# What would you do



## Neige (Jan 29, 2008)

Here is a question for you guys.
I have been doing a small service station for the last 8 years. My price is at 2 grand and its 600 ft from my shop. They just offered me a similar one for the same price that is a 10 minute drive out of my work area so thats 20 minutes travel time for a job that takes 20 minutes. Across the street my competitor does a 24 hr service station for $1800 same size as mine. Its not rocket science that I can make more money doing the service station accross the street for $1700 than the one outside my service area. So what would you do?


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## cretebaby (Aug 23, 2008)

Use a bucket, it would be faster.:laughing:


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## Triple L (Nov 1, 2005)

For existing customers I go a little out of my way.... Nothing better then having 4 or 5 properites under 1 invoice payup... LOL

But new customers its real hard for me to go 5 min out of my service area...


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## Luther (Oct 31, 2007)

Triple L;855823 said:


> But new customers its real hard for me to go 5 min out of my service area...


Wow! Sounds a little crazy to me.

5-10 minutes would not be an issue as far as I'm concerned. Not really much of a drive for new opportunities.


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## LoneCowboy (Jan 2, 2007)

So, I would go for it
5 minutes isn't a killer, and it will still make you money
Plus you become the "sole source" provider for this other company

Because, just like me, I like to do business with one place.
One contact, one check, one invoice, etc.
Lots of places want to do that.

And if you can't take care of their other property, you might lose the one near you to someone who will do both.

Sometimes it's about defense.


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## buckwheat_la (Oct 11, 2009)

yeah, sounds like your customer is a good customer, and being the fact he isn't bartering you down, i would say it was worth the inconveince of the bit of drive, and if you are in the area, maybe other opportunities well come open, and as i understand your competitor is doing a service station across from the one you already do, i would say the issue you might have is IF you get the competitors service station, at $1700, you may have to look at lowering your price on the other one because if the two owners ever get talking about your prices the older, loyal customer might have a problem with being charged more then a new client, where as if you do your loyal customers other service station 10 min away, he should be happy that you are willing to do it for the same price.


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## fireball (Jan 9, 2000)

what's wrong with doing all three


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## Camden (Mar 10, 2007)

Wouldn't this be a good opportunity for you to expand on your service area? Right now this account might be 10 minutes away but perhaps next season it'll be in the middle of your new territory.

Just a thought :waving:


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## buckwheat_la (Oct 11, 2009)

i would still be worried if the two owners ever get together for a coffee, and talk, if you are going to do two similar priced jobs in the same area, better make sure they are the same price (or very close)


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## Mark Oomkes (Dec 10, 2000)

Take the second one and lowball the one across the street.


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## big acres (Nov 8, 2007)

Mark Oomkes;855928 said:


> Take the second one and lowball the one across the street.


...just hope the two owners don't get to talking.

same price as other store, not going out for bid -sounds like a gimmee to me!


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## JD Dave (Mar 20, 2007)

20 minutes is quite a distance out of the way, for a large contract I would do it but not for a gas station. On the other hand you have a pickip plow now so you can probably do it with that. I know Paul knows this but more work doesn't mean you make more money. Work smarter not harder.


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## WIPensFan (Jan 31, 2009)

I really don't see how a 10 min. drive each way is " Out of the way". Maybe you could explain why this is a tough decision? If it was my decision I would make the "short" drive.


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## wizardsr (Aug 8, 2006)

20 minutes is another small commercial lot, but instead you're going to be draining your tank driving... I have 1 property that's out of the primary service area, same type of deal. I priced it higher to account for the drive-time, and the customer happily paid it knowing the type of service they'll get (we service 2 others for them). If it's priced high enough, go for it, but not if you can take something else closer and make more payup

Funny, I was at the tire shop this morning, and a landscaper came rolling in with a shredded tire on his dump trailer. It was an employee driving it, and we got to talking. He asked me what areas we work in. He was shocked that we worked in such a small area, he's covering 120 miles from one end of his route to the other. Just don't know how they make any money when they spend all night driving...


