Beer and hotwings?

Unfortunately, rejection is part of it. You need to remember that no matter how much of yourself you've put into the work, they're rejecting your proposal, not you.

Unless you're in danger of starving, don't lowball and don't be too quick to give concessions. Sales is nothing more than a numbers game- to get a yes, you need to get a lot more no's. The idea is to generate leads any way you can, be it direct mail, cold-calling, whatever, and filling your pipeline. Activity= sales success; celebrate your successes, and learn from your losses and move on. Are you doing anything exit interview-ish to learn why you got the no?

I'm not a natural salesperson. When I was selling in another industry, we heard the terms "sales farmer" and "sales hunter" tossed around a lot. The hunter was what the bosses liked, because it was highly visible activity and aggressive closing. Naturally, hard closes meant contract recisions later, as the client realized they didn't want it after all.

I'm a sales farmer. I get the leads, make my pitch, and stay in contact regardless of the result. I encourage my prospects to sign up for my email newsletter list, and I keep my name in front of them with periodic mailings, newsletters, and cards. It takes longer, but I get solid, committed clients that way, and I can sleep at night. When I was selling landscapes like they were used cars, I didn't sleep so well. Find the style that's right for you, and you'll rock it out.

Dave

Dave, I like your description. I'm definitely more of a farmer. Actually, I'm more of a "let someone else do the selling", but since I'm a business of one person, that's not an option unless I develop a split personality disorder really soon.

Beer and hot wings are good too, and the husband would join me for those!

>but since I'm a business of one person, that's not an option unless I develop a split personality disorderAn added benefit would be that if they called to complain you could tell them the other person did it and you're going to have a word with them.

One place I worked at the manager gestured/yelled at someone in traffic, while out in the delivery van with the company name and contact information painted conspicuously on the side. When the offended party actually called the store later, he of course could shine it on since he was the manager.

Is lowballing the price really a bad idea if you are not getting enough work?

Every established person will criticize people for not charging enough. The problem is that the unestablished person is trying to compete against established people. One is selling a proven track record, the other is selling potential.

It is the consumer who is doing the buying. The buyer makes the final determination on the value of what is being offered. If the price is the same, which is of more value - the proven track record or the potential? Proven wins every time. As a consumer, why would you consider the new person? Because you are looking for a benefit that overcomes something that is a negative over the established company. It could be scheduling, more friendly service, but more often than not it is because the established company has become expensive and you are looking for relief.

The first thing to do to survive is to become busy. Then you can raise rates and lose a few while increasing profit on the ones you keep. In the process you become the establishment.

Charging top dollar is not making money if you don't have work. You can consider some of the money you are not getting as money you are spending on marketing.

Until you are out there busy doing work you are just another person with a card no matter how long you did the work as an employee somewhere else. Being out there working is the biggest marketing tool there is in landscaping and I would venture to say that it is true with interior plantscaping.

Expensive and lowballing are two points at opposite ends of the line, laag. I'm not advocating a new business charging top dollar, but there comes a point- especially in B2B sales, which I assume interior plantscaping is- where as your price goes down, so does the perception of the product. You have to know your market to know where this point is, where you'll be seen as a great value and not merely cheap. To me, lowballing means selling yourself at that cheap price.

Dave

It is an overused term.

So make up a new term. I'll start: "personally de-valuifying." Your turn!

I guess I have a slightly different take on it, because I'm competing with companies that use draftspersons in China and India. I can't do 3d modeling for $9 an hour, nor will I even try.

Charging a bit less to junp start a new business is not really low balling. It is understanding that one can not assume that the consumer values everyone doing the same task as being of equal value.

Pricing is Pride and Prejudice. The seller's pride demands the highest dollar. The buyer's prejudice may see a different value for different people doing essentially the same task. Too much pride and you are home with no work. Too much prejudice and you'll never hire anyone to get the job done right.

Reasonable pride will not work for peanuts, but will adjust in order to be accepted into the market.

