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Discussion in 'Franchising' started by cdqat1432, Jan 23, 2013.
Weed man around here is better than TruGreen at least. Just chiming in wit my .02
My prices are already set based on the fact that I will be giving away 20% to probably 50% of my customers. It's not money left on the table as that is not the true price. For instance my minimum "price" is $60. If you prepay it's $48 which is what I consider my true price for 50% of the customers. At the 10% discount the true price is $54 for 25% and the rest pay the full price. BTW virtually all of my competitors do this so I'm just following along and it works.
Just a thought about whether to purchase a franchise or not.
In other business endeavors, I have made mistakes, and one was thinking I could buy my way out of a problem, or accelerate my learning curve by purchasing a program. (Not exactly a franchise but same concept.) Whenever you start an endeavor I would say that you will have to respect the process, and learn the hard way.
For anyone thinking about buying one, I would ask you to sit down and ask yourself what are the things that if you received from the franchiser, that you would say, would make it totally worth it. From there, try and dig in, and see what you can learn for yourself, and also dig into what the franchiser is going to do for you.
Next, even if the franchiser will do everything that is causing your business growth issues, learn everything about their business model/franchise agreement. I would say learn it to the point that if you handed your money over, you aren't really learning anything new. This isn't to be malicious, and back work a potential business competitors model, but ensure that you know 100% what you are purchasing, and committed to.
Lastly, on the growth aspect of growing your business, why not reach out directly to larger LCOs on lawnsite.com? Ideally, if you are reading this, you will already have a name, or two of a couple non-local LCOs who are at, or beyond the scale that you want to be at. Respectfully, ask for 30 minutes of their time as a "consultant," and be willing to pay a fee for their time. (Have the time via a Skype session, and pay directly via PayPal or favorite online payment system.) Review what you are doing to grow your business, and hear their thoughts/stories. (I can expect the consensus to be that that everyone says that all markets aren't the same. However, I am suggesting to do this with more than one LCO.) After talking with a couple LCOs you will probably hear a common theme about a course of action. (I bet this course of action will be a lot cheaper than purchasing a franchise straight away.)
If you have done the basic exercise of trying to figure out what you expect from a franchise, and use that as to develop your questions for the LCO consultant, you should have a worthwhile conversation that is a lot cheaper than jumping straight into a franchise.
Hope this help.
Ok this must be a regional thing. The prepay discount is mainly given to previous year's renewing customers so you already did the hard job of selling them on the high price. What if you didn't offer the discount? Or offered a much smaller one? Do you think your cancellation rate would jump? Even if it went from 10% to 15% I bet you would net a lot more. Plus you could probably replace those cancels with new sales anyway. Would that work out by you or am I crazy to think that?
Maybe I should look at that. I will discuss the with my office manager (wife) . Our gross is right around $300k this year with me and another guy in the field. Can I ask what your minimum charge and average charge is? We are fert/wc/aeration only. Thank you very much.
My area is probably much different in price but the question would be if you can sell enough work at the higher price. Half your customers are already paying it by not prepaying so you know the higher price is within market limits. Try this on for size: take your total net after all expenses and subtract the amount it would cost your business to replace yourself. Say 70k after taxes,benefits, etc. what you are left with is a true net number. If your true net is 60k or less(20% of gross) then that shows you are actually losing money on your prepay customers and making all your money on the ones that don't prepay. if you need a little money to get going in the spring it is cheaper to draw on a line of credit for a month or 2.
Thank you. I'm going to look into that. Those are interesting suggestions . Thanks!
Any Weed Man franchisees on here?
Haven't seen any on here, seems like Weed Man is large in Canada and just starting to make it's way here.
There is one in Annapolis, MD. He started about 2 years ago and seems to be doing well. I see a few of his trucks driving around and have seen people going door to door giving quotes. Maybe give him a call if you have questions? https://www.google.com/#q=weed+man+annapolis
Franchising I think works great in certain fields. I'm not sure it is ideal in ours. Books that I've r ad about franchising point out that you need repeatable, dependable and consistency in your business environment. For example, as someone on this thread stated, when you go to McDonald's you know what you are going to get - a mass produced, consistently average food. It is consistent because the whole system is designed for consistency; from the building, to the equipment and the materials that make up a burger. When you order a Big Mac you know EXACTLY how many squirts of Thousand Island like dressing you are getting etc. EVERYTHING about our business goes against those concepts. I live in a transitional zone, so everything (well almost) about my environment and business is differ not than my peer in Montana. I grow different grass, different plants and I care for them much differently. That's why most of the big players in our industry tend to be regional in nature. If someone could really figure out how to use the franchise concept in landscaping/lawn service - the world would be their playground. I have tried and tried I get a repeatable, sustainable result for each of my clients but it seems to all come down to the quality of my crew,leader to inspect and insure quality. Until someone figures all of that out I would keep my money and not pay for a franchise