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 > Just starting your lawn care or landscaping business? > Starting a lawn care business.

Starting a lawn care business. How to start a lawn mowing business, lawn care business, or landscaping business. If you are starting a lawn care business, ask your questions here.

When to accept an unprofitable job.


Starting a lawn care business.

How to start a lawn mowing business, lawn care business, or landscaping business. If you are starting a lawn care business, ask your questions here.
Reply
 
Thread Tools Search this Thread
  #1  
Old 12-12-2007, 02:39 AM
StartALawnCareBusiness's Avatar
StartALawnCareBusiness StartALawnCareBusiness is offline
Keith
 
Join Date: May 2007
Posts: 731
Rep Power: 0
StartALawnCareBusiness is on a distinguished road
Default

While I was taking advantage of today's 78 degree weather with a bike ride, I thought about this board and concepts of bidding jobs.

Normally, if a customer does not accept a bid price, it's best for a Lawn Care Operators to walk away from the job instead of doing it for an unprofitable amount. It is okay, though, to occasionally accept jobs which will be unprofitable.

1) Cash flow - Sometimes, an LCO just needs cash flowing into his business today to cover immediate expenses. There are numerous factors which cause a job to be unprofitable. Some factors are: supply expense, advertising expense, overhead, and lawn care equipment depreciation. Equipment depreciation can often turn a profitable job into an unprofitable job especially if a company has just purchased a new commercial lawn mower. If this is the case and an LCO takes an unprofitable job he is effectively borrowing today against the future life of his equipment.

2) Employee retention - It is common for LCOs to lay off employees during winter since customers might curtail their purchases. Laid off employees often find other work during the winter and then decide not to come back to work the following year. Accepting unprofitable jobs might bring in just enough money to pay a star employee so he won't leave to find other work during slow months.

3) Reduce overstock - Seed, as an example, is expensive. To reduce cost, a lawn care operator might purchase seed in bulk. If he buys too much he will have surplus seed available toward the end of autumn. If seeding jobs are not as plentiful as he planned, it is okay for him to take unprofitable jobs in order to get rid of the excess seed. Otherwise, the seed will go to waste or it will take up valuable space being stored for next year.

4) Promise of future work or advertising - This is probably the least advisable reason for taking on unprofitable work. However, sometimes a Lawn Care Business owner knows a customer will feed him extra jobs if he will just give him a really low price on the first job. This is a dangerous proposition since that extra work often fails to appear.

An LCO that takes too many unprofitable jobs will soon find himself out of business. So, only take on these jobs for specific reasons.

Can you think of any other reasons why you might accept an unprofitable job?

Keith
__________________
Start a profitable lawn care business.
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


  #2  
Old 12-12-2007, 04:32 AM
realhuntin
Guest
 
Posts: n/a
Default

Lawn care business tipsLawn Care Business Book
Keith this is insightful, thinking of all these reasons to accept a nonprofitable job.

I can only think of reasons not to accept a nonprofit job.
1. We are business men and women we are in this to make money not lose it.
2. Say you needed to go to the bank and ask for working capital for a large Landscape job to help pay labor and some materials until you can get a draw payment from the GC and the loan officer ask to see you P & L, and it show these job's you did but your not makeing any money your losing money so your basicly spinning your wheels. So right off there will be qusetion of doubt in his/her mind about the profitability of this so called landscape job your asking them to front money for. What do you think they will say.
3. I understand your thought process with this generation of cash flow, but is it worth it.
4. In business you do not robb peter to pay paul, if you do you will always be looking for that one job to get you out of the hole.
5. Nonprofit jobs are just that nonprofit, save yourself the headache, walk away and take a good P&L to the bank and get a line of credit for opperating for the slow times and move forward with profitible jobs.

Me personally I would never take a nonprofit job if I knew in the very beginning it wasn't a money maker. Some jobs don't turn out like you thought they would and those become losing jobs, if this is something that couldn't have been helped then you mark it for a leason learned and you go over everything in detail about that job 100 times until you find why you lost money on it, then in the future you can fix it and not make that same mistake twice. When times are tough they can get tougher by taking nonprofit jobs. If it's just labor lost then is it really a losing job? No it just means you didn't make as much as you wanted to, so in that sence if the family is getting hungry then yes I would do a job for less money if labor is all that was invalved, if I had to buy materials of any kind then no we are right back to the reasons I listed above.

Just my point of view on a good subject matter.
Reply With Quote
  #3  
Old 12-12-2007, 06:46 AM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,307
Rep Power: 10
Steve has disabled reputation
Default

I had a thought on this.

