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TiedemanLLC
01-25-2012, 04:04 PM
Going over our 2011 season I noticed that 16% of our income was from services that were pre-paid. The funny thing is, the pre-payment of services was also our best marketing technique used in the 2011 season.

Now with us, and pre-payment we always give great discounts. Anywhere from 5% up to 25% (25% is when more than three years of service are pre-paid). But we are starting to wonder whether allowing clients to pre-pay is actually hurting us in the long run.

Are we just concentrating on pumping cash into the system NOW instead of looking at how much money we are losing down the road?

What are also the pros and cons of pre-payments?

dpld
01-25-2012, 04:36 PM
Going over our 2011 season I noticed that 16% of our income was from services that were pre-paid. The funny thing is, the pre-payment of services was also our best marketing technique used in the 2011 season.

Now with us, and pre-payment we always give great discounts. Anywhere from 5% up to 25% (25% is when more than three years of service are pre-paid). But we are starting to wonder whether allowing clients to pre-pay is actually hurting us in the long run.

Are we just concentrating on pumping cash into the system NOW instead of looking at how much money we are losing down the road?

What are also the pros and cons of pre-payments?

i used to do that when i had residential accounts but i would offer a 10% discount for monthly auto pay with a credit card and i would give a 20% for pre payment of the entire season.

25% is a little too high even if they paid for the whole season in advance.

but now i bill ahead instead of behind so i have eliminated any discounts like that.

CHEESE2009
01-25-2012, 06:24 PM
Getting your clients to pre-pay is awesome.

Getting your clients to pre-pay in order to eat your profits, sucks.


A discount of 25%, you're most likely paying the tax on their bill and more. :eek:

USA Lawn Care
01-26-2012, 04:24 AM
There is no reason to discount for pre-pay. No need to apologize to customers about your policy.

This is your business. Run it and bill how you choose. If a customer doesn't like it so be it. The only thing you need to explain is that 'this is the way that has worked best for our company so this is how we will continue to bill clients.' Your main goal is to stay in business. Cash flow is a key ingredient of that.

I can't tell my trash collector that I don't like pre paying. They would tell me to go find another trash collector then.

Again.....DON'T APOLOGIZE FOR PRE-PAY.
DON'T OFFER DISCOUNTS.
PAYMENT IS DUE BEFORE WE CUT YOUR GRASS.....PERIOD.

mark123
01-26-2012, 07:56 AM
There is a difference between fast food and fine dining. You pre-pay for one. :p

dpld
01-26-2012, 09:53 AM
There is no reason to discount for pre-pay. No need to apologize to customers about your policy.

This is your business. Run it and bill how you choose. If a customer doesn't like it so be it. The only thing you need to explain is that 'this is the way that has worked best for our company so this is how we will continue to bill clients.' Your main goal is to stay in business. Cash flow is a key ingredient of that.

I can't tell my trash collector that I don't like pre paying. They would tell me to go find another trash collector then.

Again.....DON'T APOLOGIZE FOR PRE-PAY.
DON'T OFFER DISCOUNTS.
PAYMENT IS DUE BEFORE WE CUT YOUR GRASS.....PERIOD.

that is why i chose to bill ahead instead of behind and when the customer frets about it i tell them i am not bank of america financing homeowners dreams.
if you want to go with the finance plan i suggest you put it on your credit card or go borrow the money from your local bank and work it out with them.

and if the account is not up to date they get no service until it is.

Hedgemaster
01-26-2012, 10:53 AM
Currently my two options are "Pre-pay", or "at time of service".

I don't offer discounts, I offer options - one or the other.



My mother didn't offer incentives for me to eat my dinner when I was a kid, she gave me two choices: Eat what's in front of you, or go hungry.

;)

ringahding1
01-26-2012, 11:14 AM
Pre-pay is a good way to target the slow payers or potential non-payers before the growing season ends.

Pre-pay discount would only be offered by us to give the customer an option to capture last year's rates. Other than that I would not offer any other discounts for pre-pay. This is a good way to keep income rolling through the winter season, especially when spring start up $$ is needed.

Steve
01-26-2012, 04:48 PM
Has anyone looked at the difference in cost between their monthly insurance payments and if they prepaid it for the year? What kind of discounts are you seeing? Could a similar discount % work for lawn care?

