Employees & Insurance!

Discussion in 'Business Operations' started by emil35, May 2, 2005.

  1. emil35

    emil35 LawnSite Member
    Messages: 213

    Hello all,

    I was wondering if anyone out there had a way of getting around the high costs of employees and insurance? The things you need but eat away a huge piece of your profits! I know I need them both and by no means am I trying to say I would do without either one of them, but my question is, how the big groups do it? Any sugguestions? I know the large groups probably self insure (like Brickman, TruGreen, etc.) but is there any way to help the lower the costs for us small guys? I'm getting eaten up with paying out high insurance rates (even though I have NO claims EVER!) and the payroll expenses with employees (workman comp, etc). Do any of you guys "sub-contract" your employees? If so how do you do it and get away with it? It seems pretty risky to me. Just looking for some advice. Anything and everything will be greatly appreciated. Thanks!
  2. br549oicu8

    br549oicu8 LawnSite Bronze Member
    Messages: 1,230

    Don't find a way to geet around it. FInd a way to make it happen. You may have to raise your rates or the volume of your business. Use being completely legal as an advertising tool. My rates go up every year and I moan and groan a bit but when I look at the bottome line I usually just smile and shut up.
  3. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    It's called "Pricing Your Properties Accordingly" so that you can cover these inportant expenses. Period
  4. Jpocket

    Jpocket LawnSite Silver Member
    Messages: 2,282

    Yea BUT in todays market how can guys price accordingly and get that many accounts? These $20 a pop sub-divisions won't get and these CHEAP azz commercial props. won't get it either. The market place is getting harder for the Small guys to price accordingly.
  5. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    It's called "pick n choose". No one says you have to take every account that comes to you.
  6. emil35

    emil35 LawnSite Member
    Messages: 213

    Thanks for the input, but I know how to price my accounts/jobs accordingly...I've been in the business for almost 10 years! I'm just looking for a way to help reduce costs. Owning a small business in America is very difficult, especially in my area where the bidding wars are intense. The cheaper i can do it, the better. There has to be a way. How are the big guys doing it? How can they underbid the small guys the way they do? There just has to be a way and I'm going to find it.
  7. gslawncare

    gslawncare LawnSite Member
    Messages: 134

    you have to make an expected revenue/crew. The big guys have everything paid for so, there money is allocated to admin exp, ins exp. systematically, if one crew can make about 60k or more the owners are happy. if they can only make the 60k the owner still makes about 15k/ yr/ crew. it's all inthe numbers.
  8. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Messages: 4,040

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  9. JimSolo

    JimSolo LawnSite Member
    Messages: 7

    Heres an idea....
    Start a Lawn maintenance Association with multiple lawn companys as "members".
    Then the Association goes out and gets Health, and business insurance wich is paid for by "Member Fees"

    Might pan out to be cheaper per member :)

    Just threw that out there sorry lol

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