Profits with Pajak – Episode #480

Why Customers Are Acting Different This Spring
Host: John Pajak | Date: March 30, 2026

Episode Overview

In this episode, John Pajak addresses a trend many in the green industry are noticing in Spring 2026: long-term customers are suddenly canceling, new leads are hesitant, and people are reconsidering services or opting to DIY. John explores the reasons behind this shift in consumer behavior, emphasizing that it’s less about your business or service quality and more about larger economic and psychological forces affecting clients. He also offers strategies for adapting and thriving during uncertain times.

Key Discussion Points & Insights

1. Recognizing the Change in Customer Behavior

• Observation: Many lawn care and green industry businesses are seeing customers cancel or pause services, and new clients are slow to commit.
• Personal & Industry Experience:
  • “Clients that log on and log off, they’re with you, then they’re not. I’ve even seen long-term customers making decisions that don’t line up with how they behaved in the past.” (03:30)
• Don’t take these changes personally; they’re part of recurring cycles in business.

2. Understanding the Real Drivers (Local and National Context)

• Local Economic Example: In northwest Indiana, a major oil refinery’s lockout has a ripple effect—families reduce spending on “optional” services like lawn care, which trickles through the local economy.
  • “If you’re a homeowner in this situation, what are you doing? You’re tightening up. You’re cutting anything that feels optional.” (06:10)
• National Trends: Rising fuel costs, inflation, global tensions, and economic uncertainty are making everyone more cautious—regardless of political stance.
  • “We’re all experiencing the same outcome—we’re feeling it in our pocketbooks.” (08:05)

3. The Impact of DIY Culture

• Customers increasingly think they can do it themselves and see DIY as a way to save money, without fully tallying up the hidden costs or potential for poorer results.
  • “When money feels tight, people start thinking, ‘I’ll just do it myself.’... They’re not comparing results, they’re comparing monthly expenses.” (11:50)
• This is an unconscious “competitor” every business faces during tight times.

4. Loyalty is Being Tested

• Long-standing clients may leave abruptly amid financial anxiety, often without explanation.
  • “You might have customers that you’ve taken care of for years, and suddenly they cancel. No warning, no conversation.” (14:00)
• Customers’ decisions are usually about their own circumstances, not your service.

5. Personal Anecdote: The Trash Pickup Analogy

• John shares his experience switching trash companies despite liking his service provider, simply because costs skyrocketed.
  • “I wasn’t thinking about Kyle. I was like, ‘I need to save some money here.’... It just seemed ridiculous to me to pay $1,600 a year for one can to take my trash away.” (17:15)
• Reminder: Even great relationships can’t always overcome hard economic tradeoffs.

Actionable Strategies for Adapting

1. Don’t Take Cancellations Personally

• Detach emotionally and realize external forces are at play.
  • “You’ve got to remove emotion from this… don’t internalize external problems.” (29:30)

2. Sharpen Value Communication

• Clearly communicate the benefits and boundaries of your services, especially when clients request cutbacks.
  • “If your customer doesn’t clearly understand what they’re getting, you become easy to cut.” (30:00)
• Example: When clients ask to reduce fertilization applications, John explains the likely increase in weeds and the loss of callback privileges, along with potential increases in per-visit pricing.
  • “The price per application kind of goes up too, because we’re spending more time… It seems like a good idea, but… you’re not going to get the desired results.” (33:25)
• Empathy matters: “I almost talk them out of it. Most people end up staying.” (34:30)

3. Know Your Numbers Cold

• Tighten up your accounting, track margins, and review finances more frequently than once or twice a year.
  • “If you don’t know what it costs you to operate… you’re flying blind.” (37:00)
• John’s mantra: “Guessing is going to hurt you. It’s not going to help you at all.” (37:40)

4. Identify & Serve Core Clients

• Not all customers are equal; focus on your “ride or die” loyal clients and find ways to serve them even better.
  • “When you identify who your ride or die customers are, how do you serve them EVEN better?” (40:40)
• Sometimes, “the win is just staying profitable… some seasons are about strengthening that foundation.” (42:25)

Notable Quotes & Memorable Moments

• On External Forces:

  • “This isn’t just happening TO you, and this isn’t happening BECAUSE of you.” (04:20)

• DIY Competitor:

  • “When they do it themselves… they’re not thinking of all those things, but they just see the monthly expense, not the results.” (12:00)

• On Loyalty and Customer Attrition:

  • “Their decision isn’t based on history with you—it’s based on their current situation.” (15:52)

• On Staying Profitable:

  • “Not every season is about expansion. Some seasons are about strengthening that foundation.” (42:25)

Timestamps for Key Segments

• 00:00 – 03:30: Introduction & context—describing the current shift in customer behavior.
• 06:10 – 08:05: Local economic effects and the national climate.
• 11:50 – 13:00: DIY as a growing competitor.
• 14:00 – 17:15: Customer loyalty being tested and John’s personal trash pickup story.
• 29:30 – 37:40: Emotional detachment and the importance of knowing your numbers.
• 40:40 – 42:25: Focusing on core clients and serving them better.

Three Action Steps to Apply Today

1. Review Cancellations Without Emotion

   • Look for patterns. Are cancellations due to your service, or their situation?
     • “Review your cancellations without emotion. Don’t look and feel sad or blame anybody. Look for patterns.” (44:10)

2. Communicate Value Proactively

   • Don’t wait for customers to question your worth; communicate benefits before issues arise.
     • “Communicate the value before customers even question it.” (45:00)

3. Know the Financial Impact of Changes

   • Be ready to adapt if revenue changes; understand exactly how shifts impact your business.
     • “If revenue shifts, you need to know exactly how it’s going to affect your business.” (46:30)

Closing Motivation

John ends with a reminder:

• “Your job is not to control the economy. Your job is to understand it, adapt to it, and position your business to win.” (49:20)
• “Look at every cancellation… and ask yourself, was this about my service or their situation? Because the answer tells you what you need to do next.” (49:45)
• “Keep pushing through and God bless.” (50:00)

This episode is highly relevant for any business owner seeing a shift in customer behavior, especially in service businesses affected by economic swings. John’s advice is practical, empathetic, and focused on controlling what you can—serving clients well, knowing your numbers, and keeping your business strong until growth resumes.