Is the economy REALLY effecting you?

Discussion in 'Lawn Mowing' started by IN2MOWN, Oct 7, 2008.

  1. IN2MOWN

    IN2MOWN LawnSite Platinum Member
    Messages: 4,993

    I watch all the news programs and people are really freaking out about the economy. Where its been and where its headed. One guy out in CA killed his family and then turned the gun on himself because he could not find a job.

    Have any of you noticed a change in the last year or so?

    Honestly. I have not.

    In fact almost the opposite. I added 7 new houses this year and in the last month another 5 from companies that shut down due to gas prices. 12 total and this is an economy that the "experts" are saying is headed down the crapper.

    Gas bummed me out for a little but its now down $1.25 from 2 months ago and it looks to keep dropping.

    I went through my books recently and noticed an increase in revenue at this time this year compared to same time last year.

    Gotta love all the speculators calling for doom and gloom but IMO we are headed in the right direction.
  2. Mike Fronczak

    Mike Fronczak LawnSite Senior Member
    Messages: 301

    I added a bunch of new residentials, but lost two long time clients, they started doing it themselves & there 60+. So I think it is affecting certain people more than others (depends on investments).
  3. Charles

    Charles Moderator Staff Member
    Messages: 8,754

    I am hearing from customers who are losing a good bit of money in the stock market
    The economy has to be hurting many ways and may be hurting us in ways we don't know or haven't felt yet. Very tight credit market. People losing big in the stock market. People in fear of losing their jobs. Gas prices are still high here and there are shortages. Making judgments on the overall economy just because you picked up a few accounts is not very scientific.
    9 months straight of job losses in the US. 159,000 just last month. That's a sign of a recession
    Last edited: Oct 7, 2008
  4. Genlandscape

    Genlandscape LawnSite Member
    Messages: 185

    Lost five residential accounts in the last two weeks. All cancellations were clients who can no longer afford services, and yes all five are doing it themselves. We hold a 98% retention rate, so five in two weeks is a hit. Our design/build is down 60% from last year, and general cleanouts/renovations are down 30%. Glad to have mowing as a base line!!!
  5. TNT LawnCare Inc.

    TNT LawnCare Inc. LawnSite Bronze Member
    Messages: 1,157

    The economy hasnt been effecting us to much,yet ? Weve picked up 32 new clients and 2 commercials ..Of course knock on wood.This doesnt me much . Weve actually had a really good year so far and fall clean-ups havent even begun. People here are spending some money. I guess weve been fortunate and iam thankful . I no some are having a tough time. The areas that are suffering are car sales and of course home sales. Gas has dropped alot and probably will go a little lower thank heaven. I dont see a change at all were we are. Lots of people are losing there jobs thou ,i think next year we all will see rcord new start-up LCO'S
  6. IN2MOWN

    IN2MOWN LawnSite Platinum Member
    Messages: 4,993

    Probably not scientific but I cut grass for a living. Out of those 159,000 jobs can you tell me how many were LCO's that had an established business?
  7. Charles

    Charles Moderator Staff Member
    Messages: 8,754

    One sign of a bad economy is a zillion people out mowing lawns for a living and/or doing it part-time. You make this thread like you can do some type of scientific study. YOUR area some other area's may be doing great. But here the job market sucks and people are mowing lawns and working 2 or 3 jobs just to make ends meet. There is a LCO for every 10 homes is seems. Because many have no other jobs to turn to. I have an established business but my phone rarely rings for new customers when it concerns mowing. I used to get 8 calls a week
  8. IN2MOWN

    IN2MOWN LawnSite Platinum Member
    Messages: 4,993

    I made the thread for the purpose of FINDING OUT what other LCO's thought not because I had already done a study.

    Doing a study would mean that I had already gathered facts and researched the topic which Im doing now by reading them. I did not put the cart in front of the horse so to speak.

    Companies have always come and go around here. I live in a thriving and growing area of KC but the companies come in spring and go in the fall when they finally figure out what it takes to run a business.
  9. chilibean

    chilibean LawnSite Member
    Messages: 5

    It will begin to affect us, like some have mentioned homeowners will go back to doing it themselves. I was at Lesco today (have you seen what fertilizer prices are?) the days of marking up fertilizer 3x and adding labor are gone. Who is going to pay you over $100 to put down 1 bag (12,000sq. ft) of fert. The guys at Lesco and i disagree. They think the little guy (like me) will go bye bye and the big companies will only get bigger. I think the big companies will downsize their work force because some big commercial companies will go back to having their own maintenance crews. They will either cut back on fert and other services and big company profits will go down.
    When i started back in the '70s there were very few lawn companies in business. Most commercial properties had their own guys doing the maintenance. When the walk behind and ztr came on the scene lawn companies popped up everywhere. I may be crazy but if we have to charge soo much for our overhead (not our fault) i think we may be pricing ourselves out of business. Let us know what everyone thinks.
  10. Charles

    Charles Moderator Staff Member
    Messages: 8,754

    Yea and what you are going to get and these threads always get is--Ya, I am doing fine here, no not here, yes here, no not here and so on. All depends on where you live.
    Carry on lol

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