40/60 Split?

Discussion in 'Lawn Mowing' started by CEOAPE, May 25, 2006.

  1. CEOAPE

    CEOAPE LawnSite Member
    Posts: 6

    So 2 weeks ago i have 58 customers and myself and 2 other guys are cutting them each week and i'm paying a total of close to $300 in labor. Additionally, another $150 p/week is going towards gas and other misc expenses. My Gross for each week was approx $920 then less my labor/expenses i'm walking with approx $470 each week. Now get this, my guys were constantly blowing off work IE: showing up late, going home early, not showing up at all and etc etc. So i decide to offer them something different. Out of all my 58 accounts i compile a list of the most efficient route possible and i'm going to cut them myself. 80% of my list consists of easy commercial accounts with the remainder being easy residential. I take 31 account and then i make a list of the remaining 27 accounts. The remaining 27 accounts total a gross income of $408. I propose to my 2 hourly guys that rather than paying them $13 p/hour to work with me, that i'll split the 27 accounts at a 40%me to 60% them ratio. I STAY HOME AND THEY CUT THOSE 27. The only particulars are they use there own truck, gas, pay 100% of all negligence damage and 50% of normal wear/tear on equipment. Essentially, the guys rent my trailer, cut my 27 customers, make more money than they would hourly, spend much less time making better money because I'm cutting 31 myself, and i make money without the burden of them screwing me. So far so good, they have done quality work and have been more responsible. All the while i'm cutting my 31 accounts in a whopping 6 hours alone and netting 512 p/week. Now that combined with their 40% equals a NEW total weekly net income of $675. Is it just me, or was this business move a no-brainer??
     
  2. Howie's Lawn Care

    Howie's Lawn Care LawnSite Senior Member
    Posts: 512

    That sounds great, but don't they realize that they're making less money per week? How much more are they making per hour now?
     
  3. Surf'n'Turf

    Surf'n'Turf LawnSite Senior Member
    Posts: 326

    58 accounts and a $920.00 gross? whats wrong with this picture? :confused: 2-3 men should be able to make that (or more) in a day.
     
  4. CEOAPE

    CEOAPE LawnSite Member
    Posts: 6

    when they worked with me, we meaning all 3 of us, cut 58 accounts in about 14 hour each week. One guy made 180 each week or close to it, the other guy i paid less because he wasnt as good, but he still cleared about 120. With the 27 accounts i gave them, now they're making about $125 each but only cutting half the accounts. But they havent decided if one guy will use his truck every week and pay the other hourly, either way i make better money than when i babysat these to. Originally, the list of 27 customers was for either one of them , but not both. Since they talked about it, they're working together and i suppose that is kind of huring there income, but i could care less. Just want to make sure that the customers are happy with the work. I have only 1 16 ft trailer, 1 48 exmark, 2 bp blowers, 2 stick edgers and whips, and other essential items on the trailer including one of those new 21inch snapper 3 in 1 front caster mowers that i WOULDNT recommend to anyone.
     
  5. AintNoFun

    AintNoFun LawnSite Bronze Member
    Posts: 1,807

    i sure hope they are postage stamps on the same block...


     
  6. Littleriver1

    Littleriver1 LawnSite Senior Member
    Posts: 811

    If I wake up and find out that all I have been doing was a dream and all I can make is less than $1000 a week, I'll jump under a bus.
     
  7. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    First off, in defense of the thread starter this sounds like some first or second year venture, while the employees may even be well-meaning friends who unfortunately have no place in a business paddling hard to stay up creek, the mistake is not uncommon and it can even appear as if one is doing well until later down the road.

    That having been said...
    I agree, I had 55 accounts last year and 46 this year, and either way I grossed / am grossing around 5k a month during peak, so slightly over a kilo per week by myself, on average. Mind you with me it's not all grass-cutting but last year a lot of it was, and even if it is all grass-cutting I still agree the gross of 900+ is low for that number of accounts... It's actually not too bad for a 1st-to-2nd year operation but again there is no need for employees at this point.

    You got to let those no-loaders go, raise your prices a bit and get to work and soon you will be in heaven LOL because if you don't, things don't look good from my perspective, peak of season is coming to an end soon and you can keep cutting weekly until the customers get tired of seeing you cut their dead lawn and they let you go, so to speak... That, or at least start making some adjustments now is my recommendation.
     
  8. Cracker Station

    Cracker Station LawnSite Member
    Posts: 66

    some one help me!!!! Isn't that less than 16.00 a yard??
     
  9. PastyWhite

    PastyWhite LawnSite Member
    from Jax, FL
    Posts: 56

    Yeah I got 15 and some change.
     
  10. HOOLIE

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    I think the better idea would be to fire your two cronies... and raise your prices...
     

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