How does this sound

Discussion in 'General Industry Discussions' started by Turf Dawg, Feb 7, 2013.

  1. cdqat1432

    cdqat1432 LawnSite Member
    Male, from Youngstown, Ohio
    Posts: 138

    Maybe not 80% but definitely the higher number. You will spin your wheels trying to get them to a spend money other than grass cutting. Like I said, these customers are the first to complain, last to pay. Cut some of them loose so you can make time for the applies to all business 20% who call all the time. Did you read my post? It applies to all business.
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  2. MR-G

    MR-G LawnSite Senior Member
    Posts: 479

    we run 3 crews...a residential, commercial and an install crew that also does our chems. all i can say is many times over the past 20 yrs. we have had to rely on the residential clients to make a decent net....commercial is more profitable but not as loyal. and in this turndown economy more and more companies are seeking the commercial work and thus prices have come down to unrealistic numbers in some cases....keep the residentials....just have it separate from your commercial division....you never know when you may need to fall back on them....just sayin.....good luck to you.
     
  3. ToddH

    ToddH LawnSite Silver Member
    Posts: 2,184

    Diversification is key! Apply it across market sectors and service types.
     
  4. cdqat1432

    cdqat1432 LawnSite Member
    Male, from Youngstown, Ohio
    Posts: 138

    Yes you are right.
     
  5. cdqat1432

    cdqat1432 LawnSite Member
    Male, from Youngstown, Ohio
    Posts: 138

    This is what I was trying to say originally. You don't need to lose money, just stay in the game. Example: go to the local grocery store. Do they sell bulky, heavy bags of potatoes for 2.00 (guessing)? Do they sell filet for 10.00 pound? Yes on both. Why not nix the potatoes? Because the filet won't sell. Think about it.
     
  6. ToddH

    ToddH LawnSite Silver Member
    Posts: 2,184

    I agree with what you are saying in principle and about dropping the problem accounts ( or make them pay for the privilege.

    Since most of the homes around me are track homes mowing is mowing for a market price. I am always a little higher than market on new accounts. Once I get a good mix of those going, I will raise the rates on the older accounts. The reason is the market rate is now where I set prices 5 years ago.

    I typically do not like dropping clients as they naturally cycle on their own. Job losses, moving, bought my own mower and so forth. I will do as you say drop the PITA pretty quick.

    I also changed my policy to only offer À la carte or packages based on 12 month billing. People on service agreements get priority on services when catching up because of heavy demand, weather or holiday.

    Goal is to be about 30% residential contract, 60% commercial contract and the rest is À la carte and service calls.
     

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