The Rent vs. Sell Thread

Discussion in 'Christmas Trees & Seasonal' started by tdf, Sep 18, 2008.

  1. David Gretzmier

    David Gretzmier LawnSite Gold Member
    Messages: 3,646

    Dang, I am the king of long posts and that last one left me tired. I get most of what you are saying. I agree it takes more money and time to do the first year, seller or rental. I just believe that a renter should not have to pay more the first year. I also believe that the owner of the lights should pay for thier maintenance after the 4th install, as that is when bulbs start to go. I especially do not want to own beyond year 7 or 8, when sockets and wire start to go.

    Theoretically, renters should be making more than me in years 2-7 as they will really need to start using that money to buy new lights in year 7, 8 and 9.
     
  2. turf hokie

    turf hokie LawnSite Silver Member
    Messages: 2,753

    What I got from the last post is this... he rents but his business model is that of sales......and if someone skips a year they are back to square one....

    My theory, more power to you, run it like you want but that system is neither renting nor owning, it is a hybrid.
     
  3. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Messages: 16,536

    the "program" is like a warranty really. Lets say you figure on x amount of transmissions going out on chevys before 36,000 miles.

    So you charge that amount of recovery into your base cost of every chevy.

    Well this works the same way, a customer pays for a warranty whether they use it or not.

    So you hope most customers won't need the warranty.

    I rarely see a customer keep everything the same for 7 or 8 or 9 years.

    I think our oldest customer is 6, but ive been doing this a while for other people, I just never have seen the same house the same way over a decade long period.

    Pretty much, most of my customers stuff is kept pretty new, by year 4 they have the majority of the stuff swtiched out (if have gone to leds yet)
    with the exception of extension cords, which last and long as I can get them to. With the number of cords I have running around I really have no idea how old any of them are, depending on who uses what and ran over what and borrowed it to run their saw this summer... I really dont know how old any of them are.

    IMO I find if you charge the customer for service calls they feel like to are nickle and diming them and they become resistant to singing up continually.

    Im not really in this business to sell lights, Im here to find some way to keep busy during the holiday season, ad well holiday lights are kinda fun.

    The only reason I dont install customer supplied lights, is well, I think we all know the reason...
    It's the law of "you touched it"...these $3 light strings I bought at a garage sale were fine until you touched them.

    Otherwise I could really care less what I hang (however I love minis and run from jobs that want c5s)


    Essentially, as long as I install your lights every year, its a life time warranty

    I do my landscape installs the same way, we have lifetime warrantys on our landscape installs for as long as you keep us as your maintenance company as well.

    But if you sub out the spray or the irrigation because you find something cheaper than that thing, and anything affected by it is no longer under warranty.

    Most of my clients really want somone to handle their stuff ad thy dont want suprise bills. So we just charge upfront for what we will need to operate.

    And agin we dont charge MORE for the first year we charge the right price for the first year and give them a break on sucessive years.

    The difference is year 1 is x and years 2-4 is x-25%.

    What you think I am doing is year 2-4 is X and year 1 is X + 25% and it is not that way.
     
  4. hotrod1965

    hotrod1965 LawnSite Senior Member
    Messages: 587

    When will this madness end!!!!
    We've covered selling, renting and hybrids and how they work, and showed that they all work... So maybe we move on to other topics, cause no one is ever going to be right or wrong on this one, because there isn't a right or wrong!
     
  5. David Gretzmier

    David Gretzmier LawnSite Gold Member
    Messages: 3,646

    amen ! *trucewhiteflag*
     

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