BIG problem with Mulch installs!

Discussion in 'Landscape Maintenance' started by mkwl, Mar 16, 2009.

  1. mkwl

    mkwl LawnSite Bronze Member
    Posts: 1,701

    There is a rather large company near me that sells and installs mulch (all they do is mulch). They have a deal out right now that they will install mulch at $27 per yard! Just about all of my clients cought wind of this, and are opting to go with this company for mulch! :cry: I have always "depended" on mulch fo a good deal of profits in the spring, and now, with this company coming in, I'm losing a TON of them, because they WAY underbid me. I have offered to a few people to do the jobs for say 10% or so more than them, and they went for it because they're loyal to me, but many of they were like- the economy is tight, and they can do it cheaper- give them the business-:cry:. What would you guys do in this situation- lower prices some, or watch clients drop off the mulch list and lose income?
     
  2. Nick's Lawn Care

    Nick's Lawn Care LawnSite Senior Member
    Posts: 662

    Hmmm... maybe venture out your services... power washing?
     
  3. White Gardens

    White Gardens LawnSite Fanatic
    Posts: 6,783

    Nick is right, you might have to try and branch out some-where to gain some extra income.

    I would check out the mulch this company offers. I have a feeling it might be nasty, so you might want to tell this to your customers.

    Arm yourself with some ammunition to show your clients you've actually got a better deal.
     
  4. jerryslandscaping

    jerryslandscaping LawnSite Member
    Posts: 6

    I have seen the 1-800-mulch trucks around my town. I have no idea if that is the same one's you have seen. Knock on wood have not been having a problem so far yet with mulch jobs. The deal can only run so long i would hope keep plugging away.
     
  5. shade tree landscaping

    shade tree landscaping LawnSite Senior Member
    Posts: 915

    27 a yard installed? after paying gas & insurance, labor to install, and product(obv they are getting a great wholesale price) how do they make a profit? I'm guessing that its on volume, and alot of it!
     
  6. mkwl

    mkwl LawnSite Bronze Member
    Posts: 1,701

    Well, I am looking to branch out services more, but historically mulch has always been a good moneymaker for me. I have pointed out to my clients that this larger outfit (to remain anonymous) uses mulch blowers, which do not lay mulch down as thick, or as neatly (IMO). This has held a couple more for me as they really want a top notch job done.
     
  7. fl-landscapes

    fl-landscapes LawnSite Silver Member
    Posts: 2,542

    I agree with gardens. I would take a look at a job they do for one of your former customers. Be honest BUT if you see an inferior product I would point it out. I just told my mulch supplier I wouldn't be buying a certain mulch from him because he switched to a different brand and the stuff was crap. He fired that company and is getting the prior brand back for me. Quality matters!!
     
  8. Ramairfreak98ss

    Ramairfreak98ss LawnSite Silver Member
    Posts: 2,210


    i know, damn, the cheapest i pay after tax is around $19 a yard for black dye.. which almost all residential use, so your installing, trucking, and running a business for $8 a yard profit ? what about their employees?

    Where is this company at north jersey or central or south? I dont know of any down here that are doing it anywhere near that cheap.

    Maybe they should call up US maintenance, since they seem to have thousands of yards of mulch to install at 1000s of locations for that price lol :clapping:
     
  9. GracesLandscaping

    GracesLandscaping LawnSite Senior Member
    Posts: 632

    wish they were in my town and my clients didn't know about them!!! hahaha i would call them, have them do the service, pay them, then collect my profits from the client! thats ridiculous because mulch (premium brown) is 22 a yd here for the avg Joe and 17 and some change for me (or any registered business) i charge 40 per yd plus 20 delivery and im cheaper than pretty much everyone!
     
  10. OSU 09

    OSU 09 LawnSite Senior Member
    from Ohio
    Posts: 292

    $27 installed!? The cheapest I can get mulch around here is around $20 a yard. I could imagine going that low, that wouldn't even be enough to cover expenses.
     

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