Originally Posted by GaryBK
Hi guys. BmBurns said that the Weed man take is 4-5%. Why are some of you exaggerating that point? I think that is reasonable for the support they give you. He doesn't have to learn everything from the school of hard knocks and that has great value.
I take credit cards and a huge percentage of my customers pay by credit cards. I pay out about 2.5 percent of my gross including on the sales tax for the ability to use credit cards. But I am happy to do so because I find it easier to get customers when they pay by plastic. They put a credit card on file and I bill after I do the work. My receivables are way down and my growth is way up. I find it well worth what I pay to visa and Mastercard. If Weidman gives BmBurns the ability to grow faster and make more money giving away 4-5 percent than that is an investment in his business that has a good return on investment. I think it is a wise business decision for him.
BTW BmBurns, I'm assuming that percentage is of the gross and not the net right? Also you said you were at 1700 customers correct? How many trucks do you need for that? And at how many customers did you need to get with the franchise fee for you to take a decent wage from your company?
Ted, congratulations on building up your company on your own too!!! Word of mouth growth means you are doing things right! How many customers do you need to have to support 3 trucks?
Thanks guys, I hope you are all having a great season. For me I can't wait for the snow to fly here as I'm looking forward to a nice break. ;-)
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First of all, I was in no way trying to sway anyone either way on getting into a franchise or not. I think it could be good for some and not so good for others. At the point I was at when I had the opportunity to buy in, I don't think it would have been a good decision for me. It's going to take hard work and dedication whichever path you choose.
I do sales/service, tree/shrub and whatever regular lawn production I can do out of one of the trucks. The other 2 trucks do straight lawn production. We have around 700 customers. Between regular lawn apps, tree/shrub, aerations and some miscellaneous apps, we stay fairly busy but I think we could actually handle another 150-200 before I need to look at truck number 4 and everything to outfit it along with a new employee to run it.