Reasonable prejudice will take the best over the second best every time, if the price is the same unless there is another reason that adds value that overcomes the difference. Second place means sitting at home doing nothing.

Find a way to come in first place and then continue to build value.

Nothing makes it easier to raise prices than having plenty of work.

Interesting discussion, thank you for the perspective. I've dropped my prices to the low end of what I can stand, I'm not losing money so I don't consider it lowballing. But I do need to get this thing jumpstarted, especially since I live in a small town and have a limited base of commercial business clients.

I guess the proper term is, "Special introductory pricing"?

"I guess the proper term is, "Special introductory pricing"?"

Awesome. Exactly.

As far as MY interpretation of the term goes, if you're still profitable then it ain't lowballing.

I like that definition of lowballing. It has seemed to be applied in some other circles to charging less than someone else.

Cf. "undercutting".

Just wanted to drop in and say thanks to all of you. I've found a comfortable price that's getting me some work and visibility while letting me sleep at night. I've also developed a sales style that suits me and feels good, as opposed to the "used car salesman" approach that some of the small business books I read suggested.

One solid client is signed, and I have several more really high-profile ones in the works. Thanks again!

Watergal, are you pricing your company's (old company's?) accounts and trying to take them over? Did you sign a non compete contract with the company you work for? How long, in total have you been working in this field? I ask becasue it may, in part, play into the decision not to hire you for the job.

Cheaper doesn't always mean better. You couldn't pay me enough to work for RTK. They are here in my area and generally can undercut anyone when it comes to bids.

I put in 52hrs last week so as you can see undercutting others doesn't mean you'll get the job or that there will be value in it.

All of my clients appreciate my 15 yrs of experience and the relationship that I've nurtured with them over the "Undercutters" that regularly come in and try to steal my accounts.

horse chick,

I would NEVER take over an account from my present employer! I have a great deal of respect for them, they have treated me well. I have too much integrity to even TRY to take away their accounts, even though I never was asked to sign a non-compete.

I actually started my company here in my home town, which is an outer bedroom community of the city, because I am tired of the time and expense of commuting into the city. My intention is to grow my company slowly, so that when my boss is ready to retire and sell his company, I will have something to fall back that is convenient and pays well. If he retired, the only other companies I would want to work for are based at least 1.5 hours from my house, which is way too far to make any money.

Having said all that, if someone who was NOT a client of my boss's but was in his market area solicited ME for a quote, I WOULD pursue it, IF the job were large enough to make the commute worth it.

I have been working in interior landscaping as a tech for almost four years, a couple of years in garden centers before that, and an avid plant hobbyist and student since I was a small child. I also worked in the business world for a while and have a degree in economics.

I agree that cheaper doesn't mean better! I am not familiar with RTK, but there is a company here who undercuts people, does crappy service, and ends up with very unhappy clients. Every employee I've met who worked for that company was very unhappy as well. I am bidding on one of their jobs right now, as a matter of fact, and I know my boss has taken over many accounts from them.

My first few prospects seemed a little nervous about my company being new, but then I got comfortable with my "sales style" and that doesn't seem to be an issue any more.

RTK is Rent to Kill. They are a pesticide company that decided to go into the interscape business. They've bought out many smaller companies in my area and send out their sales people to try and undercut other interiorscapers.

I wish you much success in your venture. Persistance and time are all it sounds like you'll need. Just keep banging on those doors and be prepared to hear many "nos" before you get that first "yes".

I thought of doing the same thing in the Texas town where I grew up. After a bit of research, I discovered that there just wouldn't be a large enough market for me to ply my trade there and my licensing won't transfer to TX. I have to take another state exam...sigh

In FL, the pesticide catagory is Lawn & Onramental. We interiorscapers get lumped in with the lawn guys. I know more about the treatment and prevention of diseases in St. Augustine grass then I'll ever have need for in my current line of work as I've never seen so much as a blade of grass in an atrium or planter.

Here in FL an interiorscape company MUST be licensed to be able to spray anything. The employees under me also have to have yearly training and carry an ID card that enable them to treat an infestations they find.

