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Fertilizer Prices Are Sky Rocketing!

Discussion in 'Fertilizer Application' started by ChemicalKing, Jan 24, 2008.

  1. ChemicalKing

    ChemicalKing LawnSite Member
    Posts: 33

    FYI: To anyone in the lawn application business, fert prices are more volitile than ever now. Last year we saw a substantial industry wide price jump on granular fertilizer - this year you will see an increase of between 18-35% over last years prices. Trugreen & Scotts (at least in the Southern markets) have implemented a significant price increase to their new sales for 2008, so our sources say. Check the commodities index & talk to your suppliers - this is no joke! If you don't increase prices somewhere, you will see your margins tumbling in the months to come.:nono:
  2. mnturfmaster

    mnturfmaster LawnSite Member
    Posts: 65

    thanks for the update man, but obviously you havn't been around here much. This has been the talk of the site for the last couple of months. Old news already
  3. ChemicalKing

    ChemicalKing LawnSite Member
    Posts: 33

    Yep, I am new to this forum. Sorry if I am rehashing an old topic... It seems apparant that many LCO's at least in my area are not recognizing this factor, from my discusions with them. I hate the strong trend of price low balling in a market where costs get ever higher...screws it up for everybody, esp the LCO's that are doing it.
  4. Victor

    Victor LawnSite Bronze Member
    Posts: 1,637

    Welcome to lawnsite!
  5. dKoester

    dKoester LawnSite Gold Member
    Posts: 3,257

    As far as cost per application Lawn Doctor didn't go up much at all.
  6. americanlawn

    americanlawn LawnSite Fanatic
    from midwest
    Posts: 5,859

    Ditto with Vic.........he's a great guy - Welcome to this very fine site. Let's hope for the best regarding fert prices. I try to stay optomistic. Don't worry about rehashing anything on this site. I do it all the time. :laugh:

    BTW, Texas is my favorite State for several personal reasons.:usflag:

  7. ChemicalKing

    ChemicalKing LawnSite Member
    Posts: 33

    Thanks for the hospitality! I have been aware of lawnsite for many years, just never posted anything... P.S. - I have been in the business since 1984, I grow & sell chemical lawn care companies to major corporations(you know who?), working on my third one now. Yep, Lawn Doctor is one of the cheapest & damn tough to compete with on pricing, but we still manage to take alot of their customers.

    God Bless Texas!
  8. grassguy_

    grassguy_ LawnSite Senior Member
    from Ohio
    Posts: 633

    Welcome aboard ChemicalKing! Yes, there are going to be plenty of challenges to balance this season, and its one of those years that you won't be able to wait until the end of the season to know if you made money, as many will need to micromanage their operations from start to finish.
  9. ChemicalKing

    ChemicalKing LawnSite Member
    Posts: 33

    Wise words, & thanks for the welcome! There has been a radical change in the chemical lawn care market, as I am sure you are aware. Cost of aquisition per customer is at an all time high, due to the costs associated with marketing via direct mail & door hangers.
    A far cry from the old days when we ran in house telemarketing rooms...DoNotCall.gov= big $$ for lead generation. (Even older news tahn my previous post, I am sure)

    New consumer market with credit card auto bill, web based sql server data base, & much more robust marketing opportunities available thru internet marketing is the good news. Have been able to operate with less office staff as a result & cash flow now immediate - hoping to see this continue to offset operating expenses associated with a big residential clientel.

    Back in the good ol days, you could actually make profit without being an organizational,
    marketing & IT genius. Those days are gone for good, I'm afraid. It is a brave new world where ultimately only the stongest & brightest LCO's will be left standing.

    Not bad news overall, if you are one of those few...

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