Would you shop at this dealer?

Discussion in 'General Industry Discussions' started by Pietro, Jan 31, 2013.

  1. Pietro

    Pietro LawnSite Senior Member
    Posts: 857

    The shop owner could potentially have a truck/trailers setup with 3 Demo mowers, and a bunch of fert that he purchased at wholesale cost. Tell me he isnt going to hurt your business? Or......

    2 compaines buy mowers from him. The money he made selling them mowers he bought his own set at his dealer cost, and sends a crew out cutting in the same area as the other 2 companies. The other 2 companies just funded their own competition.

    Its just really shady and sly IMO.
     
  2. BeachysLawn

    BeachysLawn LawnSite Senior Member
    from VA
    Posts: 271

    We have a dealer around here that one of the partners owns two lawn companies for twenty years, one down in NC and one out by the beach. I like it and buy everything I can from them. He doesn't sell his services out of the dealership and they treat their customers better than any other dealer in the area. Like they know what it is like to be on our side of the fence

    If I have any questions, he's more than happy to talk about solutions.

    Just because he is more successful than you doesn't mean he is being shady and that he's running demos. Just saying. . .
     
  3. Pietro

    Pietro LawnSite Senior Member
    Posts: 857


    lol Im not saying he is, that would be a real extreme. Like someone else said, were lucky in NJ that we have several dealers. The guy I deal with is great. Takes real good care of me. If there was no other game in town and I had no choice, then what can you do...but I wont buy from my competition if there is a better/another dealer close by.
     
  4. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,312

    It allows the company in the case of fertilizer to buy it at whole sale cost and not mark it up and then under cut you in the same market. So he can be a making a decent profit at what would be cost for you and I have 2 of these guys near me that do this. One example we had a 50000 sqft lawn we mowed but we could never get the fert account because the company that did it was less than 150 dollars per application. For those of you who do not do fert I'll help you with the math. Most bags cover 10-12k sqft and the more obstacles and side walks and narrow areas the more bags you will need. So this lawn uses 5 bags there is no getting around that the bags depending on the step range about 22-28 dollars each here and back then the merit app was 65 a bag. so 110 to 140 an app with one app 325 and thats just the cost of the material not the fuel to get there the guy to use it the truck the trailer or the spreaders. That is what buying your product wholesale allows you to do it can shut your competition out completely in extreme examples.

    Now a dealership selling lawn equipment obviously has the advantage as well he can buy his products whole sale and increase his unit numbers earning him a higher price point program from the manufacture. So not only does he save money where you can not but in doing so he can be on his way to knocking his whole sale price down yet another level and there by making more off you who are trying to compete against him. Granted there is less to work with in the mowing end of this trade so thats probably why I have never seen that but 2 fertilizer stores and 2 nurseries have broken that trust in my area and they wonder why landscapers cut them off. One of the nurseries has actually since filed bankruptcy and all they have left is the lawn care part.
     
  5. Pietro

    Pietro LawnSite Senior Member
    Posts: 857

    I thought I was the only one who felt this way by the way the other gent was speaking.
     
  6. zechstoker

    zechstoker LawnSite Senior Member
    Posts: 976

    The biggest LCO out this way owns and operates a wholesale nursery that they recently opened to the general public. Not only have we bought plants there... We also do pest control for the owners, managers, and many of their relatives. We do business with them, and they do business with us.
     
  7. GreenGuysLC

    GreenGuysLC LawnSite Senior Member
    Posts: 325

    I do business with people who are good to me....offer the product i want....and are responsive to my needs. If he happens to also operate a second business that is in competition with me....so what. My service sells itself. I have never had one client taken from me by any of these companies that i deal with. We all pretty much get along....like it should be. The main players anyway. . If you feel this strong about competition..... why are you on this site?? Everyone here could be your competition.
    Posted via Mobile Device
     
  8. Pietro

    Pietro LawnSite Senior Member
    Posts: 857


    I feel the same way about my quality, it sells itself. As a matter of fact, this guy conducts his business in an an area that I dont work in. So I am not worried about losing business to him. Im just saying based on the sole principle that he does landscaping and maintenance would persuade me to shop elsewhere. Its a slap in the face.
     
  9. GreenGuysLC

    GreenGuysLC LawnSite Senior Member
    Posts: 325

    Its no slap in the face. It is simply business. If he sells a product you like and isnt jacking your price....it isnt a slap. If he isnt taking customers and then flaunting it in your face....it isnt a slap. Be professional and dont wear your feelings on your sleeve. There is nothing wrong with buying from this guy. He runs two seperate businesses. He isnt creating some plot to take over your business under the cover of an equipment business. I will guarantee his equipment business isnt concerned with maintenance and vice versa
    Posted via Mobile Device
     
  10. Brodie

    Brodie LawnSite Member
    Posts: 122

    Question for you then.

    We do lawn and landscape maintenance as well as installs and all aras of tree work. As a by product of these operations we produce a large amount of green waste and wood chip.

    The green waste is composted down to a nutrient rich soil amendment that we use in top dressing and as garden soils. The wood chip is used as mulch. Now we use both of these products in our daily business but also sell it to other contractors who do the same thing.

    We don't see it as trying to muscle in or take over their business. We have enough work to satisfy us and being a little bigger than the others means we have more resources that we quite happily offer other contractors if they need our help.

    This industry has been about competing with each other for so long and I can't figure out why. We all have a common goal so why not work together. Why not sit down with your competition and set a minimum desired rate that works for everyone that way no more undercutting. Just an idea but hey it could work.
     

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