False quit by competition

Discussion in 'Lawn Mowing' started by Richard Martin, Apr 16, 2001.

  1. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    I was cutting my own grass on Friday when one of my competitors (who recently inheirited a ton of money) stops by and asks if I would be interested in buying their route. In exchange for this 8 lawn route I would have to cut their grass for free for 2 years. Their lawn is about 40 X 100 or about 5 trips down and back on the Chopper. Extremely simple to do with very little trimming. About 20 cuts a year and it's deductable.

    So they asked me to come by today and we could work out the details. I wanted to know the usual, how much they charge, how often they cut etc. so I can see if the route is worth it or not. Come to find out all they <i>really</i> wanted was someone to pick up their route and cut their grass when they're away on vacation 4 or 5 times a year.

    I said "Thanks, but no thanks". I figured I would just wait until their customers get tired of waiting to get their grass cut and pick them up for free. What do you all think?



    [Edited by Richard Martin on 04-16-2001 at 06:43 PM]
     
  2. Scott H

    Scott H LawnSite Member
    Posts: 58

    You did the right thing, why pay him for something you can get free in a few weeks
     
  3. Chip

    Chip LawnSite Member
    Posts: 187

    You did the right thing. However if Mr. Money wants to go away and have you take care of his lawns charge him double to make it worth your while. Thats the cost of living the high life. If he doesn't go for it "oh well", they will probably end up being your customers sooner or later.
     
  4. bob

    bob LawnSite Platinum Member
    from DE
    Posts: 4,254

    My CPA said on a "free" cut, the only thing deductable is fuel. You can't write off the value of your services.
     
  5. 65hoss

    65hoss LawnSite Fanatic
    Posts: 6,360

    I hope you memorized the list. lol.


    Mike don't be reading this. :D
     
  6. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    The dollar value would have been written up in the contract and then in leiu of actually paying the money I would have done the free lawn service.

    It also (according to my CPA) depends on who you're giving the free service to. If you are giving it to a private citizen then no, it is not deductable. If you are giving it to a Non Profit Organization then yes, it is deductable. Also, since the items being exchanged are tangible, marketable items and the terms are laid out in a contract they may be deductable.
     
  7. skyphoto

    skyphoto LawnSite Member
    Posts: 221

    Like Scott said I would just wait them out....Patience is free!
     

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