You might want to take a non-profitable job if it brings you positive public relations and creates goodwill for you and your business within your community.

There might be a project in your town where you could come out looking like a hero.

For example. Some years back across from one of Donald Trumps buildings sat a dilapidated ice rink in disrepair that the city just could not get repaired. For years it sat like that.

One day Donald got tired of that and offered to fix the ice rink for free. He got the job done and it was fixed in less time than he said it would.



NOTHING RINKY-DINK ABOUT THIS OPERATION

Source: Associated Press
Champion skaters Dick Button and Aja Zanova-Steindler glide across New York's renovated Wolman Rink in Central Park yesterday. Builder Donald Trump had vowed to finish the repairs free of charge in one season after the city had spent years and millions of dollars to fix leaks in the nation's largest rink. Better than good to his word, Trump had the rink ready six weeks early with ice the skaters said was "just like velvet."

Sometimes you can make more money in the long run if you are not short sighted and can take advantage of opportunities that present themselves.

After Trump fixed the rink, people saw him as an asset to the city and the residents, along with being an amazing developer.

There is no doubt you could do something similar on a smaller scale in your town. Look for opportunities. They are all around you.
__________________
- 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
  #4  
Old 12-12-2007, 07:45 AM
realhuntin
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by [b
Quote[/b] (Team Gopher @ Dec. 12 2007,7:46)]I had a thought on this.

You might want to take a non-profitable job if it brings you positive public relations and creates goodwill for you and your business within your community.

There might be a project in your town where you could come out looking like a hero.

For example. Some years back across from one of Donald Trumps buildings sat a dilapidated ice rink in disrepair that the city just could not get repaired. For years it sat like that.

One day Donald got tired of that and offered to fix the ice rink for free. He got the job done and it was fixed in less time than he said it would.



NOTHING RINKY-DINK ABOUT THIS OPERATION

Source: Associated Press
Champion skaters Dick Button and Aja Zanova-Steindler glide across New York's renovated Wolman Rink in Central Park yesterday. Builder Donald Trump had vowed to finish the repairs free of charge in one season after the city had spent years and millions of dollars to fix leaks in the nation's largest rink. Better than good to his word, Trump had the rink ready six weeks early with ice the skaters said was "just like velvet."

Sometimes you can make more money in the long run if you are not short sighted and can take advantage of opportunities that present themselves.

After Trump fixed the rink, people saw him as an asset to the city and the residents, along with being an amazing developer.

There is no doubt you could do something similar on a smaller scale in your town. Look for opportunities. They are all around you.
Way to think outside the box Steve.

This I would do. Even if it cost me money as a good deed for the community.

Because you would reap the benifits following your good deed.

So this brings to mind if your plan is doing a good deed to reap the monitary benfits to follow, is it still a good deed?

I waived a $75 gutter clean out last month to sell a full care annual contract to someone, is this the same? good deed or greed? HOw do you see it in this case.
Reply With Quote
  #5  
Old 12-12-2007, 08:16 AM
FourSeasons FourSeasons is offline
Members
 
Join Date: Sep 2007
Age: 32
Posts: 558
Rep Power: 7
FourSeasons
Default

Quote:
Originally Posted by [b
Quote[/b] ]I waived a $75 gutter clean out last month to sell a full care annual contract to someone, is this the same? good deed or greed? HOw do you see it in this case.
Maybe good business sense?
You will get that back through out the year with the contract.
__________________
Rob
Green Image Lawn & Landscape

\"If you don't feel the same way about Friday nights as you do Sunday nights, then you are not doing the right thing.\"
Reply With Quote
  #6  
Old 12-12-2007, 07:36 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,307
Rep Power: 10
Steve has disabled reputation
Default

Quote:
Originally Posted by [b
Quote[/b] ]This I would do. Even if it cost me money as a good deed for the community.

Because you would reap the benifits following your good deed.

So this brings to mind if your plan is doing a good deed to reap the monitary benfits to follow, is it still a good deed?

I waived a $75 gutter clean out last month to sell a full care annual contract to someone, is this the same? good deed or greed? HOw do you see it in this case.
I think it all comes down to perspective. Say for instance there is a storm and I am old and broke and a tree crashes into my house. If a local tree company comes and cuts it out for free, I would be elated. I wouldn't care one bit if they got tons of media exposure for it, even if they sent out press releases on it. I just needed that tree off my roof.

From the business owner's perspective it was a way to get advertising which was deemed to be more valuable than the free service given away.

