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Low balled myself with 25+ clients... Need advice

Discussion in 'Business Operations' started by alexschultz1, May 10, 2014.

  1. alexschultz1

    alexschultz1 LawnSite Bronze Member
    Posts: 1,555

    I had a bright idea... There is a new neighborhood (800 houses) in my area with lawns that are 2000 sq ft or less. I came up with a plan. Charge $300 a year for 12 service visits (every other week may-oct) and 3 visits for shrub trimming and 3 visits for spraying round up. Cut edge weedeat blow and leave. In theory and on paper After I gain 50 houses I will be able to have a crew of 2 guys maintain everything and buy a cheap ford ranger and small trailer with 2 push mowers and a 36". What I didn't plan for is the growth period to gain the 50 houses. Now I am stuck with 25 houses. I don't have enough cash flow to spend on an extra truck which means I need to do everything by myself with one employee. I have two options. Break my back until I have enough jobs to justify a crew, or up my prices, which means I will lose everyone.

    The "crew" is only going to be hired for 4 days a month.
  2. whiffyspark

    whiffyspark LawnSite Fanatic
    Posts: 6,110

    You're not going to find a "crew" for 4 days a month. That was the first part of your failure

    Second start knocking on doors and get more customers. Hey we already have 25 yards in this neighbor hood would you like to be included
    Posted via Mobile Device
  3. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,466

    Since your every other week break them up to 25 a week.
  4. alexschultz1

    alexschultz1 LawnSite Bronze Member
    Posts: 1,555

    Already have the crew taken care of. So that's not an issue. I guess another round of flyers wouldn't hurt.
  5. alexschultz1

    alexschultz1 LawnSite Bronze Member
    Posts: 1,555

    That's the plan but right now I only have 25 and I don't think it will grow much more this year.
  6. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,994

    Sub them out.
  7. PenningsLandscaping

    PenningsLandscaping LawnSite Bronze Member
    Posts: 1,855

    That is way too cheap, cutting the lawns for $300, I can see that, no biggie. Throwing all this other stuff in? Way too cheap
    Posted via Mobile Device
  8. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,351

    So 300 dollars a year divided by 12 service visits plus 3 shrub pruning visits plus 3 round up spraying visits. That's 18 visits for a whole $16.66 a visit. Yea good luck with that. There's no money to be made in that venture. Another way to look at it is 300 dollars a year times 25 accounts is a mere $7500 which has to cover labor, fuel and your equipment truck and overhead. I just cant see the value in accounts that bring in so little income.
  9. PenningsLandscaping

    PenningsLandscaping LawnSite Bronze Member
    Posts: 1,855

    I wouldn't take a nap on someone's lawn for $16. Not worth it.
    Posted via Mobile Device
  10. TPendagast

    TPendagast LawnSite Fanatic
    Posts: 7,670

    wait, did someone say getting paid for naps??

    As Im getting older, that might actually become lucrative, I could use more naps!

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