The economy and the business

Discussion in 'Irrigation' started by Mdirrigation, Mar 16, 2008.

  1. Mdirrigation

    Mdirrigation LawnSite Silver Member
    Posts: 2,772

    For the past 8 years consumer spending has gone nuts , now that the home equity well has run dry , housing in the dumps , fuel ready to hit 4 bucks a gallon , steel prices , copper and plastics rising . Who is prepared for a recession? Do you raise prices to offset costs , or hold your ground and make less per job ? I see landscapers jumping into irrigation to increase their business , should irrigation professionals start picking up lawn accounts . Those of you in their 20s and 30s dont remember the tight times in the 1970s and early 1980s . Can you handle a 40 to 50 percent drop in business?
     
  2. Kiril

    Kiril LawnSite Fanatic
    Posts: 18,308

    Prepare for the future ..... residential & light commercial irrigation is a dead end business.
     
  3. Dirty Water

    Dirty Water LawnSite Fanatic
    Posts: 6,794

    I was just thinking yesterday how lucky I was to get out when I did.

    Good luck everyone :)
     
  4. Totally disagree...I stay busy doing only service and repairs on residential and commercial, I no longer have the time for installs..
     
  5. Kiril

    Kiril LawnSite Fanatic
    Posts: 18,308

    Maintenance will last longer than installs, at least until potable water becomes such a scarce resource that all landscape watering is banned. :)
     
  6. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,540

    Not much of an issue here with the exception of a few towns.We are almost all service . The last few yrs Ive installed about 50 systems a yr. There realy isnt that much money in installs around here anymore.Startups shutdowns spring and fall and rebuilds add ons in the summer has been keeping me fed.
     
  7. DanaMac

    DanaMac LawnSite Fanatic
    Posts: 13,156

    Agreed. I don't think the repair/service end will be hit that much. I am raising my service call fee from $50, to $60 this year. that's for the first half hour. Still cheaper than some of you. But for my area that's good. raising price of parts accordingly as well. I have seen more and more companies offering service and repair as their main business. Looks like I may need to advertise a little more next year. maybe later this year. but for me, I don't see much of a drop off.
     
  8. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,540

    My startups are priced at $65 to turn on and inspect. This yr I offered a $5 discount for those calling before april 5th and $100 after May 1st. Seems to be working real weel asI already have about 100 booked and each truck can stay in each sceduled town for the entire day.
     
  9. DanaMac

    DanaMac LawnSite Fanatic
    Posts: 13,156

    I don't have a set price. Some can take 15 minutes, some can take an hour+. So it's all T&M. I have gotten better at keeping the driving routes down.

    BTW, anybody read the article in one of our trade mags about The Perfect Service Technician? Good article. I'll try and find a link.
     
  10. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,540

    That $65 only gives em the 1st 1/2 hr. Most systems under 10 zones ( about 90% of our customers) can be started and inspected in under 1/2 hr. Any adjustments / repairs are additional %60 per hr.
     

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