priced town homes. surprised at larger companies prices.

Discussion in 'Lawn Mowing' started by Sharps_lawn&landscaping, Jan 20, 2013.

  1. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,204

    The problem could be that a big company looks for a profit of around 8%. What do you expect? I am talking about Brinkman and TruGreen kind of size.
  2. Sharps_lawn&landscaping

    Sharps_lawn&landscaping LawnSite Member
    from TN
    Posts: 83

    Ha 8 percent I'd cry. So if you had a 100 dollar cut you would make 8 bucks . That's slave labor
  3. jbell36

    jbell36 LawnSite Bronze Member
    from KANSAS
    Posts: 1,286

    yeah that's terrible...i'm dealing with that right now that is even less than 8%, actually about half that...they are absolutely killing the commercial market...they are a very large company out of a larger city around here...they drive 45 minutes just to get here then start their day with 5 guys (per crew), then head back...i guess having 30 crews making a 4% profit would make the owner money, not much though...

    i don't understand how it's worth it...first of all, you have to pay 5 guys 1.5 hours of drive time and pay for that additional fuel every day...secondly, what happens when something breaks down or you need to buy new equipment?
  4. skorum03

    skorum03 LawnSite Senior Member
    Posts: 354

    We're talking 280 per mowing right? Excuse me for being new. haha

    YardBros Outdoors
  5. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,204

    Would it seem better if I said you could make $20,000 on a $250,000 dollar business? It is a struggle for a mid size business to get to 25% profit. You are cheery picking(as some say) hoping that none of the mid size business move into your area. Not being critical just the way it is. Now often the big companies fail at these condo and HOA and that is where we try to focus our attention on.
  6. Sharps_lawn&landscaping

    Sharps_lawn&landscaping LawnSite Member
    from TN
    Posts: 83

    Right now i'm at a point where i can cherry pick what i want. I get what your saying. This is a really small contract compared to some i have. I bid against a lot of different size companies. I guess the only way for the larger companies to keep expanding their profits quickly would be to price low and wedge as many people out as possible. Theres plenty to go around but when they loose contracts and you come up on some of them, its just a pain to convince people to pay more like they had been previously before the landscaper that priced it low came in.
  7. orangemower

    orangemower LawnSite Silver Member
    from pa
    Posts: 2,773

    welcome to the world of lawn care.
  8. Sharps_lawn&landscaping

    Sharps_lawn&landscaping LawnSite Member
    from TN
    Posts: 83

  9. grassman177

    grassman177 LawnSite Fanatic
    Posts: 9,795

    commercial is totally dead, resi soon to follow, and is already stale in some respects
  10. LandFakers

    LandFakers LawnSite Fanatic
    from CT
    Posts: 6,229

    I bid on a commercial property once, I was over $200 more than the guy who won it, he went out of business that same year and I got the job the following season. It all works out in the end

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