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View Full Version : Two Different Companies - Which One?


jpmako
03-13-2005, 07:49 PM
There has been some talk on here in various threads about having 200-300 lawns :dizzy: . I thought about this for a couple of minutes and decided to come up with some figures.

Compare the two. Which would you rather be?

Jason

Runner
03-14-2005, 11:49 AM
That is why we're finding, more and more, there is a niche for full service out there. We are coming into properties, and basically, what they are getting, is a superintendent. We take of everything from the Cleanup, to the fert., irrigation, beds, turf, trees, ...the whole shot. This way, they are not calling 3 or 4 people, the weed guy isn't blaming the mowing guy, and the mowing guy isn't blaming the irrigation guy, and so on. The buck stops here...one call. All I say is. "Sir,....it is taken care of."

PTP
03-14-2005, 12:25 PM
I am not sure that we are comparing the same thing here. Some customers demand the full service and others just want the mow. I see no problem with one company providing everything and another company providing limited services. Yes, the revenue per customer is down on the basic provider but on the other hand, the customers other alternatives are a full service company or doing it themselves. Many of these customers would do it themselves. I think that there is a place for both as they hit two different customer groups.

old dog
03-14-2005, 06:08 PM
I do a townhouse complex with 65 units.We charge $7 per mowing per customer.It takes 4 people 2 hours.That is good money if you run a crew in my area($208 /hr ).This is a
subcontract job that we only mow.I think a job mix is better just to keep it more
interesting for all the crew.But I have found that formulas never tell the whole story!
You always have to look at a job with your eyes to bid it!!My example is:
Company 1:$1,000,000 annual revenue,10% profit
company 2:$400,000 annual revenue,25% profit
Which company would you rather run?

PMLAWN
03-15-2005, 03:55 AM
That is a very small part of a big equation. What about 2-300 full service customers.
What about overhead and profit. All this has to be included.
And what is wrong with offering both ways.
We run trucks that just cut grass and trim. Nothing else. Just like the no frills guys. We also do full service. BUT the full service accounts still get cut by the no frill truck. All they do is maintenance. All other services come from other trucks. So adding mow blow fits right in as that is all the guys do anyway.
Most LCOs work their #'s back wards as they think about # of properties first.
Start at the end--The amount of profit you want to make. And than create the plan that gets you there.

shepoutside
03-15-2005, 09:41 AM
I am not sure that we are comparing the same thing here. Some customers demand the full service and others just want the mow. I see no problem with one company providing everything and another company providing limited services. Yes, the revenue per customer is down on the basic provider but on the other hand, the customers other alternatives are a full service company or doing it themselves. Many of these customers would do it themselves. I think that there is a place for both as they hit two different customer groups.

Bingo ! Plus the overhead, and operating costs are also way different. Don't need the manpower either, so who would really have the better profit? There is a need for both types of service.