Thinking of dropping some acts.

Discussion in 'Lawn Mowing' started by Mow Man, Jul 21, 2012.

  1. Mow Man

    Mow Man LawnSite Member
    Posts: 106

    I am running with 3-4 guys every day and at least 2 Saturdays per month. Turning in around 10-13K/month billing, busting my ass as well as working my guys pretty hard and still having a real hard time getting all the bills paid. Yes, I am fully insured and on the books. I have to do something different? Thinkinjg real seriously about dropping apx. 10-15 biwkly acts. that are very marginal and never allow me to do any extras, just your tiypical 40-45.00 resi.maintenance acts that are on the outerlimits of my general area of service (travel/curb time). My thinking is this may allow me to give better service and cultivate my better accounts. Any thoughts would be greatly appreciated. I don't believe in just turning money over to gloat about the number of accounts that I have!
     
  2. Snyder's Lawn Inc

    Snyder's Lawn Inc LawnSite Platinum Member
    Posts: 4,541

    sound like maybe you need raise your price or find better accounts
    How many accounts do have to mow
    What size mowers you run
     
  3. Daily Lawn/Landscape

    Daily Lawn/Landscape LawnSite Senior Member
    Posts: 694

    Bi-weekly isn't worth the trouble. I did them 1st year, then dropped them. There's to much full time work out there. Get rid of the cheapskates.
     
  4. Mow Man

    Mow Man LawnSite Member
    Posts: 106

    about 50 res. and 10 sm to med hoa's (2-3 hrs w/ 4 guys) and 2 larger hoa's 4 hrs w/ 4 guys. I have the full line of equip. 22,32,36 and 48 wb's and 42,48 z's
     
  5. lawnhoppers

    lawnhoppers LawnSite Member
    Posts: 27

    We have around 110 bi-weeklys.I like them alot better than the full maintenance accounts u spend so much time trimmin bushes and all other stuff they expect u to do.
    Posted via Mobile Device
     
  6. Mow Man

    Mow Man LawnSite Member
    Posts: 106

    I have always had trouble aquiring wkly acts. Funny you should mention that as I am thinking of spending some bucks and marketing to some of the nicer neiborhoods I work in, but truthfully the weeklys I have are mostly PIA's. In my area we have been hit with so many lowballers that if you try to stay legit (which I am) you can't compete on price. I am also thinking about not marketing at all for more res. acts and continueing to go after small to med HOA's??????????????
     
  7. Snyder's Lawn Inc

    Snyder's Lawn Inc LawnSite Platinum Member
    Posts: 4,541

    Well if you have say 60'' on hand you might spend less time at some accounts and you might let one helper go
    and maybe your accounts to small for a 60'' mower
    Around here so many lowballs bidding long time ago I had do something myself
    So I bought bigger mowers since I did that I didnt need alot help and less lowballers at this level
    lowballers drives prices down only way I could stay in range I bought faster and bigger mowers
     
  8. mowerbrad

    mowerbrad LawnSite Fanatic
    Posts: 6,273

    There is a ton of analysis that you can do on your business to see which direction would be most profitable for your company. You can look at your routes and let go the accounts that are farthest outside of your weekly route, the money you save in fuel and drive time may help make up the difference. You can also look at just getting rid of your biweekly accounts like you had mentioned.

    If you can start condensing your service area to cover a smaller geographical area, start targetting neighbors of your existing clients and tightening your routes, you can start to increase your revenue.

    Look at your services that give you the best margins, it makes no sense to really advertise services that you only profit $20 on when for that same amount of time you could have made $50 providing a different service.

    I think if you really want to tighten things up in your business you may want to consult with a professional and start to really dig into things in your business.
     
  9. herler

    herler LawnSite Fanatic
    Posts: 5,144

    If you have too much work in this economy it probably means you are lowballing and maybe badly, so raise your prices, problem solved.
     
  10. trooper8870

    trooper8870 LawnSite Member
    Posts: 241

    Remember this, your largest expense in business is LABOR! It's not always the best to be the biggest and the baddest in your area. Streamline and decrease your labor. If you put a pencil to it, your employees clear more cash than you at the end of the month. I have 59 residential and commercial accounts. I will only use someone periodically if I get behind or on my larger commercial accounts. Outside of that, I take care of everything else. Watch your labor with both eyes very carefully!
     

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