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Old 03-04-2011, 07:59 AM
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RABBITMAN11 RABBITMAN11 is offline
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Buy out, or not!

Okay here is the question. I have a chance to purchase a customer route. The catch is it 45-50 minutes away. I currently have customers about 15 minutes away from This area. But only a days worth. If i take the route I will have 7-8 days worth of work in that area ( Farthest area from our shop). With gas prices and drive time I have some hesitations. Any thoughts on this? One of my guys can take on the extra load of customers. I'm just not sure if it would be a good thing to do right now. Any thoughts please?
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Old 03-04-2011, 08:52 AM
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mikesturf mikesturf is offline
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Thats an extra 90-100 minutes of time taken out of your day just driving. Thats 3 to 5 accounts per day (estimated time) if it were in your normal route area. So I would think you need to charge extra just to cover the lost amount of work because of driving.

After driving 90 minutes to start the day, working for 5 hours (maybe up to 8) then driving back 90 minutes, it would get old REAL quick.

Is it worth expanding, maybe not now but in future, opening up a branch in that area and having someone who lives there do the work?
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Old 03-04-2011, 09:34 AM
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RABBITMAN11 RABBITMAN11 is offline
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Actually it will be a fifty drive. One way.
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Old 03-04-2011, 10:33 AM
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grassman177 grassman177 is offline
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why not? i can understand the drive time involved, but if you get a good start on that many then over the next couple of years, spend time getting more and the drive will not eat as much up if you have more to get done in that area. we have some we drive to that are about 40 min away from shop, but if we charged more we would not get the job.

just thoughts for you is all
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Old 03-04-2011, 10:40 AM
pieperlc pieperlc is offline
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Will you make money on the accounts? It sounds like you have equipment/manpower. Can you turn a profit on the customers without jacking up there pricing. From reading your posts I'm sure you know your costs, and even though fuel is high, at least you know it's going to be high. Maybe convert your guy to do 4-10 hr days when he's treating those routes?
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Old 03-04-2011, 11:30 AM
32vld 32vld is offline
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Quote:
Originally Posted by RABBITMAN11 View Post
Okay here is the question. I have a chance to purchase a customer route. The catch is it 45-50 minutes away. I currently have customers about 15 minutes away from This area. But only a days worth. If i take the route I will have 7-8 days worth of work in that area ( Farthest area from our shop). With gas prices and drive time I have some hesitations. Any thoughts on this? One of my guys can take on the extra load of customers. I'm just not sure if it would be a good thing to do right now. Any thoughts please?


You are already driving 35 minutes away so what is another 15?

You are not going for one property but 7 to 8 days of work/billable hours, don't you want to make more money?

You have the man power in place to do the work.

I don't understand the problem.
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Old 03-04-2011, 01:56 PM
grassmasterswilson grassmasterswilson is offline
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You could always pick up the route and then do a couple of concentrated mailers for the area in between. Could be a way to create a satelite hub and hire a guy to handle that area. You would also be in an area that you don't service and with the little truck I remember you having your aerator in people will notice you!!

On the other hand do you have all you really want without having to drive?
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Old 03-04-2011, 04:01 PM
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grassman177 grassman177 is offline
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if it is a good route, and quality lawns etc, good price etc. then i say go for it.
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Old 03-05-2011, 08:11 AM
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RABBITMAN11 RABBITMAN11 is offline
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Thanks guys, that's gives me some things to consider.
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Old 03-05-2011, 09:03 AM
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rcreech rcreech is online now
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Rabbit,

I know we have already talked...but it isn't that far from your current stops, and that is just another another area to SATURATE once you get your feed in the door.

Here is another way I look at it:

TONS of people drive 45 minutes to an hour to get to work EVERYDAY...it is really no different for us.
And they are probably only making $15-20 an hour.

I would do it if the price is right!

.50 - .60 max per customer and I would be all over that!
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