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Management companies(National/ Semi-National) will ruin this industry.

Discussion in 'Lawn Mowing' started by LITCHFIELD Landscape, Mar 29, 2012.

  1. LITCHFIELD Landscape

    LITCHFIELD Landscape LawnSite Member
    Posts: 2

    We are a large enough company that we donot need to work for the USM;s and BFS's... These companies are taking a MGMT cut and the providers donot get the money they need to do the job. When are the Rites Aids, the CVS Caremarks, the BOA's and the Walgreens going to realize that they will be better off using companies Large enough like our that HAVE their own Trucks and employees and SUBS IN HOUSE.............. USM is nothing BUT a Mgmt company.

    Anybody believe this is true????? Lets here ya?!
     
  2. 1whitetail

    1whitetail LawnSite Member
    from florida
    Posts: 149

    I agree with you, large corporations are paying more going this route than if they went with smaller regional companies but they love the "national account" BS nowadays. They don't care about saving money, even though they say they do, they just want to deal with one company. Large national corporations like to deal with other large national corporations remember neither are for the small mom and pop businesses so why do business with them and support them. :(
     
  3. Mahoney3223

    Mahoney3223 LawnSite Senior Member
    from midwest
    Posts: 995

    The problem is most guys are dumb. By that I mean they think that by mowing commercial properties that BFS and SPW and the rest offer this will magically make them huge! The paperwork associated with doing them sucks. I've been there done that and I will never ever ever work for BFS or the like again. If I can't go in and talk to a manager myself about something, no thx. They are subbing you work taking the profit off the top and then riding you like a horse to fill tedious work order that they lowball you on. Until guys realize you can make more money doing resi work it'll continue.
     
  4. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Posts: 2,715

    We should all look at the Wal Mart USM marriage:hammerhead:. It didn't take long for Wal Mart to realize there is no cooker cutter way to manage national corporations. We maintain a local Wal Mart and planned to bid on a Lowes which is right next door. As soon as we found out they were run by a managment company that idea went right out the window!!!!
     
  5. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 12,956

    I don't understand any of this what are you talking about? This is some east coast thing?
     
  6. sealcutter

    sealcutter LawnSite Senior Member
    from PA.
    Posts: 256

    I agree with you 100%.
    But they find that small co. ride them out for 1-2 years and move on to the next and this keeps them going.
     
  7. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,259

    We ignore half a dozen calls from these places every year now. They will give you a bidding list, some of the properties do not even have lawns or are part of a mall that's all under one account. But that doesn't stop them from wasting your time then the bids have to be done in like 1-2 days. They always have some fake deadline. If you show any interest and then decide not to bother they keep extending the deadlines and keep on you because they have their magic number of quotes they need and anyone with a brain runs. Its always the big stuff too Lowe's, Home Depot, Wall mart, Toys R us perhaps a pharmacy even had them offer the truck stop next to I95 here.

    But then comes the little F Us get this signed every time call it in with in 4 hours or don't get paid. They ask for Fert,tree work, irrigation, parking lot cleaning you name it as part of the bid despite that very few offer all that. I am still owed 400 dollars from one in 2006 I have no idea why these companies exist they serve no purpose. The grass is always greener on the other side and so you feel compelled to try this but you quickly learn having a few hundred residential clients is the better way to go.
     
  8. Green Feet Lawn

    Green Feet Lawn LawnSite Member
    Posts: 226

    Management companies offer value to the large national companies. As companies streamline their processes and eliminate positions within their own operations, they are looking to reduce their vendor base. This allows them to have a single point of contact who manages all their properties.

    In turn the property management company has to deal with a gazillion vendors for a boat load of properties on myriad of issues. For this, they get a percentage.

    Most of us subcontract work and pay out less than we get paid. But in the end, we are responsible for the job.

    If you choose to work for a managment company, it is in your best interest to understand what is expected of you. If you do not understand their requirements, you should stay away.

    BTW ... It is pretty standard to be required to add your customer as an additional insured on your GL policy for commercial work
     
  9. pressley10r

    pressley10r LawnSite Member
    from NC
    Posts: 100

    Managment/contracting companies are aggravating as hell. With their paperwork, pricing, guidelines what have you. Local walgreens I maintain just got transferred to "eco contracting" now eco had a falling out with walgreens now I have another mountain of paperwork to transfer to the new company, and no telling what they are going to set the price at since they decide how much they pay.
     
  10. LITCHFIELD Landscape

    LITCHFIELD Landscape LawnSite Member
    Posts: 2

    The national mgmt companies are BAD for our BIZ. You oviously didnt read what I wrote.... Thanks though!
     

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