Also, is it best to keep the max time to 1 year? Does 3 year lock you into something where you might not want to be performing a certain service that far down the road?

TiedemanLLC
01-26-2012, 05:33 PM
Has anyone looked at the difference in cost between their monthly insurance payments and if they prepaid it for the year? What kind of discounts are you seeing? Could a similar discount % work for lawn care?

Also, is it best to keep the max time to 1 year? Does 3 year lock you into something where you might not want to be performing a certain service that far down the road?

I was waiting for someone to finally ask this question, thank you. Even though you are getting 3 years of cash pumped into your system is that three years worth of cash actually good for the long haul. It may be a short term gain, but does it actually hurt you?

USA Lawn Care
01-27-2012, 04:39 AM
right now my customers are pre-paid month to month with a few that I mow that pay me when I show up.

dpld....if you don't mind me asking....are your customers paying by check or cc or both? I believe sometime this season, we will be using a cc payment option. Might just be thru paypal....don't know yet. I'm real particular about making choices when it comes to offering this new way of paying (cc), we're checking out different rates, etc. My brother in law (my accountant extraordinaire) suggested maybe collecting for the month on the last Monday of the previous month. It's still a work in progress with decisions that need to be made by the end of Feb.


anyhow....billing clients ahead of time and collecting "as we mow" has probably been the single most important way I have kept my business operating in the black with no debt.

CHEESE2009
01-27-2012, 05:35 AM
Have a plan to protect you from clients who cancel service, and request a refund.

Getting money early, means you might spend it. lol. That's the only issue really...

http://www.sugarstube.com/metaname/rich-old-man.jpg

jymie
01-27-2012, 06:57 AM
right now my customers are pre-paid month to month with a few that I mow that pay me when I show up.

dpld....if you don't mind me asking....are your customers paying by check or cc or both? I believe sometime this season, we will be using a cc payment option. Might just be thru paypal....don't know yet. I'm real particular about making choices when it comes to offering this new way of paying (cc), we're checking out different rates, etc. My brother in law (my accountant extraordinaire) suggested maybe collecting for the month on the last Monday of the previous month. It's still a work in progress with decisions that need to be made by the end of Feb.


anyhow....billing clients ahead of time and collecting "as we mow" has probably been the single most important way I have kept my business operating in the black with no debt.

Check into merchantanywhere.com (http://merchantanywhere.com/) you can use it through a smart phone and they have a bluetooth reader/printer option also.
Plus, they can set you up for part of the year. Ex. our season around here runs from Mid April - Nov, you only get a monthly fee for the month you operate your business. In Dec you get a yearly fee of $99, and the monthly fee was $24.95 (Apr - Nov), plus any transaction fees. I am also looking into inuit payment processing (http://payments.intuit.com/products/quickbooks-credit-card-processing-services.jsp). They are sending me the reader to see if it will work on my phone.

TiedemanLLC
01-27-2012, 08:20 AM
I think many of you are missing my point with the pre-payments. When I am referring to the pre-payments I am not taking a week or a month in advance, I am talking about an entire year ahead of time, sometimes with me it's years in advance.

Now with the pre-payments will do have a "no refund" clause in our contract. All you can receive is credit towards services (not products).

mark123
01-27-2012, 08:28 AM
To me, money is money. In advance, during service or at the end of the month is all the same.

I could see where having someone pay in advance would be a good thing if it locks them in and you can pre-order the products without worrying that they'll cancel. No refund would have to be the rule. The discounts are too steep though. I'd say 6% to save the tax or 10% tops no matter how far in advance they pay. I've not offered discounts for pre-payments but I may for the fertilizer treatments, never for mowing.

jymie
01-27-2012, 08:42 AM
I had two customers last season that opted to pay the whole season ahead of time, they are contract customers. I give them the option to pay the whole year at 20% off the weekly rate. It gives me some up front capitol to work with to start the year which is a good thing.

dpld
01-27-2012, 09:25 AM
I think many of you are missing my point with the pre-payments. When I am referring to the pre-payments I am not taking a week or a month in advance, I am talking about an entire year ahead of time, sometimes with me it's years in advance.

