Originally Posted by keithslawnc
What they can make money at and what the average company can make money at are to different things! Can you survive of there net %? Also offering multi city contracts at discounts! Can you or I service properties for the same company state or nationwide?
I wasn't going to get in depth with my response, but I will since you asked. Valley Crest and Brickman are way larger companies. Just because they're large doesn't mean they can conduct business at a lower rate than you or I. They may only net 2-4% of their gross but when its 200million a year or whatever it's still good money. If you can't compete then you have no business bidding on those properties. If you want to net 20-70% like on residential properties then you have no business bidding on commercial because it's apples to oranges. I use to make 8% profit on the local Walmarts I had with USM. I was undercut by a bunch I could have still broke even but I decided I wanted out of commercial as I was just growing to fast and trading off to much net. I rather grow my business slower as I'm still pretty young and trade off less net for growth as I have a ton of personal bills. By saying breaking even this would be after paying myself a salary to conduct the work just nothing going towards my companies profit. I wasn't setup for the work and could have cut my cost a ton with different equipment and another employee. Those companies have shops, offices, storage yards, office employees, HR, managers, board of directors, brand new equipment, benefits, and tons of other employees. Most of that the common LCO isn't going to have. If you can't do the volume you won't make any money. The difference is businessmen run those companies and yard guys run most of the LCO that complain about the bigger companies.