Worlds Biggest Lco Quits U.s.a

[Sandgropher]

........That got your attention, just reading a book by Jim Penman in it there are the reasons given why he pulled out of the U.S.A(.Jims mowing worlds biggest mowing company)


..............At this time we got a call from Dennis Reidy, a Canadan business man who had heard of us while having a beer with an Aussie visiting Vancouver. he picked up the phone and called us direct. Dennis came over and was impressed with our operation. He had checked and comfirmed there was nothing like it in Canada , or any where in North America. He suggested we start Jim's Mowing in Vancouver. :canadaflag:

Now to be honest , Canada would not have been first choice for an overseas launch. Like most Australians , we thought of it as an ice bound wilderness for much of the year, not ideal for lawn mowing services. :confused:

But we were told that Vancouver had a mild coastaal climate like Melbournes, we were also told that Canadians were keen and well informed gardeners, with gardening listed as their number one leisure activity.:)

Work was not hard to find to find, but there was problems attracting the ex-bank managers, teachers and other high calibre people who were the backbone of the system in Australia. :cry:

...........growth was slow at first but by 2000 they had reached 40 franchees, an impressive number considering the ground work they had to do. :clapping:

By this time we were ready to open for business in the U.S.A :usflag:

A couple of years back, one of our franchees went over to spy out the land.

He stopped at a house in each of several cities and asked for quotes to get the lawn mowed. Nobody could provide the same day service which is now standard for jims in Australia. The average contractor who replied took several days to give a quote. :sleeping: One fellow in Atlanta took 3 months.:sleeping: :sleeping: :sleeping:

When Peter and Anthony started in Texas , they were amazed at how easy it was to find work. People were desparate for good service.........:) ...

One Australian expatriate told how she try to cancell her mowing man, a Mexican. She asked him to stop but he just said "must mow lawns" She even stood in front of the mower, but had to jump out of the way as he seemed ready to run her down. :dancing: One thing that impressed people was that Anthony and Peter were happy to do any gardening and other small jobs.:)

No one local wanted to do anything but mowing. It was like Melbourne in the early 80s, only worse.

Regrettably all this growth and activity could not be sustained. Work was easy to find in Texas, but not so Franchees.Even more than Canada , business minded Americans seemed to feel manuel labor was beneath their dignity.:hammerhead:


I beleive we were handicapped by the lack of local operators, who could understand the local culture and conditions.:usflag:

In the end, and for what ever reason, the venture failed and both Anthony and Peter came home.*trucewhiteflag* *aussieflag*




There you have it boys and girls thats why you do not see jims on every corner in your town, like a lot of countrys ( i saw 3 on one street once).

This book is old and maybe he has tried again over their but i am not sure.:confused:

From the book Suprised by Success , the story of jims group by Jim Penman.

The worlds biggest mowing company. (franchese system)

[LawnBrother]

That's really interesting, thanks for posting it. I am going to have to check that book out....

[topsites]

Yeah so they bent over backwards and got took for a ride, the only thing that surprises me is that he does well elsewhere as it doesn't say a whole lot for the american mindset in general.

[Sandgropher]

Hers a link to the Canadian section if anybodys interested.


www.jimsmowing.com

I should point out that not many independents like them here, as they are our rivals ( a bit like true green in the u.s) theres 160 in my small city, but they have done the industry good, they keep the prices high ( have heard them quote $66 for a standard $35 lawn) its a status thing here to have a jims out the front of your house and their indoduced uniforms etc

When i say we dont like them i mean the concept etc (they are big and powerful) i still wave and chat to the operators etc. cheers*aussieflag*

[Sandgropher]

Also the Aussie link www.jimsmowing.com.au

Lawnbrother pm your address and i will send you my copy.

If any bodys thinking off starting there( U.S.A) get in contact with them you may be suprised. they arnt afraid of spending big $$$ on advertising, you never know you may get in on the ground floor.*aussieflag* *newusflag*

Last time they were hampered by the lack of local operators.:usflag:

[Freddy_Kruger]

Franchises are a scam. <==period.

I wonder if the franchise cut had anything to do with its failure.

You take their orders, cow tow to their leader and give them 20% or so of your money plus tax. You are definetly not an entrepenuer if you buy a franchise just a fancy employee.

