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View Full Version : Tip Of The Day - 9/14/05 - Client Gifts


Sean Adams
09-14-2005, 03:27 PM
It's always nice when you receive a gift. It is even more enjoyable when you receive an unexpected gift. Competition is everywhere. There is someone out there right now who wants your customers. It is your job to keep them happy. Show your clients you appreciate them. It does not have to be anything expensive or elaborate - maybe a free mowing, or a gift certificate, or a pumpkin, with a small note saying "thanks". Simple gestures like this go a long way.

dvmcmrhp52
09-14-2005, 05:03 PM
It's amazing what something as simple as Christmas cards can do as well.

bobbygedd
09-14-2005, 05:42 PM
yea, how does this sound, "dear mr xxxstien, from the bottom of my heart, i want to thank you for ALLOWING ME to be your slave, to get skin cancer, to inhale all the crap you have on your lawn, for not being able to raise my fees for the last 9 years, for patiently waiting for your late payments, for having your fat azz wife ask me to do things that we never agreed on, and finally, for losing you, to the guy, that quoted you $2 cheaper. to show my appreciation, mr. xxxstien.......i bought you a shovel, for a gift :dizzy: :dizzy: "

Guthrie&Co
09-14-2005, 08:11 PM
LMAO!!

I was thinking about sending some osmacote(sp) samples

GrazerZ
09-14-2005, 09:25 PM
yea, how does this sound, "dear mr xxxstien, from the bottom of my heart, i want to thank you for ALLOWING ME to be your slave, to get skin cancer, to inhale all the crap you have on your lawn, for not being able to raise my fees for the last 9 years, for patiently waiting for your late payments, for having your fat azz wife ask me to do things that we never agreed on, and finally, for losing you, to the guy, that quoted you $2 cheaper. to show my appreciation, mr. xxxstien.......i bought you a shovel, for a gift :dizzy: :dizzy: "


I asked about this very thing some time ago and got a similiar response from you. I give gifts to customers and have had awesome feedback from it. whats a stinkin $10.00 pocket knife from a customer who pays me $80,000.00 per year? or a basket of golf balls-$100.00- for a customer who contantlly ask me to do more work and never complains about the price. Bobby, Maybe if you...oh nevermind :dizzy: :dizzy:

bobbygedd
09-15-2005, 05:23 AM
they should be giving me gifts. you people think backwards. it IS THEM who should show thanks, and apreciation. let me think about this......the average lawn punk here claims to be working at a 7% profit margin. my lawns average around 2k per year each. at your 7% profit margin you are clearing about $150 per property. i have 80 clients, i buy them each a $10 gift, it costs me $800. this means i need to service 6 properties, ALL SEASON, just to pay for the gifts. no thanks. i like it better this way: i provide the service, you pay the bill, don't give me no lip, no late payments, and no gifts, and we won't have a problem. btw, did i mention next season, i'll have fresh produce for sale?

GrazerZ
09-15-2005, 07:59 AM
Personally I would'nt give gifts out to those little customers either. However I don't care what you say, if you spend a little on your better customers you will often find it improves customer relations, and you may be suprised at how agreeable they will be to doing more work for them. Besides If you stop in to give them something special its an excellent time to suggest other work that you think they could benefit from. Hey, either you get the point or you don't, It dosen't matter to me. But, the "you should be kissing my butt" montra has never gotten me a thing. whereas treating your customer like you would like to be treated does. :)

bobbygedd
09-15-2005, 08:53 AM
do you have any service providers that send you a gift? the electric company? the paperboy? the cable company? the plumber? ANYBODY? does anyone send you a gift?

git er done landscaping
09-15-2005, 09:59 AM
do you have any service providers that send you a gift? the electric company? the paperboy? the cable company? the plumber? ANYBODY? does anyone send you a gift?
well some of them send me little calenders and fridge magnets with theyre name on them lol.