What's it like in your state watergal?

Dear Sheila,

RTK as horse chick mentions is an awful company. I handle outdoor maintenance but back in the day when I was Purchasing Asst for a large Advertising agency in downtown Chicago they had RTK and boy, the plants at best looked mediocre to terrible. The Office Manager was constantly on the phone with them regarding problems.

I used to chat with the techs - couple of nice ladies and they mentioned the pay was terrible.

One of our sister agencies next door had a small plant care company handling the plant maintenance (it was 2 person gig I believe) and what a difference - the pots looked chic and the plants looked perfect. The fellow that ran the business mentioned that RTK had undercut him and taken that account (that was us) from him.

I really struggled to understand with all the extra visits back to correct things and the all the complaints from the various staff how they were really any cheaper then the fellow that did it the right way - the plants looked lousy.

Ah, now I know who you mean by RTK. When I entered the biz, they had switched to the name Initial Tropical Plants, so that is what I think of them as. I'll plead the fifth as to my opinion of them!!

horse chick, I've heard about the Florida rules before from other folks, they seem pretty silly for interiorscape! In Maryland, we have a category for Ornamentals, which has subcategories for Interior, Exterior, and Turf. And you must be licenses to apply ANYTHING at all, even the same stuff a homeowner can buy off the shelf, like Roundup. I suspect even home remedies, oils, soaps are included.

I wanted to get my license, to be above board, and foolishly thought all I would have to do would be get the study materials, learn them, and take the exam. WRONG!! They won't even let you TAKE the exam unless you:

1. Have a B.A. in Horticulture or a related field, or

2. Have a year's experience as a registered employee applying pesticides under the direct supervision of a licensed pesticide applicator.

Well, my B.A. was in Economics, and although I had worked as a tech for years, I didn't have the experience doing pesticides. So at first, it appeared that my only option was to get another B.A. in Hort. That wasn't going to happen - I have a teenager almost ready for college and not enough money to pay for HER tuition, let alone a second B.A. for me.

So I wrote to the agency and asked what I could do. Turned out there was an obscure provision, not even explained on the web site, whereby you could take certain approved college courses to substitute for your year's experience. I lived pretty far from all of the acceptable schools, but one offered the courses online, so I chose that. There were only three courses to choose from that would count - Pesticide Use & Safely, Insects of Ornamentals and Turf Grass, and Turfgrass Management. I chose the first two. The Pesticide class was way more interesting than I expected. However, the Insects class was taught by a turf specialist, and most of the students were studying turf, so he spent about 90% of the class time on the turf insects. Totally useless to my line of work. I can tell you more about white grubs, japanese beetles, and borers than you would ever want to hear.

To make matters worse, they didn't offer the classes every semester, so I had to take both of them at the same time, or it would take FOREVER to get my license. So I was working 3 days a week for my boss, starting my own business, AND taking 2 college classes. It just about killed me, but I passed.

Then, when the first two exam dates came up, I had serious family crises to deal with and had to skip them. I will take the test in June now, come heck or high water.

That was probably way more than you wanted to know!

No, it's always interesting to hear what others have to go through to be in compliance with their laws and regulations.

We have the same type of requirements, hence my Associates in Horticulture. The owner of my company isn't even qualified to carry our license .

The state exam here is hard. I used flash cards and attending a class aimed at helping people pass it. I don't know if the guy is still business but his name is Doug Palmer. It cost over $200 for that class and that was more then 11 uears ago when I took it. It was a godsend though and I'd check into seeing if y'all have something similar there.

I passed the exam the first time out with a 97%

All PCOs here have to take yearly CEUs. Mine are next month as we have to have out certificates by the time our licenses come up for renewal in June. I have to take Core (law) and L&O (lawn & ornamental) every year.

I then have to give that same lesson to our employees and keep records of it. My boss throughs a pizza party for the lessons and it makes it much more enjoyable.

We have inspectors out every 2-3 yrs. They look over chemical storage but are mainly interested in those employee records.

It's all about the money here.