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"Just won a big one" comes to an end...

Discussion in 'General Industry Discussions' started by Herrick, Dec 9, 2012.

  1. Herrick

    Herrick LawnSite Senior Member
    Posts: 506

    This says it all...

    I have to chuckle to myself a little when I see guys on here in the same situation I was in a few years ago. I just though what great advertising, what a way to make a name for myself! There was no talking me out of it at the time. I feel so much wiser now... Or maybe that's just old...
     
  2. Herrick

    Herrick LawnSite Senior Member
    Posts: 506

    No, and looking back that was a HUGE mistake. Who knows if we were even bidding the same work? Never again. At the time I was more worried about keeping the work than $500.
     
  3. TriCityLawnCareLLC

    TriCityLawnCareLLC LawnSite Bronze Member
    from Ohio
    Posts: 1,024

    I commend you though, for coming on here and admitting a mistake that we can all learn from.
     
  4. hackitdown

    hackitdown LawnSite Silver Member
    Posts: 2,486

    Sounds like 60 man/hrs per week. So 60 hrs multiplied by $50 per hr would be $3K per week. If you are doing 30 weeks of service, that is a $90K bid. Or at $40/hr it is $72K.

    Was signing the contract at under $40K profitable?
     
  5. TriCountyLawn

    TriCountyLawn LawnSite Bronze Member
    Posts: 1,517

    I like a good follow up and someone who isn't afraid to admit the situation. New guys should read thru these.
     
  6. Herrick

    Herrick LawnSite Senior Member
    Posts: 506

    I averaged 24 cuts a year, about 45-50 hours a week. Price should have been more, but it's a bid, so you cut corners to try and get it, or keep it.
     
  7. Herrick

    Herrick LawnSite Senior Member
    Posts: 506

    Main reason I did it. Hopefully it will help someone, although I'm sure many it will go in one ear and out the other. It was an expensive lesson, but knowledge is priceless...
     
  8. KeystoneLawn&Landscaping

    KeystoneLawn&Landscaping LawnSite Senior Member
    Posts: 774

    Debt free is the best way. If you can't go totally debt free, then you should keep your total debt payments to under 10% of your net.
     
  9. herler

    herler LawnSite Fanatic
    Posts: 5,145

    Most folks don't understand, they come in here and ask for advice and you get these guys who have ten and twenty years under their belts but when I try and tell the folks that it's not a good idea all I ever catch is attitudes, like I don't know what I'm talking about... Now some folks got seriously lucky those people were not out to take advantage of anyone because with a contract they could have took the contractor to the cleaners, inexperience will do this, folks take on way more than they can chew, the red flags were everywhere but maybe this time the lesson stuck.
     
    Last edited: Dec 10, 2012
  10. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,149

    wondered about that myself.
     

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