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Old 05-02-2005, 12:48 AM
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emil35 emil35 is offline
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Location: Colorado
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Employees & Insurance!

Hello all,

I was wondering if anyone out there had a way of getting around the high costs of employees and insurance? The things you need but eat away a huge piece of your profits! I know I need them both and by no means am I trying to say I would do without either one of them, but my question is, how the big groups do it? Any sugguestions? I know the large groups probably self insure (like Brickman, TruGreen, etc.) but is there any way to help the lower the costs for us small guys? I'm getting eaten up with paying out high insurance rates (even though I have NO claims EVER!) and the payroll expenses with employees (workman comp, etc). Do any of you guys "sub-contract" your employees? If so how do you do it and get away with it? It seems pretty risky to me. Just looking for some advice. Anything and everything will be greatly appreciated. Thanks!
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Old 05-02-2005, 08:34 AM
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br549oicu8 br549oicu8 is offline
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Don't find a way to geet around it. FInd a way to make it happen. You may have to raise your rates or the volume of your business. Use being completely legal as an advertising tool. My rates go up every year and I moan and groan a bit but when I look at the bottome line I usually just smile and shut up.
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  #3  
Old 05-02-2005, 05:42 PM
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rodfather rodfather is offline
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It's called "Pricing Your Properties Accordingly" so that you can cover these inportant expenses. Period
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Old 05-02-2005, 05:59 PM
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Jpocket Jpocket is offline
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Yea BUT in todays market how can guys price accordingly and get that many accounts? These $20 a pop sub-divisions won't get and these CHEAP azz commercial props. won't get it either. The market place is getting harder for the Small guys to price accordingly.
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Old 05-02-2005, 06:07 PM
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rodfather rodfather is offline
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It's called "pick n choose". No one says you have to take every account that comes to you.
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  #6  
Old 05-02-2005, 11:28 PM
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emil35 emil35 is offline
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Thanks for the input, but I know how to price my accounts/jobs accordingly...I've been in the business for almost 10 years! I'm just looking for a way to help reduce costs. Owning a small business in America is very difficult, especially in my area where the bidding wars are intense. The cheaper i can do it, the better. There has to be a way. How are the big guys doing it? How can they underbid the small guys the way they do? There just has to be a way and I'm going to find it.
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  #7  
Old 11-29-2005, 05:03 PM
gslawncare gslawncare is offline
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Location: Chicago/O'hare zone 5
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you have to make an expected revenue/crew. The big guys have everything paid for so, there money is allocated to admin exp, ins exp. systematically, if one crew can make about 60k or more the owners are happy. if they can only make the 60k the owner still makes about 15k/ yr/ crew. it's all inthe numbers.
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  #8  
Old 11-30-2005, 08:17 PM
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Team Gopher Team Gopher is offline
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Hi emil35,

Quote:
Do any of you guys "sub-contract" your employees?
FedEx tried this with their delivery trucks and it didn't work out for them.
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Old 01-05-2006, 12:44 PM
JimSolo JimSolo is offline
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Heres an idea....
Start a Lawn maintenance Association with multiple lawn companys as "members".
Then the Association goes out and gets Health, and business insurance wich is paid for by "Member Fees"

Might pan out to be cheaper per member

Just threw that out there sorry lol
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