Thread: Business Model
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Old 06-16-2005, 10:20 PM
drmiller100 drmiller100 is offline
LawnSite Senior Member
 
Join Date: Jul 2004
Location: McCall Idaho
Posts: 564
Business Model

Ok, second year in business, so I'm new, and some might call me a scrub. I'm in a mountain vacation area, with a 4 month growing season. Labor is EXPENSIVE.

I bought a JD 737 last year, JD 21 inch mower, FS85, and a Echo 650 this spring. I have a guy working for me that does all mowing. We have about 35 accounts which my employee does by himself on Thursday and Friday. We figure 2 hours of driving time each day. Our minimum account is 25 bucks (the majority), max is 85 a cut (two condos).

A competitor is getting out of teh business, and is giving me 9 more accounts. He says a guy can cut all of his accounts in a 9 hour day, but I'm guessing another 4 hours as his accounts sound pretty small, and I'm already in most of the areas.

So does this sound pretty standard? My guy is saying I should pay him more. My truck, trailer, and equipment, but is he working pretty hard to do 45 accounts in 2 and a half days by himself?
I talked to my competition, but the nearest is a guy that does 30 accounts a week. He is push mowing it, and has a helper half the week.

What is the standard for the bid dogs out there that mow more then 16 times a year?

Thanks!
doug "lowballer"
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