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Looking into expanding

Discussion in 'Nurseries and Growers' started by rscritch, Oct 20, 2005.

  1. rscritch

    rscritch LawnSite Member
    Messages: 76

    I run a small landscaping & hydro-seeding company. ive been thinking about starting a whole sale stone and bulk materials store for a little over a year now and yesterday i bumped into my old boss and we got to talking about how crappy the materials have been getting at our towns ONLY bulk materials place, lots of sand and dirt mixed with the rock and every thing is all ways wet even when it hasnt rained in a couple of weeks. he agreed that we really could use an alterntive as well as the fact that our only intown supplier of stone, not counting nurserys mainly caters to masons not landscapers. So ive been looking into more seriously into starting a landscape supply yard here in my town. I know the margins on the stone and plants as well as all of the retail stuff, from previous employers, i like to pay very close attention to what my bosses say and ask questions:) but any way i dont have any experience in bulk materials as to what the cost, overhead amounts as well as expected proffit potental of that area of a supply center, basicly im wanting to be a one stop shop for landscapers for bulk materials, stone, plants, and any thing else that they may need. i need to be able to figure out if the land could be of better use to me in bulk materials or something more proffitable for me, any hlep would be greatly appericated
  2. Canon Landscaping

    Canon Landscaping LawnSite Senior Member
    Messages: 259

    I opened two up this year the 1st and most important thing is to find good suppliers and find the best price and quality. Next is your location you have to be on a main road. If you are gonna do it you have to do it right you need to have a large selection from the start to get people in and keep adding products you need to be a one stop shop.
  3. WFMJenny

    WFMJenny LawnSite Member
    Messages: 19

    One thing you need to consider is if you are too close to another location and they are a dealer for any paving brick or retaining walls they might have an agreement with the supplier that the supplier can not sell to anyone else in a certain mile radius of them.

    Another thing to consider, has there product selection and quality been going down due to the fact that their suppliers are no longer able to supply the top level products?

    You need to create your own nitch, something that they don't have that would make you unique and get their customers to come to you for that product then once you have them you work on getting all their business.
  4. OP

    rscritch LawnSite Member
    Messages: 76

    yea i know that haveing a nitch in the market will be a key factor to the sucess of the expansion. right now you can buy stone from one place, bulk materials from another, plants from garden centers, and disposal of brush at another place. so i was thinking how nice it would be to be able to have a one stop shop, im a very price orented owner since i only have one crew every dollar that i can save goes into my pocket so i end up doing alot of driving in order to save money, yea i know that my time is worth money but right now all im concerned with is saveing the most possible amount and if that means spening an extra hour each day to save some money its worth it to me but any way based on the numbers i can run a one stop shop and be the same or cheaper than my compention with every thing but bulk materials, and i say that b/c i have no real knowledge about to the mark up and profit potental or costs invloved. ive just been watching the quality of bulk materials go down the drains and if i can fix that plus save contractors time by being a one shop stop then i feel it would work pretty well ya know?

    M RASCOE&SONS LawnSite Bronze Member
    Messages: 1,474

    cost is gonna be a big factor because your gonna have to figure the delivered cost to you yard and the average home owner is gonna see the price and say wow -for instance you call the gravel supplier for 3/4 crushed stone and its $12.00 per ton picked up ,you ask the price of say a full triaxle load delivered which depending on the truck and its weight is about 24 tons of stone per load now he tells you its additional $5.00 per ton for delivery so your at $17.00 per ton to get it to your yard in full loads now you have to make proffit plus you have to sell it by the yard because chances are your not gonna buy a scale so you convert the $17 per ton too yard and its $20.40 and then add $5.00 for your proffit and now you have $25.40 per yard ..its gonna be hard to compete in this end if your not the gravel company because of the cost factor.i worked for a large gravel and construction company for 10 years so in my opinion it will be very hard for you to make money in it because of the costs.if you have stockpiles for your customers at your yrd with a quality 1/2 and 3/4 stone maybe a couple of bins for dif mulch and a good sloam you would do fine because you could charge a del price for you and a small dump and make some good extra cash ..

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