Worlds Biggest Lco Quits U.s.a

Discussion in 'General Industry Discussions' started by Sandgropher, Jul 11, 2006.

  1. Sandgropher

    Sandgropher LawnSite Senior Member
    Posts: 909

    ........That got your attention, just reading a book by Jim Penman in it there are the reasons given why he pulled out of the U.S.A(.Jims mowing worlds biggest mowing company)


    ..............At this time we got a call from Dennis Reidy, a Canadan business man who had heard of us while having a beer with an Aussie visiting Vancouver. he picked up the phone and called us direct. Dennis came over and was impressed with our operation. He had checked and comfirmed there was nothing like it in Canada , or any where in North America. He suggested we start Jim's Mowing in Vancouver. :canadaflag:

    Now to be honest , Canada would not have been first choice for an overseas launch. Like most Australians , we thought of it as an ice bound wilderness for much of the year, not ideal for lawn mowing services. :confused:

    But we were told that Vancouver had a mild coastaal climate like Melbournes, we were also told that Canadians were keen and well informed gardeners, with gardening listed as their number one leisure activity.:)

    Work was not hard to find to find, but there was problems attracting the ex-bank managers, teachers and other high calibre people who were the backbone of the system in Australia. :cry:

    ...........growth was slow at first but by 2000 they had reached 40 franchees, an impressive number considering the ground work they had to do. :clapping:

    By this time we were ready to open for business in the U.S.A :usflag:

    A couple of years back, one of our franchees went over to spy out the land.

    He stopped at a house in each of several cities and asked for quotes to get the lawn mowed. Nobody could provide the same day service which is now standard for jims in Australia. The average contractor who replied took several days to give a quote. :sleeping: One fellow in Atlanta took 3 months.:sleeping: :sleeping: :sleeping:

    When Peter and Anthony started in Texas , they were amazed at how easy it was to find work. People were desparate for good service.........:) ...

    One Australian expatriate told how she try to cancell her mowing man, a Mexican. She asked him to stop but he just said "must mow lawns" She even stood in front of the mower, but had to jump out of the way as he seemed ready to run her down. :dancing: One thing that impressed people was that Anthony and Peter were happy to do any gardening and other small jobs.:)

    No one local wanted to do anything but mowing. It was like Melbourne in the early 80s, only worse.

    Regrettably all this growth and activity could not be sustained. Work was easy to find in Texas, but not so Franchees.Even more than Canada , business minded Americans seemed to feel manuel labor was beneath their dignity.:hammerhead:


    I beleive we were handicapped by the lack of local operators, who could understand the local culture and conditions.:usflag:

    In the end, and for what ever reason, the venture failed and both Anthony and Peter came home.*trucewhiteflag* *aussieflag*




    There you have it boys and girls thats why you do not see jims on every corner in your town, like a lot of countrys ( i saw 3 on one street once).

    This book is old and maybe he has tried again over their but i am not sure.:confused:

    From the book Suprised by Success , the story of jims group by Jim Penman.

    The worlds biggest mowing company. (franchese system)
     
  2. LawnBrother

    LawnBrother LawnSite Senior Member
    from SW Ohio
    Posts: 867

    That's really interesting, thanks for posting it. I am going to have to check that book out....
     
  3. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    Yeah so they bent over backwards and got took for a ride, the only thing that surprises me is that he does well elsewhere as it doesn't say a whole lot for the american mindset in general.
     
  4. Sandgropher

    Sandgropher LawnSite Senior Member
    Posts: 909

    Hers a link to the Canadian section if anybodys interested.


    www.jimsmowing.com

    I should point out that not many independents like them here, as they are our rivals ( a bit like true green in the u.s) theres 160 in my small city, but they have done the industry good, they keep the prices high ( have heard them quote $66 for a standard $35 lawn) its a status thing here to have a jims out the front of your house and their indoduced uniforms etc

    When i say we dont like them i mean the concept etc (they are big and powerful) i still wave and chat to the operators etc. cheers*aussieflag*
     
  5. Sandgropher

    Sandgropher LawnSite Senior Member
    Posts: 909

    Also the Aussie link www.jimsmowing.com.au

    Lawnbrother pm your address and i will send you my copy.

    If any bodys thinking off starting there( U.S.A) get in contact with them you may be suprised. they arnt afraid of spending big $$$ on advertising, you never know you may get in on the ground floor.*aussieflag* *newusflag*

    Last time they were hampered by the lack of local operators.:usflag:
     
  6. Freddy_Kruger

    Freddy_Kruger LawnSite Bronze Member
    Posts: 1,064

    Franchises are a scam. <==period.

    I wonder if the franchise cut had anything to do with its failure.

    You take their orders, cow tow to their leader and give them 20% or so of your money plus tax. You are definetly not an entrepenuer if you buy a franchise just a fancy employee.

    They probably make most of their money from the franchise fee and when the guy goes out of business they sell the franchise again.
     
  7. Freddy_Kruger

    Freddy_Kruger LawnSite Bronze Member
    Posts: 1,064

    Holy crap they want 28 thousand dollar investment, lol. for a franchise, what a joke
    .
     
  8. Sandgropher

    Sandgropher LawnSite Senior Member
    Posts: 909


    Yes a lot of this is true but Mc Donalds is still going strong. *aussieflag* *newusflag* *newcanadaflag*

    and KFC i think ??? correct me if i am wrong anybody.
     
  9. Sandgropher

    Sandgropher LawnSite Senior Member
    Posts: 909


    THEY ARE COMING TO A STREET NEAR YOU SOON.:laugh: :laugh: :laugh: *aussieflag* *newcanadaflag* :canadaflag:
     
  10. Freddy_Kruger

    Freddy_Kruger LawnSite Bronze Member
    Posts: 1,064

    I should have said service industry. I used to own window cleaning franchise and all I wanted was OUT of that contract. WHile I was there they had a 100% turn over in there maid franchises also. They truley make there money selling the actual franchise THEN... if it goes out of business they can find another to sell to. Jims mowing wants 28,000 dollars plus I'm sure that you will sign a contract that you cannot work in the field if you quit.

    Macdonalds is a different animal that a LCO.
     

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