how to drop customers nicely-& improve your business

Discussion in 'Business Operations' started by lawnsaspire, Mar 31, 2012.

  1. lawnsaspire

    lawnsaspire LawnSite Bronze Member
    Posts: 1,544

    thanks MOturkey, I think you're advice is the most applicable to my situation. I don't really know how I'll keep up with 54 lawns anyways, unless we have a terrible drought again this year...hope not.
     
  2. lawnsaspire

    lawnsaspire LawnSite Bronze Member
    Posts: 1,544

    As Yancey Tucker once said "If you can't keep all your eggs in one basket, you might as well not have any eggs at all.":laugh:
     
  3. yardguy28

    yardguy28 LawnSite Platinum Member
    Posts: 4,464

    not really the way I see it or agree with it either. I just plain don't drop accounts unless your a non payer.

    I keep what I have take on new when someone leaves and once full for the season I pull my advertising.
     
  4. nepatsfan

    nepatsfan LawnSite Gold Member
    Posts: 3,142

    You said the reason why you wanted to dump them was because they weren't profitable, so send a letter raising the price to make them profitable. If they don't want to pay it, problem solved. If they do, time to hire some help. Just explain in the letter that it's not profitable for your company anymore and you need to raise rates. I'm not sure why that is so hard for people. Everyone in the world goes up in prices.
     
  5. Mo turkey wasn't agreeing with you, he was stating he was surprised why so many were giving the op flack for what he wants to do. I agree with mo turkey and op, cut out the fat...keep the most profitable accounts.
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  6. fastlane

    fastlane LawnSite Senior Member
    Posts: 347

    You should have dropped them before the first cut. IMHO that first cut was a verbal agreement. This is one reason people think lawn services are fly by night.
     
  7. MOturkey

    MOturkey LawnSite Silver Member
    Posts: 2,746

    I understand where you are coming from. Normally, most of us will continue to service any and all accounts that are even marginally profitable. I'm just pointing out that a SOLO operator will eventually find himself in a position where he may need to trim some accounts. Some of us simply have no desire to take on the headaches involved with hiring employees. I've been there and done that when I owned retail businesses, and don't want to deal with it at this stage of my life.

    I took over a couple of mowing accounts this spring from a local guy I know. His wife used to help him full time, but has taken a job for the health insurance, plus, they now have 3 children, and he decided he wanted to have more family time than his schedule afforded him.
     
  8. RLS24

    RLS24 LawnSite Bronze Member
    Posts: 1,601

    You have the best reason in the world to raise prices without making it sound bad on you: gas prices! Just send them a letter stating that due to the increased cost of fuel and doing business in general, you are forced to raise their price to be able to continue to provide the great service that they have come to expect.
     
  9. yardguy28

    yardguy28 LawnSite Platinum Member
    Posts: 4,464

    only if you keep taking on more business when your already filled.

    thats what I'm saying. once I'm full I'm full. I take on no more business than what I can comfortable handle in a standerd 5 day work week.

    for me the option of either trimming some accounts or hiring help will never be. I stop accepting work before it gets to that point.
     
  10. THIESSENS TLC

    THIESSENS TLC LawnSite Senior Member
    Posts: 759

    I gotta agree with both Mike & Neil on this one. Definitely gotta trim the fat and raise prices in order to continue service due to inflation. Gas being #1 in think! I've already raised prices this year, and my customers are fine with it!
     

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