Why do LCO'S charge so much?

Discussion in 'Lawn Mowing' started by kkat, Jul 21, 2006.

  1. kkat

    kkat LawnSite Member
    Posts: 62

    After reading all the threads about stealer dealers and we just sit inside in air conditioning all day, have it easy etc, Well maybe its a dealers turn to ask you (LCO'S) why do you charge so much just to mow grass? I mean its just mowing right? Something I was doing when I was 8 years old. You come into my store and buy equipment for just about next to nothing and then want extra blades and/or filters thrown in for nothing ( A good savings right?) Then you go and buy aftermarket parts and supplies from other companies. So there is more savings.9 times out of 10 The only time you bring your machines back for repair is when its a warrenty issue. So you repair your machines yourself right?or have a buddy do it for less $$$ which is more savings. You dont have the OEM'S breathing down your neck or requiring you to have a minimum to keep in stock, more saving's, you dont have update schools every year for all the Oem's you are certified for, more saving's. Most of you LCO'S dont have a commercial building or property that you either have a mortgage on or a long term lease which increase's every year because of taxes, Most of you LCO'S do not provide health coverage or some type of retirement plan for your employees if you have any to begin with. Then you have the payroll taxes and corp taxes and unemployment taxes and etc,etc,etc,etc....SO it seems to me most of you LCO'S have many ways of saving money and cutting cost. So I ask again--Why so much to to cut grass.This rant is not directed to any LCO personally or to those of you who appreciate the relationship one has with a dealer. Just getting tired about reading and hearing ........
     
  2. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,949

    because we have to pay off your damn overpriced MOWERS YOU SELL TO US! :hammerhead:
     
  3. hoskm01

    hoskm01 LawnSite Fanatic
    Posts: 5,690

    Everyone has to save money where they can. If you pay what anyone/everyone asks, you are throwing away money. Lets hear from everyone who goes to buy a car at a dealership and pays exactly what is on the sticker???




    """CRICKETS CHIRPING""" (Hopefully)






    Thats what I thought. Dealers ask more than the cost of the product because it costs them money to ship, stock and sell that product. Whats everyones issue with the dealers? If you dont like it, shop somewhere else and get the best price. A deal is an agreement between buyer and seller, not a freebie. Lets see who charges exactly 11.75 to mow the lawn because that is exactly what it costs them for labor, transportation, equipment and gas. Then you wouldnt make any money, so you charge 25 instead. Seems simple enough to me.
     
  4. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    Fuel + Insurance + tax + Labor + Equipment + tax + Maintenance + Parts + Tax + Breakdowns + Banking Fees + Tax + Bounced Checks + Collection Costs + Wasted trips / time + Tax + Non-payment issues for starters.
    Ohhh yes, the customer pays for those who don't pay, too... Sad, but true. Unfair as well, but I chase as hard as I can, beyond that it is not a crime to owe money, they won't throw them in jail and if they own nothing of value I can put a lien on, some never pay...
    But even those who do eventually pay waste a lot of time and money in the process.

    Your price doesn't just pay for the above cost involved in grass clipping, it also pays all of my living expenses such as my house's electric bill, the telephone, the rent, my personal car + insurance + taxes, food, clothes, yes, even cable tv and internet my customers pay for, not to mention leisure time.

    Well, we don't work for someone else, the money has to come from somewhere...
    Believe you me, if I thought it was legal to run off $20 dollar bills on my deskjet, I would've started a long time ago, I would love for such an easy solution to come along.

    Did I mention taxes?
     
  5. sweatyclippingcoveredguy

    sweatyclippingcoveredguy LawnSite Member
    Posts: 183

    I admire your testicular fortitude, but if you would see things from a consumer/business owner point of view and how swamped we are in excess non-mowing bs...You wouldn't post what you did. Your crap IS overpriced, and you ARE turning a profit, otherwise you wouldn't exist. Now to sit there in your "air conditioning" talking down on us when all you have to do is try to sell stuff, (which usually dealers fail to attempt to do), and do a little bit of "air-conditioned, cushioned armchair" paperwork...I just don't get it man. While you have one boss breathing down your neck, we have at least 50 with our personal phone numbers and addresses. I can't wait to plop my ass back in my chair and look at this thread when I'm done working at sun-down.
     
  6. buddhaman

    buddhaman LawnSite Member
    Posts: 135

    Why don't you wait until an LCO comes in your store to purchase equipment and ask them then? Oh wait, wouldn't want to lose a sale. Ever hear the saying "Don't bite the hand that feeds you"? And yes a lot of it is over priced. If it is just cutting grass, why do you charge $8000 for something that just cuts grass?
     
  7. Surf'n'Turf

    Surf'n'Turf LawnSite Senior Member
    Posts: 326

    thats a dumb question. why does any business charge what they do?......you are either in business to make money or you have a hobby. you think oem is a competitive business? show me your mexican oem competitors flyer that says 'we will do it all for cheaper than anyone in town' or 'free tune ups for life when you buy our 21" mower.'
     
  8. wski4fun

    wski4fun LawnSite Senior Member
    Posts: 323

    In my area, the dealer is charging 72/hr labor rate. The employ I saw was an immigrant just like we use. I can only charge 35/hr for myself and anyone else I employ. Put on taxes and everything else, it is not a lot of money. My truck is my personnal vehicle. My house is my shop. The person who supplies everything to me has a bigger house nicer car ect. On the other hand, the amount the dealer would discount to bring his take home to mine would not be seen in the price of the goods or services becuase of the volume. They must do a few million in sale I would assume where I might do 150K. They have less of a margin.
     
  9. TNT LawnCare Inc.

    TNT LawnCare Inc. LawnSite Bronze Member
    Posts: 1,157

    How come i can get a demo unit for $1,000 off. Why do W.B. hydro's cost all most twice as much,why does a velky cost $200.00-$250.00 bucks. I think a $7,- $8,000 dollar Z.TR. SHOULD AT least hve Air conditioning. Please
     
  10. Lawn Enforcer

    Lawn Enforcer LawnSite Silver Member
    Posts: 2,381

    A lot of money goes into running a lawn business. Mower, trimmers, blowers, edgers, all expensive. Trucks and trailers are also not cheap. Then their is gas, blades, grease, oil, filters, and also, you have to have lunch too. Got to support yourself. I also rent a 12' x 30' storage unit w/ electricity. I have a guy who repairs my mowers for a affordable price. I got sick of paying through the nose for small repairs.
     

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