Originally Posted by GaryBK
20k is a lot to anybody. But the problem is it SHOULD NOT be so much of a percentage of your total revenue that if you lost the job it would seriously hurt you. I've had contracts in the past say we are not going to use you anymore and they are not going to use a competitor either. They are going in house. Boom that contract is gone. But I've never taken a job so big that a loss of one customer hurts me and is not easy to pick up business to replace it. That is a dangerous business model. My biggest contract was for an owner of 8 commercial buildings. I had them for years. A great customer. Renewed every year for about 15 years. Then one year they said they are selling out to a huge company that already had lawn guys they were happy with and did it for less than I would charge. I did not like losing that contract because it was a lot of money but percentage wise it was not significant I easily replaced that business. And it ended up being a blessing as they wanted all their properties done the same day and they were all over town. Lots of wasted time driving. My new business could be scheduled in with my territory routing which makes for a more productive day which actually makes me more money per hour.
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Ya but hey, if that's his only jobs and that's all he can get you got to do what you got to do. He said it was his second biggest job. .I agree don't put all your eggs in one basket BUT if those are his only jobs and those are the only one's he can get, what's he gonna do. I think it's safe to say you would'nt take the 5% cut while most it looks like said they would if they still made good enough profit. Everyone's different..