Marketing idea.

Discussion in 'Landscape Architecture and Design' started by LHlandscaping, Dec 17, 2004.

  1. LHlandscaping

    LHlandscaping LawnSite Member
    from PA/ SW
    Posts: 100

    I have alot of customers, as you all do I'm sure who when done building a new home have little money left over for hardscape/ landscape installation. Being that we live in a buy now pay later society I was contemplating financing the work to leverage my company in my favor. I was contemplating along these terms.

    20% down includes $30.00 credit check
    amounts under $5000 @ 8% for 8 months
    amounts between $5000-8000 @ 6.5% for 12 months
    amounts over $8000 @ 6 for 24 months

    What do you think of the idea? I know of no one else here who does this and it will also allow me a little extra money off the top in the folowing scenario.

    Mr jones get 2 estimates to install a wall Joe wants $4800 and I want $5500. Joe needs the money ASAP but I only need $1100 right now and will finance the rest depending on Mr. Jone's credit. Mr. Jones is a consumer and likes paying me a slightly higher price in installments plus interest instead of paying Joe all at one so he can go buy his new boat.

    Just one of a few financial ideas I have to leverage my business. Thanks
     
  2. cleancutccl

    cleancutccl LawnSite Senior Member
    Posts: 698

    Just join ALCA and use their financing plan, that takes the possibility of it crashing down on you and puts it on ALCA.
     
  3. AGLA

    AGLA LawnSite Bronze Member
    Posts: 1,749

    Accept credit cards.
     
  4. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Posts: 2,116

    I like the idea, but why can't you have the mortgage company include it in the note for the house?

    I have a friend in Tulsa who does landscape and sod installs for a bunch of builders and when he upsells the client on a better landscape package, they just include it in the note.

    As for spreading $5,000 out over 8 months, that's still a pretty short time frame to pay back that much money. Expecially for a new home owner, who will be signing over his paycheck to Lowe's and Home Depot during that time.

    Later,
    DFW Area Landscaper
     
  5. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,842

    Well, you're thinking in the right direction, but I don't understand where the rest of the money would come from when you are finished. What? You just do a $5500 job for $1100 and make your profit VERY SLOWLY for the next 2 years? How do you plan to pay your helpers, your own bills and mortgage that way? Maybe you have thousands of dollars in savings that you are willing to use up. I know I couldn't do that.

    Besides, I don't see why it has to be YOU holding the bag. Use the ALCA financing plan. Partner up with a bank. Partner up with an investor who will buy the notes. Whatever. But there's no reason you should have to be the bank and take on that kind of liability when it's just as easy to have someone else do it for you. Just think, what if one of out 10 customers defaults on their loan to you? That totally negates all of the 6.5% profit you're making off the other 9 and then some! I wouldn't want to take that risk - especially when it's easy to find another financier for them.
     

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