Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Business > General Business Discussions

General Business Discussions A place to talk about general business discussions.

11 Sources of free or low cost training


General Business Discussions

A place to talk about general business discussions.
Reply
 
Thread Tools Search this Thread
  #11  
Old 12-15-2009, 07:51 PM
SuperiorPower
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by Steve View Post
Well what I mean is, initially when you are getting all it started and money is tight, would it make more financial sense to have a loaner and buy yourself some time with that to order the part and get it repaired?

Say for instance, someone comes in with a mower that has an issue. If it's a 21" push mower, what would it take to have a used push mower loaner they could take with them while you work on the mower for them?

I can understand stocking some high volume items but I bet there are a ton of items you don't use regularly that might be easier to order than to stock?
Yes, very true. Sorry for the misunderstanding there. But the big companies are not looking at what makes the most sense to me and other small dealers. They want dealers with the big bucks to shell out to start a business. They want someone who will stock everything that way the customer will not go elsewhere. That is understandable but do they remember where they started from? Someone gave them their big break sometime or another...

Ok, so about today... They were telling us about all the new parts that are coming out because of all this EPA stuff. For example, Honda redesigned most of their engines just to be able to meet EPA standards that take affect 01-01-2011. This EPA stuff is throwing a big monkey wrench into everything.

I know this is sidetracking from the original topic but lets go down this rabbit trail for a bit....

EPA says we need to do blah, blah to slow down global warming (that is not occurring to begin with). Now I have no problem with my engine using less fuel and saving me money, and there being less gas fumes for me to breath, but it is coming at a VERY untimely point in our economy. Here is why.....

Example: Honda had to redesign almost every single engine in their lineup and with so doing, they have to manufacture a LOT of new parts. Most parts will not interchange (because the old parts will not fit the new EPA design). So because of that, I believe it will hurt the economy or at least slow it down on this basis. Redesigning a new engine costs lots of money. Who pays for that? The end user, via the distributor and dealer.

Next step down the line. Now the distributor still has to stock the parts for all the old engines PLUS the new engines. This means a much bigger investment and therefore they have to add more MARGIN to still make the same amount of profit. Plus they will now sell less of each because there are still essentially the same number of engines on the market, but just different models (split up between pre-EPA and post-EPA). That makes sense so far?

Next step. Just like the distributor, now the dealer has to stock all of these new parts (basically doubling their inventory for each given manufacturer). If they had $100,000 inventory before, now they have to come up with another $100,000 to invest in parts. Plus, most times this also means new special tools to invest in. So tell me, who pays for this investment? The end user HAS TO. The dealer has to be able to make enough profit to basically be paid "interest" or a return on his extra $100,000 investment. Plus this normally requires the techs (on company time and now they are not at the shop to EARN income...)go to an update school and new software, blah, blah, blah.... More expenses.

To top it off, higher parts prices means customers won't be able to afford them and will buy less parts. This only compounds the problem...

Ok, I'll get off my soap box.... (stepping down for now)

Eli
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #12  
Old 12-16-2009, 03:21 AM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,504
Rep Power: 10
Steve has disabled reputation
Default

Lawn care business tipsLawn Care Business Book
I would think there are a bunch of different niches in the outdoor power equipment repair business.

I have seen some shops that look top of the line and are authorized dealers of certain equipment.

Then I have seen 2nd tier looking shops that provide good service at a reasonable fee.

Lastly, I have seen crappy shops that offer crappy service.

It seems to me, to get into this with a limited financial backing, one would have to focus on friendly service.

Most people want to have a local spot to get their equipment repaired and not feel they are being raked over the coals when it comes to repair fees and part costs.

I would try and limit any unneeded costs. If my focus was going to be on repairs, I would focus on repairs and not try to become a dealer in any equipment until I felt I had a large enough customer base to do so.

From what I have heard, these dealership agreements want you to sell X amount of product each year. Committing to such an agreement early on could sink a new business. Even stocking too many parts could sink a business as well.

Maybe you could sell used equipment that has been refurbished? Or something like that to bring people in. This equipment could potentially also be used as loaners?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #13  
Old 12-16-2009, 05:35 PM
SuperiorPower
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by Steve View Post
I would think there are a bunch of different niches in the outdoor power equipment repair business.

I have seen some shops that look top of the line and are authorized dealers of certain equipment.