Now with the pre-payments will do have a "no refund" clause in our contract. All you can receive is credit towards services (not products).



i think beyond that everyone is not looking at the whole picture here.

for me the money i discounted represented a larger savings in the end because i offered a full service such as lawn mowing, shrub trimming, lawn treatments and mulch, etc, etc.
at one point we had 75% of 120 accounts giving me pre payment for the entire year.
well, come febuary i would have 3/4 of my revenue in my hand before i even started to work and with that money i would go to my supplier for lawn chemicals and fertilizer and i would buy and pay for every drop and granular of product i would need for the entire year.
that alone would save me 30% off that cost.
then i would go to my mulch supplier and and on average i was useing 1,200 cubic yards of mulch each year and i would pre pay in febuary for the whole year and i was getting mulch that guys were paying $18.00 per yard for $10.00 per yard.
do the math on that one, not to mention when my supplier seen me pulling in every febuary he knew it was pay day and he loved getting paid up front for that much mulch at a time of year when he was selling nothing.
not to mention when my truck pulls in to the yard to pick up, he dropped what he was doing and immediately loaded me up and i would by-pass the long line of guys waiting to get loaded which also saved me time.
guys used to get pissed and complain and his answer would be " money talks and bull**** walks " and i will do the same for you if you come here every febuary and pay me upfront for the season.

at my yard me and one of my former employee who started his own business bought a 2,000 gallon fuel cell and we even would buy our fuel in bulk.

i never had to sweat payroll and had my payroll in the bank for the whole year collecting intrest before i even had to pay out one dime in payroll.

my point is you have to think outside the box and not veiw everything with a tunnel vision and take advantage of everything you can to capitalize on it and it was a two way street for savings for me and the customer.
i would have substanial savings and i passed it down to the customer and rewarded them for pre payment and the 25% of the accounts that did not pre-pay were on the auto-pay and that saved me the trouble of having to send bills out and wait for the remainder of my money.

it is a win win for everyone.

dpld
01-27-2012, 09:38 AM
right now my customers are pre-paid month to month with a few that I mow that pay me when I show up.

dpld....if you don't mind me asking....are your customers paying by check or cc or both? I believe sometime this season, we will be using a cc payment option. Might just be thru paypal....don't know yet. I'm real particular about making choices when it comes to offering this new way of paying (cc), we're checking out different rates, etc. My brother in law (my accountant extraordinaire) suggested maybe collecting for the month on the last Monday of the previous month. It's still a work in progress with decisions that need to be made by the end of Feb.


anyhow....billing clients ahead of time and collecting "as we mow" has probably been the single most important way I have kept my business operating in the black with no debt.


they do both and the people who do auto-pay use their cards because they have to have a card on file in order to do the auto-pay.

but as i mentioned in earlier posts all i do is commercial now and i bill ahead of the services so to some degree it works out as the same with some slight variations but with the commercial work the dollar amount is much greater as well as most corp's don't use credit cards to pay for expenses that large.

TiedemanLLC
01-27-2012, 09:47 AM
i think beyond that everyone is not looking at the whole picture here.

for me the money i discounted represented a larger savings in the end because i offered a full service such as lawn mowing, shrub trimming, lawn treatments and mulch, etc, etc.
at one point we had 75% of 120 accounts giving me pre payment for the entire year.
well, come febuary i would have 3/4 of my revenue in my hand before i even started to work and with that money i would go to my supplier for lawn chemicals and fertilizer and i would buy and pay for every drop and granular of product i would need for the entire year.
that alone would save me 30% off that cost.
then i would go to my mulch supplier and and on average i was useing 1,200 cubic yards of mulch each year and i would pre pay in febuary for the whole year and i was getting mulch that guys were paying $18.00 per yard for $10.00 per yard.
do the math on that one, not to mention when my supplier seen me pulling in every febuary he knew it was pay day and he loved getting paid up front for that much mulch at a time of year when he was selling nothing.
not to mention when my truck pulls in to the yard to pick up, he dropped what he was doing and immediately loaded me up and i would by-pass the long line of guys waiting to get loaded which also saved me time.
guys used to get pissed and complain and his answer would be " money talks and bull**** walks " and i will do the same for you if you come here every febuary and pay me upfront for the season.

at my yard me and one of my former employee who started his own business bought a 2,000 gallon fuel cell and we even would buy our fuel in bulk.

i never had to sweat payroll and had my payroll in the bank for the whole year collecting intrest before i even had to pay out one dime in payroll.

my point is you have to think outside the box and not veiw everything with a tunnel vision and take advantage of everything you can to capitalize on it and it was a two way street for savings for me and the customer.
i would have substanial savings and i passed it down to the customer and rewarded them for pre payment and the 25% of the accounts that did not pre-pay were on the auto-pay and that saved me the trouble of having to send bills out and wait for the remainder of my money.

it is a win win for everyone.

good points

Steve
01-27-2012, 05:06 PM
I was waiting for someone to finally ask this question, thank you. Even though you are getting 3 years of cash pumped into your system is that three years worth of cash actually good for the long haul. It may be a short term gain, but does it actually hurt you?