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## Luther (Oct 31, 2007)

Neige;855815 said:


> Here is a question for you guys.
> I have been doing a small service station for the last 8 years. My price is at 2 grand and its 600 ft from my shop. They just offered me a similar one for the same price that is a 10 minute drive out of my work area so thats 20 minutes travel time for a job that takes 20 minutes. Across the street my competitor does a 24 hr service station for $1800 same size as mine. Its not rocket science that I can make more money doing the service station accross the street for $1700 than the one outside my service area. So what would you do?


How can you possibly plow 2,700 residential driveways ~ and who knows how many commercial sites ~ a year and you have never encountered this dilemma?!?

Can't help but run a little math on your pre-pay resi's....you must be checking sites in the Neige helicopter right?


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## JustJeff (Sep 9, 2009)

First off, you've got two different conversations going on here. 1-should you take the other account that's ten minutes away, and 2-should you lowball the competitor to steal his account that's accross the street from you. I don't see how either has anything to do with each other. And if your competitor came into your service station and gave the guy a price of 1,700 for the station that you currently do, wouldn't you be right here on this site complaining about "lowballers"???


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## Luther (Oct 31, 2007)

buckwheat_la;855927 said:


> i would still be worried if the two owners ever get together for a coffee, and talk, if you are going to do two similar priced jobs in the same area, better make sure they are the same price (or very close)


That's waisted worry........worry is better spent for something you have control of.


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## JohnnyRoyale (Jun 18, 2006)

Look at it this way. 

If you dont do it he'll be asking others for pricing. 

That being said, you may even lose the one under your nose. 

10 minutes isnt that big of a deal Paul. I would do it to keep the guy happy, and not look elsewhere. 

At the end of the day it might cost you the one you already do-whether or not it makes or breaks you-only you know. Good luck with that.


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## Neige (Jan 29, 2008)

TCLA;856022 said:


> How can you possibly plow 2,700 residential driveways ~ and who knows how many commercial sites ~ a year and you have never encountered this dilemma?!?
> 
> Can't help but run a little math on your pre-pay resi's....you must be checking sites in the Neige helicopter right?


I know its not a dilemma, just wanted to see what others thought.



LoneCowboy;855897 said:


> So, I would go for it
> 5 minutes isn't a killer, and it will still make you money
> Plus you become the "sole source" provider for this other company
> 
> ...


Very good point, I really was not worried about losing him because I buy lots and lots of gaz from him.



Mark Oomkes;855928 said:


> Take the second one and lowball the one across the street.


Just the answer I expected from you Mark. 



JD Dave;855952 said:


> 20 minutes is quite a distance out of the way, for a large contract I would do it but not for a gas station. On the other hand you have a pickip plow now so you can probably do it with that. I know Paul knows this but more work doesn't mean you make more money. Work smarter not harder.


Right on JD, just the point I was trying to make.



WIPensFan;855965 said:


> I really don't see how a 10 min. drive each way is " Out of the way". Maybe you could explain why this is a tough decision? If it was my decision I would make the "short" drive.


Sure my service area is 3 sq. miles. It would be much more profitable to just add contracts where I drive by already. Instead of expanding my area, I would prefer to add more accounts where I work already.



Harleyjeff;856038 said:


> First off, you've got two different conversations going on here. 1-should you take the other account that's ten minutes away, and 2-should you lowball the competitor to steal his account that's accross the street from you. I don't see how either has anything to do with each other. And if your competitor came into your service station and gave the guy a price of 1,700 for the station that you currently do, wouldn't you be right here on this site complaining about "lowballers"???


