Need an opinion!

Discussion in 'Business Operations' started by H & M Yard Improvements, Dec 29, 2012.

  1. H & M Yard Improvements

    H & M Yard Improvements LawnSite Member
    Messages: 214

    Hey all,

    I wanted to pick a few brains here with a question.

    Next season will be my third and during my first 2 years I seem to have had a problem with bidding on mulch jobs. It seems that most people don't mind spending a few hundred to trim shrubs etc but they have a fit if you give them a high price on mulch.

    My question is this:

    Since i am having a tough time trying to get mulch jobs I was toying around with the idea of in the future of giving them a price and ask for payment for materials and a percentage of the labor when it's finished. The balance remaining, bill in monthly installments in addition to their monthly bill for mowing. Does this sound like a good or bad idea? OR should I just stick to my guns and be patient?
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  2. jc1

    jc1 LawnSite Silver Member
    Messages: 2,091

    It sounds like a way to be cash flow negative early in the season when you need it the most. If you pay the materials and labor for employes and only receive partial payment from the customer. We pre bill all of our mulch jobs in late February so that when we start the funds are there for payroll. This also allows us to get a discount on our mulch by prepaying for it. So it gives us a little extra margin.
  3. ToddH

    ToddH LawnSite Silver Member
    Messages: 2,192

    Mulch can be expensive but should not be cost prohibitive on most residential beds.

    I rarely break down cost on jobs less than $500.00
    I do not know how big your beds and stuff are but most of ours are 240 SF on the front of the house.

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