It allows the company in the case of fertilizer to buy it at whole sale cost and not mark it up and then under cut you in the same market. So he can be a making a decent profit at what would be cost for you and I have 2 of these guys near me that do this. One example we had a 50000 sqft lawn we mowed but we could never get the fert account because the company that did it was less than 150 dollars per application. For those of you who do not do fert I'll help you with the math. Most bags cover 10-12k sqft and the more obstacles and side walks and narrow areas the more bags you will need. So this lawn uses 5 bags there is no getting around that the bags depending on the step range about 22-28 dollars each here and back then the merit app was 65 a bag. so 110 to 140 an app with one app 325 and thats just the cost of the material not the fuel to get there the guy to use it the truck the trailer or the spreaders. That is what buying your product wholesale allows you to do it can shut your competition out completely in extreme examples.
Now a dealership selling lawn equipment obviously has the advantage as well he can buy his products whole sale and increase his unit numbers earning him a higher price point program from the manufacture. So not only does he save money where you can not but in doing so he can be on his way to knocking his whole sale price down yet another level and there by making more off you who are trying to compete against him. Granted there is less to work with in the mowing end of this trade so thats probably why I have never seen that but 2 fertilizer stores and 2 nurseries have broken that trust in my area and they wonder why landscapers cut them off. One of the nurseries has actually since filed bankruptcy and all they have left is the lawn care part.