Opinions On 2007 Competition

Discussion in 'Lawn Mowing' started by NE Wisconsin, Jan 17, 2007.

  1. NE Wisconsin

    NE Wisconsin LawnSite Member
    Posts: 11

    i was just wondering what everyone thought about the upcoming mowing season in 2007. With gas prices the way they are and how they were last summer. Do you think there will be MORE OR LESS competition this season. You could also factor in the droughts of 06 and the lack of snow in a lot of areas, which affects those who do this year round. So i'm thinking with gas prices, no snow, droughts of 06 that there will be a little less competition in 2007 becuase small business or people who are not cut out for this business are going to give up and be gone. I'm not sure, but do you all think.
     
  2. jeffex

    jeffex LawnSite Bronze Member
    Posts: 1,933

    I look for the usual crop of start ups. Last year brought more SUV & trailer rigs than ever. I noticed at least[ what appeared to be] two father son teams . We'll see if they come back this year. Last year one start up invested in a new landscape rig with trailer style bed , new ztr,and new wb. We'll see if he made enough to make the payments throught the winter. The real threat is illegals who bridge the start up gap and cut every lawn for $15-20 . The way this country protects them it won't be long until they move into the residentials in my market. I'm diversified beyond just mowing but they are a real threat. I usually try and talk to the newbies in my area and get a fix on their situation and pricing . I actualy had one kid cut a lawn on a street I have with multiple lawns but he only cut the one lawn all season . He is a neighbor kid who gets paid $40 for a lawn I did for $30 and so far that is all he wants to make. The homeowner is a family friend and wanted to help him out. She appoligized to me when she switched to him to help him out. The good news for me is he only does a fair job but takes 2 hrs to cut the 1/4 acre lawn . NOT A THREAT.
     
  3. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    There are more important issues to think about than competition. They're like the weather...they are there, but there is nothing you can do about it. Key in on things that you can do something about like greater employee and equipment productivity, increased customer retention, marketing and business planning, etc.
     
  4. crzymow

    crzymow LawnSite Senior Member
    from Pa
    Posts: 378

    I dont think gas prices or drought makes a difference in competition. You lose one competitor and pick up another, its the nature of the business.
     
  5. crzymow

    crzymow LawnSite Senior Member
    from Pa
    Posts: 378

    I dont think gas prices or drought makes a difference in competition. You lose one competitor and pick up another, its the nature of the business. I think the thing that effects amount of competition then anything is if a major company in the community had a major layoff or just shutdown. JMO
     
  6. Team-Green L&L

    Team-Green L&L LawnSite Bronze Member
    Posts: 1,776

    John Deere reported an increase in sales in the 2006 season. I have seen an increase in used sales in the "Trading Post". This leads me to believe that there will be the usual FBN'ers with a little more equipment capabilities fighting for every lawn. Forget about them though, they are not COMPETITION, but rather a pain in the rear.

    The industry reported a 4-6% increase in service costs due to minimum wage flux and fuel costs.
     
  7. greengiant9963

    greengiant9963 LawnSite Senior Member
    Posts: 761

    Very well said.
     
  8. HOOLIE

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    No...the 'birth rate' for LCO's is growing...for every 2 that die off, 3 or 4 replace them :laugh:

    I agree with Rod, I worry about the things I have control over. Like now I am really working on re-doing how I market the business. How do I best sell MY company. I do pay attention to how others market and advertise but generally don't worry about the competition.
     

Share This Page