Business Model

Discussion in 'Lawn Mowing' started by drmiller100, Jun 16, 2005.

  1. drmiller100

    drmiller100 LawnSite Senior Member
    Posts: 562

    Ok, second year in business, so I'm new, and some might call me a scrub. I'm in a mountain vacation area, with a 4 month growing season. Labor is EXPENSIVE.

    I bought a JD 737 last year, JD 21 inch mower, FS85, and a Echo 650 this spring. I have a guy working for me that does all mowing. We have about 35 accounts which my employee does by himself on Thursday and Friday. We figure 2 hours of driving time each day. Our minimum account is 25 bucks (the majority), max is 85 a cut (two condos).

    A competitor is getting out of teh business, and is giving me 9 more accounts. He says a guy can cut all of his accounts in a 9 hour day, but I'm guessing another 4 hours as his accounts sound pretty small, and I'm already in most of the areas.

    So does this sound pretty standard? My guy is saying I should pay him more. My truck, trailer, and equipment, but is he working pretty hard to do 45 accounts in 2 and a half days by himself?
    I talked to my competition, but the nearest is a guy that does 30 accounts a week. He is push mowing it, and has a helper half the week.

    What is the standard for the bid dogs out there that mow more then 16 times a year?

    Thanks!
    doug "lowballer"
     
  2. J Hisch

    J Hisch LawnSite Senior Member
    Posts: 952

    I guess in order to do 45 accounts in 2.5 days these are small properties. 1. If you can trust him to do quality work, ask yourself this question what would be the minimum you would want to get paid for providing all the labor for the business? You sound like your lucky right now, but you better at least be paying 10.00 bucks or he wont be there long. I would say even more since the season is so short. But it's your business.
     
  3. Todd's lawncare

    Todd's lawncare LawnSite Senior Member
    from P.A
    Posts: 548

    Pay him more because the season is short ok so cut less pay more less profit
     
  4. drmiller100

    drmiller100 LawnSite Senior Member
    Posts: 562

    currently he is making 15 an hour plus bonuses. He is a year round employee.
     
  5. therainman

    therainman LawnSite Member
    from IL
    Posts: 196

    $15 an hour is plenty of money for him at this point. If someday he is placed in charge of other employees more maybe needed to keep him. I doubt it though.

    Shawn
     
  6. drmiller100

    drmiller100 LawnSite Senior Member
    Posts: 562

    came up with an idea. i'm going to give him 10 percetn of everything he can mow on thursday and friday in addition to a basic wage.

    then i'm gonna wokr his behind off mon-wed on sprinklers. he can make me more money that way.
     
  7. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 12,966

    And how long before this individual walks and starts his own business? With the present situation where you can finance equipment 100% everybody who has any ambition is in the mowing business.
     
  8. drmiller100

    drmiller100 LawnSite Senior Member
    Posts: 562

    great point. the odds of him successfully being a competitor are one thing. Odds not very high.

    odds of him TRYING are much higher. I need to figure out how to give him most of HIS perceived benefits of a business, and still make money.
     

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