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Discussion in 'Florida Lawn Care Forum' started by keeping going, Aug 28, 2013.
Which dealer is this? Hope it's not one I go to!!
I would think the exact opposite. I would think extending Lawn Boys on the whole credit thing would be a nightmare. Do not get me wrong, not all lawn guys are bad. For example I would say most that come here and interact are better than most as they show the professionalism to continue to learn are at least network by coming here, however you know as well as I do that if you talked to most of the lawn guys at the gas station you fill up at in the morning...99.5% of them you would not be able to carry on a even somewhat educated conversation with, especially if outside the industry terms, let alone would you be willing to loan them money of any kind.
I read post on here every year on how you should not extend customers credit because you will get beat out of some money because people are scumbags, but yet everyone gets fired up about a vendor not wanting to extend credit?
I don't want to cause problems for the new owner - so if I just said it used to be a walker mower dealership on Bayshore
Landscape Poet you raise a pertinent point - and at the risk of me being seen to take the point personally, I did clarify I am a customer of good standing with no outstanding balance on my account and have been for the previous seven years.
I do however take your point that not every lawn guy necessarily runs his business in a professional and business like manner.
I figured as much and after reading your post. Generally anyone who comes here and spend any amount of time does not often seem to be the average fl lawn turd, but rather someone who want to review information, learn from others and continue to improve their business in a number of ways. So I do not doubt you are in good standing.
However like I said many in this industry do not have the long term commitment to run a business and that is what we see every spring.
In terms of credit from the dealer. What you have to also remember is that the dealer generally is buying off of credit. If he builds his inventory he is only allowed so long before HE starts paying interest. Many items like sticks do not really carry that huge of a margin. So it is understandable why he would not like inventory on his books for any longer than needed. Simple ROI.
Look at Wal-Mart for example. I would guess most would agree that they have the ROI thing figured out. They did away with layaway many years ago. Many people told them they would fail without this program that they essentially had used since opening their doors. How would people pay for the merchandise etc people said. What they knew that many did not was that people would find a way to purchase the goods anyway without all the cost associated of essentially extending credit etc. Now they offer it for a very limited time during the Holidays and that is it. The company is much more profitable because they are not paying for the labor to sell this merchandise, the labor to label and store, the cost associated with holding this merchandise such as interest to their suppliers, the cost and space for storage. The point of this rant is this....today more than ever every business has challenged to find a way to get the merchandise , sell it to the consumer before they actually pay for it if possible and not pay any interest to the supplier if possible.
To me it sounds like the new owner may not have any experience in the green industry but maybe....just maybe he understands business and its cashflows. I wouldn't jump ship just yet. I would explain your concerns first and seek a explanation of why he is not extending credit to those of you that have keep your line of credit good with the previous owner.
The thing that stands out here is that he is an existing long time customer who has spent over $50,000 with this dealer and has an existing account /line of credit with the company. He is not some lawn turd walking in off the street without a credit history with this company. Yes the new owner has to be careful who he extends credit to, but a long standing customer who pays their account on time should at the very least be given notice of the policy change in a more professional manner.
Things change. And sometimes changes suck. I know what the OP is saying. It would leave me feeling that people like me helped build this business, and it was obviously profitable enough that you wanted to buy it. Now you are treating us like this is the first time we ever walked through the door. At the same time the new owner probably dropped a pile of money buying the place, probably making payments on the joint actually. He most likely doesn't want to take any more risks than he has to. And worrying about whether those thousands of dollars are going to show on time or not might be too much. He may or may not have thought out the possibility of alienating longtime customers. Who knows if this was even a topic when he was buying the place.