lower pricing due to the economy

S

shovelhead

Location
TN
I was wondering if anyone else is seeing the competition lowering their prices. I gotta tell ya, this is a real bad decision. I have been underbid by what I consider top notch companies this last few weeks. What normally is pretty stiff competition has turned into downright B*** S***. My workers comp has not shrunk, my fuel is still high, and my crew still works as hard as ever. Nothing has downgraded in our service. I got so worked up over a competetors underbid that I called him on it and he couldnt give me a good reason for bidding $1300 LESS then me! My point is dont discount what we do! especially if your a true pro. Any thoughts? remember G M may be going bankrupt, but they still are asdking full price for their trucks!
 
I was just at Ford looking to buy a F-150 crew cab so I could give my current truck to my forman. I went in there at the end of Februrary and even told them I was only in there because I wanted to see if I could get a end of month deal. Told them I didn't want to test drive, cause I didn't want to waste their time. I was really acting like I didn't need the truck unless I got a really good deal on it I would consider it. They didn't move on there price, so I left. They called next day and said they would take $500 off. This was a $35,000+ vechicle. I thought that was a joke. So I didn't bother. Then I see in early March Ford sales were down 41%. In this economy you have to do what you got to do. We are slashing are pricing just to stay busy. I don't think anyones gonna be talking about home runs and cream puffs they've done this year.
 
SLASHING sounds pretty drastic to me...i might as well take my Son fishing rather then chase my tail. We are three weeks booked and I expect it to stay that way. We offer a unique service not just anyone can do, I am speaking for all of the pros out there, not just us. Im telling you, if your a real pro, you should not be discounting anything TOO much. I understand a few hundred bucks...but Slashing?...NO WAY....my work comp is through the roof...24% of my payroll! And theats just what I tell my clients. Thank God we have a good stand of loyal clients.
 
There's a company around here that is offering tree work with no payment due for one year . It's going to be dog eat dog the rest of this year believe that . One huge(fat) White Oak , I looked at was bidded on four times , first bid 5k , second bid 3800 , third was 2700 , fourth was 2k . I told the lady to keep calling people someone will do it for free . No crane , climber , bucket for the wood , loaders to get the wood out , it's deep in the back . The two neighbors are splitting the cost , they went with the second bid. Sharpen your pencil , it's gonna get ugly.
 
Indeed, sharpen your pencil and use an eraser.

Creativity is something we're needing to spend a little time on, what better influence than an economic collapse and the certain knowledge it'll never go back to what it was.
 
Good God!!!, someone just fix Oak a cyanide lemonade already. Only thing that makes me happy about his post<<<

Is to hear how bad the big mouth state is compared to others. Wahoo the Lone Star.
 
I did a large tulip poplar a couple of weeks ago. I swore I had given her a price of 6gs in 2006. I quoted her $3500, ended up lowering my price even more to beat my competitor. They had a third price of $5800, and he even told her it would take 4-5 days. We did the tree in one day and that really all it should have taken. I try to keep my prices fair when doing referral or repeat biz. But as soon as the homeowner starts thowing out other numbers they've gotten I try not to be undersold. I need to feed the beast and keep my employees working. I hate to be like that but at least my equipment is on the road all the time being seen. I do notice I rarely see any other tree companies out and about at this time. Supply and Demand, we seem to have neither in South Jersey.

P.S Doing a job on monday for $1700 after I told them $2500. Had to match comp estimates. It is better to be working if you ask me. Even told them that price was dirt cheap, but most people in this area are only concerned with the bottomline and not that we are a superior company.
 
Been like that here too sometimes. Most of the work still hasn't even been done.
thinking.gif
 
Yes, there are alot of people cutting prices. Alot of them will be out of biz I imagine. Went to a pre-bid last week. There was about 35-40 companies there vs 6-8 co.s 4 months ago. Everything form construction companies to dock builders. I'm also seeing alot more fly by nights now.

By the same token, many other costs are going down now. Equipment rental prices are down about 20-25% here. Many suppliers are willing to drop prices if asked. Fertilizer prices have dropped significantly. The company I work for is paying about 1/2 the $ for fert compared to 6 months ago.

Poor business practices will put many out of business.
 
Survival of the fitest? I'm here to stay but I would imagine it does put a strain on us legit companies who are still paying all their insurances and equipment payments. Where as the fly by nites might sit this one out but can easily come back with little to no overhead. Luckily all my equipment is paid for except a little left on my log truck. Guys I talk to in the area that are making equip. payments are struggling.
 
got underbid by 1/2 last week on a removal job, I thought I was bidding it low by my standards at $4,000. the guy admitted that the other company was kinda shady, but he had verified their insurance, and was gonna use them. I told him that if I went to $2,000, I might as well just write him a check for the $500 I would lose, and not bother wearing out my equipment and men.
With that being said, I almost never move on the price I originally quote. I had a guy this week that was hassling me for $75.00 difference on a $500 pruning job. The other bid was from a hack company, I thought about telling him that my price just went up another 100 bucks since our prices were that close. I know that I hate it when people drop their prices to sell me something, it just means they weren't giving you the best deal possible from the start.
We still have a couple weeks of work in front of us, but it is definitely different than the last couple years. I used to give a lot of door-hanger bids, where I just go look at the work they requested and leave an estimate in their front door. I make a lot more effort to meet them now, it closes a lot more sales on the spot. The only thing that has saved us this winter is some well-spent advertising money and our good reputation. I don't count on it turning around soon, so I am prepared to do what it takes to hustle work, I can't stand the thought of laying any of my guys off. Good luck to you all.
 
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Good God!!!, someone just fix Oak a cyanide lemonade already. Only thing that makes me happy about his post<<<

Is to hear how bad the big mouth state is compared to others. Wahoo the Lone Star.

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You're finding joy in knowing that other's are suffering elsewhere? For your info, we're at 3.1 unemployment locally, 5.1 statewide. That's a far sight better than anywhere else in the U.S. but it's difficult to imagine the type of human you are, but knowing Bush was your boy I can understand it. Suffer his wrath by yourself, you brought it on.
 
Whats Bush got to do with my dislike for your state? Isn't Bush from Texas? Who's suffing, it's alittle slow? Are the scab companies taking over? I knid of like the eco taking a dump, seems alot less illegal imm's running around. Rumor has it they are heading home, saying they can make a better life in Mexico right now. I say Bye don't let the fence hit ya in the bum on the way back.
 
my opinion is nobodys gona take our industry serious until we get rid of jim and his pick up and everyones on the same page and the most the customer is gona save is 100$ because we're cheating ourselfs and our fellow brothers but in the end sometimes you have to do what you have to do to survive right cheers!
 
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my opinion is nobodys gona take our industry serious until we get rid of jim and his pick up and everyones on the same page and the most the customer is gona save is 100$ because we're cheating ourselfs and our fellow brothers but in the end sometimes you have to do what you have to do to survive right cheers!

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Hey!! I happen to like my pick up and I gotta eat too ya know!!

Jim
 
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my opinion is nobodys gona take our industry serious until we get rid of jim and his pick up and everyones on the same page and the most the customer is gona save is 100$ because we're cheating ourselfs and our fellow brothers but in the end sometimes you have to do what you have to do to survive right cheers!

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Thems fighting words Mr.
Never,EVER insult a mans pickup truck.
 

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[ QUOTE ]
Thems fighting words Mr.
Never,EVER insult a mans pickup truck.

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Take it easy on em guys. Whats a Canook know about a pick up anyways. He is still trolling logs with a moose.

If Jim would eat steak once in awhile, stead of soup and PJ sandwiches. He'd have to raise his prices
applaudit.gif
 
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