Sean Adams
09-15-2005, 10:21 AM
how many times does your plumber or electrician service your home/property? and many plumbers, electricians, etc.... charge the same amount for their service (not always, but often)... as a regular service provider (maybe as many as 25-50 times in a year) it is necessary that you show your appreciation - if not they can look at johhnygedd down the street who can do the same job for less money and no shovel...if you make your clients your "friends" they will be less inclined to look elsewhere

then again, the comic relief you provide bobby probably does deserve a gift from your clients - you are definitely the exception to the rule

bobbygedd
09-15-2005, 11:44 AM
sorry mr addams, rule numero uno- don't do business with friends. they can have jonnygedd. they all come back, every time

Sean Adams
09-15-2005, 12:28 PM
SORRY, I SHOULD HAVE EXPLAINED FURTHER...

if you notice, in my last post I mentioned making your clients your "friends"... the word friends is in quotes...I should have said [friendly]...

meaning if your clients like you, trust you, etc... they are then less inclined to hire a shovel-swinging gedd - even if you charge a bit more

Soupy
09-15-2005, 12:37 PM
Bobby, you have a point. The trash company services my property every week and gives me nothing. On the other hand they were just replaced by a cheaper company.

Here is were I agree with Sean. We provide a more personal service and it isn't uncommon to receive gestures of appreciation for such business. You may find that some insurance agents, accountants, etc. view this as a standard business practice. I get regular carpet cleaning (darn kids) and the company I use gives a free bottle of spot remover out to all their good customers each visit.

Sometimes you have to look at the big picture. Sean's tip (and he didn't invent anything new here) isn't about throwing money out the window. It is just another ideal to reinvest in your business. I'm sure you have heard the phrase it takes money to make money? Well you may find this to be true. I give holiday cards out to each customer every year, and to a select group I will give a free service, or a gift certificate. I don't always give to the same customers each year, sometimes I mix it up a little. I charge a premium and this offsets any expenses, so I am not actually giving anything away free.

I guarantee you that most LCO's make well beyond 7% profit. It's true that very large companies working on volume have very high overhead. But this industry is made up of many more smaller companies that have very low overhead compared to most other types of business. We don't have to continually market for our next job because we provide a subscription based service. Many are able to work out of their home, etc.

Bobby, here is a business tip just for you buddy. That 7% profit you mentioned already has the gift giving factored into it. So you may not have to reach in your wallet just yet. If you do not have enough money in your variable expense budget this year. You can always wait until next year. Then you can choose to make it a fixed expense by allotting X amount of money for X amount of deserving customers. If your customers act and view you as you described, then a little PR (personal relations) might just be what the doctor ordered for your business.

Sean Adams
09-15-2005, 01:11 PM
Well said...great post

bobbygedd
09-15-2005, 01:49 PM
well, i can't try and hijack seans post, but......let's face facts, sean don't cut grass for a living, i wonder why :rolleyes: like i said though, in my neck of the woods, clients gross you about 2k per season, IF THEY are on full service. if not, then it's around $1200 per client. if you're smart like me, you net around 75%. i think i give them enough reason to keep using my service. they can buy thier own spot remover. whatever makes you feel good, then do it. once again though, it should be the other way around. i work hard for these people, i should be getting the gifts, not them. you know, all that cat litter gets heavy after awhile

Soupy
09-15-2005, 02:33 PM
well, i can't try and hijack seans post, but......let's face facts, sean don't cut grass for a living, i wonder why :rolleyes: like i said though, in my neck of the woods, clients gross you about 2k per season, IF THEY are on full service. if not, then it's around $1200 per client. if you're smart like me, you net around 75%. i think i give them enough reason to keep using my service. they can buy thier own spot remover. whatever makes you feel good, then do it. once again though, it should be the other way around. i work hard for these people, i should be getting the gifts, not them. you know, all that cat litter gets heavy after awhile

I agree about hijacking a thread so I'll make this my last post. But I wanted to point out that In the past years my turn over rate has been next to 0. This year I did lose one customer to a friend of the family that entered the business. Other then that I usually don't lose customers other then death or relocation. I have been doing this for 14 years and my prices are high for my area. I will own up to the fact that my customers could probably get just as good service at a cheaper price too, but for some reason they just like me :blush:

EDIT: one other thing I will point out to you Bobby (even though you have the perfect operation). If you follow Sean's advice and create a friendly relationship with your customers, you might just start receiving those gifts that you think you deserve.

