Business Model

[drmiller100]

Ok, second year in business, so I'm new, and some might call me a scrub. I'm in a mountain vacation area, with a 4 month growing season. Labor is EXPENSIVE.

I bought a JD 737 last year, JD 21 inch mower, FS85, and a Echo 650 this spring. I have a guy working for me that does all mowing. We have about 35 accounts which my employee does by himself on Thursday and Friday. We figure 2 hours of driving time each day. Our minimum account is 25 bucks (the majority), max is 85 a cut (two condos).

A competitor is getting out of teh business, and is giving me 9 more accounts. He says a guy can cut all of his accounts in a 9 hour day, but I'm guessing another 4 hours as his accounts sound pretty small, and I'm already in most of the areas.

So does this sound pretty standard? My guy is saying I should pay him more. My truck, trailer, and equipment, but is he working pretty hard to do 45 accounts in 2 and a half days by himself?
I talked to my competition, but the nearest is a guy that does 30 accounts a week. He is push mowing it, and has a helper half the week.

What is the standard for the bid dogs out there that mow more then 16 times a year?

Thanks!
doug "lowballer"

[J Hisch]

I guess in order to do 45 accounts in 2.5 days these are small properties. 1. If you can trust him to do quality work, ask yourself this question what would be the minimum you would want to get paid for providing all the labor for the business? You sound like your lucky right now, but you better at least be paying 10.00 bucks or he wont be there long. I would say even more since the season is so short. But it's your business.

[Todd's lawncare]

Originally Posted by J Hisch

I guess in order to do 45 accounts in 2.5 days these are small properties. 1. If you can trust him to do quality work, ask yourself this question what would be the minimum you would want to get paid for providing all the labor for the business? You sound like your lucky right now, but you better at least be paying 10.00 bucks or he wont be there long. I would say even more since the season is so short. But it's your business.

Pay him more because the season is short ok so cut less pay more less profit

[drmiller100]

currently he is making 15 an hour plus bonuses. He is a year round employee.

[therainman]

Originally Posted by drmiller100

currently he is making 15 an hour plus bonuses. He is a year round employee.

$15 an hour is plenty of money for him at this point. If someday he is placed in charge of other employees more maybe needed to keep him. I doubt it though.

Shawn

[drmiller100]

came up with an idea. i'm going to give him 10 percetn of everything he can mow on thursday and friday in addition to a basic wage.

then i'm gonna wokr his behind off mon-wed on sprinklers. he can make me more money that way.