Business is bad! What am I doing wrong?

A couple 'cheap' small advertising things that have worked for me:
-Newspaper classifieds, I just run a simple "hedge trimming ###-###-####", or "lawn mowing ###-###-####", weed control, aerating, etc. (I know, unprofessional, cheap, looks like a scrub- BUT, it has gotten me MANY small jobs with high profit margin from a cheap $12-20 per week ad when posted in the paper at the right time of year).
-Word of mouth, ask for it: Every time you talk to your customers, ask for more work, ask them to recommend you to a friend. Cost is nothing other than a conversation and if customer likes you/ your work/ your prices, they will definately pass that info. along to their friends. Dont be afraid to ask for work.
-Fliers: If you have to go on estimates during the work day, dont let your employee sit in the truck- get him out fliering the neighborhood while you are estimating. Same if there is any down time during the work day- waiting for rain to stop, waiting to load trailer, etc., Hang a couple fliers on neighbors doors at each of your stops. Hang cards at the gas stations, restaurants, grocery stores that your potential customers shop at.
-One last thought: My sister in law and another good friend of mine are hairdressers, I've gotten TONS of leads on older widows' lawns, hedge trimming, etc from these girls. They all talk, talk, talk like a bunch of hens at the feeder. If you know any hairdressers, give them some cards and let them talk you up a bit.
Hope it helps. As I read your post I see a ton of similarities to my own situation, even though I'm on the other side of the country. I'm just going into my 5th year owning my business, I have a wife that currently doesnt work, 2 kids under 6 yrs old, own my home, etc... All I can say, if you discipline yourself, it does get better. This economy is tough right now, live frugal, stay focused and you should be ok. You have lots of friends on Lawnsite, as you can tell by the responses, dont be afraid to ask (for work, and for help)
Matt. :waving:

My rent is as cheap as I can find. When I bid properties, typically I do so after I have dropped my employee off at one of the nearby properties to work. My cell phone plan costs 30 dollars a month, our only luxury is basic cable. We use a movie rental kiosk that has 1$ movie rentals twice a month. I am thinking of getting rid of our car, its a payment every month that we don't have, and getting something cheaper and smaller but still baby safe. I have said it once, I will say it again, I have tried bustin my butt, but no matter how fast I go, I cannot get the yards done any faster than 3 - 3.5 days. In the spring I pick up usually another ten accounts, the grass is dry, and it still takes 3 days to mow all those if nothing extra happens. Just straight mowing. I was without an employee for one month in September, I got behind, I worked 7 days a week, still couldnt get all the raking and blowing of leaves, weeds went rampant in beds, and I did not got any pruning or extra work done. I actually "made" less that month. My employee makes me money, it doesn't cost me money. Before I bought the business, I worked basically the same route with another guy. We busted our butts every day, still couldnt get them done any faster than 3 - 3.5 days

I don't get it you say you are working too many hours, from what i read you are only working 3 days at 10 to 14 hours a day.

big deal, when i am doing installs i work 12 to 14 hours a day 6 to 7 days a week until i am done doing what i am doing. Some days i won't even take lunch if that is what i ttake to get the work done that much faster.

you want to save some money and get the work done in 2 to 2.5 days have your employee take his break between the jobs and eat lunch while you are doing a job.
Work hard play hard. Unless you work hard you will never be able to play hard.

One day i started building a pergola, started at 7 am i had to stop at 12:30 am that night because of a complaint from the neighbour, that is how determined i was to finish, plus the customer said he didn't caree how long i was there. he was even out there with me.

Want to save money on the vehicle get rid of the car and truck and buy a truck that can boat you all around in. that is what i have an ext cab pickup, best thing.

the 4 days you are not working use those days to think of ways to make money on those days until you start making money on them. if you do aerating, could you not do that on a shower day?

You just need to evaluate everything, I just can't see you grossing 6500 a month and not making money. I just did the numbers for the lawn maintenance add on for my landscaping company, and i can see profit all over the place. I also am not going into debt to have the maintenance part of my business, nor did i go into debt for the hardscaping part either.

good luck i hope it works out for you.

Well, not all of us can work 12-14 hours a day 7 days a week. I have a family. I have other responsibilities. I need to work a 8-10 hour day 5 days a week, most people make a living this way, I am just trying to maximize mine. Yes, in the winter half the time I work 3 days or so a week, and others I work 5 days a week. But, I am trying to get more business, not work less, I am only working 3 days a week because I don't have other things to do. Which is why I am here getting suggestions on what to do. Gas here btw is 4.19 a gallon. My wife is pregnant and cant exactly wait for me and my employee to come home to go get groceries or take the baby to the doctor. Plus, @ 4.19 a gallon, my gas bill for the truck would double if not more! I am planning on buying some doorhangers from Adeas printing here next week, I have already had some new company shirts in the works from one of my clients (bartering services for goods) and lastly, I am going to put some graphics/signage on the side of my truck to match my trailer. I still plan on buying one of those books you guys were talking about.

nlminc said:

You're just in the wrong business! The tipping point for lawn mowing has been years past.

Face it...in 2010 a Walker rider cost 13k+ tax and a truck cost 30k+ ..............Just those 2 items out of a WHOLE bunch of other fixed and flexy cost involved in running a lawn care business really puts a damper on $35.00 accounts. IMO we've reached the tipping point. Ask yourself...How much has the average lawn account service fee increased over the past 20 yrs? NOT MUCH! Everything else has increased plenty.