Then I have seen 2nd tier looking shops that provide good service at a reasonable fee.

Lastly, I have seen crappy shops that offer crappy service.

It seems to me, to get into this with a limited financial backing, one would have to focus on friendly service.

Most people want to have a local spot to get their equipment repaired and not feel they are being raked over the coals when it comes to repair fees and part costs.

I would try and limit any unneeded costs. If my focus was going to be on repairs, I would focus on repairs and not try to become a dealer in any equipment until I felt I had a large enough customer base to do so.

From what I have heard, these dealership agreements want you to sell X amount of product each year. Committing to such an agreement early on could sink a new business. Even stocking too many parts could sink a business as well.

Maybe you could sell used equipment that has been refurbished? Or something like that to bring people in. This equipment could potentially also be used as loaners?
Well either way I turn, there is a reason I named my shop what I did. I truly want to provide nothing but SUPERIOR service. But I believe I do so for a reasonable price. I have damaged something for customer and told him I would not charge him for the labor to fix it. I think that made a believer out of him.

When I get going full time I will most likely charge similar to other shops but will try to make sure I give them more for their money. One thing that I will do my best to avoid is cutting corners. I think I will be using more and more OEM parts versus aftermarket, at least on select parts. There are some aftermarket that are better and stronger (and less expensive) than OEM!! Go figure!

Whole goods are not that big of a money maker anyway, its just that it tends to bring in customers which brings the service customers. Service is where a shop will break even and make a little profit. Warranty is NOT a money maker. Typically they do not pay enough hours to get the product repaired. So either the shop has to eat the rest or than try to explain to the customer why they have to pay the rest of the bill (good luck with that).

Warranty difficulties is why many shops are now requiring payment up front even on warranty and then refund it to the customer when they get paid from the manufacturer.

I will see what happens when spring rolls around. In the mean time I may try to get to more service schools...
Reply With Quote
  #14  
Old 12-17-2009, 12:35 AM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,504
Rep Power: 10
Steve has disabled reputation
Default

Quote:
Warranty is NOT a money maker.

Warranty difficulties is why many shops are now requiring payment up front even on warranty and then refund it to the customer when they get paid from the manufacturer.
That is fascinating! I wouldn't have guessed that. I'd figure this would be what would entice a shop to be an authorized warranty repair facility, but if it's not going to be a profit center, then forget it!

This industry seems really messed up but maybe it doesn't differ much from other industries where you have dealerships and dealership agreements. You should be able to simply order what ever product you want to sell at your store. Get some kind of commercial price break from the manufacturer and for go all this other stuff. But it seems they have it locked down.

I wonder if auto dealers run into the same problem with warranty jobs? I have yet to see an auto dealer charge in advance to service a warranty issue, but who knows, maybe a lot of them do!
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #15  
Old 12-18-2009, 05:20 PM
SuperiorPower
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by Steve View Post
That is fascinating! I wouldn't have guessed that. I'd figure this would be what would entice a shop to be an authorized warranty repair facility, but if it's not going to be a profit center, then forget it!

This industry seems really messed up but maybe it doesn't differ much from other industries where you have dealerships and dealership agreements. You should be able to simply order what ever product you want to sell at your store. Get some kind of commercial price break from the manufacturer and for go all this other stuff. But it seems they have it locked down.

I wonder if auto dealers run into the same problem with warranty jobs? I have yet to see an auto dealer charge in advance to service a warranty issue, but who knows, maybe a lot of them do!
Being authorized to do warranty work is only one step. It brings in customers and at that point you can break the bad news to them that their machine is:
a) not worth repairing
b) The problem is not covered by warranty and then you can offer to repair it for whatever it will cost. This is an up sell, just like the lawn care industry does with their customers.

The auto dealers seem to have a bit more control over the auto makers. The power equipment dealers take a BEATING from the manufacturers and distributors. Many times it seems that warranty claims that by a common sense point of view should be covered by warranty, are denied by the manufacturer.

Here is why the dealers require prepayment:

The customer picks up the product, when everyone agrees that it should be under warranty, and the dealer sends it off to the distributor and then off to the manufacturer. The distributor or manufacturer denies the claim and now the dealer MAY have no luck tracking down the customer anymore. Guess who eats the repair cost? The customer needs to, but good luck finding them if they find out they owe the dealer money.....