GrazerZ
09-15-2005, 02:52 PM
Actually I HAVE gotten gifts from my customers. Like a gift for my newborn and a card when they found out We just had a baby.or a yearly thankyou gift box of brownies or candies. Oh, and guess which ones those gifts were frm... yeap you guessed it. :) This is my last post to beat this horse.

bobbygedd
09-15-2005, 03:45 PM
my turnover rate is zero, unless i choose to eliminate the client. and, i don't send gifts, or kiss butt. go figure. later

DLS1
09-15-2005, 03:54 PM
my turnover rate is zero, unless i choose to eliminate the client. and, i don't send gifts, or kiss butt. go figure. later

Like we believe that. You surely have had customers fire you after seeing your mullet and seeing a walkbehind mowing their grass with two eyes just barely above the handles bars and a large shovel sitting on the walkbehind and a beer sitting in the water holder. :)

bobbygedd
09-15-2005, 05:24 PM
ha ha, that's a good one. ok, i got one for you. WHY did the guy from kansas city cross the road?

Sean Adams
09-15-2005, 05:39 PM
bobby...

1. You have no clue what I do/did for a living in relation to this industry. I can assure you I have far more hours behind equipment than you do - and I am still involved in the day to day operation of a company

2. You do not run a legitimate business if you net 75%

3. Of all the stories you have told on this site, you are trying to claim no one has ever ended your service - no one? ;)

bobbygedd
09-15-2005, 05:51 PM
mr addams (you may adress me as bobbyalmighty). i am willing to bet my curly hair collection, that you DO NOT cut grass for A LIVING. i assure you that my company is 100% legitimate. and, yes, on occasion people have cancelled, but for MY reasons, such as- i refuse to budge when there is a discrepancy, etc. BUT, even then, 99.99% of the time, they come whimpering back. remember now, when i joined this site, i had never heard of most of the stuff the pros here were doing. my competitors, still don't. i don't know of one single competitor that knows how to fert properly, knows how important aeration is (most, have never even used a core aerator) , knows how to identify/prevent/treat certain weeds and fungus. they STILL are all bagging thier clippings, they never heard of double blades, or striping rollers. these guys, are in the stone age. combine this, with thier lack of education, 22 missing teeth, and inability to speak in complete sentences, and compared to them, i seem like a harvard grad, who could win a mr america contest, and can charm the pants off a nunn. remember kid, i don't have to outrun the bear, i only, have to outrun, YOU. do you know what this means?

dvmcmrhp52
09-15-2005, 06:00 PM
mr addams remember kid, i don't have to outrun the bear, i only, have to outrun, YOU. do you know what this means?




I'm going to take a stab at what "this" means...............


It means that Mr. Adams will be creating wealth for himself long after you have been thrown in the can for tax evasion or shovel wielding.................whichever comes first.
The rest of us that intend to eat filets and lobster for dinner on a regular basis will treat our accounts with some respect and dignity.

bobbygedd
09-15-2005, 06:01 PM
wrong, try again

Sean Adams
09-15-2005, 06:21 PM
makes no sense in this discussion.... your bear metaphor

unless the 'bear" is the IRS, which in that case, you can outrun me, and when the "bear" catches me, I'll show him my tax forms and then he lets go of me, even more ticked off and hungry....

I have read your posts claiming you have employees or at least an employee and when you buy equipment, etc... and gasoline alone.... so if you think for a second that you are clearing 75% of your gross receipts and your operation is 100% legitimate you are nuts, or just confused

bobbygedd
09-15-2005, 06:37 PM
the bear, was in reference to my statement that very few people cancel thier service with me, and when they do, they end up comming back. you see, to "outrun the bear" simply means, you don't have to be THE BEST at what you do, just BETTER than the people around you. follow me? ok, the short version: 2 men are fishing in the woods. while walking back to camp, a bear smells the fish, and starts chasing the men. they start to run, and one man stops to put on his sneakers. the other man says, "you fool, you can't outrun a bear, no matter if u r wearing boots, or sneakers." the other man replies, "i don't have to outrun the bear, i only have to outrun, you." are you following me? this was in reference only to the part about my customer retention, i am simply more qualified than 99% of my competitors. as far as the irs, i am 100% legit. do the numbers sean, the numbers don't lie, my costs before payroll are $10,000 per year. 80 lawns at an average of $1500 each= $120,000. add a few small landscapes, trimming jobs/cleanups.....work it from there. btw, my gas bill to mow 80 lawns is $65 INCLUDING mowers/wackers/edgers/blowers/trucks

DLS1
09-15-2005, 07:07 PM
Sean your making one big mistake with Booby. The guy mows a few yards with his 21". He collects welfare to pay the rent and food. The mowing money is beer money and to keep his mullet shaped up. He doesn't claim mowing money on taxes, has no insurance and that is how he clears 75%.

