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Turf Care

Discussion in 'Starting a Lawn Care Business' started by Ranjef, Feb 18, 2006.

  1. Ranjef

    Ranjef LawnSite Member
    from Atlanta
    Posts: 2

    Our company currently outsources all chem/fert apps to turf. Recently, they asked me to do all necessary research to determine the viability of bringing this in-house.

    Most of the information, (equipment, products, licensing, training, safety, etc etc etc.....) has been easy to come by. However, I am having difficulty in locating statistics for financial information - things like average margins, technician wage averages, etc.

    Our current year commitment is only $45,000 to the outside company (based on a 5-round program). The total square footage of turf under contract is roughly 2,000,000. My feeling is that this is not enough to justify the expense for start-up at this time.

    The owners of the company want to know how much of that $45,000 is going to the other companiy's bottom line and how much could be going to ours.

    Any suggestions?
  2. Jason Rose

    Jason Rose LawnSite Fanatic
    Posts: 5,858

    I'd say a low guess of their profits would be 50% of the $45,000, maybe more depending on how many employees they have working on your companies properties. Fertilizer and chemical applications can be very profitable if you price right and have enough area to cover. 2 million sq. ft. is nothing to sneeze at. Of course that's not enough to keep one man busy the entire season but it would make a side project every 6 to 8 weeks for a current employee for about a week at a time.
  3. All Season Bill

    All Season Bill LawnSite Member
    Posts: 158

    Find new home owners in the paper then go out and knock on their door. You know they haven't hired anyone yet.
    Also check everyone elses price so you can be competitive - but don't low ball or you'll be hated by the competitors

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