subbing out applications?

[matt spinniken]

My business isnt licensed to apply pesticides. Most of my customers use weedman or chemlawn. I feel like im leaving money on the table, I have been doing alot of marketing and im putting up my website soon. Im thinking about subbing the work out to one company that only does chem apps and fert and hopefully they will refer people to me. What would you recommend? What has your experience been?

[RigglePLC]

Matt,
Good plan, but you will have to wait until snow melts. Try to find a small, experienced, very reliable company.
Maybe you can get a peice of the action. Let the customers pay you, take a percentage as agreed with your subcontractor, then pay the subcontractor. After all, you have done the marketing--which would otherwise be a big cost to them to acquire new customers. And you have done his work because you collected the money and probably paid them (at times) even when the customer had not paid you.
If you can, ask for a non-compete agreement so they will not solicit the business direct from your customers.

If you can, get an agreement that if you should become liscensed, you can take over the spraying within a few months notice.

[MnLefty]

It depends on a few different things like the size of your business, your future goals and such, but partnerships like that certainly can work. Some things I'd consider first...

Are you prepared to sign off on and put your name on the line for somebody elses work? Blaming a sub-contractor doesn't get you very far with a customer complaint.

Do you have any interest in learning that portion of the business and doing the fert and chem apps yourself?

Could you hire on an experienced applicator to handle that part of the business?

Would you be willing to take on a partner or merge with another company that offers what you do not?

I'm sure you will be able to find plenty of people willing to do the work for you. Many would rather do a large number of accounts for 1 person, rather than have to go out and get those accounts on their own and deal with the homeowners and property managers themselves. Just be sure that's the way you want to go before you get into it.

[Mr. Vern]

That is precisely how I would handle it if you think you are leaving a lot of money on the table. I have a close friend who does only spraying so we just refer business back and forth, I don't mark his up and he doesn't mark mine up, but if he weren't a good friend, I would do exactly what you suggest. Do take MnLefty's advice and ensure the guy is reputable and insured because it will be your name that gets dragged through the mud. Also, try to work the pricing such that the customer is paying the same price by using you as he would if he used the sub directly. This will help you to get referrals from customers and protect you from being undercut.

If you try to do it yourself, you will likely distract yourself from your core business and end up making less money, not more. What you might consider doing is to outsource until you have enough clients lined up to justify bringing the service in-house. Just like you would do with rental equipment. Rent until you need it often enough to justify the purchase.

[Runner]

We work with many lco's and trade work. we give them excellent grass to cut, which helps make them look good, and in turn, we refer mowing and other jobs to them. The thing about subbing, is that you have to be careful. you can not advertise yourself as providing the applications,..nor can you bill for them. This HAS to be done through the lawn care co..

[matt spinniken]

Im impressed with the replies, some good information.

I like the no-compete clause(didnt think about that)

Also, how can I get my business licensed without working for someone else, going back to school, etc?? Im assuming I would need to have a liscensed applicator on the payroll. What should I look for and how much could I expect to pay this person?

[DaughtryLC]

Get your LICENSE!! The time & $ spent WILL be worth it!!

[ThreeWide]

You should also ask that your spraying subcontractors provide you a discount on the services.

The rates I give to maintenance contractors are discounted a few points which enables them make a few bucks as well. You will find that referrals will start going both ways for you and your subs. Everyone wins.

[RigglePLC]

The experience requirement is very tough for a new guy to break into. But call the Dept Agriculture--in Grand Rapids. Talk to someone like Jeff Zimmer; sometimes they can be flexible. Have you ever sprayed your own lawn? That is experience. Your mother's lawn? Can you work part time for another company--and still do your own work for a few months?

[garydale]

That 40& of my business.

We do appliations for lawn,tree/shrub and Industial weed for a dozen different mow guys.

They get special pricing so they can mark up our cost 20% and provide their customer complete landscape care.

They get professional service, free service calls and free consultation on problems. I get large block of work,quick payment and a lot of referrals.

[David Hartzog]

One of the best things i ever did was get my Ornamental and Turf maintenace spraying licence. i am one of two guys in town who can spray. Chemlawn comes into town but, people usually switch over to me when they find out i can 'do it all' i'm working on getting an aquatic spraying license. (my towns on a lake) i can make 3 times as much treating a lawn than just mowing.

[xpnd]

I think the advice is well intentioned but not from the perspective of a licensed applicator.

If I were in your area, I would be happy to provide service for your clients under the following terms.

1. Your customer must call me for service. I will provide a service estimate to your customer and they will need to sign off authorizing the applications. I can not make applications based on your word because you are not the property owner and do not have that authority. I have insurance but I tend not to want to use it for making unauthorized applications.

2. I will direct bill your customer. I will not discount my price to allow you to make a few easy bucks. I will not wait for my money from you. I have the license, insurance, equipment and experience to do the job. You do not.

3. I will not sign a non compete clause. In fact since I have a combined mowing with weed control and fert service, I will offer your customers 10% off the first years weed control/fert service if they accept my mowing service.

This all sounds rather harsh but it is reality. I have made an investment in both time and money and I am capable of providing a service that you can not. I fully appreciate the siutation you are in and I would not hesitate to exploit it in my favor. I am doing this to make money not give myself away or help someone who does not have the desire or motivation to do it themselves. If I can strip customers from your business and bring them into mine, so much the better. If you don't like these term; that's okay with me. I don't need your customers to make a profit but if I am patient, do good advertising and produce quality turf, I will get some your customers anyway. This is a business not a fraternity and you need to start thinking that way.