Teaming up with another company

Discussion in 'Business Operations' started by JRG12, Mar 15, 2004.

  1. JRG12

    JRG12 LawnSite Member
    Posts: 15

    I am curious if anyone has ever teamed up with a company that offers the services you do not and vice-versa.

    My main concentration is lawn mowing but I want to be able to offer my customers an all around yard maintenance package. The problems is I am not licensed to fertilize and don't have the desire to plant,weed, etc.

    I have found a company in my area that provides everything that I do not and are not involved in mowing. My question to you is how do you go about teaming up? What kind of financial arrangement would have to be set up? How would the arrangement be dissolved of if one of us wanted out? Any help would be much appreciated!
     
  2. cklands

    cklands LawnSite Senior Member
    from MA
    Posts: 360

    I do everyhing but fert. I work closely with a company that I used to work for. He does all my applications and I do everything else. Works very well. If I get a call for fert I will go measure the property and give them a price (he gave me his formula for pricing), I then mark it up a couple of bucks and give the price to the customer. I do all the billing. He sends me a bill at the end of the month. I have known him for 14 years and have no worries about him taking accounts from me. He actually subs his aerating to my company.
     
  3. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    Hi JRG12,

    This is just a thought. A quick and simple way might be to refer jobs that you can't do, to them and have them do the same thing back to you.
     
  4. PaulJ

    PaulJ LawnSite Bronze Member
    Posts: 1,776

    I used to work for a couple of companies that did this. One was a Landscape company with a retail nursery and gift shop. That company owned the building and rented office space to a sprinkler company, fencing company and mowing company. I later worked for the mowing company. They all worked together on some projects with each doing his own thing. They often would refer jobs to one another. ONe problem was that the mowing company didn't quit fit. Many of the costumers were new construction. The landscape and sprinkler company would get plenty of work doing the install but the mowing company would get nothing. People would then do there own maintaining or hire one of the lowballers in town. the mowing company would give referrals for sprinkler and landscape work but got little in return. This may have been partially due to some personality differences in the owners or the different companies. And different type of customers.
    If you can hit the right market and right combination of services and people It could work out really well.
     
  5. broken leg

    broken leg LawnSite Senior Member
    Posts: 285

    I do not do installs any more because of leg. I work with about 3 other landscapers we all make money and have good time. A friend of mine does not do mowing and gives me all the mowing.
     
  6. Colorado Mowerboy

    Colorado Mowerboy LawnSite Member
    Posts: 30

    My question is why does there have to be a financial agreement, what is wrong with referrals. You refer him and he refers you. No money exchange between you two.
     
  7. T. Matthews

    T. Matthews LawnSite Member
    Posts: 206

    I work closely with a lawn fert. co. I use to do lawn treatments I 'm a licensed pest. app. , but found that it wasn't profitable for me to keep doing it so I teamed up with a lawn fert. co. and it works out awsome. I have all the lawns that I mow fert. by them and everytime I do an estimate I suggest them to the potenital client. The lawn fert. co. in returns ferts. my home lawn at a reduces rate and sends me clients in need of landscape work. ALso when spring clean ups come around I go and prep the lawns then call them up and they fert. next day.
     
  8. Expert Lawns

    Expert Lawns LawnSite Silver Member
    Posts: 2,660

    JRG12 - I offer my customers the whole package as well. I do not do fert, irrigation, or landscape install. I work with 2 partner companies. It is simple; I take care of them, they take care of me. There is plenty of work for all 3 of us due to us referring each other.
     
  9. LawnsRUsInc.

    LawnsRUsInc. LawnSite Senior Member
    from midwest
    Posts: 916

    so does it work better to refer or to sub it? I do lawn care and another co in my area does just fert.

    Jason
     
  10. JRG12

    JRG12 LawnSite Member
    Posts: 15

    Thank you to all who replied. This site has been very helpful in the formation of my company! Good luck in the upcoming months!
     

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