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Old 10-04-2012, 09:04 AM
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mx315 mx315 is offline
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Bringing Chemical Services In-House

I've used pretty much every chemical company in town and end up with the same results. First year or so they do pretty good and then go down hill after that. I'm tired of having to tell these guys to retreat my properties and fix problems, so I'm thinking of leasing a license and bringing someone in to do it all in-house. I should be able to control quality much better with one employee taking care of all the apps.
Has anyone done this and how has it worked out?
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Old 10-04-2012, 10:11 AM
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Been There Done That and that is how I got started in Application. Now that is all I do. But it is a good move that puts you in a totally different class as a Full service company. It will give you that one stop shopping that upscale clients want.

Stay away from Rent-A-License. If you are going to have success you need an experienced Tech. Hopefully a CPO. But you need to come out of the chute in high gear letting your customer know they are getting great service. BTW That is the easiest way to build a Lawn Route. Word of Mouth.

Cost wise any time you expand into an other area you are going into Negative cash flow. Pesticide License and Insurance requirements aren't bad. Equipment cost can vary, start with basics. But the Real cost will your CPO Spray Tech. Average Spray Route guys for the Big Boys are making $ 30 to 35K at most. A good CPOIC is $ 50 K Minimum. 100% of your customer base is not going to switch to you. Your Fert & Squirt chemical costs and over head etc. not counting employee pay should be of sales 50%. So there are the basic number for you to consider. Good Luck.

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Old 10-04-2012, 02:59 PM
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mx315 mx315 is offline
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Thanks for the info.
All of my customer's monthly chemical services are included in their bill and we do mostly commercial properties. I have a spray tech that is really good and wants to come work for me, but has never taken the test to get his own license. I'm looking for a rent-a-license to get me by long enough to allow me to take the test and get my own license, so I don't have to worry about it anymore. I know there are people around that do it and even called the Regional Inspector to make sure it was legal. I know another company that did it and now have their own license and running 2 full time spray crews. At last count I have close to 950K s/f of turf that we maintain and think it's about time to make the move. Any idea how I would go about looking for a license holder?
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Old 10-04-2012, 04:11 PM
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Ric Ric is offline
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Quote:
Originally Posted by mx315 View Post
Thanks for the info.
All of my customer's monthly chemical services are included in their bill and we do mostly commercial properties. I have a spray tech that is really good and wants to come work for me, but has never taken the test to get his own license. I'm looking for a rent-a-license to get me by long enough to allow me to take the test and get my own license, so I don't have to worry about it anymore. I know there are people around that do it and even called the Regional Inspector to make sure it was legal. I know another company that did it and now have their own license and running 2 full time spray crews. At last count I have close to 950K s/f of turf that we maintain and think it's about time to make the move. Any idea how I would go about looking for a license holder?
I can't recommend Rent-A-License mainly because the state has a big thing about it and levee big fines as well as pulls certifications and licenses. You might get away with it, but I wouldn't want to get caught.

One of the ways the state catches you is on paper work and unemployment taxes. Read the law, a CPOIC must be a full time employee, which is I think 32 hours a week minimum. His pay scale on the tax role must match the normal prevailing wage or it sends up Big Red Flags. BTW If they smell something funny they will pull IRS returns also. If you have to pay prevailing wage why not have the Real deal CPO.

I am sorry but when you pull those accounts from your present subcontractor he is losing enough business to question who is taking it. CPO can be a revengeful bunch and will turn in a competitor in a NYC if they think he is taking there business. I will be honest and say I am the first to turn in a Rent-A-License or illegal "IF" THEY STEP ON MY TOES.


If I thought I could Get away with a Rent-A-License operation under my own Certification, I would do it in a NYC second.

.
__________________
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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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Old 10-08-2012, 01:55 PM
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mx315 mx315 is offline
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There is a company around here that rents out licenses to different companies every few years until they get enough time on the books to take the test themselves. I have asked the State Inspector if it was legal and he said yes. He told me as long as the license holder is available for questions (by phone is fine) and holds a meeting once a month, then it's perfectly legal. He told me he gets calls all the time from other companies wanting to turn them in, but there is nothing wrong with it. He's pretty tough on all other license holders, so I don't know why he would let that one go if it was illegal.
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