy for that is to shop elsewhere. The "gouger" has no customers. Problem solved.

Similarly I define lowballing as "charging less than the competition wants to earn."

I guess it's all in perspective.
 

BHLC

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Let me explain my gripe... Large commercial prospect requests bid. Bid to include spring clean up, 10 yards mulch, grass mowed to a height of 2-2 1/2 inches(yes this means more than one visit a week) 7 acres of grass, 1 acre parking lot, clean up and removal of all sand from previous winter, plowing every 1-2 inches in the winter with salt and sand as needed, trimming hedges 3 times a year, maintain flower beds through out season, I think thats it in a nut shell... Anyway, you professionals out there, figure a price, I'll tell you mine, $10896.00. There were 5 bids, $10896, $11580, $9800, $11000 and last but not least...$4200! Please tell me how you can do it all for $4200? Do I have a legitimate gripe?
 

BHLC

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I'm not talking about Joe and Lisa's 1/2 acre lawn down the street that the neighborhood kid will do for $10.
 

DonCT

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Let me explain my gripe... Large commercial prospect requests bid. Bid to include spring clean up, 10 yards mulch, grass mowed to a height of 2-2 1/2 inches(yes this means more than one visit a week) 7 acres of grass, 1 acre parking lot, clean up and removal of all sand from previous winter, plowing every 1-2 inches in the winter with salt and sand as needed, trimming hedges 3 times a year, maintain flower beds through out season, I think thats it in a nut shell... Anyway, you professionals out there, figure a price, I'll tell you mine, $10896.00. There were 5 bids, $10896, $11580, $9800, $11000 and last but not least...$4200! Please tell me how you can do it all for $4200? Do I have a legitimate gripe?

Trust me. I get it. I don't work in the lawn cutting industry but I'm in the communications industry where anyone with an iPad thinks they're a pro. It sucks, I understand.

My question is this - $4200 is SUCH an outlier than anyone would question whether their bid actually met spec. Genuine curiosity here. Is there something he's not including that everyone else is? My gut reaction is that he'll work his a** off until he goes under working at 50% of market price.

It SEEMS to me that you have a gripe if he bid under cost and intends to make up the difference with contract differentials and such. But such practices tend to p*** off customers. I'm curious if the customer is willing to maintain the business relationship if the end product is sub-par.
 
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