View Full Version : Next year looking ....Down?
Just wondering if the slow down in Americans spending has made it your way yet......I just got off the phone with a supervisor at a local factory who said we have to cut a lot including the grounds maintence budget..this yes we are looking to the lowest bid. Kinda scary .......We never are a low bid...we have always sold on quality and value.....just wondering what you guys are seeing....
12-12-2001, 07:19 PM
More work in '02, sez the boss. We added another tractor and 3, 3 point hitch mowers. All indications are we will double this years business.
Pedal to the metal!!
12-12-2001, 07:48 PM
I just recently read an artical that said the opposite.
People are more inclined to cut out the other services then the lawn. Pinch on the spending on things they don't need. Travel less. ETC...........
They most likely will not cut out the lawn care. For any type of biz or home owner it is the cheapest part of the upkeep.
It's usaly the last thing to get chopped from a budget. It's a choice between buying the equipment and then figuring out how to use or apply it, or having some one do it correctly and guarantee their work.
12-12-2001, 08:08 PM
Yeah .. that's a good point ... I mean, how can someone put a price tag on their life? Who wouldn't rather spend a little money each month and have someone else do all the hard work out in the beating sun and 100 degree days! I would most certainly pay the cash .. even if it means I can't get those cheese doodles that I just love every week!
12-12-2001, 09:21 PM
My experience with big business is for them to downsize their in house staff and contract for service. It looks better on their books, less staff means less benfits cost. It is cheaper in the long run to severance people to save bucks. They will look for the cheap bid and expect nothing less in quality.
12-13-2001, 12:34 AM
for us business was better this year, and kept improving right up to the last leaf cleanup(done today) i raised prices on most services, and it didnt seem to matter what price we gave, we got the job.
2 man crew
12-13-2001, 01:32 AM
I have not seen any change in growth and I'm not expecting a one this year. But thank god I do lawn care or i would be out of shape and fat just like some of my cust..........................
oh shoot I mean we are the last to go thank god!
12-13-2001, 06:58 AM
Things haven't slowed much here, I got a new res and a commercial heating and cooling company to mow for next year after my season ended. It does still seem like spring here too.
12-13-2001, 01:07 PM
Many people have been conditioned to not cut grass. They want someone to do it. The computer generation coming up will be even better for us. Many of these never get outside, to busy with video games. Many kids these days don't even know what work is.
Single women with young kids are not going to cut either. Daddy never had them do any hard work, so they aren't going to start now.
Market is there, its just everybody thats buying a mower without a clue that hurts prices. Just gotta keep thinking future. :)
12-13-2001, 05:52 PM
About a month back I saw a segment on CNN, and they said one of the only industries that was still booming was the home improvement industry. Home retailers like Home Depot and Lowes are still turning hefty profits. This is good news. While people may be shying away from frivolous spending, they are still putting money into they're homes and properties. What we do in this industry, has become more of necessity than a luxury. I dont expect a drop off at all. My business has gotten a little bigger each year. I expect no different from 2002.
I guess my question was intended for those of us that commercial work make up the most dollars...It doesnt take to many calls from Property managers or Plant mangers saying well...the lawn maintence budget has to be cut from 19k to 11k next year to get me worried....we are never the lowest bid...we always sell quality..however next year In this area it seems low bids are going to take the buisness....
12-14-2001, 11:14 AM
I don't do alot of commercial so I can't really answer that I guess. As far as residential, I guess time will tell. Alot of my customers are signing up for next year already so that is a good sign. As far as more work in Spring, who knows. I sell my services like you do eggy, quality, not fastest and cheapest. I understand people (commercial accounts) have a business to run, but so do we. It hurts to loose customers but you can't ***** yourself out either. If they want to save money in that respect, let them get the hack for a summer and then they can crawl back to you the following season. Might take a little more to get things back into shape, so what money are they saving? Of course they would never let you know that.It might hurt your bottom line but what can you do. Doesn't make sense to work for free.
12-14-2001, 12:05 PM
I think quality will reign in the end. We just landed a contract on a 26 acre property. We were not low but reputation from referral sold the deal. Don't lose your quality. It's the best asset you have!
12-14-2001, 01:08 PM
Agreed, Whitleys ...
Quality is the first variable to success.
You can have the most workers, the nicest equipment, but if you do not do an above average job, chances are the below equation will not relate to you.
Quality translates to reputation .. which if good, translates to more work .. which then turns to either working 24/7 or the pick-choose method (my personal favorite). You pick the higher paying work in the nicer areas (all the while losing the smaller, less money rendering accounts) .. You then begin to only take accounts in the higher quality areas (still losing the smaller accounts) until you finally end up with only high paying jobs (obviously equating the fact that you will possibly need more workers, better quality machines, etc) .. This is seemingly the peak of work related happiness (ie. you get to choose when/when not to work, how long you work, how hard you work, etc) ...
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