Mowing, in house or hiring it out?

Discussion in 'Lawn Mowing' started by olderthandirt, Dec 5, 2005.

  1. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    You know of a few places that are large and have there own in house mowing guys. They range from 2-- 8 people depending on size. There basically a small LCO inside a private business or senior complex, hospitals etc. So beside a cost comparision what would you think would be the best ideas for convincing them to switch and hire it out. OR is there any benefits to hiring it out.
     
  2. KERRTURF

    KERRTURF LawnSite Member
    Posts: 129

    A few things come to mind.
    No equipment storage
    No equipment maintenance
    No employee training
    Less liability
    Having work done during "off" hours
    Budgeted item with no regards to increase fuel cost or overhead
    Better "look" for clients
    Increased knowledge base coming from a professional
    Etc.
     
  3. impactlandscaping

    impactlandscaping LawnSite Silver Member
    Posts: 2,332

    Better use of their existing employees to see to other more important jobs at hand

    Reduced / eliminated worker's compensation claims

    Reduced insurance costs

    Don't have to outlay $$$ for replacement equipment

    those are a few to add to Kerr's post
     
  4. Brianslawn

    Brianslawn LawnSite Silver Member
    Posts: 2,004

    dont have to pay benifits. city bids out some of the smaller parks here, at least as long as one local lco is willing to work for free. cost city more to find employees and get more equip for another crew. the lco gets the bid at $15/acre. mow and lots of trimming. we did them one year. wasnt worth it. lcos were getting the bid from them 10 years ago for double what current guy is charging. nobody else even bothers bidding anymore.
     
  5. mcwlandscaping

    mcwlandscaping LawnSite Gold Member
    Posts: 3,164

    I really can't see any benifits of keeping it inhouse besides you seem to have more control over when stuff gets done, but that seems to be where it ends. IMO
     
  6. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    I agree these are some of the things that a company could save $$$$ on by Hiring a lco. But the LCO would have to figure all those cost into his bid + a profit, So is it just better to let the in house jobs go or is something missing that has not been discussed to open some doors. These jobs are gonna run high 6 figures to low 7s. Hate to see all that $$$$$ slipping away
     
  7. Envy Lawn Service

    Envy Lawn Service LawnSite Fanatic
    Posts: 11,062

    Mac,

    Didn't take any time to read the other posts besides yours. However, I can tell you for a fact that this segment can be a VERY financially rewarding one. However, I can also tell you that you cannot expect any one-call sales. These take a tremendous amount of effort over a much longer period of time. Neither the average salesman nor the average LCO will ever touch these.

    Reason being is that this is a very different animal. One that is not really as sales oriented as you think. You have to be prepared for the round table type meetings and you have to come in like an outside resource analyst.

    These are the types of situations where you can't just learn and act the part.
    A suit and tie along with some fast talk won't cut it...
    You have to be the real deal.

    If you are really interested in this market the shoot me a PM and we will discuss the tactics.
     
  8. Rhett

    Rhett LawnSite Bronze Member
    Posts: 1,071

    Envy, You hit the nail on the head. Have a local company that has a supervisor at 12 and hour supervising three people from an employee leasing firm mowing multiple locations. Thier equipment consists of push mowers. One location takes them 4 hours to do a subpar job. For an arcre thier expenses are over 200 dollars. I could be in and out for 75 in about an hour. Bought this to thier attention and thier reply "Naw that is the way we have always done it" Even suggested that they up grade equipment and cut out the three rental people. Nope
     
  9. geogunn

    geogunn LawnSite Gold Member
    from TN
    Posts: 3,010

    MAC--the University here just went from in house mowing to contract.

    the justification was laying off the 8 person grounds crew and the savings that would produce. TG/CL got the contract.

    as you might suspect, they never laid off the 8 person grounds crew. :dizzy:

    GEO :)
     

Share This Page