Just a simple question, why should the dealer subsidize the warrant repair costs for the manufacturer where the manufacturer denies the warranty claim? This should be the customer's responsibility once the customer has purchased the product.
Reply With Quote
  #16  
Old 12-19-2009, 02:20 AM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,504
Rep Power: 10
Steve has disabled reputation
Default

I certainly hope all the would be small engine repair shop owners are paying attention to this conversation. There are a lot of issues a repair shop has to deal with.
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Irrigation training video Steve Tree Care, Irrigation, Landscaping, Hardscapes 10 03-18-2009 11:17 AM
Cross training Steve General Business Discussions 1 04-08-2006 11:13 AM
Gopher Training Class Steve Gopher Software Support Archived Question & Answers - Read Only 13 11-06-2004 12:50 AM
Gopher Training Classes Steve Gopher Software Support Archived Question & Answers - Read Only 0 11-05-2004 04:56 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
first year update
cmdlawncare
08-12-2014 05:41 PM
Today 07:47 AM
by ringahding1
4 1,246
Pressure Washing Like a...
TNTurf
08-01-2014 11:47 PM
Yesterday 11:12 PM
by TNTurf
7 679
Hello, from TEXAS
sanchez5
10-17-2014 09:56 PM
Yesterday 10:44 PM
by sanchez5
5 318
Dealing With Gas Can...
Mr. Mow
Yesterday 01:41 PM
Yesterday 08:23 PM
by Sprinkler Buddy
2 105
Leaf Box & Loader Set...
ringahding1
Yesterday 06:20 AM
Yesterday 07:22 PM
by ringahding1
2 111
Organic Lawn Care...
NHray
10-17-2014 06:05 PM
Yesterday 05:47 PM
by NHray
2 293
Hi Steve From West...
Mr. Mow
Yesterday 01:59 PM
Yesterday 01:59 PM
by Mr. Mow
0 70
Cheapskate Landlord...
Mr. Mow
10-20-2014 06:33 AM
Yesterday 01:50 PM
by Mr. Mow
8 230
What parts do you carry...
Just for Cuts
10-17-2014 09:08 AM
Yesterday 01:36 PM
by Mr. Mow
16 585
Jungle to Beautiful
stevef1201
10-17-2014 09:54 AM
Yesterday 01:26 PM
by stevef1201
11 427
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
Yesterday 01:19 PM
by ExtremeLawncareServices
158 11,266
Sunny Beach Tennis...
SGL1
10-19-2014 11:24 PM
Yesterday 01:04 PM
by SGL1
4 197
Have you ever had to...
SouthernRootsLawnCare
07-26-2014 02:41 PM
10-20-2014 08:34 PM
by biglee
10 1,744
Look out Bob Villa -...
Mr Dave
09-30-2014 10:06 AM
10-20-2014 05:42 PM
by SGL1
7 1,253
how to fi d commercial...
mchampion319
10-19-2014 09:50 PM
10-20-2014 04:41 PM
by Steve
1 166
Hello From Tennessee
mrmann901
10-17-2014 10:02 PM
10-20-2014 04:24 PM
by Steve
1 241
questions on order to...
jack2048
10-13-2014 11:15 AM
10-20-2014 03:27 PM
by Mr. Mow
15 675
This sucks...
Matther777
09-18-2014 04:56 PM
10-20-2014 02:14 PM
by Steve
14 2,119
Cement mixer
KevinsLawns
10-15-2014 08:03 PM
10-20-2014 02:11 PM
by Steve
7 418
Hello ! New guy Rob here
RWorthley1
10-17-2014 04:05 PM
10-20-2014 02:09 PM
by Steve
1 255
Pda
stevef1201
10-18-2014 02:05 PM
10-19-2014 11:27 PM
by SGL1
2 233
Snow Blowing
gwilson98
10-12-2014 02:21 PM
10-17-2014 02:51 PM
by Steve
6 599
Spreading Weeds?
WesleySnips
07-27-2014 09:46 PM
10-17-2014 07:49 AM
by SGL1
6 903
Grasswhoopins.com Anyone...
GRASS WHOOPINS
06-21-2011 11:38 PM
10-16-2014 01:30 PM
by ExtremeLawncareServices
42 9,258
I Want to buy old...
ExtremeLawncareServices
10-10-2014 10:04 PM
10-15-2014 09:12 PM
by ExtremeLawncareServices
6 637
Say Hello !!!