Just look at him as the good humor clown of the site and you will understand his posts better. :)

mow king
09-15-2005, 07:26 PM
the bear, was in reference to my statement that very few people cancel thier service with me, and when they do, they end up comming back. you see, to "outrun the bear" simply means, you don't have to be THE BEST at what you do, just BETTER than the people around you. follow me? ok, the short version: 2 men are fishing in the woods. while walking back to camp, a bear smells the fish, and starts chasing the men. they start to run, and one man stops to put on his sneakers. the other man says, "you fool, you can't outrun a bear, no matter if u r wearing boots, or sneakers." the other man replies, "i don't have to outrun the bear, i only have to outrun, you." are you following me? this was in reference only to the part about my customer retention, i am simply more qualified than 99% of my competitors. as far as the irs, i am 100% legit. do the numbers sean, the numbers don't lie, my costs before payroll are $10,000 per year. 80 lawns at an average of $1500 each= $120,000. add a few small landscapes, trimming jobs/cleanups.....work it from there. btw, my gas bill to mow 80 lawns is $65 INCLUDING mowers/wackers/edgers/blowers/trucks

So with gas at about $3 a gallon you mow 80 lawns on about 20-22 gallons of gas? or about 1/4 of a gallon of gas per lawn? How large are these lawns...200sq ft?

Sean Adams
09-15-2005, 08:09 PM
bobby - I understand what the bear story means - just thought at that point you were referring to you netting 75%

and as far as that bear is concerned - going back to the tip of the day - why not show thanks to your clients now, so that if someone does pop up thats "faster" than you, there will be no concern

and as far as your math....I will still have to assume you are joking about "netting" 75%...

self-employment tax alone is 12.4% for your first $85k and medicare is 2.9% on all of your gross earnings....then you have to pay regular income tax (since you are a sole proprietor) - vehicle/liability/workers comp insurance alone after paying SE tax would probably take you over 25% expense

Green-Pro
09-15-2005, 08:22 PM
Well suffice it to say I subscribe to a lot of sayings oldtimers use as they seem to hold their merit through the years, no matter what.

"you'll catch MORE flies with honey than with vinegar"

bobbygedd
09-16-2005, 07:13 AM
sean, all of those things are included in my 10k per season operating costs. ok, i'm done discussing the 75% thing. it's a true number, i know how to use a calculator. anyhow.....i've heard so many guys on here say they do "little extras" for thier clients. they don't mind cleaning up a few leaves. they don't mind moving a few pieces of furniture/toys off the lawn. they don't mind bringing in the garbage cans, or picking up a few branches that fell, at no extra charge. they don't mind changing the cutting day, to accomodate a client who is having a party, or barmitzva. etc, etc, etc. when they start getting paid for every piece of extra work they do, be it 10 seconds, or 5 minutes, then, maybe, they should think about gifts. until then, a gift is only another way to suck azz. i keep my clients because we do the job properly, i communicate well with them, i am knowledgable, and i am firm, i simply, "outran the bear",not because of extra work for free, or a gift card to a resturaunt. now MAYBE, if my clients were worth 8, 9, 10,000 a season each to me, i'd send a fruit basket. but not, when you're cutting thier grass for $25, $30, $35. thank you, i have nothing more to say on this subject

Sean Adams
09-16-2005, 10:41 AM
how you choose to care for your clients is of no concern to me...if it works for you, great....

but how is SE tax included in your $10k total?
if you are doing $120k + your SE tax would be more than $10k alone...

I think you need to be a little more careful about how you throw around arbitrary numbers - isn't that one of the concerns of this site at times - people giving false information or misleading information...?

bobbygedd
09-16-2005, 12:52 PM
mr addams, se tax is based on my NET, not my gross. my NET ( or what i refer to as taxable income) is roughly 75% of gross. se tax in nj is 15.3% of NET. anymore technical questions, and you'll have to pay me a consultation fee. good day. p.s, it's your site, WHY are you giving.... false and misleading information???? :waving: pp.ss- you're gonna have to wake up, just a little bit earlier....to outsmart me

Sean Adams
09-16-2005, 02:00 PM
bobby - I never asked you any technical questions, I was informing you that you were incorrect...as far as "consultation" goes, consider this a freebie...

