Tip Of The Day - 9/14/05 - Client Gifts

Discussion in 'Industry Surveys & Polls' started by Sean Adams, Sep 14, 2005.

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  1. Soupy

    Soupy LawnSite Gold Member
    Posts: 3,125

    I agree with you, I was just trying to point out what I thought was Bobby's way of thinking.
     
  2. Sean Adams

    Sean Adams LawnSite Gold Member
    Posts: 3,597

    you actually understand bobby's way of thinking...that's a whole new site in itself....
     
  3. MarcSmith

    MarcSmith LawnSite Fanatic
    Posts: 7,157

    Now to get back on the topic......

    One year I threw a Party at my house for many of my clients. I had food, drinks(yes alchohol with bartender) I ended up droping about 2 grand on the shindig.....Best money I ever spent....

    I basically had blank checks with many of the clients. I would give out $50 gift cards if anyone they refered signed up for a year long contract, again money well spent that was better than any door hanger or Yellow page ad.

    I taught my clients how to use their irrigation systems properly (no charge), in most cases they let me program them to what was best for my schedule....Win-win. And you know, they did reciprocate at christmas time. I'd get gift cards or presents for my daughter....

    Now the trash guys who come every week, they get something from me. I don't give squat to the postman, as he is GOV employee, and I see him sleeping on the side of the road in his van....Paperboy doesn't get anything either, buts that because he sends a card taped to the newspaper hinting at where giftcards could be sent to....

    Now I don't have clients, but I have Union employees, I don't need to give the guys anything, but my harder workers who show the effort get a little something on side at christmas time sine I can't give them a raise....

    You do what works for you. This is what I do and it works....
     
  4. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    hold, hold it. i clearly stated my operating costs are 10 k, BEFORE PAYROLL. pay attention. if i gross 120k, deduct my 10 operating costs, that leaves 110k. minus 40 grand for payroll= a total of 50 grand. my taxable # is now 70k.
     
  5. Sean Adams

    Sean Adams LawnSite Gold Member
    Posts: 3,597

    :p ha ha ha ha ha ha ha ha ha :p :p :p :p

    you are so full of it....

    QUOTES FROM BOBBYGEDD IN THIS THREAD...

    if you're smart like me, you net around 75%.
    my NET ( or what i refer to as taxable income) is roughly 75% of gross
    i know how to use a calculator


    you show me anywhere in this thread you claimed you had a payroll of $40k

    and you said you did $120k+

    and you said 75% net

    now you are saying $120k less $40k in payroll and $10k in operating costs which leaves you with $70k...and that is not even true net

    with your definition of net, your net would only be 58%...and actually, after you paid taxes on that $70,000 (which would be about $12,500) you would truly be left with a NET of $57,500 which is.....

    4 8 % N E T

    AND THAT IS STILL ASSUMING YOU ARE ONLY SPENDING A TOTAL OF $10,000 IN OPERATING COSTS, WHICH IS VERY HARD TO BELIEVE

    MIGHT WANT TO READ THE INSTRUCTIONS THAT CAME WITH YOUR CALCULATOR...OR HIRE AN ACCOUNTANT
     
  6. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    scuse me? i clearly stated that my operating costs were 10 k per season, BEFORE payroll. YOU THEN, came back with a statement that my se tax should be based on 120k. YOU THOUGHT that se tax was based on GROSS. you also thought it was 12.5%. after i INFORMED YOU that it is based on net, and 15.3%, you come back and bash me. come on sean, i think you owe me an apology. on to my next question: what was the main reason you failed in the lawn care industry?
     
  7. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    see.............
     
  8. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    well, you and donovan must be over there painting each others toe nails. i can't wait this long for a reply. i got stuff to do. later
     
  9. dvmcmrhp52

    dvmcmrhp52 LawnSite Platinum Member
    from Pa.
    Posts: 4,205

    This is just plain GOOD! :waving:
     
  10. Sean Adams

    Sean Adams LawnSite Gold Member
    Posts: 3,597

    bobby - you need to read up on your tax laws....

    read what I wrote again...

    self-employment tax is made up of two parts - it is not straight 15.3% (add my 12.4 and 2.9 bobby...)

    12.4 percent for Social Security. The social security portion of the self-employment tax is limited to $10,788.00 if you earn equal to or less than $87,000 ($87,000 earnings limit x .124 = 10,788.00). Once you hit $87,000 of self-employment earnings, you have paid all you need to for social security.
    2.9 percent for Medicare. The Medicare portion of the self-employment tax is unlimited. No matter how much, or how little you earn, you will be paying for Medicare.

    I never said SE tax was based on gross....you said you had 10k in expenses and did 120k +... from the posts provided who appears to know the tax law, you or me?

    I do not owe you an apology.... it's a shame you have to resort to name calling and backpedaling when it has been proven, without a shadow of a doubt that you are wrong and/or full of it...

    YOU DO NOT MAKE 75% NET...HECK, YOU DON'T EVEN MAKE OVER 50% NET

    Don't get me wrong, if someone is netting close to 50%, not to shabby...but don't sling your BS around here and claim you are netting 75%

    And for your last question.... don't know where you get your information but the business I owned for almost 15 years was profitable and sold for a profit with no debt...if that's "failing" I hope I can continue failing the rest of my life
     
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