How to downsize?

Discussion in 'Business Operations' started by lndscprwife, May 31, 2004.

  1. lndscprwife

    lndscprwife LawnSite Member
    Messages: 7

    Thank you all for giving me such good advice. We have decided downsizing to my husband and 1 employee is the way to go. But we have quite a few accounts that we would cut out that are just too far away to service. Do we just drop these customers or can you sell smaller amounts of accounts to other companies? And if you can sell, what is the quickest way to do that? Do you just call local companies and ask? What is usually the going rate for accounts? Thanks again for your advice. Jennifer
  2. EZTarget

    EZTarget LawnSite Senior Member
    Messages: 295

    i had a friend who did this. he started raisin his prices to the ones he didnt want. said he made some really good money in the process!

    not that i would do that.
  3. Team Gopher

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

    Hi EZTarget,

    That is a great idea. Something to consider.
  4. BCSteel

    BCSteel LawnSite Senior Member
    Messages: 876

    Thats what I did. Gets rid of a lot of dead beat places fast.
  5. ShadyTree

    ShadyTree LawnSite Member
    Messages: 63

    Ya i agree, when you think of selling, there is a long process that need to take place in the transition period and it could be a big headache for the both of you, raise them and make some money quick.
  6. lndscprwife

    lndscprwife LawnSite Member
    Messages: 7

    The problem for us is I don't think raising rates would help us much. If we kept the accounts even at higher prices, we are still getting killed by travel time, gas and payroll expenses. That's why I am leaning towards selling the accounts that are farthest away. Then we could lay off 2 guys and sell our big trucks and work out of my husband's pickup and trailer. Then we would get out of our warehouse rent as well. Jennifer
  7. BCSteel

    BCSteel LawnSite Senior Member
    Messages: 876

    Are these single home residental places? I think that it would be a hard sell on those. Commercial contracts, sure but home owners are usually there for the original owner only.

    The reason you would raise the prices is to make the drive time profitable. I have to drive 45 min every day to all of my accounts and then 45 min back again. Its worth it though because they pay for it in the end.
  8. Tider6972

    Tider6972 LawnSite Senior Member
    from Alabama
    Messages: 649

    'give' those accounts to the guys you're letting go? They'll need work, right?

    Just a thought.

    Good luck
  9. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Messages: 8,745

    I have just given accounts away before. No hassle at all
  10. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Messages: 1,847

    you could look into subbing to companies in those areas who wouldnt have as much window time.

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