Weed man franchise

Discussion in 'Franchising' started by cdqat1432, Jan 23, 2013.

  1. GaryBK

    GaryBK LawnSite Senior Member
    from Canada
    Posts: 252

    Ah yes. I have read the eMyth by Micheal Gerber. Great stuff in business books. But I am still amazed at that revenue per truck. I thought I was pushing it in the weed and feed area and I am getting about $130k/yr per truck. What should a truck be doing per year? But we don't work Saturdays (unless absolutely necessary because I get too far behind or Sundays of course). I was just reading some stuff on a Lawn Doctor franchise. They work their guys 4 days per week (10-11 hrs/day) but the trucks work 6 days per week with rotating work schedules. I don't like to work Saturdays though. Wen we do we are often turned away because people want to use their yards or we get a phone call that they are teed off because we serviced their lawn while they were out and now they don't feel they can use it. Maybe I am losing revenue per truck by not working Saturdays. How do you guys feel about having your weed and feed trucks out on Saturday?
     
  2. bmburns99

    bmburns99 LawnSite Member
    Posts: 16

    Hi Gary- We don't work Saturdays typically either. The only Saturdays we work are during the month of May. Once our first round of weed control is down we can typically stay caught up with everything by just working 5 days a week. I credit our pricing structure for the high revenue per truck, as we're never the cheapest service out there and never come close to matching some of the low-cost providers pricing. As far as revenue per truck, we were at $153K last year. Once our territory is saturated we will be in the 4.3-4.6% royalty range.

    Hope this helps!!
     
  3. GaryBK

    GaryBK LawnSite Senior Member
    from Canada
    Posts: 252

    Working Saturdays for R1 is a great idea. That would set you up better for the whole year in scheduling. I must look into that. Good on being on the high side of pricing. We increased our prices more than inflation with our 2014 prepay notices. Will wait and see how that pans out. We have a lot of work and I was reading in a business book that if you have a lot of work raise your prices. You may lose some but you will always keep good accounts that way. I'm a bit apprehensive as I will be in the top pricing of the market but I don't want to compete with the lowballers.... (Going $60/F&WC and $115 aeration up to 4000ftsq - that's most lawns - with a 20% PP disc.). Glad you are having success with your franchise! Thx BM, Merry Christmas.
     
  4. GaryBK

    GaryBK LawnSite Senior Member
    from Canada
    Posts: 252

    Oh, do you have a percentage of prepay vs pay as you go customers. I have yet to work that out. I have to do a lot of stuff manually. My computer program sucks. I'm looking at Service Assistant for 2014....
     
  5. olajoe808

    olajoe808 LawnSite Member
    from Zone 5b
    Posts: 221

    Posted via Mobile Device
     
  6. GaryBK

    GaryBK LawnSite Senior Member
    from Canada
    Posts: 252


    That's a bump Olajoe? ;-)
    Posted via Mobile Device
     
  7. bmburns99

    bmburns99 LawnSite Member
    Posts: 16

    Your pricing seems good. I might not offer as much of a prepay discount though. We offer 10% and typically get 42-44% of our customers to prepay- very nice for cash flow.
     
  8. GaryBK

    GaryBK LawnSite Senior Member
    from Canada
    Posts: 252

    I was thinking that this year it might be easier to phase in the price jump...and offer a bigger discount to help cushion the shock. I mail out a prepay/renewal letter in December for a Jan 15 deadline. 20% discount for next season. Then we send out a spring renewal for those not yet booked. Goes out in February with about a March 30 deadline and a 10% discount for 2014. I think a second mailing should have less of a discount.

    What do you do for renewal mailouts and deadlines? Thanks for the tips BTW.
     

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