What % of your total net income from a customer is profit? This needs to be known first before you can take the next step to figure if it is worthwhile offering such discounts.

Then you gotta try and figure if you are getting any discounts from your suppliers to buy in bulk.

And then you also have to account for what % of your customers pay on time and how much time you spend tracking down late payers or how much you lose from non-payment.

When I would see discussions on 10% discount for prepay of a full year I would kind of cringe because we see how crazy some of our members get at using credit cards to accept payment. That is what 3% of the sale? Now how about dealing with 10% of the sale?

At 25% yikes!

Could you get better results by billing each month ahead of time?

To figure this out, I would play with some figures on two fictitious customers and see what the results are to service. Have each customer projected out over 3 years where one prepays with a discount and another doesn't prepay.

dpld
01-28-2012, 06:41 PM
What % of your total net income from a customer is profit? This needs to be known first before you can take the next step to figure if it is worthwhile offering such discounts.

Then you gotta try and figure if you are getting any discounts from your suppliers to buy in bulk.

And then you also have to account for what % of your customers pay on time and how much time you spend tracking down late payers or how much you lose from non-payment.

When I would see discussions on 10% discount for prepay of a full year I would kind of cringe because we see how crazy some of our members get at using credit cards to accept payment. That is what 3% of the sale? Now how about dealing with 10% of the sale?

At 25% yikes!

Could you get better results by billing each month ahead of time?

To figure this out, I would play with some figures on two fictitious customers and see what the results are to service. Have each customer projected out over 3 years where one prepays with a discount and another doesn't prepay.

when i used to do the pre payment, the discount alone was not suffice as well as counter productive from a profit standpoint.
i found if you are going to discount anything voluntarily you have to make it up and compensate elsewhere because if you just offer a discount straight up with nothing to equilize it it is a losing proposition.

the way i did it with the discount combined with smart shopping and buying in bulk while it was still the slow season to take advantage of the suppliers at a time when they are just scratching for sales usually worked out to getting the discount money back with a added 5 to 7% additional profit.

this way i basicly was making the same money but the customer seen a savings as well as a better value.

it also saved me time and effort such as getting preferencial treatment at the supply yard as well as haveing all my lawn products on hand with no trips to that supplier.
with the lawn products i was able to buy everything up front and get the savings and i would break up the deliveries so i would not have to have all the materials at once to minumize how much space i was using as well as reduce any issues with pesticede storage.

with that said, if i were just offering basic mow and blow services without all the extras or my customers mostly kept it simple i would have never done any type of discounting because the less services you offer the less room you have for a mark down.

Steve
01-30-2012, 03:01 PM
when i used to do the pre payment, the discount alone was not suffice as well as counter productive from a profit standpoint.
i found if you are going to discount anything voluntarily you have to make it up and compensate elsewhere because if you just offer a discount straight up with nothing to equilize it it is a losing proposition.

I think this is a great point and something for anyone who may want to offer a prepay discount to consider.

Troy, has this effected your view on the concept?

mac83
01-31-2012, 07:46 AM
I for one give my customers the right to pre-pay for my lawn service's

threw my website i usto to do a once a year type deal but it was a headache so i made it a once a month type deal also giving them like $10.00 off when they do it makes it easier . so if on month they do not pay thsy do not get serviced for that month .