They probably make most of their money from the franchise fee and when the guy goes out of business they sell the franchise again.

[Freddy_Kruger]

Holy crap they want 28 thousand dollar investment, lol. for a franchise, what a joke
.

[Sandgropher]

Franchises are a scam. <==period.

I wonder if the franchise cut had anything to do with its failure.

You take their orders, cow tow to their leader and give them 20% or so of your money plus tax. You are definetly not an entrepenuer if you buy a franchise just a fancy employee.

They probably make most of their money from the franchise fee and when the guy goes out of business they sell the franchise again.


Yes a lot of this is true but Mc Donalds is still going strong. *aussieflag* *newusflag* *newcanadaflag*

and KFC i think ??? correct me if i am wrong anybody.

[Sandgropher]

Holy crap they want 28 thousand dollar investment, lol. for a franchise, what a joke
.


THEY ARE COMING TO A STREET NEAR YOU SOON.:laugh: :laugh: :laugh: *aussieflag* *newcanadaflag* :canadaflag:

[Freddy_Kruger]

I should have said service industry. I used to own window cleaning franchise and all I wanted was OUT of that contract. WHile I was there they had a 100% turn over in there maid franchises also. They truley make there money selling the actual franchise THEN... if it goes out of business they can find another to sell to. Jims mowing wants 28,000 dollars plus I'm sure that you will sign a contract that you cannot work in the field if you quit.

Macdonalds is a different animal that a LCO.

[DADDY D]

if these guys are long the biggest in the usa then who is?mmlawn?:weightlifter:

[dvmcmrhp52]

if these guys are long the biggest in the usa then who is?mmlawn?:weightlifter:



MMlawn is a good man that knows business,that's who..................:usflag:

[Sandgropher]

MMlawn is a good man that knows business,that's who..................:usflag:

How much is a MMLAWN franchese ???:confused: :laugh: :laugh: :laugh:

I think coca cola is franchese to, in fact some of the biggest companys in the world use this system.*aussieflag*

[dvmcmrhp52]

How much is a MMLAWN franchese ???:confused: :laugh: :laugh: :laugh:

I think coca cola is franchese to, in fact some of the biggest companys in the world use this system.*aussieflag*


Mike wouldn't waste his time on franchising when he can make the dollars himself.:)

Coke isn't a franchise but most franchises are big volume entities with small profit margins, only successful due to volume.

As we all know, even if you buy a mowing franchise there are still 100 independent operators to compete with in that same area, unlike a McDonalds or Burger King where their market area is more protected from another burger king franchise being opened.
We've got mowing franchises around............most don't make it due to lack of profitability. Why pay a franchise fee when you can make more money as an independent?

[Sandgropher]

Mike wouldn't waste his time on franchising when he can make the dollars himself.:)

Coke isn't a franchise but most franchises are big volume entities with small profit margins, only successful due to volume.

As we all know, even if you buy a mowing franchise there are still 100 independent operators to compete with in that same area, unlike a McDonalds or Burger King where their market area is more protected from another burger king franchise being opened.
We've got mowing franchises around............most don't make it due to lack of profitability. Why pay a franchise fee when you can make more money as an independent?

Yes there is a lot of debate on the pros and cons of this system, i believe jims guarentee an income of $1200 a week you pay around $7 a lead in Australia i think the monthly fees cost around 500-600 a month all up,they do all the advertising etc and you get training etc they claim you are more likely to succeed going this way.....you are basicly getting the name JIMS is as well known here as coke, mcdonalds etc ....some people do not worry to much about the fees they just charge it to the customer (extra) and because of the big $$$ spent on advertising they can choose the biggest payers..... they claim they get 10 calls to every 1 indpendent.....theys a lot of debate but i would say some of the most successful LCOs in the world use this system. *aussieflag*

[topsites]

Holy crap they want 28 thousand dollar investment, lol. for a franchise, what a joke
.

That's my problem with franchises... If I had the 28k, I could spend 15 or so on some really nice equipment, another 5 on some SERIOUSE advertising and have another 8k left to cover the 1st year's rough spots...

Like someone else said, I also do not consider franchise owners true business owners. Most of them are rich folk with a lot of money so they buy this thing and let everyone else do the work. They then hope to earn a tiny bit from it every month because to them it's just another investment so they never would do any of the actual work because they're too good for that, way I see it.

