Michigan LCO's

Discussion in 'Network: Central' started by tiedeman, Sep 4, 2003.

  1. macomb-lawn

    macomb-lawn LawnSite Senior Member
    Posts: 278

    So you would charge let's say $3.00 a yard on the low side? $3000.00 for 1000 yards of sod installed? Who the hell will pay that? The highest we've ever charged is $2.15 a yard and that was a 520 yard install that had a ton of grade work. I think we hauled 6 yards of crap out of the place.

    $5.00 a yard :dizzy:

    But... hell.... :drinkup: If you can get $5.00 a yard, you call me and I'll send our crews out and do all the work for you at $1.50 a yard. All you gotta do is bill your customer. We'll do everything else. Hell, we'll even give you 30 days to pay us.
     
  2. macomb-lawn

    macomb-lawn LawnSite Senior Member
    Posts: 278

    I'm still baffled @ $5.00 a yard.

    Let's see, we did a house this month that was about 3,000 yards. That would be $15,000.00 :confused: Let's say you discount it to $3.00 a yard, it's still $9,000.00.

    $0.90 x 3,000 = $2700.00

    Let's say it cost us $1,000 in labor, fuel, and expenses, but it wouldn't, but for arguments sake lets say it did. That's still a $5300 profit :laugh: If I could do one a day, I'd be at the Ferrari dealer by the middle of summer :laugh:
     
  3. bigjeeping

    bigjeeping LawnSite Senior Member
    Posts: 903


    Macomb, I'm a small guy. I have two trucks. I also still work a good portion of my jobs, and if I'm not there my brother is over seeing things. I have one full time employee and a handful of part timers. I agree my rates are HIGH. I get turned down on many of my estimates - but I always have an abundance of work.. and that's all that matters. If you can get by with charging 1.40 installed, then good for you. But me, I wouldn't raise my brow for that much.

    To each his own.
     
  4. macomb-lawn

    macomb-lawn LawnSite Senior Member
    Posts: 278

    I agree.. but let me ask you this. Instead of you and your brother breaking your backs doing the work yourselves, why wouldn't you contract us to do it for you and still make a ton of cash off the job? That would free up your time for more business, and also increase your revenue with only having to print out a bill and collect a check from your customer.
     
  5. bigjeeping

    bigjeeping LawnSite Senior Member
    Posts: 903


    Ahh yes, the problem there is that sod installs probably make up less than 5% of our seasonal revenue. If we had the jobs I'd sub them out. I rarely get calls for sod installs and it's not something I push for advertising.
     
  6. macomb-lawn

    macomb-lawn LawnSite Senior Member
    Posts: 278

    See, this is where we all work together and everyone makes money. This is also how our company works. Let's say you start "pushing" sod in your area. Lower the price first.. lol... but let's say you sell it for $2.00 a yard. If I charge you $1.50 a yard, you make $0.50 a yard for selling it. See what I'm getting at? You benefit by making money for doing nothing but billing your customer and selling the job. We make money on the install, plus it increases our total sod volume so it will lower our price in the long run on sod, which inturn will lower your cost. See what I'm getting at? Right now we have about 10 companies that we sub for on a regular basis. That, and we make a ton of our "retail" sales portion where we're charing the $2.00 to the customer directly. If I have 30 companies selling sod that we sub to, and we also keep doing retail jobs, the day will come where we'll buy sod so cheap it won't even be beliveable. If we could do 30,000 yards of sod a week... wow.

    :drinkup:
     
  7. bigjeeping

    bigjeeping LawnSite Senior Member
    Posts: 903


    I will definitely keep you in mind next season. I really have no interest in getting into sod, along with many other areas of this industry. Maybe before next season we can get together and talk about sod/sprinkler installs because I'm sure if I started pushing it I could get jobs. The main thing we push is mulch. Delivered and installed for material + $55 premium! Yes, it is steep and some people have told me that to my face and still let us do the job! I've done nearly 1000 yards this season.
     
  8. macomb-lawn

    macomb-lawn LawnSite Senior Member
    Posts: 278

    Works for me. :drinkup:
     
  9. Tscape

    Tscape LawnSite Bronze Member
    Posts: 1,372

    macomb-lawn, what is the status of our salter deal, sir?
     
  10. macomb-lawn

    macomb-lawn LawnSite Senior Member
    Posts: 278

    Dead. Send me a PM.
     

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