What are you not putting up with this year.

Discussion in 'General Industry Discussions' started by KG26, Apr 1, 2013.

  1. birddseedd

    birddseedd LawnSite Silver Member
    Posts: 2,114

    the difference is that you have a name and reputation people are willing to pay for. whereas he does not.
     
  2. JimMarshall

    JimMarshall LawnSite Senior Member
    from NW PA
    Posts: 305

    True. It also kills me when the little guys like that get to talking about business, and tell me what they bring in in sales in a year.... and they are not working a second job, and I am curious how they can feed their families.
     
  3. birddseedd

    birddseedd LawnSite Silver Member
    Posts: 2,114

    because they fix their own equipment. they do not buy the newest and greatest equipment. they work with what they have. it is enough to make a living. no you wont get rich, but it is a living. where as someone bigger must pay a grand a month on a building because their business is too big to work out of their homes. they run cheaper. not more profitable, just cheaper. shoot, jsut not paying workman's comp for employees they dont even have saves 4 to 5 percent of that 30.
     
  4. JimMarshall

    JimMarshall LawnSite Senior Member
    from NW PA
    Posts: 305

    You're telling me you can run your business, pay employees, etc and feed your family on 30K in gross sales?
     
  5. birddseedd

    birddseedd LawnSite Silver Member
    Posts: 2,114

    someone grossing 30k does not have employees. and if they do its 100 bucks here 100 bucks there for big projects.
     
  6. JimMarshall

    JimMarshall LawnSite Senior Member
    from NW PA
    Posts: 305

    I know him and his business. He has someone that helps him every job.
     
  7. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Posts: 2,715

    The difference is all of the stuff you described adds equity to the business. The guy with all the overhead isn't getting rich either, but the day he wants to sell or retire his business is money in the bank. The employees make up that % on the volume they produce. We also fix what we can and service our equipment in house, you are right that is a big savings over sending it to a dealer.
     
  8. JimMarshall

    JimMarshall LawnSite Senior Member
    from NW PA
    Posts: 305

    I have 2 full time mechanics in house 50 hours a week. Two sales guys, a secretary/book keeper, the overhead adds up quick, and I know that's why they can afford to do it cheaper, but it kills me because they are clueless of the kind of $$$ we are getting out of the work.
     
  9. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Posts: 2,715

    The worst part is most of them are losing money and don't know it :hammerhead:
     
  10. Patriot Services

    Patriot Services LawnSite Fanatic
    Posts: 12,448

    Have you ever seen the value of a landscape business? Its enough to make you cry. Accounts are worth two months gross even under contract. Equipment is less than market value because its been used commercially. Then try to find a buyer. Nobody with enough money would buy an LCO. No bank is going to finance one either. If your smart you make as much as you can and put it into something far more profitable and stable. Its a pipedream if you think you can put 20 years into a LCO and think you will sell it for millions and retire the Hamptons at 50.
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