Thoughts on Overhead and pricing

Discussion in 'Business Operations' started by Dirty Water, Sep 15, 2006.

  1. Dirty Water

    Dirty Water LawnSite Fanatic
    Posts: 6,799

    I have a feeling that a lot of people here who complain about lowballers don't have a clue how to properly run a business.

    I've noticed a trend that 95% of the people on this board have a brand new $45 k rig to pull a lawnmower with.

    These are the same people that complain about being put out of business by lowballers.

    Here is my solution:

    Don't Decrease your price, increase your profit.

    You guys figure it out.

  2. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    I find that extremely hard to believe since 1/2 of them don't have a driver's license yet.
  3. YardPro

    YardPro LawnSite Gold Member
    Posts: 3,563


    we were talking about that yesterday. We saw this f350 crew cab, extended bed, 4x4, with ALL the bells and whistles.

    it was pulling a 12' trailer with an old toro wheelhorse. It had a few homemade weed eater racks on the trailer with ryobi weedeaters.
    the guy had logo's in the windows of the he was not a hobbyist...

    what a waste of money.....
  4. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    It is one reason why I fail to understand how so many Lco's who are just getting into the business feel the need to go right out and buy a Ztr... I think perhaps it's coincidence that as a new owner one simply wants to follow what others are doing, and it would appear that every Lco has a Ztr so it would further appear a Z is a required item for grass cutting.

    I feel fortunate in that respect, as I was told different... I was told you start with what you can afford and don't take out loans. Save your money and buy it outright and if they want to offer a No payment / No interest loan at that time then fine, but if you don't have the money in the bank then you can not afford it.

    It is the reason why in 5 years I've owned 4 Wb's but never a Z, and it kills me to watch all these guys running out and spending 7k+ when for 3-4k one can get a brand-new Wb and for 1-2k a nice used one.

    The truck I fully agree with as well, I got lucky in my 2nd year I found a 1986 D-250 for $1,400 - I've put close to 60k miles on it and am still driving it today. It frustrates some to have no radio and no a/c, but as you said: It enables me to offer a low cost while still raking in good profit.

    But in the end who pays? The guy with the Wb's that are all paid for or the guy with everything in hock? Keep in mind, anything on loan not only costs more in interest and the fact you have to sit down every month to write out the stupid check, but in many cases (such as a truck) it also costs considerably more in insurance (yeah because you have to have FULL coverage on a loaned vehicle).

    So I was thinking today, you know, you really only work about half as hard to make ends meet if you do things the hard way and save your money first. And you work a LOT more hours to make up for that little bit of extra that you need when you always owe money... Your hands are tied one way, or you have more freedom the other, but one involves discipline and the other not much thought.

    Then again, it is the reason why many fail, and this is good in an off-the-wall way, heh.
  5. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    And another 1/4 are part time and use the truck for other things like pulling boats campers etc. The mowing just allows them to help pay for the fun
  6. ALarsh

    ALarsh LawnSite Silver Member
    from Midwest
    Posts: 2,412

    I saw a guy yesterday with a new bright yellow H2 pulling a 10 foot trailer with a JD residential lawnmower cutting lawns. I wish I had my camera with me!
  7. YardPro

    YardPro LawnSite Gold Member
    Posts: 3,563

    he's probably having to moonlight just to make the truck payment
  8. lsylvain

    lsylvain LawnSite Senior Member
    Posts: 777

    OMG a couple of people on this site who actually agree with me. I'm dying sitting here watching these guys compain about low ball this and low ball that. And talk about how expensive everything is. I started my biz with a datsan then moved up from that into a 1978 1/2 ton chevy that I got for $500.00. I traded that even swap for a 79 3/4 ton and used it for 3 years before I sold it to a guy fo $1200 all I did to it in the 3 years was a new clutch and an alternator. Profit!!! I now have a 98 GMC 3500 4x4 that I paid cash for ealier this year. I own everything except my house. You still have to set money aside to purchase new stuff down the road but that is a whole lot easier to do when you dont have to make $1000 in payments to a bank every month.

    I have a thread going now trying to determine the real value of a ZTR.
    I am basically trying to justify purchasing a ZTR. This is something that I have pondered for a long time in fact I just did a search and the first time I braught up this question was Feb of 2003. Check it out, I would love to hear what you have to say.
  9. allenh60

    allenh60 LawnSite Member
    Posts: 46

  10. allenh60

    allenh60 LawnSite Member
    Posts: 46

    This is what I started with, If it will show up as a picture.

    Picture 204.jpg

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