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  #61  
Old 07-04-2012, 09:45 AM
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I would imagine with the N and P bans there isn't a lot you can apply at a decent profit for a price people are willing to pay.
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  #62  
Old 07-04-2012, 09:53 AM
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Originally Posted by diamondlandscaping View Post
Ric

Why would you get rid of good steady cash flow??
.


I am not getting rid of good stead cash flow, only trading it for a better source. There is a big difference in the profit margins of L&O and PC. L&O figure 25 to 30% Chemical cost. PC is more like 3 to 5%. Also the inventory of chemicals doing only insects is minimal. PC is lower over head or cost and physically not as demanded. No spreaders to push etc.

PC has it's down falls also. Demand is not as great as L&O and competition is after PC because it has such a high profit margin. With PC the next door neighbor can't see how green your lawn is. CALL BACKS can kill your profit margin real quick. Imaginary insect are a problem with some people. Those type can drive you crazy.

BTW Spray Accounts sell for an average of 100% of a years contract. Selling off my L&O will fatten my bank account very nicely.

.
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  #63  
Old 07-04-2012, 09:57 AM
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Quote:
Originally Posted by Ric View Post
.


I am not getting rid of good stead cash flow, only trading it for a better source. There is a big difference in the profit margins of L&O and PC. L&O figure 25 to 30% Chemical cost. PC is more like 3 to 5%. Also the inventory of chemicals doing only insects is minimal. PC is lower over head or cost and physically not as demanded. No spreaders to push etc.

PC has it's down falls also. Demand is not as great as L&O and competition is after PC because it has such a high profit margin. With PC the next door neighbor can't see how green your lawn is. CALL BACKS can kill your profit margin real quick. Imaginary insect are a problem with some people. Those type can drive you crazy.

BTW Spray Accounts sell for an average of 100% of a years contract. Selling off my L&O will fatten my bank account very nicely.

.
I knew all of that regarding margins as told by others.....I figured though that it is a difficult market(PC) due to all the big companies that have low as dirt prices. Like you said, people can see a nice, green, weed-free lawn. They don't see the ants that you killed.....
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  #64  
Old 07-04-2012, 12:07 PM
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Originally Posted by diamondlandscaping View Post
I knew all of that regarding margins as told by others.....I figured though that it is a difficult market(PC) due to all the big companies that have low as dirt prices. Like you said, people can see a nice, green, weed-free lawn. They don't see the ants that you killed.....
Good Question and one I have ask myself many times. I could hire a Helper and have that head ache. If I hire 2 or 3 I can have a real head ache.

But you have it right, PC can be a very difficult market. Most CPO with both will trade 2 L&O for 1 good PC account. After years of dealing with the public I think I might of learned a few things. First don't let your customer interview you. You interview the customer while selling yourself. This establishes a pecking order from the start. Second and most important, SELL YOUR WEAKNESS. I am still learning inside PC, So I sell my weakness that I might not control the bug the first time. ""Mrs Jones rather than make your house Glow in the dark, I am going to take a more Conservative approach. If that doesn't work we will use more aggressive methods until the problem is solved"" Of course I pound the house so I don't have to come back. Gas cost more than pesticide.

Where I never had to have very much if any advertisement, PC requires a lot more. My Google bill runs just under $ 200 a month. My Yellow page ad is more. I use the EDDM program from the Post office. But my phone is averaging a call a day. I am closing 95% because I low balling a little to build a route. But of those calls 50% are one time calls that won't spring for yearly service. They will call me back any where from 6 months to two years for an other one time shot.

.
__________________
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"TG doesn't give a rats ass about being "Responsible" as long as sales/production quotas are met. That's it in a nutshell. A recipe for disaster IMO." Ted Putnam 2/28/14

You can lead a Donkey to water but you can't make the Jackass Drink

"As Americans you have the right to be stupid." John Kerry

"Life is tough, but it's tougher when you're stupid.” John Wayne.
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  #65  
Old 07-04-2012, 06:02 PM
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Originally Posted by Ric View Post
Good Question and one I have ask myself many times. I could hire a Helper and have that head ache. If I hire 2 or 3 I can have a real head ache.

But you have it right, PC can be a very difficult market. Most CPO with both will trade 2 L&O for 1 good PC account. After years of dealing with the public I think I might of learned a few things. First don't let your customer interview you. You interview the customer while selling yourself. This establishes a pecking order from the start. Second and most important, SELL YOUR WEAKNESS. I am still learning inside PC, So I sell my weakness that I might not control the bug the first time. ""Mrs Jones rather than make your house Glow in the dark, I am going to take a more Conservative approach. If that doesn't work we will use more aggressive methods until the problem is solved"" Of course I pound the house so I don't have to come back. Gas cost more than pesticide.

Where I never had to have very much if any advertisement, PC requires a lot more. My Google bill runs just under $ 200 a month. My Yellow page ad is more. I use the EDDM program from the Post office. But my phone is averaging a call a day. I am closing 95% because I low balling a little to build a route. But of those calls 50% are one time calls that won't spring for yearly service. They will call me back any where from 6 months to two years for an other one time shot.

.
I hear ya on the headaches part. I'm trying to stay small myself until I move to San Diego. I just sold off 13 account back in April to a friend. Some paid good, but the overall money was low, some didn't pay enough but I knew wouldn't go for a price increase, some were scattered here and there. So instead of hiring another part time guy, I sold em off and am now making more money, with less accounts, and less grunt work. Maintaining 100-150 yards is not something I want to do. I want the high dollar, high margin, great accounts. I def. see why you want to do what your doing.
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