Advertising fully insured? common

Discussion in 'Business Operations' started by Ramairfreak98ss, May 25, 2006.

  1. Ramairfreak98ss

    Ramairfreak98ss LawnSite Silver Member
    Posts: 2,210

    Ill honestly say, i do not have full insurance buisiness coverage yet. I will by next season since this will be my full time job then.

    I see tons of fliers and companies advertising pest liscense and fert app control and full insured etc, yet they hand out these cheap a$$ cards that look like some old ink jet home printer printed them with lines in it, and stickers on the back that say fert turf specialists etc .

    Others are xerox copies, very poor and faded out almost 80% sometimes of a clipart of a lawnmower, with a area code 856 in NJ when its for a large 609 area code , no company name or anything but fully liscensed and insured, insured what?

    What does fully liscensed even mean? that the business is registered? I dont consider myself the big guy at all, probably very small, but im now loosing potential clients asking for quotes on their lawn cuts to jokers i guess who were like when i started out and small. I didnt deceive people though or lie about anything. I offered no gimicks and still today, i have a VERY high end color photo, text, quality double sided letter sized folded handout and dont state im fully insured etc.

    Ive quoted out a guy for $1200 worth of mulching, hardscaping/patio repair, dead tree removal and minor gardening work, yet some other place comes in, drops off one mexican descent guy for a few days and i loose out on the job. They did more than i was even quoting to do as well including planting all new trees which the customer told me he didnt want to start with.

    Guess its pretty cheap to not even require a truck at the job and just drop a guy off with a shovel for the day and 10yrs of mulch :hammerhead: :confused: Im being underbid on things to the point sometimes it has me very curious what theyre profit margin is, it must be nearly nothing after expenses etc.
     
  2. carcrz

    carcrz LawnSite Silver Member
    Posts: 2,085

    You figure that they are paying about $10 an hour & charging $45 - 60. Their cost for 10 yards is somewhere around $200. That's $300 for mulch, another $300 for trees & they are making $400 to leave one guy there all day.
    I always remind my customers of why they call him the "other guy". There's a reason they keep calling me back.
     
  3. procut

    procut LawnSite Bronze Member
    Posts: 1,853

    I don't even advertise insured anymore. I took it off my business cards as well. It seemed tacky.

    As far as being "fully" insured, you can't be. For example, if you have a 1 mil policy, you could have 2 mil if you have 2 mil you could have 3, it goes on and on. Therefore, you can never be "fully" insured.
     
  4. Splicer

    Splicer LawnSite Senior Member
    Posts: 992

    I don't think that fully insured means the amount you are insured to, rather that you are fully insured against any hazards that may arise...not to mention being covered by workmans comp (which 99% of independant LCO's are not)...I have WC as well as 2 million general liability insurance ad consider myself 'fully' insured to perform the required work...BTW this is my 1st year as well BUT I had all the insurances from being a CATV contractor and just switched them to lawn care...
     
  5. Gatewayuser

    Gatewayuser LawnSite Bronze Member
    Posts: 1,734

    Yes splicer is right.
    I have gen liability insurance 1 mill, wc, commercial auto policy 1 mill and some other insurances too.
     
  6. Ramairfreak98ss

    Ramairfreak98ss LawnSite Silver Member
    Posts: 2,210

    so what does the larger policies cover if some of you are insured for 1 to 2 million? if you run yourself over with the mower on someones property or if like they back over you string trimming down their driveway?
     
  7. Gatewayuser

    Gatewayuser LawnSite Bronze Member
    Posts: 1,734

    No it does not cover you thats what workers comp is for. The 1 mill gen liability insurance is for damages done to others like someone getting hit in the head with a rock thrown by your mower. You have to insure your equipment separate.
     
  8. Trinity Lawn Care  LLC

    Trinity Lawn Care LLC LawnSite Senior Member
    from NJ
    Posts: 946

    "What does fully liscensed even mean? that the business is registered? I dont consider myself the big guy at all, probably very small, but im now loosing potential clients asking for quotes on their lawn cuts to jokers i guess who were like when i started out and small. I didnt deceive people though or lie about anything. I offered no gimicks and still today, i have a VERY high end color photo, text, quality double sided letter sized folded handout and dont state im fully insured etc.

    Ive quoted out a guy for $1200 worth of mulching, hardscaping/patio repair, dead tree removal and minor gardening work, yet some other place comes in, drops off one mexican descent guy for a few days and i loose out on the job. They did more than i was even quoting to do as well including planting all new trees which the customer told me he didnt want to start with."

    Fully Insured is a term basically used to describe that you have gen liab. work comp etc. Fully Licensed is to let the customers know that certain services require a license and that they have it. This is to let the customers know that if something gets broke or someone gets hurt it is covered. If you perform a service that requires a license you are required to inform the customer of this. From a portion of your post I just wanted to make you aware of something. In the great state of NJ now you must be registered with the Division of Consumer Affairs and receive a contractor registration #. This is if you do work that is almost anything else other then grass. It is based on a new statute under the The Home Improvement Contractor Act. Landscapers are included. I say this just to make sure that you were aware. Getting insured is not that expensive, especially if you are smaller like yourself. The application fee for the State is only $90. If you need an insurance agent PM me and I can get you in contact with someone that may be able to help you.
     
  9. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    If you did not deceive them and you do not lie, then in the long run you will win.

    As for the insurance, I do NOT advertise it and I don't even like it when someone asks.
    As far as I'm concerned, having no insurance is better in the sense that the claim of opportunity is a closed door.

    These guys are likely all new and / or in their 1st - 2nd year. If they're putting all those 'call me' factors on their pamphlets that look as cheap as you say, the reason they are getting ALL the calls is because customers LOVE taking advantage of this - Think back to when you were new, at least in my case I couldn't stop myself from putting a few extra things I could think of on there, so to speak. That not only screams NOOB to the delight of customers who may enjoy indulging in their predatory nature, but it also says "I need the work SO bad I will work for FREE !!!"

    And so, you must let this ride because this is how natural selection breaks over half of all new businesses.
    The ones that don't break are now broken in, lol.
    Were it not for these factors, we'd be overrun, so I am glad it is the way it is, thou it took time to see this.
     
  10. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    [QUOTE From a portion of your post I just wanted to make you aware of something. In the great state of NJ now you must be registered with the Division of Consumer Affairs and receive a contractor registration #. This is if you do work that is almost anything else other then grass. It is based on a new statute under the The Home Improvement Contractor Act. Landscapers are included. I say this just to make sure that you were aware. Getting insured is not that expensive, especially if you are smaller like yourself. The application fee for the State is only $90. If you need an insurance agent PM me and I can get you in contact with someone that may be able to help you.[/QUOTE]

    If that wasn't an original Jersey scam, I don't know what is. :nono:
     

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