trugreen reducing apps here

Discussion in 'Business Operations' started by phillie, Dec 14, 2011.

  1. phillie

    phillie LawnSite Senior Member
    Messages: 861

    So I got a call yesterday from a Tech I know from Trugreen who has worked for them for close to 30 years. He called to let me know they just had a meeting in which the GM stated they would be going down to 5 apps on new sales only next year. Trugreen has been at 7 apps here since the late 90s. There are a few reasons I can think of them doing this.

    1. They are thinking of reducing their work week to 4 days to save on operating costs. I have been told this was a possibility by some higher ups already anyway.
    2. They are reducing their techs to part time which saves them all kinds of money in many different ways. 1 and 2 kind of go together.

    My questions are " If they can't get it right in 7 visits what makes them think they can do it in 5?" "Who would work that hard at a part time labor intensive job for little pay?" "What are their actual reasons behind this?" "What kind of customer would trust a company that has been charging them 7 apps/year and will continue to but only charge new customers 5 apps?" and finally "What do you guys think they are doing it for?"

    I usually don't care what they do but found it interesting they would change their program after so long. Ladies and gentlemen I think they are struggling and a little worried about what the future holds for them. I'm guessing I would be too if I lost 126 million last year and millions the year before. I might need to up my equipment for a huge flood of customers that could come when something happens to them.:laugh:
  2. fl-landscapes

    fl-landscapes LawnSite Silver Member
    Messages: 2,542

    Customers for the most part won't have a clue they have reduced apps to new customers

    Maybe their analysis shows they are losing market share to companies selling less apps and getting same if not better results. And are adjusting the programs to compete better with what others are selling. This day and age where there are places like this forum bashing their system means they have to change with the times because their overselling apps is being exposed.
    Posted via Mobile Device
  3. highlander316

    highlander316 LawnSite Senior Member
    Messages: 334

    i went to the local facility last year for a tour, and I remember seeing on the tables in the conference room, they had NINE apps listed. Half of them seemed redundant for what they had listed. I've seen the techs work Saturdays and sometimes Sundays around here. They are going to have to hire more part-time guys if they are planning no reducing hours.
  4. GreenI.A.

    GreenI.A. LawnSite Silver Member
    Messages: 2,131

    Here they do 5 fert apps plus a lime.

    One thing I can think is they are probably dropping he two apps off and increasing the price per app a little. For example if the customer was paying $350 for 7 apps = $50 per app. Now they can charge the customer $50 less per season or $300 for the 5 apps = $60 per app. Knocking off 2 out of the 7 apps is a 28% decrease in labor, that allows them to thin out the work force alot, on the tech end and billing end
  5. phillie

    phillie LawnSite Senior Member
    Messages: 861

    I can say without certainty they dont do 9 apps in Penn. The reason I am saying they might be putting their techs at part time is because they are losing customers at a rate that would crush most companies but within the last few years they havent been able to replace those customers at the same rate. The reason they are working Saturday is because as a team they didn't hit their number. haha.Q= Why aren't they hitting their numbers? A reasonable answer would be the numbers just aren't were they were and the GM is to afraid to say they wont be able to hit that number. The thing that gets me is its only on new sales. I bet they will still use the same products on the customers they sale 5 apps to as the ones that are at 7. I am going to stick to my program and watch them slowly disolve.
  6. Ticolawnllc

    Ticolawnllc LawnSite Senior Member
    from Wall NJ
    Messages: 421

    Economy is hitting them hard. They are tring to make their service more affordable. Adding volum to make up for slugish sales.

    Hope your right.
  7. Skipster

    Skipster LawnSite Bronze Member
    Messages: 1,076

    Their financials are online for everyone to see. They grew each year since 2007. Not sure what the change is about, but it doesn't seem to be financial in nature -- they make a heck of al ot of money and have growneach year for the last 4 years.
  8. phillie

    phillie LawnSite Senior Member
    Messages: 861

    Were did you see that online? Everything I pull up shows over all retention at 67% down from 69%. Sales dropped 1% this year alone. My not seem like alot but their 1% is millions. Trugreens upper mngmt makes a lot of money not Trugreen the company. Actually a couple things I found on google suggest they might be doing it because of a 21-25% increase in operating expense combined with selling less full app customers. I can easily provide links if you want but I think your links would be a more interesting read as they say different than the ones I looked up.
  9. Skipster

    Skipster LawnSite Bronze Member
    Messages: 1,076

    I was just looking at the SEC filings for their parent company, ServiceMaster. It has in it a TruGreen section. Retention and sales were down, but revenue and profit were up. Top line and bottom line are the big indicators I looked at.

    What do you mean by the upper mgmt makes a lot of money, but the company doesn't? I don't understand what that means. Their top line revenu is still around $1.1 billion and profit is close to $210 million., which puts their profit at nearly 20%.

    I wish I could make 20% -- I'm closer to 15%.

    Is anyone else making close to 20%? Just curious ....
  10. phillie

    phillie LawnSite Senior Member
    Messages: 861

    Upper management=employee is what I meant. I still can't find were there is growth. 1.1 billion is less than the 1.5 billion just a few years ago. I understand they are still making money but not more than they were. I will do fine weather they eventually go under or stay in business and continue to lose 33% of their customers. What link are you looking at?

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