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jsaunders
11-01-2002, 09:33 PM
I just found out today that one of the large lco has gone under. I felt bad alittle while talking to some of the guys because they were bummmed out. But I was also happy business should be even better next year:D I guess no matter what size company you have you have to be careful of how much money is coming in and how much is going out. This company had alot of equipment-trucks, trailers, loaders.... JUST goes to show just because the company is large doesn't mean there making money. I'm just so happy that my small but growing company is doing so well. The only really SAD parts is that the company sold all the equipment LAST week :mad: !! At least my wife won't be mad at me for coming home with new equipment:D Still would have been nice to come home with equipment that was bought for pennies on the dollar.:p
Stay sharp and watch your bottom line.
joel

The Lawn Choupique
11-01-2002, 09:52 PM
Makes me glad I only use 21" push mowers. I like you, have seen a lot of over encumbed companies go under. I really have never see a company that uses a 21" pusher go under. Eazy money, this grass cutting business.

BigJim
11-01-2002, 10:30 PM
Yep Overheads and Outgoings the 2 biggest killers in this biz.

John Allin
11-01-2002, 11:02 PM
Generally speaking, most companies (not just LCO's) go under not because they are not making a profit - but because of lack of adequate cash flow. I'm not saying that is the case here, but the majority of failures are from inadequate cash flow and not from lack of profit.

LAWNGODFATHER
11-02-2002, 02:04 AM
John is correct as usual.

We had a big one close up shop here and auction everything off.

They were one of the most expensive LCO's, did fantastic work, but about 50% of their lawn care revenue was prepaid and "SKIPPY" snorted to much up his nose while not leaving enough for payrole much less his bills.

Cash flow was there, just used the wrong way.

BTW they were in the 5mil range a year, had 2 retail nurseries, 3 flower boteques and a supply yard.

The Mowerdude
11-02-2002, 02:10 AM
Originally posted by The Lawn Choupique
...I really have never see a company that uses a 21" pusher go under...

I've never seen them make any money either. In fact the only way I've ever seen them stay in business at all, is if they are playing some kind of game to see how many businesses they can get into. Kinda like the idea that says: "If you throw enough on the wall, some of it will stick."

bubble boy
11-02-2002, 02:38 AM
budget budget budget

this is true of even of multi-national corporations...except their cash flow is measured in billions. imagine having a billion dollars of cash reserves on hand and not being able to make payroll...

Guido
11-02-2002, 02:42 AM
Originally posted by The Lawn Choupique
I really have never see a company that uses a 21" pusher go under. Eazy money, this grass cutting business.

Yeah.......those guys are the REAL risk takers in this business.......they just reach for the stars................


"Grass Cutting Business"? I would expect a 12 year old to call what he does a Grass cutting Business.


ahhh......why do I bother. Sorry....Forget it!

LAWNGODFATHER
11-02-2002, 02:49 AM
Originally posted by The Lawn Choupique
Makes me glad I only use 21" push mowers. I like you, have seen a lot of over encumbed companies go under. I really have never see a company that uses a 21" pusher go under. Eazy money, this grass cutting business.

If someone dies from pushing those small asssss things does that count?

GarPA
11-02-2002, 06:43 AM
Guys I have no idea why you even waste the keystrokes responding to a certain person here on Lawnsite who loves nothing more than to pull your chains about his pricing structure.

Try something new....do what you do with a child that wants constant attention......ignore him

crawdad
11-02-2002, 06:59 AM
Or, for laughs, hit the search button under one of his posts. Check out some of his past messages. This guy is full of ...wisdom.
Lawn Chopper, I enjoy your posts almost as much as the replies to them. You keep these guys on their toes. Or at least busy on their keyboards.
Crawdad

HOMER
11-02-2002, 07:11 AM
Hey Maw,

I cut 2 yards today and raked in a whoppin' $30.00!

This grass cuttin' bizness sure is better than goin' ta skool and makin' good gradez.

Mr. Lapue told me he'd give me a 20.00 bill to mow his 5 acres and 2 ponds.............I'm luvvin this grazz cuttin' thing. Hey Maw, when I get done tomorrow can ya drive me up air to Walmark so's I can buy me a new pair of them brogans........I done and wore these n's out frum all this walkin'.

Yee hawwwwwwwwwwwwwwwwwwwwwwwwwwwww:blob3:

Brickman
11-02-2002, 10:54 AM
Originally posted by The Lawn Choupique
Makes me glad I only use 21" push mowers. I like you, have seen a lot of over encumbed companies go under. I really have never see a company that uses a 21" pusher go under. Eazy money, this grass cutting business.


Around here the phone book is a good read. Every spring there are new companies that don't make it to the next book. They lowball and use 21s. See it all the time!

bubble boy
11-02-2002, 11:10 AM
Originally posted by LAWNGODFATHER


They were one of the most expensive LCO's, did fantastic work, but about 50% of their lawn care revenue was prepaid and "SKIPPY" snorted to much up his nose while not leaving enough for payrole much less his bills.



PEOPLE: again, take note that even the high quality, large firms can go under.

using a 21" will not cause bankrupcy. using a 52" will not guarantee success.

JasperStorm
11-02-2002, 11:26 AM
Life cycle of a 21" grass cuttin' business:

Days 1-30: Get a real job

Day 31: Throw out back on the job

Day 45: Start collecting state disability checks

Day 47: "I mow any lawn fer you $10"

Day 60: Local TV news expose "See what we caught on camera-local cheats milking state disability funds, from mowin' lawns to dropping trannies without a jack."

Day 61 (2:00 am) Toss old plastic deck MTD out in the bushes under the power lines.

Day 62 Move into 14 ft. travel trailer behind Grandma's place.

Guido
11-02-2002, 12:47 PM
Thats pretty funny!

:p

The Mowerdude
11-02-2002, 02:23 PM
Agreed :D Funny stuff.