Cost Savers

Discussion in 'Lawn Mowing' started by Green in Idaho, Oct 18, 2003.

  1. Green in Idaho

    Green in Idaho LawnSite Senior Member
    from Idaho
    Posts: 833

    Which one?

    You are doing a lawn for $40.

    It takes you 1 hour. And your costs are $15. $25 profit.


    Someone (salesman) comes to you and says I can sell you a gadget that will cut your time in half. It will cost you $15 to use it on that lawn.

    So your time will drop to 30 minutes but your cost will be $30.
    Would you take them up on the deal?



    What if it cost you only $5 per lawn to cut the time in half?

    At what point either higher or lower than $15 (additional cost) would you CHANGE your mind?
     
  2. WeatherMan

    WeatherMan LawnSite Senior Member
    Posts: 692

    I think I would so I can move to the next lawn quicker and bring on more accounts = more money
     
  3. ElephantNest

    ElephantNest LawnSite Bronze Member
    from La.
    Posts: 1,878

    #1, if I'm doing a yard that takes a hour, it'll be more than $40.00

    #2 If i DO take the offer, at say $15.00, does this mean my orignal costs of $15.00 (expenses) are not needed? Or is it buy the thingy for $15.00, then my expenses at $15.00 on top.

    What, besides labor could cut a yard time in half? Nothing, unless a bigger machine, which is more than $15.00

    I guess I don't see where you're going with this, but I'd have to say....NO.

    I've worked hard to make my business a profitable one, on my own. No gadgets are going to make things magically work faster. Effenciency is learned, earned, and tested.

    But I'm all ears...
     
  4. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    Would you not be spending $30 per lawn, and cutting your time in half, and only be making $10? Yes. But you could do twice as many accounts, and make another $10 on the next one. But that would only bring your total for the hour to $20 profit. Unless you had a lawn that took 4 hours, then it may pay off.
     
  5. Green in Idaho

    Green in Idaho LawnSite Senior Member
    from Idaho
    Posts: 833

    Elephant, it's just a hypothetical question.

    No need to be suspicious anyone.... it's not a sales pitch.:cool:


    Bigger machine more than $15/hr. Well if you spread the price of the maching over the life of the maching the cost PER HR should be well under $15.


    Again, just brainstorming here. But also at what price point would your decision change to reduce time in half?
     
  6. dvmcmrhp52

    dvmcmrhp52 LawnSite Platinum Member
    from Pa.
    Posts: 4,205

    Wouldn't get out of bed for a lawn that takes an hour for 40 bucks.....Other than that i have to go with what nest said.
     
  7. ElephantNest

    ElephantNest LawnSite Bronze Member
    from La.
    Posts: 1,878

    I know, I wasn't suspicious. Just curious. Not enough info to really base an informed opinion.
     
  8. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Posts: 1,847

    Mark,

    i am confused on the price of the gadget. Is it a one time buy or a continual cost of $15(or what we would pay) per lawn?
     
  9. dvmcmrhp52

    dvmcmrhp52 LawnSite Platinum Member
    from Pa.
    Posts: 4,205

    The cost of our mowers based on 2000 hours of useful life is 8-10/hr. so if it goes to 15/hr and cuts my time in half I'm interested,But how does that work?
     
  10. Green in Idaho

    Green in Idaho LawnSite Senior Member
    from Idaho
    Posts: 833

    If 40 isn't enough, add a zero.

    It's not a real gadget... It's just a question.

    But in this scenario the cost is for account. Whether it be a one time purchase or if the purchases is for every time.


    It can be rephrased as how much will you spend to reduce the time it takes to produce?

    Any other input?
     

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