For those who do actually work the store, I respect them only when it's something a little more than grass cutting. I know this couple owns several automotive repair stores and they are on a mission to change the auto repair industry forever ('n good luck) but so they both work very hard every day they are at the store getting dirty and I'm straight with that.

[DBL]

wow i read the whole thing and i hate reading long posts but thats pretty good i love the part about the mexican "must mow lawn" now im off to check out their website

[Sandgropher]

wow i read the whole thing and i hate reading long posts but thats pretty good i love the part about the mexican "must mow lawn" now im off to check out their website


Yes thats my fav part of the book :laugh: :laugh: :laugh:

I would hate to try and cancell that guys services:laugh: :laugh:

I bet a lot of people tryed to cancell him and decided it was to hard :laugh: :laugh:

Next time somebody trys to cancell lawns aim your mower at them :dancing: and yell out over and over "must mow lawns":clapping: :clapping:

I should point out Jims has every trade you can think of here now dog wash, fencing,cleaning any thing you can think of they have it.

People are complaining of the price of jims but a lot of people here think the ongoing fees are the worse part of it, you could still pay $20,000 or more anyway for a mowing business, but the fees year after year can wear some down, but bear in mind you can charge it to the cust,a lot do not mind paying extra as they know you have extra fees to pay.

[Az Gardener]

That's my problem with franchises... If I had the 28k, I could spend 15 or so on some really nice equipment, another 5 on some SERIOUSE advertising and have another 8k left to cover the 1st year's rough spots...

Like someone else said, I also do not consider franchise owners true business owners. Most of them are rich folk with a lot of money so they buy this thing and let everyone else do the work. They then hope to earn a tiny bit from it every month because to them it's just another investment so they never would do any of the actual work because they're too good for that, way I see it.

For those who do actually work the store, I respect them only when it's something a little more than grass cutting. I know this couple owns several automotive repair stores and they are on a mission to change the auto repair industry forever ('n good luck) but so they both work very hard every day they are at the store getting dirty and I'm straight with that.


I know a former nurse she made good money as a nurse 40 per hour and up she saved her money and bought a Subway franchise now she makes more.

I believe you are short sighted, there is sooo much more to a business than just buying the equipment and doing the work. Talk about buying yourself a job you just described it. Where is your road map for growth, your employee handbook, what will happen to your company/employees if you are disabled, what is going to inspire anyone but the most basic laborer to come to work for you, whats in it for them?

A franchise might not be your cup of tea but I really think you are shortsighted in your estimation of their value.

I don't do any of the field work in my business anymore because it would not be the best use of my time for the well being of the company. I don't think I'm too good for it, as a matter of fact on a lot of days the work would be a welcome change, much easier and more satisfying. That will not get me anywhere more than a job I own. I certainly wont help my employees reach their goals.

Maybe I'm wrong, maybe in those long winters with all that down time you too have written a training manual, documented all your systems to maximize production. So anyone off the street could do what you do and produce the same quality results time after time. You probably have all the forms/paperwork so anyone could do your billing, estimating, etc. if you are not available. Maybe you have but I doubt it, or you would have more respect for the work that went into a franchise model. I know I have done much of that over the last few years and 28,000 would be a bargain if it was the kind of service I want to offer, but I have not seen anything close so I do it myself.

Build a franchise model for a successful business, a money making machine that anyone with average intelligence and common sense can operate. Then you will have the knowledge to say what kind of value they have. Right now you are just speculating and incorrectly, I might suggest.

[Freddy_Kruger]

I know a former nurse she made good money as a nurse 40 per hour and up she saved her money and bought a Subway franchise now she makes more.

I believe you are short sighted, there is sooo much more to a business than just buying the equipment and doing the work. Talk about buying yourself a job you just described it. Where is your road map for growth, your employee handbook, what will happen to your company/employees if you are disabled, what is going to inspire anyone but the most basic laborer to come to work for you, whats in it for them?

A franchise might not be your cup of tea but I really think you are shortsighted in your estimation of their value.

I don't do any of the field work in my business anymore because it would not be the best use of my time for the well being of the company. I don't think I'm too good for it, as a matter of fact on a lot of days the work would be a welcome change, much easier and more satisfying. That will not get me anywhere more than a job I own. I certainly wont help my employees reach their goals.

