Sales are up. Profits are questionable.

Discussion in 'Pesticide & Herbicide Application' started by tlg, Jun 9, 2008.

  1. tlg

    tlg LawnSite Senior Member
    Posts: 647

    Spring is winding down and new sales have been good. We are above last years numbers and have moved our customer count to the plus column. Profits are being eaten by fuel and other increased cost just like everybody else. So how's your season looking and have you done anything to reduce some of your expenses?
     
  2. heritage

    heritage LawnSite Bronze Member
    Posts: 1,284

    Tlg,

    Good here......But I keep close tabs on my Overhead/ costs. So far the annual price increases have kept me within the "Profit Margin" I am Targeting

    I did tighten up my Route AND now do some Turf and T&S apps on same days to cut back on the driveing....My setup allows it.

    After next seasons Increase, do to ever rising costs, I will loosen up the routes a bit again, to what I would call normal.


    That should help, if you do both and have the setup.



    Perhaps less marketing/advertising this summer/fall, and work more closely with your Accountant insted.

    Pete
     
  3. mikesturf

    mikesturf LawnSite Senior Member
    Posts: 795

    Last year I paid $53 per 50 pound bag of Merit and fert. This year's unexpected surprise $30 per 50 pound bag! (Merit off patent). Also bought some bags of StayGreen fert from Lowes ($2 to $6 per 50 pound bag). So these more than cover all the extra fuel fees. Lost some customers, but have gotten more new ones.
     

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