1. self employment tax is based on your net (true)... but your net is NOT your taxable income - the definition of NET is what is left over from your GROSS RECEIPTS after ALL deductions, reductions, and TAXES are paid - it is not open for debate or what you perceive to be YOUR NET....NET IS NET, PERIOD

2. you now say "roughly 75%"...

3. Self employment tax is 15.3% in the US not just in Jersey

4. if you do $120k in mowing and let's say another $10k in miscellaneous services you are grossing $130k (and this assumes you have no qualified dividends, capital gains, loss on assets, social security benefits, a deductibe IRA or Student Loan interest)

therefore, your gross is $130k, your (so called) expenses ONLY total $10,000 which means you have $120k of taxable income, which after exemptions and deductions would be $112,376 of taxable income which means you would owe a little over $27,000 in taxes...

so now, $130k gross, less $10k expenses and $27k taxes, your net is already less than 75%

and let's look at your "$10,000 only" in expenses

I'm sure many of the following you will claim you do not pay or do not have to pay, but here's a list to ponder....

accounting fees, attorney fees, advertising (truck signs, biz cards, ads, etc.), bank fees, depreciation, dues & fees (associations, magazines, etc.), entertainment & meals, insurance (liability, vehicle, workers comp), licensing, office supplies, postage, rent (office, garage, equipment), repairs and maintenance, telephones (office and cellular), tools, vehicle payments, uniforms, utilities, and of course gasoline, equipment payments

Now if you think that with gas at $3.00 a gallon, the new equipment you purchased, and the fact you claimed you have an employee plus anything else you have to pay for is all going to total only $10,000 in a year's time, your are one of two things...

1. a horrible bookkeeper

or

2. cheating

Outsmarting you is not what I'm trying to do here. I'm trying to show you that "netting" 75% is a ridiculous claim...

DLS1
09-16-2005, 02:51 PM
bobby I'm trying to show you that "netting" 75% is a ridiculous claim...

What Bobby has only one ridiculous claim on this site. Actually Sean I think you have been sucked into another one of Booby's baiting/trolling games to see how long someone with stick with the bait. :D

Sean Adams
09-16-2005, 02:59 PM
I usually think I am pretty good at recognizing when someone is trying to mess around versus when someone has inserted their foot in their mouth...

Even if bobby is trolling I just don't want people to think that "netting" 75% is realistic...

git er done landscaping
09-16-2005, 03:02 PM
sean. thanks for posting that break down. with the #s given 75% seems unreal.

Soupy
09-16-2005, 03:04 PM
Sean, It is true that Net includes tax paid, but Bobby is thinking like most americans. If they get a job making 60K a year that is what they make, Tax to them is just a duty and not an expense.

I think Bobby is just using the term Net lightly. A business owner has 2 Nets. The first Net is money left over after normal business expense. The Net from the first is your profit. The second net is your profit minus tax.

Many americans working for the man only have the second net. If you ask these people how much they make a year 99.9% of the time they will tell you their Gross income.

DLS1
09-16-2005, 03:04 PM
I usually think I am pretty good at recognizing when someone is trying to mess around versus when someone has inserted their foot in their mouth...

Even if bobby is trolling I just don't want people to think that "netting" 75% is realistic...

Good point but hopefully people have the common sense to know that if it sounds to good to be true then it probably isn't true. But again you never know how much common sense people have. :D

Sean Adams
09-16-2005, 03:10 PM
Soupy - I know what you mean, but there is definitely a difference between someone earning a check where their taxes are already deducted for them versus a business owner who has the responsibility to report their earnings, as well as pay insurances, etc...

Whether there is confusion created by net and net/net in this particular scenario the true point is that with employees and normal operating expenses bobby is not "netting" 75% of his gross receipts - not legitimately at least.

I'm not calling bobby a criminal here - don't think that is what I'm doing. I'm just trying to make it clear to those who are scanning this board that it is unrealistic to think that they can generate $100,000 in sales and walk away with $75,000 of it in their pocket.

Soupy
09-16-2005, 03:19 PM
Soupy - I know what you mean, but there is definitely a difference between someone earning a check where their taxes are already deducted for them versus a business owner who has the responsibility to report their earnings, as well as pay insurances, etc...

Whether there is confusion created by net and net/net in this particular scenario the true point is that with employees and normal operating expenses bobby is not "netting" 75% of his gross receipts - not legitimately at least.