Steve
03-19-2007 11:18 AM
10-15-2014 06:43 PM
by NHray
1,190 339,996
Workmans compensation...
CDLAWNCARE
10-15-2014 08:05 AM
10-15-2014 02:57 PM
by Steve
2 384
Do you find weed eating...
chuck2s
10-15-2014 02:10 PM
10-15-2014 02:10 PM
by chuck2s
0 352
Incorporating &...
WesleySnips
10-01-2014 09:39 PM
10-15-2014 01:37 PM
by kslawn
20 1,444
Falling into business
stellarmowing
09-28-2014 04:35 PM
10-15-2014 05:57 AM
by ringahding1
8 1,463
Apartment Complex and...
lxarth
06-22-2011 01:10 PM
10-14-2014 06:25 PM
by jrs.landscaping
42 9,546
I LOVE hedge trimming
stevef1201
10-13-2014 09:05 AM
10-14-2014 01:06 PM
by Steve
5 484
Help with seeder...
ExtremeLawncareServices
10-09-2014 07:39 AM
10-13-2014 08:09 PM
by ExtremeLawncareServices
5 650
The Market watch
WesleySnips
10-12-2014 08:47 PM
10-13-2014 05:40 PM
by SGL1
3 487
Help pricing a large...
Bradcook21
10-07-2014 06:49 AM
10-13-2014 02:00 PM
by Steve
7 834
leaf removal
Double J LLC
10-03-2014 04:24 PM
10-13-2014 06:46 AM
by Billy Goat
19 1,464
Acerage Rake
acrajchel
04-23-2014 07:23 PM
10-12-2014 10:53 PM
by SGL1
2 797
John Deere z235 Deck
WesleySnips
09-29-2014 06:02 PM
10-12-2014 06:20 PM
by kslawn
25 1,609
Credit card contract
SGL1
10-06-2014 05:31 PM
10-12-2014 03:40 PM
by SGL1
18 1,022
Truck craft dump bed...
ExtremeLawncareServices
10-04-2014 08:41 PM
10-10-2014 11:35 AM
by Steve
7 926
First Time River Rock...
berryjam
10-09-2014 06:09 PM
10-10-2014 11:08 AM
by Steve
2 576
West cost lawn prices
SGlawncare
10-09-2014 09:51 PM
10-10-2014 11:03 AM
by Steve
1 564
Question?what should I...
dalvan0
09-24-2014 11:10 PM
10-09-2014 05:58 PM
by kslawn
28 2,096
Mowing the hills
EyeCatchersNow
07-08-2014 12:22 PM
10-09-2014 04:19 PM
by Just for Cuts
25 2,971
snowplowing
jshak40
09-01-2014 07:20 AM
10-09-2014 02:21 PM
by Steve
25 3,609
Changing Scag Freedom Z...
maggiedavidson
10-06-2014 12:24 PM
10-08-2014 06:34 PM
by ExtremeLawncareServices
7 812
The most dangerous part...
Steve
10-06-2014 02:45 PM
10-07-2014 04:18 PM
by ExtremeLawncareServices
3 792
Good Mower
jack2048
10-04-2014 05:34 PM
10-07-2014 01:05 PM
by Steve
7 873
Mulching fad killing...
Tree geek
10-06-2014 08:37 PM
10-06-2014 08:37 PM
by Tree geek
0 694
Help a brother...
tbtigers03
09-28-2014 11:41 AM
10-06-2014 02:53 PM
by Steve
11 1,424
» Popular Tags
2wd 4x4 aerocore apartment bid apartment lawn care estimate applying auger billy goat brushcutter bush charge christmas deliquentaccounts exmark ferris foreman georgia gopherhaul grass gravely hills holiday how much to charge how to how to bid john deere quik trac kawasaki labor cost landscape services lawn lawn care lawn care busines plan lawn care business book lawn care business podcast lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care seo lawn care website lawn care website seo leaf removal lighting lighting brass outdoor lights managing a lawn care business marketing mowing mulch mulch estimate new buisness new business ordinance podcast property management company push versus ride savannah scag scripts seo shreaded snow plowing starting a business starting a lawn care business stihl sulky theft toro tractor auger walk behind walker wright stander rh
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 08:28 AM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 08:28 AM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy