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Old 01-01-2013, 10:18 AM
coolluv coolluv is offline
LawnSite Silver Member
 
Join Date: Aug 2006
Location: Atlanta
Posts: 2,312
Well, when you see post after post after post over the years stating...."I have no overhead because my equipment is paid for". it gets tiring after a while.

I haven't found those trucks that run forever...nor equipment that runs forever. Whether new or used the overhead remains relatively the same. You pay upfront or you pay out over the years in repairs. In the end it comes out the same.

I was just at an NTB getting new tires on my truck. Talked to the manager about the maintenance for the property. She said they just replaced the old landscape company with a new company because they raised their rates 20%.

Now why do you think that they had to raise their rates 20%? Pretty big jump don't ya think. They were probably lowballing the job and either breaking even or not making much of a profit and were forced to raise rates by such a large percentage.

Then along comes the next newbie and the cycle continues. Price your work for where you need to be so when you get where your going you are not scrambling to make a profit.

I know of a local guy (my neighbor) who after 13 years of being in business is downsizing to himself and a helper....after having 4 crews and over 250 accounts. Why? because everything he owns is wore out and junk and he is to the point of making less money than if he was a smaller company.

Why? Because he is cheap. Has a route full of bi-weekly's and cheap customers. He is busy as hell....works 7 days a week....constantly fixing junk and broke down. He is the perfect example of "I have no overhead because everything is paid off." mentality.

You can go broke working your @$$ off or you could go broke laying on the couch.

I know of other supposed successful companies around me that appear successful....but can barely make pay role from week to week. You would never know from looking at them.


Problem is most companies have the "I gotta grow fast mentality" and then soon realize that once the get what they wanted.....the I don't have any overhead reality kicks in and they are gone.


Harsh? Maybe.....but it gets under my skin.


Dave...
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