Originally Posted by Ric
I am not getting rid of good stead cash flow, only trading it for a better source. There is a big difference in the profit margins of L&O and PC. L&O figure 25 to 30% Chemical cost. PC is more like 3 to 5%. Also the inventory of chemicals doing only insects is minimal. PC is lower over head or cost and physically not as demanded. No spreaders to push etc.
PC has it's down falls also. Demand is not as great as L&O and competition is after PC because it has such a high profit margin. With PC the next door neighbor can't see how green your lawn is. CALL BACKS can kill your profit margin real quick. Imaginary insect are a problem with some people. Those type can drive you crazy.
BTW Spray Accounts sell for an average of 100% of a years contract. Selling off my L&O will fatten my bank account very nicely.
I knew all of that regarding margins as told by others.....I figured though that it is a difficult market(PC) due to all the big companies that have low as dirt prices. Like you said, people can see a nice, green, weed-free lawn. They don't see the ants that you killed.....