RSE
02-02-2012, 07:42 AM
I like pre payments because you can inject it right into your business at the time (usually very early spring) when everyone and their supplier is chomping at the bit for work. You now have capital to work with and you are in a position to call the shots.
My parts guys will offer me an early season discount on blades, oil and string where as if I was to purchase these items in July I could not receive the discount. I am able to pony up cash for preventive maintenance items where as I would have to tap into reserves without the prepayment agreement.
The only holdback is the timeframe. Never go over a year, period. You will lose track of who paid what when and leave the job feeling underpaid. A yearly contract is left partially open to cover unforseen circumstances such as fallen, chainsawable limbs, litter and animal damage ( I once had a moose or bear s#it all over the putting greens and then kick sand from the trap all over the place ...took two hours to get right again!)
The point is do a prepay were you see fit and plan on where that money goes. Stick to that plan and you shall be golden....Good Luck!!

willshome
02-04-2012, 12:38 AM
I would like to know more about prepay like what about up-sales or add-ons (cleaning up after a storm...) And what about customer being a pain about when you mow, i have customers that bug out if most of the time i am there thursday morning and i get there in the afternoon what would happen if they already paid. With fall cleanup how do you pick when to do it and what if leaves take longer than normal to fall?
has anyone had these problems, I could just see some problems with doing it like that but knowing you have the money in the bank must be GREAT!

dpld
02-04-2012, 03:45 PM
I would like to know more about prepay like what about up-sales or add-ons (cleaning up after a storm...) And what about customer being a pain about when you mow, i have customers that bug out if most of the time i am there thursday morning and i get there in the afternoon what would happen if they already paid. With fall cleanup how do you pick when to do it and what if leaves take longer than normal to fall?
has anyone had these problems, I could just see some problems with doing it like that but knowing you have the money in the bank must be GREAT!

any additional work would mean additional money unless you plan on working for free.
the pre payment is for the normal week to week services and it would not include storm damage or anything else that reared it's head in outside of the norm.

leaves take longer to do and schedules generally do not go unaffected as a result especially as you get into the peak of leaf season.

as far as customers complaining goes, they need to be informed that you do not work exclusively for them and every customer wants their lawn done on thursday and fridays as well as when it rains or the grass is growing fast and furious that it will effect the schedule.

there are a lot of things that come into play that alters our schedules and weather is a obvious one.
the smaller guys that are limited in how much equipment they have can be greatly hampered by a breakdown. it always pays to let your customers know that the normal schedule is that your lawn will be done on this particular time slot but when unforeseen circumstances arrise like rain, breakdowns etc etc that it will reflect on when you arrive to their home for the week.

my route is the same every week in the same order and if rain pushes us back a day then mondays route is now tuesday and tuesday is now wednsday and so on and so on.
it is the only fair way to do it and every one of us has to deal with changing the schedule a dozen times every year.
it is not worth losing sleep over and you really can't let your customers dictate when you work.

i have had new people come along and say i will sign up with you right now only if you cut my lawn on fridays and meanwhile their house is located in a part of my route that i do on tuesdays.
i can't re-arrainge my schedule for one new customer when i have clients that been with me for 15 years that don't tell me when i got to be there.

i tell them, sorry the only day i can service this area is on tuesday. then they try to come up with some line like, its the only day i can be here, and i tell them there is no need for you to be here.
you have no fences, no pets, no kids and your yard is wide open, why would you need to be here?
then they say well i just like my yard to be nice for the weekend, and then i am like so does you and every person who hires a landscaper and if we cut your lawn on tuesday it is not gonna be in desperate need for a cutting in 3 days.

unfortunately it is part of being in the business dealing with insane customer demands and delays, and there is no way to thwart off these complaints ahead of time and you cant please everyone.
so the best bet is to tell them staright up from the beginning that your schedule is only as solid as mother nature allows you to be.

also, to re touch on the subject of add ons those questions and issues can be cut off right from the start by having a detailed contract drawn up that is signed and each party has a copy of.
something like that is even far more important when dealing with pre pays because going by word and handshake don't cut it when someone hands you over a lump sum and then they think you are doing everything for one price.

willshome
02-04-2012, 09:42 PM
So sounds like it does not add to many problems for you. The other thing is some customers act like spending $40 on mowing is a big deal, I would hate to think about what they would do if the bill was $800+. Some customers would have no problem with this and may like saving some money and only writing one check. So do you tell all customers about perpay or just the ones you think would like it?

Steve
02-06-2012, 12:48 PM
So do you tell all customers about perpay or just the ones you think would like it?

I would think the more they know, the better. If they have payment options and can see they are saving money in the long run by going with one payment option over another, you may be surprised to see which payment plan they feel is right for them.

JeffK26
02-06-2012, 04:35 PM
I'm tossing a thought around in my head about staging pre payments.

