1. Ask the Expert: Fertilization Strategies for Success: Dec. 12, 2017
    Learn how to do more with less when it comes to your fertilization services. Join the live Ask the Expert event hosted by Koch Turf & Ornamental: Dec. 12, 12-2 p.m. ET in the Fertilizer Application forum .

selling some of the business

Discussion in 'Starting a Lawn Care Business' started by zmowingmaster, Jun 3, 2014.

  1. zmowingmaster

    zmowingmaster LawnSite Member
    Messages: 237

    Ok,here is the thing.Is there such thing as selling customers.I am giving away lots of work.but how about selling it.for example a weekly service customer that we charge xx and do mulch,cleanup,bush trimming and fert.Is there a standard in this industry,just wanna be fair
  2. TPendagast

    TPendagast LawnSite Fanatic
    Messages: 10,657

    IF your asking me, no.

    There is no market value for customers.

    UNLESS you have signed, contracted work that is YET to me performed.

    Example: Lets say you have a contract for General Electric Headquarters building, it multiyear contract, you have completed one year on a three year contract.
    The contract is worth 100k, you have done 33k worth of work, there is 67k left to do.
    You want to bow out.

    How much is that contract worth?


    GE has a contract with YOU. IT is only legally binding with you. So, in order for it to be worth 'something' you need to be a go between, from the new LCO to the client you want to pass on.
    If both agree to the terms, New LCO picks up where you left off, and GE agrees to pay the new LCO and a new, replacement contract is drawn up and signed.
    What have you just done?
    A sale.
    So you would get the fair going rate of sales commission, which, depending on companies could be 2.5% to 5%…
    So could be a couple thousand bucks, at best.

    if you have multiple types of work like this, then you could make multiple thousands of dollars.

    BUT, most people don't want to unload this work.
    They want to unload a myriad of PIA customers on a residential route.

    To be honest the new LCO is doing YOU a favor.

    It's best to either A) send the clients you want to drop a notice…they need to find someone else… due to health reasons, or the fact you like fridays off, or whatever you want to make up, you will not be able to provide service anymore as of X date.
    B) clients that are PIA, and/or aren't not making you any money/ aren't worth it?
    Simply raise their prices….
    The rest will handle it's self.
  3. zmowingmaster

    zmowingmaster LawnSite Member
    Messages: 237

    First we work seven days a week.I am not asking for fridays OFF.
    Second I gave away so much work this year I was wondering if that was right.
    Don't be jealous you are not one of those.
    I gave away a 10k tree removal job for a guy I felt bad for at the dump ,now he has a dump trailer within a week.
    i saw a guy fixing irrigation under the rain at a neighbor yard,now I give him all irrigation work free from my commission.
    I sold a guy a mower and gave him 10 paying customers within a 3 miles radius
    My problem is I have excellent customer communication that I keep getting work and giving it away.
    I have a thread in the employment forum just for guys to take work.
    SO DON"T YOU F#%$ing assume I am lazy or laying off PIA customers.
    Sorry you are not getting a piece of the pie.
    Right now I have over 30 mulching jobs that i don't even have time for.Some a$$ company from st Louis Missouri comes every year and sells mulch installations at 40 bucks a yard.So I am taking on those customers selling them at 60-70 bucks a yard,EXPLAINING TO THEM WHY ITS BETTER NOT TO GO WITH THE OTHER OUT OF STATE COMPANY AND THEN GIVING THAT JOB AWAY TO A LOCAL COMPANY
  4. Horizon Jay

    Horizon Jay LawnSite Member
    Messages: 85

    Zmowingmaster *trucewhiteflag*, I think Tpendagast made some valid points as far as contracts are concerned. I think he assumed you had some PIA people you wanted to get rid of as well and discussed ways to do it. I dont know the history between you too but if its just this post I think you took offense a lil too quickly. Had your original post listed everything the 2nd one did, it would have been easier to understand your predicament.
    My thoughts, if you keep giving away work because you dont have time but keep getting the calls, start subbing that stuff out! Make sure your contractors are insured etc and then if you need a sub contractor license, get one. Then do exactly what you are doing but mark it up a little bit. You do the invoicing, they do the work. Anyone that needs work would probably be glad to give you a cheaper rate if you keep giving them work.
    If your running 7 days a week maybe sub out some of your other stuff too not just the calls. It sounds like you have a great opportunity to make even more money here. Some people cant get the phone to ring and it sounds like yours is blowing up! Make sure you refer work to people that do quality jobs and the customer knows they are working for them through you and you will make sure they are satisfied. I have a friend that does sub work (mowing and maintenance) for a very large company. He wears his own logo on his shirts and the other company pays him. Hes still making money so he doesnt care, the works getting done and looks good so the client doesnt care and the bigger company gets a piece of the pie. Sounds to me like you are in a great position to do the same!! Good Luck!:drinkup:
  5. hamiltonenterprising

    hamiltonenterprising LawnSite Member
    Messages: 62

    sub it out. develop a relationship with someone who does quality work. if he's efficient give him more work while you answer calls and advertise more.
    Posted via Mobile Device
  6. zmowingmaster

    zmowingmaster LawnSite Member
    Messages: 237

    *trucewhiteflag*Thanks,I take back my bad attitude Tpendagast *trucewhiteflag*It was late and I was just over worked.
    I gave away lots of work this morning,I don't expect those guys to give me something in return,but a little thank you works as good in my book.
    I will see if I would start subbing out,maybe that would work better.
  7. zmowingmaster

    zmowingmaster LawnSite Member
    Messages: 237

    Will do.:drinkup:
  8. caseysmowing

    caseysmowing LawnSite Silver Member
    Messages: 2,137

    FYI selling mulch installs at 60-70 a yard is pretty cheap. Could be a reason you have so much work. Raising prices is the best and easiest way to slim down the work load. Why do you take on 30 plus mulch jobs that you don't have time for?
    Posted via Mobile Device
  9. zmowingmaster

    zmowingmaster LawnSite Member
    Messages: 237

    word of mouth,that's how I get it.Plus here in chicago 60-70 is the norm on the higher side.Lots of people are doing it for 40-50 and trying to take business from us.Some commercial accounts though,they send us a proposal to do some work for a certain price and tell us take it or leave it,yes they are on the low side and yes we are loosing business to those prices left and right.But still busy thank GOD.
  10. oqueoque

    oqueoque LawnSite Gold Member
    Male, from Jersey
    Messages: 3,369

    How can you make any money working seven days a week? Doing $60 mulch jobs and paying overtime to employees, whose butts are dragging, without rest, would eat up much of the $60, and increase your workers comp and liability premiums, and your employer tax liability. Why not hire more people? You would have to pay me to take these jobs off your hands. I can see bidding low, if it is slow and you want to keep your employees working. Why not increase your price and make more?

Share This Page