Two Different Companies - Which One?

Discussion in 'Lawn Mowing' started by jpmako, Mar 13, 2005.

  1. jpmako

    jpmako LawnSite Senior Member
    Posts: 593

    There has been some talk on here in various threads about having 200-300 lawns :dizzy: . I thought about this for a couple of minutes and decided to come up with some figures.

    Compare the two. Which would you rather be?

    Jason
     

    Attached Files:

  2. Runner

    Runner LawnSite Fanatic
    Posts: 13,496

    That is why we're finding, more and more, there is a niche for full service out there. We are coming into properties, and basically, what they are getting, is a superintendent. We take of everything from the Cleanup, to the fert., irrigation, beds, turf, trees, ...the whole shot. This way, they are not calling 3 or 4 people, the weed guy isn't blaming the mowing guy, and the mowing guy isn't blaming the irrigation guy, and so on. The buck stops here...one call. All I say is. "Sir,....it is taken care of."
     
  3. PTP

    PTP LawnSite Bronze Member
    from Tulsa
    Posts: 1,379

    I am not sure that we are comparing the same thing here. Some customers demand the full service and others just want the mow. I see no problem with one company providing everything and another company providing limited services. Yes, the revenue per customer is down on the basic provider but on the other hand, the customers other alternatives are a full service company or doing it themselves. Many of these customers would do it themselves. I think that there is a place for both as they hit two different customer groups.
     
  4. old dog

    old dog LawnSite Member
    Posts: 213

    I do a townhouse complex with 65 units.We charge $7 per mowing per customer.It takes 4 people 2 hours.That is good money if you run a crew in my area($208 /hr ).This is a
    subcontract job that we only mow.I think a job mix is better just to keep it more
    interesting for all the crew.But I have found that formulas never tell the whole story!
    You always have to look at a job with your eyes to bid it!!My example is:
    Company 1:$1,000,000 annual revenue,10% profit
    company 2:$400,000 annual revenue,25% profit
    Which company would you rather run?
     
  5. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    That is a very small part of a big equation. What about 2-300 full service customers.
    What about overhead and profit. All this has to be included.
    And what is wrong with offering both ways.
    We run trucks that just cut grass and trim. Nothing else. Just like the no frills guys. We also do full service. BUT the full service accounts still get cut by the no frill truck. All they do is maintenance. All other services come from other trucks. So adding mow blow fits right in as that is all the guys do anyway.
    Most LCOs work their #'s back wards as they think about # of properties first.
    Start at the end--The amount of profit you want to make. And than create the plan that gets you there.
     
  6. shepoutside

    shepoutside LawnSite Bronze Member
    Posts: 1,205

    Bingo ! Plus the overhead, and operating costs are also way different. Don't need the manpower either, so who would really have the better profit? There is a need for both types of service.
     

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