View Single Post
  #41  
Old 07-07-2011, 09:56 AM
hackitdown hackitdown is offline
LawnSite Silver Member
 
Join Date: Apr 2004
Location: Groton, MA
Posts: 2,258
I didn't read this entire thread, so I'm probably not adding anything new, but...Guys in this business think that having a large number of mowing accounts will make them rich...so they cut prices to try to sign as many customers as possible. It is amazing to me how many people do this over and over, waiting for "economies of scale" to magically produce profits.

When I learned a little about business, I learned the difference between fixed costs and variable costs. Maintenance/mowing has small fixed, but huge variable. So there is almost no "economies of scale".

Buying customers with low prices is a recipe for losing money.
__________________

Supah-Duty
Exmark-Gravely-Scag
Stihl-Redmax
Reply With Quote
 
Page generated in 0.03268 seconds with 7 queries