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Attention LCO's

Discussion in 'Lawn Mowing' started by pinto n mwr, Mar 12, 2008.

  1. pinto n mwr

    pinto n mwr LawnSite Senior Member
    from gr8, mn
    Posts: 422

    Hope you liked my last thread!

    I do have a question for the LCO's on here that currently sub out their fert.

    Based on a 6000sqft lawn

    If my retail price(price you would charge your customer) is $45.00, what discount/dollars off do you expect the fertilization company to give you, the LCO. I just ran into this today with a potential client and was shocked by his answer.
  2. mngrassguy

    mngrassguy LawnSite Silver Member
    Posts: 2,167

    I pay 50% if I supply materials, 75% otherwise. Wait, $45.00 for 6000 sq ft? Maybe 5 years ago. I'm getting $60.00 now. So what was your pot. clients answer?
  3. corbster

    corbster LawnSite Fanatic
    from OHIO
    Posts: 29,511

    yea, what was it that shocked you?
  4. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    I actually expect and get nothing. I just ask that the fert guy I give business to tries to give me some back, and does a good job with the work I give him so I dont look bad. 10% would be $4.50 for every visit, and 10% is way high. I wouldnt give 10% off maintenance. So its going to be such a little amount that wont change anything for you that its not worth it which is why I ask for a good job and thats it. I would guess there is some idiot who expects 25%.
  5. pinto n mwr

    pinto n mwr LawnSite Senior Member
    from gr8, mn
    Posts: 422

    $45 to their customer, the LCO only wanted me to charge him $30. Now if this person wanted that margin then his customer would have to pay more. I have no problem with him wanting that margin but I have to have a margin too.
  6. tamadrummer

    tamadrummer LawnSite Bronze Member
    Posts: 1,102

    I'm with Lawnman Scott on this one. I just refer to one company and I expect that he will do the job top notch! I don't expect any of his money and he doesn't expect any of mine.

    The cost of doing business did not go down this year, networking with someone is a good idea and developing a relationship based on good referrals will take you farther than trying to get a couple of bucks out of a fert app.

    I refer for everything I don't do with great efficiency or skill like tree work and irrigation repair. You also need to be licensed to do irrigation and Fertilization so for both of those if my people need these done I give the card for the people I trust and explain why I trust them and why not to use Tru-Green or Billy-Bobs fly by night sprinkler fixers.....

    Hope this helps.
  7. mngrassguy

    mngrassguy LawnSite Silver Member
    Posts: 2,167

    It doesn't't take an "idiot" to figure out how much it costs to sell, maintain, bill, collect, pay, renew customers. Not to mention service calls and, oh ya, bad debt. Of course there are a lot of "idiots" out there who don't understand "job costing" and work for free. I receive premium prices for my work and many of my subs tell me I pay way more then they could ever get from their own customers. My subs do the best work in the state as far as quality and I expect nothing less.

    Oh, by the way, I also work for them for the same percentages. It goes both ways. They don't treat in my neighborhoods or I in theirs.

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