Yes I have several choices. #1 do I want to expand my service area. Not really. #2 do I want that other account. Yes I do, is it low balling if I get it for 1,700 I dont think so but thats my opionion. If I increase my clients in the area I already service, am I not becoming more efficient? If I become more efficient could I not offer a better price, and still make good money. In all fairness I should offer my own client the same price, since he has supported me all these years. So this is what I did. I went and saw my competitor and mentioned I had a service station outside my area, that was closer to his office. I told him he could have it for $1800, and I wanted the one he does in exchange. He agreed, worked it out with the clients and we are a go. Lastly I offered my original client 2 free saltings since we had agreed to our price of $2000.00. Worked out for everyone.


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## Triple L (Nov 1, 2005)

TCLA;855884 said:


> Wow! Sounds a little crazy to me.
> 
> 5-10 minutes would not be an issue as far as I'm concerned. Not really much of a drive for new opportunities.


5-10 min for a new customer out of my service area is huge... Then if you get the job there, and someone else askes you can you do a job for me 5-10 min away again... before you know it your 1/2 hour one way trip or more.... where do you draw the line....

Paul - Thats some pretty interesting problem solving you came up with there... Sounds like everyone is happy now and everyones making money.... :


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## buckwheat_la (Oct 11, 2009)

that is a great solution, awesome job, i hope this serves as a example to everyone.


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## JoeCool (Oct 29, 2009)

Neige;856239 said:


> I know its not a dilemma, just wanted to see what others thought.
> 
> Very good point, I really was not worried about losing him because I buy lots and lots of gaz from him.
> 
> ...


I think this was a setup. I think you did it as a lesson to the students. Good job. You will be holding my attention when you post.tymusic


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## Luther (Oct 31, 2007)

Excellent solution.........efficiency at it's best. 

Neige certainly knows how to penetrate a concentrated area!


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## Mark Oomkes (Dec 10, 2000)

Neige;856239 said:


> Just the answer I expected from you Mark.
> 
> Not sure I like the sound of that.
> 
> Yes I have several choices. #1 do I want to expand my service area. Not really. #2 do I want that other account. Yes I do, is it low balling if I get it for 1,700 I dont think so but thats my opionion. If I increase my clients in the area I already service, am I not becoming more efficient? If I become more efficient could I not offer a better price, and still make good money. In all fairness I should offer my own client the same price, since he has supported me all these years. So this is what I did. I went and saw my competitor and mentioned I had a service station outside my area, that was closer to his office. I told him he could have it for $1800, and I wanted the one he does in exchange. He agreed, worked it out with the clients and we are a go. Lastly I offered my original client 2 free saltings since we had agreed to our price of $2000.00. Worked out for everyone.


Brilliant solution.



JoeCool;856373 said:


> I think this was a setup. I think you did it as a lesson to the students. Good job. You will be holding my attention when you post.tymusic


I knew it was setup from the get-go, just didn't quite expect the result. And I didn't say anything because I didn't want to ruin it.

Nice work Paul, much better than the *****ing about lowballers of late.


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## big acres (Nov 8, 2007)

Not a bad solution, but I'd rather eat the travel than introduce my client to my competitor.

I know it goes both ways here but you must trust the guy, as you have two to lose and he only one.

Not like you'd take a major hit losing a couple service stations though.

I think your market has alot to do with it, and I have no clue about your market. I would guess maybe not a smaller town, but a small town attitude where handshakes still go far?

Around here the competition smiles at you with a dagger behind their back.

Congrats on the deal... took some some cajones to tell the clients they've "been traded"... reminds me of a Seinfeld episode. We actually traded employees with another company once... the look on their faces was priceless.


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## Neige (Jan 29, 2008)

big acres;857384 said:


> Not a bad solution, but I'd rather eat the travel than introduce my client to my competitor.
> I was not going to go outside my service area, so figured he would find this guy anyways.
> 
> I know it goes both ways here but you must trust the guy, as you have two to lose and he only one. Dont trust him one bit, knew my client was in the bag im his best customer, + being so close to my garage he gets the best service in town.
> ...


Thanks, to everyone who had an opinion. 10 years ago I would have gone for all 3, or at least lowballed the other guy to chase him out of town. I try to be proactive instead of reactive, I have good days and some bad.


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