Is it low balling or is it smart?

Discussion in 'Lawn Mowing' started by DFW Area Landscaper, Jul 27, 2004.

  1. Tyler7692

    Tyler7692 LawnSite Bronze Member
    Posts: 1,086

    What the hell happened to pride in quality?!
     
  2. mikewhit1010

    mikewhit1010 LawnSite Senior Member
    Posts: 394

    Not doubting you but how do you average 3 lawns an hour on crew A. Just curious. Are you running multiple Zs or what.
     
  3. Weedas_Lawn_Care

    Weedas_Lawn_Care LawnSite Member
    Posts: 180

    i wont get my mower off the triailer for less than $25 a yard and that takes me about 20 min. to do i have only gave a price at $20 one time and that was becausei was cutting a yard and their neibor asked how much for me to only cut thier front and i said $20 and it took about 10 min. lol but i already had the mower off the trailer lol
     
  4. Lawnworks

    Lawnworks LawnSite Fanatic
    from usa
    Posts: 5,407

    It is all about the bottom dollar.... TJ is raking it in. Why can't you just respect other types of business models? Kinda makes you guys look like fools on craftsman mowers.
     
  5. TrimmerAssist

    TrimmerAssist LawnSite Member
    Posts: 27

    I think that is a self destructive business plan. Eventually those guys will have to get out or raise their prices. Eventually overhead will consume all their profits since the profits are not high enough. It takes a lot of money to run a landscaping business as everyone knows, with fuel, labor, insurance, taxes, driving around ... these things show up at the end of the month, and the end of the next month. There cant be any money left to repair and upgrade machinery.

    I just can't see it lasting.
     
  6. TrimmerAssist

    TrimmerAssist LawnSite Member
    Posts: 27

    I forgot to ad, this lowballing is like the 80/20 rule, where usually 20 percent of a persons work provides 80 percent of the profit, and vice versa. These accounts fall into the 80 percent work for 20 percent profit.

    You grow your business and thrive if you can duplicate that 20 percent that provides 80 percent profit. Its a demographic game really ... finding what works and repeating it.
     
  7. jdmcat

    jdmcat LawnSite Senior Member
    from Idaho
    Posts: 439

  8. Lawnworks

    Lawnworks LawnSite Fanatic
    from usa
    Posts: 5,407

    Hasn't justmowit been doing it for a long time??? It is just a different business model in a unique residential setting.
     
  9. mag360

    mag360 LawnSite Silver Member
    Posts: 2,446

    A couple years ago they were grossing over $40,000 per week and are still in business today.
     
  10. Doster's L & L

    Doster's L & L LawnSite Senior Member
    Posts: 616

    This thread has really gotten huge from the last time I read this. The reason that justmowit has such a successful business is because he has low overhead. Lets get this out of the way while we're at it..... Getting into hte mowing business is a low cost of entry business with relatively low overhead, meaning that a basic lawn service may start up with as little as $15K to $25K or more, and some manage to do it for less. This guy has his overhead down pat. He's running small s-10 trucks, 2 push mowers, small trailer, trimmers, small blower(s), no lettering on his trucks, maybe even a walkbehind mower His overhead is a fraction to most mowing businesses out there and that alone allows for them to charge less per lawn.

    99.9% of all businesses highest cost is labor. He has his labor costs in check at all times. His laborers are on a contract rate; a percentage per lawn. He doesn't have to worry about his hispanic labor goofing off during the day, draining the clock and his wallet. As far as this guy is concerned, if they don't work, they don't eat.... well uhhh... in this case drink.:drinkup: So he doesn't pay by the hour.

    His marketing is spot on. That's all i'm gonna tell you on that one.

    If his route wasn't as tight as it is, and you can bet that it's tight, this type of business structure would not be doing nearly as well as it is.

    This guy knows what he's doing.
     

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