Whole year pre payment, no discounts, but the customer is on a "special" list, such as after a storm, branches and such won't wait until the next mowing service. First on the list for snow removal & Priority for leaf removal. Work in POSSIBLE ( i have to run numbers) discounts for leaf removal mulch jobs or other extras.

Monthly pre payments would be just that, monthly pre payment

or Pay at time of service.

Last years tornadoes here in the St Louis area brought in a lot of rip off artists taking money and never doing the work and that is fresh in people's minds. That and the BBB and Local News Consumer Watch segments warning customers not to pay up front for services, what is the best way to sell this to customers?

willshome
02-06-2012, 04:58 PM
First on the list for snow removal & Priority for leaf removal. Work in POSSIBLE ( i have to run numbers) discounts for leaf removal mulch jobs or other extras.

so would you drive by other customers house to do this list first that would cost alot in fuel. Maybe they get the 2nd push for free?

I would let everyone know how long you have been in business put it on everything

dpld
02-06-2012, 05:23 PM
So sounds like it does not add to many problems for you. The other thing is some customers act like spending $40 on mowing is a big deal, I would hate to think about what they would do if the bill was $800+. Some customers would have no problem with this and may like saving some money and only writing one check. So do you tell all customers about perpay or just the ones you think would like it?

unfortunately a sad truth is that as a business owner you don't want someone that has trouble or makes a big deal about 40 dollars as a customer.

i know that may sound harsh especially when so many younger dudes are out there struggleing to build a business.
i also realize from a new business owner perspective that it also goes against the grain of not wanting to turn down work.

in the beginning you got to do what you got to do but as a business grows you want to weed out the people who struggle to hire a service.

its nothing personal towards them but being in a service business you need people to hire you to make money supplying that service and customers like that tend to forget that what may be a big concern for them might not be a concern with the majority of your clients as well as nothing you want to hear about.

we are not in the home heating oil business or the power company that has to deal with people with hard times on a daily basis that have to make decisions on wheteher to cut off a family in the middle of winter because of late payment.

our business is a luxury and even if you are old, with the equipment we have today anyone can buy a machine and take care of it themselves if need be.
and if you even got to think twice for one second about how you are going to pay your landscaper, then you got no business hireing a landscaper.

i know there are old people and others that trully need the help but the way people are today no one has any shame in what they say anymore and there are so many people who cry the blues today and they will say whatever they got to in order to get a deal. you can not tell who is telling the truth and who is lying, and believe me i have had people tell me they were struggleing, and more often then not they are full of crap. and if you got that many people singing the blues then you might want to relocate.

i had a old guy trying to talk me down for half of what we originally agreed on for a mulch job after it was done. he was singing the blues about how tight money was being on a fixed budget and then after he roped me in and i further cut my price he gave me a check. we were just blowing off the drive and loading up the equipment and in comes his wife pulling in the driveway in a brand new 65,000 dollar lexus with a temp tag in the rear window.
she was also yelling at him to hurry up because they had to leave and be on the parkway before rush hour to get down to atlantic city for the weekend to gamble at the casino's.

after that i said enough with this crap i aint nobody's coupon no more and i am certainly not a social worker offering free counseling, i am in business to make money and if i am gonna spend my time working for chump change or nothing, i might as well sit on my a z z at home and do nothing at no cost to me.

willshome
02-06-2012, 06:03 PM
I don't push work (will point it out) or wheel and deal. I give very fair pricing upfront knowing my costs and what i need to make. But not everyone likes to think about total costs may open a can of worms. thats all. Some of my best customers have the least money they are easy going, pay cash and tell friends.

JeffK26
02-06-2012, 07:40 PM
so would you drive by other customers house to do this list first that would cost alot in fuel. Maybe they get the 2nd push for free?

I would let everyone know how long you have been in business put it on everything

Good points on the snow removal...

That's the thing, I'm relatively new, I have done snow removal the past 3 winters, did a couple lawns at the end of the summer, leaf removals, but this coming summer is my first whole hog summer. I'm honest, just don't have the stabilized name yet.

willshome
02-06-2012, 08:33 PM
SaberLawnCare I would start flyering now so your not the new guy come spring. People will know your name if they see it a few times in the next 6 weeks

JeffK26
02-06-2012, 10:35 PM
Thanks, been handing out fliers for a couple weeks now. Making new fliers now to hit the next go around.

