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Hooraay for higher gas prices! Why it's good for biz.

Discussion in 'Lawn Mowing' started by Jason Pallas, Aug 31, 2005.

  1. Jason Pallas

    Jason Pallas LawnSite Bronze Member
    Posts: 1,325

    Yeah - that's right, after being bummed at forecasts that gas would soon top $4/gal, I found a bright spot.
    I think that the recent skyrocketing gas prices will weed out all of the scrubs and part-timers that screw this service industry up. The cost of doing business on a smaller/limited level will soon be so high that I believe a lot of the weekend warriors will opt out. With gas at $4, who'll still wanna go out and hustle work. Too bad , so sad - it's gonna be the real businessman with a sense of how this market and industry work that survives this one. See ya in the gas lines. :cry:
  2. Mr. Magpie

    Mr. Magpie LawnSite Senior Member
    Posts: 322

    Shoot I ain't worried about it either. It just means less spending money at the end of the month for most of us, let's admit it! Good point.

    Still pisses me off though knowing that my profits are going into other rich people's pockets. I'll play along with economics and captialism, but this gouging really ain't right.
  3. stumper1620

    stumper1620 LawnSite Bronze Member
    Posts: 1,889

    good point Jason,
    I hope it knocks out the guys around me that were cutting my estimates in half.who in their right mind est. a 3/4 acre for 15 bucks? my local craftman night riders thats who.
  4. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    I agree with you about the scrubs but I do this and I guess you could call it part time (until next season). We have about 35 clients so we stay busy and we are insured, pay taxes the whole nine yards. Its going to hurt EVERYONE! What if, when this trickles down to the commercial properties you do or the high end residential customers you have. Its a perfect opportunity for some company like mine that does outstanding work and can afford to charge a hell of a lot lower rate than a big company with tons of overhead etc. We had a hundred percent success with raising prices and we can now absorb $5.00per gallon. Watch out, easy come easy go!
  5. Jason Pallas

    Jason Pallas LawnSite Bronze Member
    Posts: 1,325

    I'm right there with ya brother - lowballers in my area are out of control and horrible. I see prices for less than what I was doing work for in high school more than 25 years ago.
    I bums me out to know that we're all getting gouged while the oil companies post record profits and the Saudi shieks take our money and send it to insurgents to help fight against our troops in Iraq - but after a day of really being bummed, I was glad to find some ray of hope. Keep fighting the good fight.
  6. Steve9

    Steve9 LawnSite Member
    from Texas
    Posts: 228

    Flawed logic. People will be trying to make ends meet just to pay gas prices and mowing is a quick and easy way to do it.
  7. Dashunde

    Dashunde LawnSite Senior Member
    Posts: 628


    It will have absolutely no effect.
    Everyone knows gas prices will go back down eventually... no one is going to give up their hard-found accounts over a few extra bucks in gas.

    KLBCCTALLY1 LawnSite Member
    Posts: 13

    Great point Steve. These posts are hilarious. After all, where did you guys start? We were or are all scrubs at one time. No one started at the top unless you bought out a large LCO from the beginning. Thought so. :cool:
  9. Mowingman

    Mowingman LawnSite Platinum Member
    from Texas
    Posts: 4,664

    These high prices may put the final nails into Truegreen's coffin around here.
    They have been bidding governmental mowing at prices where even a scrub with a 21" Murray could not make a dime. They are trying to run off all the competition on City and County mowing contracts by bidding it at a loss, just to get it. Well, boy, I would like to see their losses now, with these fuel prices.
    They have several of our fire stations that are about 2 acres of mow/trim/edge, and they do them for $35.00 each. They recently won a bunch of County Facilities mowing ,by underbidding everyone by $20,000.00, on an $80,000.00 contract. Bye bye Truegreen.
  10. Jason Pallas

    Jason Pallas LawnSite Bronze Member
    Posts: 1,325

    Steve - I see your point, but you have remember that picking up a couple of extra bucks to make ends meet and pay for a full tank of gas won't be so easy - with gas prices this high, it just raises the entry barrier a little higher.... and that's OK with me.

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