How are you guys making profit?

Discussion in 'Business Operations' started by Andrew N, May 9, 2019.

  1. Andrew N

    Andrew N LawnSite Member
    Messages: 65

    This is our best year so far pretty much only 4 people. Pulling in about 2k a week. Doing deck staining/repairing, cleanups, brush cutting, pruning, etc. But basically every week we break even. If we try to charge even a penny more nobody wants to touch it. We are working on percieved value but besides that, how can we make some money to grow?
     
  2. Matthews Lawn Care

    Matthews Lawn Care LawnSite Silver Member
    Messages: 2,415

    2k a week and 4 people working? That’s where your profit is going, employees.

    I have billed a little over $17k since the last week of March. My maintenance is $2k/week and I do that solo.

    I’d either downsize your employee pool or start knocking on doors to drum up biz to justify having 4 people.
     
  3. prezek

    prezek LawnSite Senior Member
    Messages: 496

    You may want to clarify. You don’t really have 4 people grossing 2k per week, correct?
     
  4. OP
    OP
    Andrew N

    Andrew N LawnSite Member
    Messages: 65

    How do you get customers that will pay that? Yes all my money is going to labor forsure then the rest to advertising tk get more work. If I downsize then I'm completely beat trying to do all the work, prep equipment, send contracts, do estimates, phone calls, etc
     
  5. Matthews Lawn Care

    Matthews Lawn Care LawnSite Silver Member
    Messages: 2,415

    Being tired is part of owning a biz especially in the start up years.

    I market well, do really good work, and keep a really clean image(truck,equip,unifom,invoicing etc.). It also helps that I actually know a little bit about lawn care and I happen to be a really good salesman.
     
    gcbailey, Cam15, Spartan57 and 5 others like this.
  6. JMK26

    JMK26 LawnSite Fanatic
    Male, from Missouri
    Messages: 9,993

    I 2nd Mathews....I'm solo and i'm doing about $1900 a week.

    Get rid of the employees. You can't be that busy doing estimates, and prepping equipment for the jobs you say you're doing and all the other stuff if you're only bringing in $2000 a week.

    I keep up with it fine....about once a week it feels like it's about to tip and i'm going to lose it, but it comes together.
     
    Cam15, TrainingWheels, TomH&H and 2 others like this.
  7. OP
    OP
    Andrew N

    Andrew N LawnSite Member
    Messages: 65

    I think we have good clean image too compared to most others around here. It seems like most people want to do business with us but want the lowest price possible. Which is logically insane if they figured doing it themselves. I'm struggling my ass off to try and make a little extra profit so I can have some Capitol to get better equipment to then probably be able to charge less cause turnover time will be faster. Even when I do the estimates people are calling to try and knock the price down to the last penny.
     
  8. Matthews Lawn Care

    Matthews Lawn Care LawnSite Silver Member
    Messages: 2,415

    I dunno man. I don’t haggle prices. If you want my work, you pay my price, end of discussion. If they want the cheapest price, then go get the guy advertising the cheapest price.

    I’ve been at it awhile tho and I’ve fixed a lot of those cheapest guy’s jobs for a hefty price. Word travels fast, get it done right the 1st time snd you’ll actually save $.

    Sounds to me like you just need to drop the employees or at least only keep 1. Not enough work for 4 people.
     
    Mark Oomkes likes this.
  9. OP
    OP
    Andrew N

    Andrew N LawnSite Member
    Messages: 65

    Even if I wasnt doing all the other stuff and just the labor people are not willing to pay more if i am working 6 - 8 hr days on the property not including off the property. I dont have the equipment to be able to run multiple jobs all the time and cant buy the equipment cause I dont have the money.
     
  10. Adeas Printing

    Adeas Printing Sponsor
    Messages: 649

    Advertising/branding are important to show value - between the branding on your door hangers and/or direct mail, the logo on your truck and hopefully on your staff through tshirts.... also be sure you are taking advantage of some of the free marketing out there so you are getting plenty of recognition. Try the Nextdoor Ap - be sure you and any family members, even staff are recommending your company. If you don't have a profile be sure to set one up. People are more likely to buy from someone they know, like and trust so referrals are crucial. Buy a few lawn signs and ask if you can leave them in their yard for a few days after you mow. Be sure to keep them back from the sidewalk far enough so you aren't getting them picked up by the city.

    Hope this helps - message me if you would like any other tips & good luck!
     
    Cam15 and Andrew N like this.

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