How to fail part 2

Discussion in 'Lawn Mowing' started by PROCUT1, Feb 18, 2011.

  1. Lugnut

    Lugnut LawnSite Senior Member
    Posts: 551

    Interesting topic, glad you're putting your pride aside and posting this for everyone procut. By the way, im right across the river from you in new windsor.
     
  2. TMlawncare

    TMlawncare LawnSite Bronze Member
    Posts: 1,197

    You can not be serious. His previous post on failing at lawncare needs to be read and taught in all business college classes. We get to hear straight from the source of how and why sometimes this happens. This new thread is also priceless, it is showing right before our eyes of how you think everything is going well, planning for the future and such and all the sudden the rug is pulled from beneath you with no warning. That info is almost priceless for someone in the same business facing the same problems.

    This post get down business. This post is far more important then "what color mower do you like" threads.
     
  3. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Posts: 4,909

    .............................................................
     
  4. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Posts: 4,909

    Theres things I could have done different.

    If I had any doubt as to the stability of the line, I could have definitely better prepared.

    I had always thought, it was there unless you did something wrong.

    Again. I was only doing what millions of other businesses do.
    That used to be the purpose of business lending. Money to expand and grow.

    It was working just fine.
     
  5. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Posts: 4,909

    All good points.

    I was growing and expanding fast. But I was comfortable with it.

    As far as payment terms......Youre absolutely right. I went into some of these contracts biting my nails.

    MY TERMS have always been 50% deposit. Payment on completion.
    Sometimes with progress payments.

    Usually I was able to negotiate the payment terms if theirs and mine didnt match.

    In some cases, like above, I was given a "take it or leave it" offer.
    I had to make the choice and either take it, or let my competition have it. The companies I was dealing with, I was comfortable enough that I would get paid. I didnt like it. Didnt want to make it my practice. But I made the choice to take it.


    This all happened within a relatively short period of time. I didnt hit periods like this every single week from the start. This was all within a year or two.
    I was heading that direction, but wasnt banking huge amounts free and clear every single week.
     
  6. hackitdown

    hackitdown LawnSite Silver Member
    Posts: 2,490

    I guess a line of credit to buy materials is ok, but we now understand the risks. There is a simpler solution.

    On large projects, I usually ask for a 33% deposit when work commences to cover my material costs. Most customers expect to pay it. Those who won't pay set off an alarm in my head. Sometimes another 33% is due halfway through. The final 33% is due on completion.
     
  7. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Posts: 4,909

    You know. Ive called myself a Democrat. But the democrats completely blew it.

    They had the president, both houses, and a public that was behind them to "sweep in and change washington"

    We were fed up with the bankers and the bailouts and the catering to the top 1%

    What we got were democrats that were no different than the people we threw out. A spineless president that has never met a billionaire he didnt want to bend over for.....And we're worse off now than when they started.

    The rich have given up on this country. They dont need it. They and the politicians only plan is to suck up whatever crumbs are left and then work on the rest of the world.

    Its clear as day to us common people what they could have done to help people and get the country rolling again if they wanted to. But they dont want to.
     
  8. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Posts: 4,909

    Thats the way it should be.

    Ive noticed a trend change lately. It has a lot to do with the lowballer discussions we have here.

    There are a lot more guys out there competing for the same work. Every one willing to chop their price to get it.

    Owners know this. To them, its easier to wait until the job is done, then pay for it. They dont want to worry about deposits and if the contractor pulls it off. They want zero risk.

    Years ago, if they wanted to deal with a reputable contractor. Most all contractors had the same payment terms, and the customer accepted that.

    But that changed. The owners say "take it or leave it" and some contractors leave it, others take it.

    This isnt all customers or all situations. Many paid me on my terms without a hesitation.
     
  9. Puddle of Oil

    Puddle of Oil LawnSite Bronze Member
    Posts: 1,203

    Subscribed!
     
  10. ohiogreenworks

    ohiogreenworks LawnSite Senior Member
    Posts: 300

    Great thread, love the high tempo you type with, makes for a great read! Thanks for you willingness to tell your story, keep the updates coming!
     

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