I'm doing all the foot work and i have clients, and looking forward to getting more. I see topics like this and like to relate it to my company and if it's something i would like to integrate into the whole mix.

Everything can always be better. :)

USA Lawn Care
02-08-2012, 04:45 AM
well....was just cruising local CList cities near me and found this.......(midwest US)
Wow.

"Our prepay specials (up to 1 acre) are as follows and must be received no later than Wednesday, February 29, 2012.
$399.99 for 28 mowings

If you do not with to prepay then you can pay everytime we come out for only $25 for 1 acre, $55 for 2 acres, $80 for 3 acres, $110 for 4 acres, and $140 for 5 acres. If you have more than 1 acre and would like to prepay, call for discounted rates!!!"


get the calculator out for this one.......I about choked when I keyed in $400/28 cuts and saw it was $14.28 per cut. Didn't sound like a solo / non-insured operation. Gave a home # and # at the shop. At that rate, he would have to mow 100 accounts just to gross $40,000 / yr. where he should be at $100,000+ gross. I'm not bashing his business.......just trying to understand the lack of reasoning and wondering how it is even sustainable.

willshome
02-08-2012, 07:47 AM
"Our prepay specials (up to 1 acre) are as follows and must be received no later than Wednesday, February 29, 2012.
$399.99 for 28 mowings

If you do not with to prepay then you can pay everytime we come out for only $25 for 1 acre, $55 for 2 acres, $80 for 3 acres, $110 for 4 acres, and $140 for 5 acres. If you have more than 1 acre and would like to prepay, call for discounted rates!!!"


WOW It costs me $8+ to mow yard and thats me doing it my self. why is the first acre $25 and the second $30 I would think it would be the other way around.

dpld
02-08-2012, 08:25 AM
well....was just cruising local CList cities near me and found this.......(midwest US)
Wow.

"Our prepay specials (up to 1 acre) are as follows and must be received no later than Wednesday, February 29, 2012.
$399.99 for 28 mowings

If you do not with to prepay then you can pay everytime we come out for only $25 for 1 acre, $55 for 2 acres, $80 for 3 acres, $110 for 4 acres, and $140 for 5 acres. If you have more than 1 acre and would like to prepay, call for discounted rates!!!"


get the calculator out for this one.......I about choked when I keyed in $400/28 cuts and saw it was $14.28 per cut. Didn't sound like a solo / non-insured operation. Gave a home # and # at the shop. At that rate, he would have to mow 100 accounts just to gross $40,000 / yr. where he should be at $100,000+ gross. I'm not bashing his business.......just trying to understand the lack of reasoning and wondering how it is even sustainable.


at those prices he not only does not have insurance or anything else to make him legit he also will not have a business for much longer either.

the guy is not only screwing all his competitors he is actually screwing himself more.
i hope he borrowed money to buy his lawn mower and gambled his whole life on the business because he deserves to lose everything he owns for being that stupid.
another classic modern day american dream, start a business then figure out how to do it and then scratch your head in disbelief when it fails.

this country really needs to start looking into licenseing and verifiable trade experience before people are allowed to start a business.

and young guys starting out today wonder why it is so hard to get a business going, because you have to compete with asshats like these.

TiedemanLLC
02-08-2012, 01:16 PM
I am not one to normally jump on someone's case about pricing, but he definitely has the pricing structure wrong. When the acres increase he should actually give a discount, instead he is doing the opposite.

This is his acre break down.

1 acre ($25) breaks down to $25 per acre
2 acres ($55) breaks down to $27.5 per acre
3 acres ($80) breaks down to $26.6 per acre
4 acres ($110) breaks down to $27.5 per acre
5 acres ($140) breaks down to $28 per acre

USA Lawn Care
02-08-2012, 03:33 PM
I was actually just looking through the 'services' section and the rest of the guy's post made it sound like he was running a full business, shop, etc. I didn't copy the entire thing out of respect I guess but it took me a second when I saw $399 and then 28 cuts and there's just no way. And it wasn't postage stamp yards. Now, I've heard things are terrible in Florida but this isn't the Florida market. He's in lower Ohio with great pricing. The bad part is, if he's willing to hustle a bit and advertise, advertise, advertise and network, network, network he can get the 100 accounts and gross himself 100k. He's obviously got the gear to mow acres of grass, he's just working for nothing.