As a business owner you have to be always looking out for the health of your business, but there are times when somethings will have more long term gains than short term gains. This is actually one of the benefits of running a private business versus a public business. You can do things that over the long run will help you grow even if they don't turn immediate profits.

That's my thought at least.
__________________
- 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
  #7  
Old 12-12-2007, 10:49 PM
realhuntin
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by [b
Quote[/b] (Team Gopher @ Dec. 12 2007,8:36)]
Quote:
Originally Posted by [b
Quote[/b] ]This I would do. Even if it cost me money as a good deed for the community.

Because you would reap the benifits following your good deed.

So this brings to mind if your plan is doing a good deed to reap the monitary benfits to follow, is it still a good deed?

I waived a $75 gutter clean out last month to sell a full care annual contract to someone, is this the same? good deed or greed? HOw do you see it in this case.
I think it all comes down to perspective. Say for instance there is a storm and I am old and broke and a tree crashes into my house. If a local tree company comes and cuts it out for free, I would be elated. I wouldn't care one bit if they got tons of media exposure for it, even if they sent out press releases on it. I just needed that tree off my roof.

From the business owner's perspective it was a way to get advertising which was deemed to be more valuable than the free service given away.

As a business owner you have to be always looking out for the health of your business, but there are times when somethings will have more long term gains than short term gains. This is actually one of the benefits of running a private business versus a public business. You can do things that over the long run will help you grow even if they don't turn immediate profits.

That's my thought at least.
Steve you have made some valid points here.
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