Maybe I'm wrong, maybe in those long winters with all that down time you too have written a training manual, documented all your systems to maximize production. So anyone off the street could do what you do and produce the same quality results time after time. You probably have all the forms/paperwork so anyone could do your billing, estimating, etc. if you are not available. Maybe you have but I doubt it, or you would have more respect for the work that went into a franchise model. I know I have done much of that over the last few years and 28,000 would be a bargain if it was the kind of service I want to offer, but I have not seen anything close so I do it myself.

Build a franchise model for a successful business, a money making machine that anyone with average intelligence and common sense can operate. Then you will have the knowledge to say what kind of value they have. Right now you are just speculating and incorrectly, I might suggest.
Well I have owned a franchise and its ****!

A waste of money (though I did make OK money with it) Soon as I had three employees I got less work and another franchisee got more work so he could a his first employee. I also got all the toughest crappiest job because I was the best and had a real crew. Also the "President" started low-balling every job because all he was interested in was his %, I had to do all the work and cover all the costs of the job. All I wanted was out... I broke my leg (by accident) and that gave me the out. Time away gives you chance to think. You are NOT a business man if you own a small service franchise you are a fancy employee.

If you want to be entrepreneurial you have to start your own business. You should act like writing a manual is such a big deal either, I read about it in E-Myth Manager and it is a great tool to teach EMPLOYEES what to do, to train them and thats what franchisee's are ==> employees. Not saying you cant make money but its not really up to you, you are at the mercy of your owner. At least with a sole proprietorship it really is up to you, you make your own decisions.

[Howard Roark]

Agreed with above. If you ain't on the top of your business, you're just a worker, very much like MLM.

Perhaps I missed something in your quote, but if these guys couldn't find profitablility in Texas in lawn mowing, then maybe it's their system they should look at.

[Az Gardener]

Freddy I will give concede that not all franchises are good franchises But the franchise concept I believe is sound. Like anything it needs to be a win win situation. I believe greed is the root of all corruption and I'm not a religious man I have just seen it over and over again in business.

E-myth is a must read for any owner. I worked with an E-myth coach for two years cost me over 13,000 in cash plus 3-4 hours per week during that time. I stopped this spring because I have to complete all the stuff we have been working on. They give you assignments and offer a sounding board but it is up to you to develop the systems. Usually in the week you could get a good outline together for an assignment but it really takes considerably more hours to complete things so they are ready for the field. Then they are no more introduced and they need tweaking. If you have not done the ground work to hire the proper employees no amount of systems will keep them on the straight and narrow.

So it is a struggle, but I couldn't bear to do this day in and out and know this was all I would ever do for the foreseeable future.

I think most people just want to throw money at problems and hope they go away. I like the advertisement that says "I knew that I knew so little that I didn't even know what I didn't know". I think thats why franchises have a bad rap. First the people going in don't know enough to ask the right questions. So its hard to tell if you are getting a good or bad operation. The other thing is just like employees following systems if you get someone that owns a region and does not follow the systems laid out for them there will be problems. There is a company called Francorp that will take your "successful business" and turn it int a franchise opportunity. I would avoid a franchise started by this company. They said they could document my systems in a couple of weeks and I knew they were full of it. They are just there to make it shine and put a price tag on it.

As with everything buyer beware. Maybe when I get my franchise model complete I will give a few away here to prove they work.

[out4now]

I agree in concept that a franchise makes sense for some people. You're essentially buying someone else's business plan and buying things from a parent that hopes to grow through economies of scale. A business wants more market penetration yet can't afford to open many outlets so they franchise but lawn care is not like selling Snap-on tools or making burgers because there are soooo many variables involved with the product it would be hard to replicate a profitable system that could be analyzed to make money everywhere. Different terrain, rainfall, fuel prices etc. I thought about trying to write a franchise circular at one time geared towards the Hispanic market but after testing the waters here and realizing the cost of franchise lawyers I gave up on the idea. The feedback I go from the Hispanic community largely mirrored what we are hearing here, it was something to the effect of "so what if its all in Spanish and so forth we can go get our own stuff and keep all our money." At the time Also had to abandon the project because it was going to be a conflict of interest in a company I was being considered for so I think it has possibilities as long as the franchisee sees some material benefit.