I'm not calling bobby a criminal here - don't think that is what I'm doing. I'm just trying to make it clear to those who are scanning this board that it is unrealistic to think that they can generate $100,000 in sales and walk away with $75,000 of it in their pocket.

I agree with you, I was just trying to point out what I thought was Bobby's way of thinking.

Sean Adams
09-16-2005, 03:29 PM
you actually understand bobby's way of thinking...that's a whole new site in itself....

MarcSmith
09-16-2005, 04:13 PM
Now to get back on the topic......

One year I threw a Party at my house for many of my clients. I had food, drinks(yes alchohol with bartender) I ended up droping about 2 grand on the shindig.....Best money I ever spent....

I basically had blank checks with many of the clients. I would give out $50 gift cards if anyone they refered signed up for a year long contract, again money well spent that was better than any door hanger or Yellow page ad.

I taught my clients how to use their irrigation systems properly (no charge), in most cases they let me program them to what was best for my schedule....Win-win. And you know, they did reciprocate at christmas time. I'd get gift cards or presents for my daughter....

Now the trash guys who come every week, they get something from me. I don't give squat to the postman, as he is GOV employee, and I see him sleeping on the side of the road in his van....Paperboy doesn't get anything either, buts that because he sends a card taped to the newspaper hinting at where giftcards could be sent to....

Now I don't have clients, but I have Union employees, I don't need to give the guys anything, but my harder workers who show the effort get a little something on side at christmas time sine I can't give them a raise....

You do what works for you. This is what I do and it works....

bobbygedd
09-16-2005, 04:19 PM
hold, hold it. i clearly stated my operating costs are 10 k, BEFORE PAYROLL. pay attention. if i gross 120k, deduct my 10 operating costs, that leaves 110k. minus 40 grand for payroll= a total of 50 grand. my taxable # is now 70k.

Sean Adams
09-16-2005, 05:05 PM
:p ha ha ha ha ha ha ha ha ha :p :p :p :p

you are so full of it....

QUOTES FROM BOBBYGEDD IN THIS THREAD...

if you're smart like me, you net around 75%.
my NET ( or what i refer to as taxable income) is roughly 75% of gross
i know how to use a calculator

you show me anywhere in this thread you claimed you had a payroll of $40k

and you said you did $120k+

and you said 75% net

now you are saying $120k less $40k in payroll and $10k in operating costs which leaves you with $70k...and that is not even true net

with your definition of net, your net would only be 58%...and actually, after you paid taxes on that $70,000 (which would be about $12,500) you would truly be left with a NET of $57,500 which is.....

4 8 % N E T

AND THAT IS STILL ASSUMING YOU ARE ONLY SPENDING A TOTAL OF $10,000 IN OPERATING COSTS, WHICH IS VERY HARD TO BELIEVE

MIGHT WANT TO READ THE INSTRUCTIONS THAT CAME WITH YOUR CALCULATOR...OR HIRE AN ACCOUNTANT

bobbygedd
09-16-2005, 05:10 PM
scuse me? i clearly stated that my operating costs were 10 k per season, BEFORE payroll. YOU THEN, came back with a statement that my se tax should be based on 120k. YOU THOUGHT that se tax was based on GROSS. you also thought it was 12.5%. after i INFORMED YOU that it is based on net, and 15.3%, you come back and bash me. come on sean, i think you owe me an apology. on to my next question: what was the main reason you failed in the lawn care industry?

bobbygedd
09-16-2005, 05:12 PM
bobby - I understand what the bear story means - just thought at that point you were referring to you netting 75%

and as far as that bear is concerned - going back to the tip of the day - why not show thanks to your clients now, so that if someone does pop up thats "faster" than you, there will be no concern

and as far as your math....I will still have to assume you are joking about "netting" 75%...

self-employment tax alone is 12.4% for your first $85k and medicare is 2.9% on all of your gross earnings....then you have to pay regular income tax (since you are a sole proprietor) - vehicle/liability/workers comp insurance alone after paying SE tax would probably take you over 25% expense
see.............

bobbygedd
09-16-2005, 05:20 PM
well, you and donovan must be over there painting each others toe nails. i can't wait this long for a reply. i got stuff to do. later

dvmcmrhp52
09-16-2005, 05:32 PM
This is just plain GOOD! :waving:

Sean Adams
09-16-2005, 05:40 PM
bobby - you need to read up on your tax laws....

read what I wrote again...

self-employment tax is made up of two parts - it is not straight 15.3% (add my 12.4 and 2.9 bobby...)

12.4 percent for Social Security. The social security portion of the self-employment tax is limited to $10,788.00 if you earn equal to or less than $87,000 ($87,000 earnings limit x .124 = 10,788.00). Once you hit $87,000 of self-employment earnings, you have paid all you need to for social security.
2.9 percent for Medicare. The Medicare portion of the self-employment tax is unlimited. No matter how much, or how little you earn, you will be paying for Medicare.

I never said SE tax was based on gross....you said you had 10k in expenses and did 120k +... from the posts provided who appears to know the tax law, you or me?

I do not owe you an apology.... it's a shame you have to resort to name calling and backpedaling when it has been proven, without a shadow of a doubt that you are wrong and/or full of it...

YOU DO NOT MAKE 75% NET...HECK, YOU DON'T EVEN MAKE OVER 50% NET

Don't get me wrong, if someone is netting close to 50%, not to shabby...but don't sling your BS around here and claim you are netting 75%

And for your last question.... don't know where you get your information but the business I owned for almost 15 years was profitable and sold for a profit with no debt...if that's "failing" I hope I can continue failing the rest of my life

bobbygedd
09-16-2005, 06:07 PM
i did not call you any names. but, you were wrong. i maintain my position that i do net 70+ % of gross, use your imagination a bit, and you'll figure it out. as far as your lawn service....there must be some reason you left the industry. was it because you didn't see a future in it? was it because you couldn't make what you wanted from it? there must be a reason, hey, i'm just curious. don't know where u got the name calling from, i never called you names. you did, however, try and make me look like a liar, but, there are certain things that can't be blaintently said, so, i can't rightfully defend myself. in any event, i'm goin out for sangria and shrimp. it's tough to do on my 7% profit, but, maybe they'll let us have scraps if we wait by the door long enough.

Sean Adams
09-16-2005, 06:52 PM
the numbers don't add up...that's all I'm saying...you provided the numbers, the math was done, you claim you run a legit operation.... you are operating under 50% net, not the 75% you claimed...

I never got out of the business... I sold a business

Enjoy your dinner

M Raggs Yard Service
09-16-2005, 11:10 PM
It's always nice when you receive a gift. It is even more enjoyable when you receive an unexpected gift. Competition is everywhere. There is someone out there right now who wants your customers. It is your job to keep them happy. Show your clients you appreciate them. It does not have to be anything expensive or elaborate - maybe a free mowing, or a gift certificate, or a pumpkin, with a small note saying "thanks". Simple gestures like this go a long way.

What a great idea at this time of year to give a punkin. Thank you Sean.
I looked at this whole thread and I can not beleive you went back and forth with a person that seems to dominate this great informational site.

Somewhere, certain persons need to give it a rest and that will be up to you. Keep up the good work.

bobbygedd
09-17-2005, 05:28 AM
in no uncertain terms, you stated that se tax was 12.5% of GROSS. you were wrong, but you can't admit it. i'm glad i was able to provide you with the CORRECT information. glad i could help. now, let's move on.

bobbygedd
09-17-2005, 05:33 AM
ok, you sold the business. is there any particular reason? i mean, if you enjoyed mowing grass, and the possibilities were endless $$$ wise, and you were makin the big bucks and sending gifts to your clients, i can't imagine why you would sell the business, and do something else. generally, when one leaves a carreer, to pursue another, it's because of a reason. it's usually a financial reason. for example: i left the graphic arts field, because, #1- making 75 k for a full years work, was just not what i considered good money. #2- i was not down wit having 6 bosses.

DLS1
09-17-2005, 08:29 AM
i left the graphic arts field, because, #1- making 75 k for a full years work

There you go again inflating your numbers. How about $25,000. :D :D

bobbygedd
09-17-2005, 08:31 AM
There you go again inflating your numbers. How about $25,000. :D :D
how about a dozen stitches :D

Sean Adams
09-17-2005, 09:59 AM
bobby - you will never win this argument...

your math skills and now your reading comprehension skills need worked on big time

changing the subject and trying to flip things around won't fly here either...

you are just angry that someone called you out....

75% net..... :dizzy:

in all seriousness, if you want me to sit down with you and show you how to figure out your numbers I can do that for you - just let me know