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Sod
RosalesLawnCare
08-27-2014 03:47 PM
Yesterday 07:00 PM
by RosalesLawnCare
2 115
Brake job!
kslawn
Yesterday 07:49 AM
Yesterday 05:09 PM
by stevef1201
1 51
Lawn Route Templates
Landscaper1165
Yesterday 01:52 PM
Yesterday 05:04 PM
by stevef1201
1 51
Exmark Lazer Z S-Series...
BLC7
08-22-2014 10:18 AM
Yesterday 09:49 AM
by BLC7
10 333
Hello! New here and...
CaliforniaFriendly
08-29-2014 11:30 AM
08-29-2014 05:39 PM
by jrs.landscaping
1 96
Stihl engine isn't...
Marcintosh
08-12-2014 08:30 PM
08-28-2014 09:28 PM
by Marcintosh
12 482
Hello
jawnebgoode
08-28-2014 08:37 PM
08-28-2014 08:37 PM
by jawnebgoode
0 40
Hello from Ohio
kurtwin
08-28-2014 05:06 PM
08-28-2014 05:06 PM
by kurtwin
0 59
Softball field
kslawn
08-15-2014 09:28 AM
08-28-2014 12:01 PM
by Steve
16 573
Lawn needs top soil What...
jymie
08-26-2014 11:01 AM
08-28-2014 11:58 AM
by Steve
5 183
Help pricing cut down 7...
Bradcook21
08-26-2014 11:17 PM
08-28-2014 11:47 AM
by Steve
5 165
Walk Behinds and Texas...
SGL1
08-26-2014 03:53 PM
08-27-2014 10:38 PM
by SGL1
5 171
Say Hello !!!
Steve
03-19-2007 11:18 AM
08-27-2014 08:33 PM
by kurtwin
1,187 331,162
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
08-26-2014 04:21 PM
by ExtremeLawncareServices
110 6,586
How do I approach...
Bradcook21
08-21-2014 01:48 AM
08-26-2014 05:08 AM
by Billy Goat
12 468
Tender Process
M2Dave
08-24-2014 12:31 PM
08-25-2014 04:14 PM
by Steve
2 160
Grass hopper mower
ExtremeLawncareServices
12-05-2013 08:51 AM
08-25-2014 04:02 PM
by Steve
26 3,814
Need help pricing basic...
Bradcook21
08-22-2014 01:21 AM
08-22-2014 01:05 PM
by Steve
2 246
Yearly contract Pricing
jrob0691
08-21-2014 08:57 AM
08-22-2014 01:01 PM
by Steve
6 320
yearly contract help...
jrob0691
08-21-2014 04:09 PM
08-22-2014 12:48 PM
by Steve
1 203
Pampas bushes
Bradcook21
08-22-2014 01:30 AM
08-22-2014 07:17 AM
by grassdoctore
1 176
2014 Gie-expo
ExtremeLawncareServices
08-19-2014 11:22 PM
08-21-2014 08:50 PM
by phlawncare
2 213
Fuel Can Spouts
Shark1611
08-16-2014 09:09 AM
08-21-2014 08:23 PM
by SGL1
11 450
Have you ever had to...
SouthernRootsLawnCare
07-26-2014 02:41 PM
08-21-2014 05:03 PM
by stevef1201
6 717
Hello
M2Dave
08-21-2014 12:32 AM
08-21-2014 01:38 PM
by Steve
1 179
New Landscaping Business
rekon32
08-16-2014 02:26 PM
08-21-2014 12:33 PM
by SouthallMowing
8 506
Downed Tree Chop Bid
WesleySnips
08-16-2014 03:47 PM
08-20-2014 01:44 PM
by SGL1
10 488
60 inch honda/bunton...
pblawncare
08-17-2014 11:30 AM
08-18-2014 03:19 PM
by Steve
2 231
Replacement Parts -...
nicholas-KC
08-16-2014 08:40 AM
08-18-2014 03:16 PM
by Steve
4 341
Preparing the soil
Billy Goat
08-16-2014 06:18 PM
08-18-2014 03:01 PM
by Steve
1 249
What to pay help
phlawncare
08-04-2014 08:33 PM
08-18-2014 10:33 AM
by jrs.landscaping
29 1,078
Hello
Jeff1
08-07-2014 11:18 PM
08-15-2014 11:53 PM
by Jeff1
11 543
Lie #2 RESIDENTIAL...
ExtremeLawncareServices
01-06-2014 05:02 AM
08-15-2014 01:46 PM
by mattthelawnguy
54 6,645
Need help 30 HP koler...
Shady Grady
08-01-2014 03:31 PM
08-15-2014 08:46 AM
by kslawn
18 721
New Boomless Sprayer!
BlackRain75
01-03-2014 01:01 PM
08-14-2014 02:37 AM
by BlackRain75
12 1,905
first year update
cmdlawncare
08-12-2014 05:41 PM
08-13-2014 03:29 PM
by Steve
1 345
Hello from Jacksonville,...
JM Lawn Care
08-10-2014 07:15 AM
08-13-2014 07:04 AM
by Sprinkler Buddy
9 453
Hello everyone new to...
maddyandrays
08-11-2014 04:51 PM
08-12-2014 08:58 PM
by Shark1611
2 294
Walk behinds
hpruitcei
08-07-2014 06:28 PM
08-12-2014 02:35 PM
by mattthelawnguy
7 563
New name help
stevef1201
08-10-2014 04:27 PM
08-12-2014 12:03 PM
by Steve
6 448
my little green dilemmas
Lawn Techie
08-03-2014 11:47 AM
08-11-2014 01:20 PM
by Steve
7 546
what the best...
CleanCutsLLC
08-02-2014 01:02 AM
08-11-2014 01:16 PM
by Steve
6 595
Texas lawn care company...
Livingston Lawn Care
07-25-2014 11:29 AM
08-11-2014 01:19 AM
by ExtremeLawncareServices
13 855
Covering all the bases
janslawncare
08-08-2014 10:11 AM
08-08-2014 01:41 PM
by Steve
1 389
New from Florida
ADE
08-06-2014 08:40 PM
08-08-2014 01:32 PM
by Steve
4 453
JOB - Landscape Install...
janslawncare
08-08-2014 10:06 AM
08-08-2014 10:06 AM
by janslawncare
0 348
Battery power tools or...
Steve
08-07-2014 12:24 PM
08-07-2014 05:18 PM
by mattthelawnguy
2 356
My client just told me...
Greg'slawnandlandscape
08-04-2014 08:39 AM
08-06-2014 11:14 PM
by grassdoctore
12 697
Illegal spraying
GoGreenerKS
07-04-2014 09:11 AM
08-06-2014 02:03 PM
by Steve
13 1,332
Mowing the hills
EyeCatchersNow
07-08-2014 12:22 PM
08-06-2014 01:40 PM
by Steve
20 1,561
» Popular Tags
4x4 34'' ads apartment bid apartment lawn care estimate butterfly gardens care charge christmas credit card customers exmark fall ferris financing four wheel drive franchise gopherhaul grass gravely hardscapes health hills holiday how much to charge husqvarna hydraulic invoice kansas city landscape services lawn lawn care lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website managing a lawn care business marketing mechanic monthly mow mowing mulch price new and restored landscapes new buisness new business new mower podcast promotion push versus ride riding mower scag scag v-ride schedule search engine optimization seo small engine repair starting a business starting a lawn care business steve stihl top dresser toro tractor auger trailer mate pro tree care walker wright stander rh
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 12:51 AM.


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

All times are GMT -5. The time now is 12:51 AM.

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