Back in the late 80's you could buy trucks new or almost new for around 20k and Walkers for well under 7k when they first came out. Can you raise your rates to keep up? I was charging $35/lawn then.

Could you raise your rates by even a small amount of say 3-7% on an account year after year and still keep that client? Over 5- 10 or even 15 yrs? In lawn mowing...... there's no way. Too much competition and constantly rising cost of overhead will keep this industry where it's at!

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That has been my conclusion. Everybody and their mother is a landscaper these days, and prices are going lower and lower. The profit margins in maintenance are just not enough to make it work. Now not everywhere in the country is it like this, but you are now seeing threads that prove this point. Its not just in the Atlanta area, its all over the place. Its especially bad in the south where the illegals are running rampant. Not to mention Georgia is one of the hardest hit areas of the country.

Lowballers, Illegals, the economy, and people desperate to make some money have ruined this business. Its not just maintenance either, concrete work, carpentry work, you name it. Prices are going lower and equipment, gas, insurance etc, are going higher and higher. I said it before, this business just doesn't make sense anymore, the new guys have yet to figure this out. The idea that these guys wont be here long is wrong, their are more every year and most don't just get out after the first year. It takes a while before they figure it out, and when they do, 100 more take their place. The past few weeks I had a card or flier on my mailbox every day from Billy Bob to Paco the Taco.

If the price of a service continues to drop, and more people are fighting for the same pool of customers, which in turn continues to lower the prices and profits that you can make. I don't care what business that this happens in, its just common sense that eventually you get to the point where you just cant make money doing that sort of business.

That is where we are at right now. Most of us anyways. Some of you guys live and work in areas of the country that are different and are free of illegals and Bubba's etc. so you can still make it work. That is not the case here in Ga. At least not my area of Ga. Commercial, high end residential it doesn't matter, everyone wants cheap work, and they don't really care what it looks like. I have seen this for myself so I know it is true in my case, your experience may be different. The other thing is this, most people that could afford the services are now doing it themselves, if they are capable. The old widows, the lazy, or the wannabees still want the service but don't want to pay. Not to mention the fact that the customer pool is shrinking because of lost jobs, foreclosures, people cutting back because of fear etc. So less potential customers and more LCO's fighting for less and less customers. What is the only outcome in this type of environment? Lower prices, more competition, lower profit= doesn't make sense any longer.

I had to fight every month last year just to get paid, bad checks, late payments are common these days. Trying to keep the money flowing in (actually getting paid) has been a big problem also. Sure you could do the work, but getting paid is another story, and when you do its usually weeks late or the check bounces like a rubber ball. Low pay, late payments, keeping cash flowing, its not easy in today's economy. But yet those mowers keep going up, and that gas keeps going up, and your cost of living keeps going up. You new guys and new start ups have no idea what your about to get yourself into.

Just because you do the work doesn't always mean your getting paid. Another round of foreclosures is just around the corner,things are not getting better like they want you to believe. There is no way in hell I would get into this business right now. I'm in because I have no other choice right now, I would not be investing in more equipment or debt,nor would I be looking to start a lawn or landscape business in this economy. It just doesn't make sense right now. But hey, to each his own. All I can say is good luck, your going to need it.

Dave...

MowinginEureka said:

Well, not all of us can work 12-14 hours a day 7 days a week. I have a family. I have other responsibilities. I need to work a 8-10 hour day 5 days a week, most people make a living this way, I am just trying to maximize mine. Yes, in the winter half the time I work 3 days or so a week, and others I work 5 days a week. But, I am trying to get more business, not work less, I am only working 3 days a week because I don't have other things to do. Which is why I am here getting suggestions on what to do. Gas here btw is 4.19 a gallon. My wife is pregnant and cant exactly wait for me and my employee to come home to go get groceries or take the baby to the doctor. Plus, @ 4.19 a gallon, my gas bill for the truck would double if not more! I am planning on buying some doorhangers from Adeas printing here next week, I have already had some new company shirts in the works from one of my clients (bartering services for goods) and lastly, I am going to put some graphics/signage on the side of my truck to match my trailer. I still plan on buying one of those books you guys were talking about.

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I have two daughters 1 1/2 and 3 1/2 years i am also getting married this year as well as buying a house this year. To do all of this and still keep money there for my family to have anything. To make money you need to work hard, if you want to make a living and work only 40 to 50 hours then go get a job. there are landscaping companies here that pay $30 an hour to experienced people. I think it might be time to re-evaluate your situation. Think you should get a job or a partner.

How much an hour do you pay you employee?
Maybe it might be better for you to work somewhere else and then pay two people to do your work for you. until you get that loan paid off that you should not have in the first place. The only way you should ever buy a company is if you are a bigger company and scared that little company will threaten your volume profits.

other wise never buy a landscaping company it is never worth the money. The only way you buying the company is worth it for you is if all you are paying for is the equipment.

Raise your rates you obviously are not getting enough for the lawns. if you were getting enough for the lawns then you you would not worry about this.

Oh yeah have you ever bought a 1/2 ltr bottle of water for a $1, more then likely yes. So don't cry about the price of gas. Look what they have to do to get the bottle of water prepared and ready for you. Then look at what they have to do to get that same amount of gas ready for you to burn. In reality i don't like high gas prices either but they are there and are not going down, only going up so get used to it or don't use a vehicle at all.