The Green Industry's Resource Center

32vld · #41 07-12-2012, 10:03 PM

If you are losing money on any account you need to increase profits or cut lose the account. Forget losing money for the rest of the season.

Be honest tell those customers it's one thing to know how to landscape and another how to run a business. Due to you learning as you go on the business end you did not appreciate all the costs that were involved with running a business and can no longer lose money servicing their property.

As of the time of the next service you well need to increase the weekly rate to $XX. If you choose to switch another LCO that will be with ok you. You do not want to leave them stranded and will continue to service them at the new rate until they can find someone else to take over their property maintenance. Or then can choose to have you to just stop servicing them now at this time.

ProStreetCamaro · #42 07-12-2012, 11:13 PM

$20 each and it takes you 1:45 to 2 hours to do all 3? That is crazy low priced and that is coming from somebody that is in a market that demands very low prices. For an example.......... We only have 7 lawns left to do tomorrow morning. They are all together and they all range from 1/2 to 1 acre. We will have them done in 2 hours or less. The cheapest one is $30 going up to $45. Lets say they average $40. In 2 hours or less we will make $280 minus operating costs. Last year when I was doing them by myself I would knock them out solo in 3 hours. So many factors go into pricing nobody can really tell you what is right or wrong. That is something you need to figure out for your situation.

nick2765 · #43 07-13-2012, 01:40 AM

Quote:

Originally Posted by 32vld

What's the SF of these $20 properties?

I now get $35 minimum for a 1/4 acre. Depending on my year end costs review it may go to $30.

Do you know that the median household income on LI is $74,000. That puts it in the top group of wealthy regions in the US.

And you want to charge people here on LI as if they are living in the poorest areas of this country.

A tip many a potential customer will throw out that they paid their last guy $25 to get you to agree to undercut them and do their lawn for $20. When the truth was they were paying $35.

$20 to mow a lawn - Use a gallon on gas to drive there and equipment $5 = $15 - Sharpen blades, oil, line for trimmer, blade for edger, wear and tear on your truck, trailer, = $10 - license = $8 - insurance = $6 - set aside money to buy replacement mower, truck, trailer = $3 - unforeseen repairs over course of a season based on that you can do 99% of the work your self = $0

Now out of that $0 profit left over you get to pay your self a salary, and oh yes I forgot the 2 stroke oil that you will need. And when a customer wants you to trim there hedges out of that $0 you get to buy a $300 gas hedge trimmer.

Very well put, and they are about 5000 sq ft properties. If you don't mind me asking what parts of long island are you servicing?

fitzbrotherslawncare · #44 07-13-2012, 03:32 PM

Me and my brother save 2500 each a year so thats 5000 a year for equipment.

jrs.landscaping · #45 07-13-2012, 03:40 PM

Quote:

Originally Posted by fitzbrotherslawncare

Me and my brother save 2500 each a year so thats 5000 a year for equipment.

so you replace: truck, mowers, trimmers, blowers, etc... for 20k in 4 years which is what you said the units lifespan is.... and pay cash? What dealerships do you go to to replace 75k worth of equipment for 20k?

fitzbrotherslawncare · #46 07-13-2012, 04:37 PM

how do you come up with 75000 for equipment? lol i dont buy new 30,000 dollar trucks i buy used with low miles. two mowers is 16,000 and two of each handheld comes to about 3,000 thats 19,000 which leaves 6,000 for a used truck to replace, even tho my trucks last more than five years. But where would the other 50,000 go seriously?

jrs.landscaping · #47 07-13-2012, 04:43 PM

Quote:

Originally Posted by fitzbrotherslawncare

how do you come up with 75000 for equipment? lol i dont buy new 30,000 dollar trucks i buy used with low miles. two mowers is 16,000 and two of each handheld comes to about 3,000 thats 19,000 which leaves 6,000 for a used truck to replace, even tho my trucks last more than five years. But where would the other 50,000 go seriously?

LOL!!!! I didn't know you traded one junk in for another. I figured you replaced them meaning upgrade, like, buying new maybe? That's how some businesses operate. Our last round of purchases was around 65k for the items described. I'm glad that you pocket money insted of "reinvesting" it into your business

fitzbrotherslawncare · #48 07-13-2012, 04:52 PM

We Buy new mowers and handhelds which comes out to 19,000 and in my experience buying new trucks in this business isnt a good investment knowing as soon as you drive off the lot you lose a few thousand. Is 65,000 in equipment for one crew?

jsslawncare · #49 07-13-2012, 05:36 PM

In this business their are many factor's and I don't think your plan would work for me, but it seem's to be working for you which is great. I don't agree with buying 2 of all the hand held's and I also have a helper. We just do thing's at different time's.

jrs.landscaping · #50 07-13-2012, 05:47 PM

Quote:

Originally Posted by fitzbrotherslawncare

We Buy new mowers and handhelds which comes out to 19,000 and in my experience buying new trucks in this business isnt a good investment knowing as soon as you drive off the lot you lose a few thousand. Is 65,000 in equipment for one crew?

3 new mowers 14k per mower, two trimmers, new kombi system w/attachments, new backpack blower, and our one ton was 30k, 12k below MSRP. We run 2 crews but the equipment minus one mower were replacements for one crew. If I could find a late model, decent one ton diesel dump with a plow and under 150k miles for 6k I wouldn't be able to buy it fast enough.... unfortunately I have never seen one.