What do YOU do to save money and reduce expenses?

Discussion in 'Lawn Mowing' started by fiveoboy01, Feb 24, 2010.

  1. Landscraper1

    Landscraper1 LawnSite Senior Member
    Male, from Southeastern Ma.
    Posts: 755

    That's your choice. My business is a S-Corp. I am covered under worker's comp. Under Ma law I have to have worker's comp. on myself. So, I can and have had a claim on myself.

    2 years ago, I was trying to remove a blower fan using a 3ft crow bar. The bar slipped and hit my head. Knocked me out, lost a bit of blood, and had a mild concussion. I came out of it ok but, could of been worse. Worker's Comp took care of everything. It's not that I couldn't of taken care of the bills myself, I just felt some security that if it was alot worse, I am covered.:weightlifter:
  2. rain man

    rain man LawnSite Silver Member
    Posts: 2,794

    No offence taken. I am also inclined to agree with you in that while you are chasing a few cent you could have been making money.

    Our particular reasoning was based on the following: Gas prices fluctuated much more than a few cents per gallon for awhile, we timed the increases and decreases correctly half of the time and broke even when we were wrong, we noticed that some of the gas stations lowered prices much quicker when the market went down while others lingered, the stations we used were on our route and we didn't have to waste time looking.

    We are still building and in the past there has been no room for waste so we perhaps scrutinize a dollar savings too closely. Still, it cost us no extra time (except checking the financials on the computer) and we did save money.
  3. BearWise Landscapers

    BearWise Landscapers LawnSite Senior Member
    Posts: 456

    For these points, I would emphasize the importance of using an independent insurance agency. These agencies will have access to multiple insurance carriers and if they are doing their job, they will shop the rates for you every year. For example, we have clients with over 35 different insurance carriers and when the policies of our clients come up for renewal, we send their application to different insurance carriers to make sure they still have the best rates available for their business.

    If you are looking to cut costs, then feel free to ask your agent about coverages that can be removed and the premium costs associated with those coverages. Some coverages have a great value and are not worth removing. Here is an example of two coverages on commercial auto policies.

    Johnny Bravo,

    Workers' Compensation insurance can be complicated, but there are ways to save money on your policy. When you get a chance, read this article in PRO Magazine about ways landscapers can cut costs on workers compensation insurance.

    Let me know if you have any questions about your insurance coverages or ways to cut premium costs on those policies.
  4. BearWise Landscapers

    BearWise Landscapers LawnSite Senior Member
    Posts: 456

    I tried following the discussion above on workers’ compensation insurance. I thought I would chip in with a few pieces of information to consider:

    1.) Workers’ compensation insurance is different in each state. It is mandated by state governments and each state has slightly different laws regarding it. You need to be familiar with the laws in your own state.

    2.) Many commercial accounts will require workers’ compensation insurance for contractors they hire to do landscape maintenance and other services. This is good for them and if all of your residential, commercial, and other clients knew the importance of it, then they all would require it. When a company hires a contractor and that person or that contractor’s employees are injured working on the property, the company will be protected from a variety of lawsuits if the contractor has workers comp. If the contractor does not have workers comp, then plaintiff attorneys will typically name both the contractor and other company in the lawsuit to be reimbursed for the injury and any missed wages.

    3.) In Florida, you are required to purchase workers compensation as a lawn care company when you have more than 3 employees. If you do landscape installation, you are required to purchase it when you hire even one part time employee.

    4.) In Florida, an owner can purchase workers’ compensation insurance for himself. About 95% of our clients choose to be exempt from workers’ compensation insurance because they can exclude their own payroll from the premium base. This saves a substantial amount of money and they would use their health insurance coverage instead of workers comp if they get injured.

    5.) We write insurance for a few owner/operator landscapers that are required by a jobsite to carry workers compensation insurance and do not have employees. This is a lot cheaper if you have a corporation or LLC. Sole proprietors in Florida cannot exclude themselves from workers compensation coverage. They also have to be rated on the policy with $55,700 of payroll, even if they don’t make that much.

    Let me know if you have any additional questions about workers comp insurance. If any of you are located in Florida, then I would be happy to put together quotes for your business. Here are the 2010 workers comp rates in Florida. Here is another article with a historical introduction to workers comp insurance.
  5. yardguy28

    yardguy28 LawnSite Platinum Member
    Posts: 4,464

    read what is highlighted in red below please. not every state is MA. every states laws are different. you can't get covered under workmans comp in every state. so to say it is his choice is incorrect.

  6. Marshman

    Marshman LawnSite Member
    Posts: 31

    Packing lunch is crucial. I don't take my guys off the clock for lunchbreak so everyone packing a lunch in case we have a descent drive somewhere and eating while in the car on the go is how i try and do it. maybe a little greedy but there cool with it.
  7. fiveoboy01

    fiveoboy01 LawnSite Silver Member
    Posts: 2,988

    Wow I didn't realize this got to 9 pages, sometimes my email notification doesn't work.

    Thanks for the suggestions and discussion on this:)
  8. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    A perfect driving record helps a lot.
    Last edited: Mar 4, 2010
  9. David Grass

    David Grass LawnSite Senior Member
    Posts: 485

    Exactly, every time you make a dollar more an hour, for the exact same efforts factoring in your return on your investment, you are SAVING a dollar an hour. THere is an old school kind of thinking that borrowing money is NOT a good thing, that getting exactly what you need should be put off, etc etc. That is fine if you are not in business, lol, BUT if you are a biz, you have to let yourself think biz.
  10. Darryl G

    Darryl G LawnSite Fanatic
    Posts: 8,058

    Yah well 5 pages of it is petty bickering on where to take a P.

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