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, 03:39 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, 05:32 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, 07:46 AM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,616
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, 08:45 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, 09:16 AM
FourSeasons FourSeasons is offline
Members
 
Join Date: Sep 2007
Age: 32
Posts: 558
Rep Power: 8
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, 08:36 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,616
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, 11:49 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
Thanksgiving cards
Steve
11-10-2008 11:57 AM
Today 04:29 PM
by achri12
3 8,603
Hi to you NOTHERNERS
stevef1201
11-11-2014 05:56 PM
Today 10:27 AM
by kslawn
6 429
Happy Thanksgiving!
Steve
Today 09:48 AM
Today 09:48 AM
by Steve
0 26
Say Hello !!!
Steve
03-19-2007 12:18 PM
Yesterday 10:30 PM
by Just Cuts
1,194 349,002
Contract or no contract?
TRV
11-20-2014 09:18 PM
Yesterday 09:23 PM
by stevef1201
5 293
Good help is hard to find
Hanks Lawn Care Services
11-19-2014 03:27 PM
Yesterday 09:16 PM
by stevef1201
9 353
New parking area
ExtremeLawncareServices
11-07-2014 09:47 PM
Yesterday 07:32 PM
by ExtremeLawncareServices
4 455
These are the days on...
ExtremeLawncareServices
03-22-2014 10:12 AM
Yesterday 07:22 PM
by ExtremeLawncareServices
178 14,309
Hello from Kentucky
TRV
09-30-2014 06:42 PM
Yesterday 07:16 PM
by ExtremeLawncareServices
10 1,414
Pics for website
tbtigers03
11-21-2014 05:40 PM
Yesterday 12:12 PM
by Just for Cuts
5 254
Hi from IL
steveinil
11-25-2014 02:07 PM
Yesterday 11:21 AM
by Steve
1 82
WNY saying Hi.
Sargewesser
11-25-2014 07:27 AM
Yesterday 11:20 AM
by Steve
1 85
How to: Use Thumbtack...
acrajchel
11-17-2014 06:39 PM
Yesterday 11:19 AM
by Steve
18 664
Peco Bagger
AGPS
11-18-2014 02:20 PM
Yesterday 10:58 AM
by Steve
10 412
Beginner Mistakes:...
Steve
01-31-2007 12:45 PM
Yesterday 10:57 AM
by Steve
22 6,309
Billboards for marketing
ExtremeLawncareServices
11-16-2014 08:39 PM
Yesterday 10:40 AM
by Steve
14 473
leaf removal
Double J LLC
10-03-2014 05:24 PM
Yesterday 01:08 AM
by ExtremeLawncareServices
25 2,613
How much do you up sell...
Essex Groundskeeping
11-23-2014 07:13 PM
11-24-2014 06:29 PM
by stevef1201
8 235
This sucks...
Matther777
09-18-2014 05:56 PM
11-24-2014 05:49 PM
by biglee
16 3,276
Pressure Washing...
WesleySnips
07-31-2014 07:13 PM
11-24-2014 04:32 PM
by acrajchel
4 706
New website
Chilehead
11-20-2014 04:39 PM
11-23-2014 07:40 PM
by Just for Cuts
12 368
My site is on fronts page
tbtigers03
11-14-2014 05:58 PM
11-22-2014 10:49 PM
by Just for Cuts
16 594
Belt dealer problem
googus
11-21-2014 08:45 AM
11-21-2014 06:36 PM
by Steve
2 197
What is going on with...
biglee
11-14-2014 03:04 PM
11-20-2014 02:50 PM
by biglee
40 1,052
My advice for new guys
avetslawncare
11-15-2014 09:32 AM
11-19-2014 01:47 PM
by biglee
10 597
Lawn Care business...
crieg122
10-23-2014 02:23 PM
11-19-2014 12:39 PM
by acrajchel
28 1,966
raking leaves ?
robert8509
10-22-2014 10:19 PM
11-18-2014 04:24 PM
by acrajchel
14 1,539
Leaf removal
madmedic8575
10-24-2014 05:14 PM
11-17-2014 07:34 PM
by acrajchel
6 1,274
sod job
SGlawncare
10-30-2014 09:21 PM
11-17-2014 07:10 PM
by acrajchel
7 861
Customer wants me to...
Mr. Mow
11-09-2014 07:13 AM
11-17-2014 06:48 PM
by acrajchel
10 637
Hello!
Brian3137
11-11-2014 07:15 PM
11-17-2014 06:46 PM
by acrajchel
14 559
small biz in Phoenix,AZ
anthonyramos1
11-08-2014 09:35 PM
11-17-2014 05:59 PM
by acrajchel
2 396
Client won't pay...
WesleySnips
10-30-2014 03:53 PM
11-17-2014 05:37 PM
by acrajchel
22 1,479
Government contracts
avetslawncare
11-15-2014 08:50 AM
11-17-2014 12:59 PM
by Steve
2 337
Need help on deciding a...
Brian3137
11-10-2014 06:32 PM
11-17-2014 12:44 PM
by Steve
12 605
West cost lawn prices
SGlawncare
10-09-2014 10:51 PM
11-16-2014 07:54 AM
by stevef1201
8 1,689
So how do you guys...
Mr. Mow
10-26-2014 08:55 AM
11-15-2014 08:44 AM
by avetslawncare
14 1,811
Truck, Trailer,...
hawthornelawncare
12-23-2011 01:01 AM
11-13-2014 08:35 AM
by jrs.landscaping
81 31,996
The most dangerous part...
Steve
10-06-2014 03:45 PM
11-12-2014 05:05 PM
by stevef1201
14 1,782
A little hang up in snow...
stevef1201
11-08-2014 07:05 AM
11-12-2014 12:51 PM
by Steve
4 517
Bi-weekly winter...
lxarth
11-04-2014 08:37 PM
11-12-2014 10:06 AM
by WesleySnips
9 724
taking first steps...
sizemorelawncare
11-10-2014 08:24 PM
11-11-2014 01:21 PM
by Steve
1 409
Back Pack Blower
Ian Lovejoy
11-09-2014 08:41 AM
11-11-2014 08:12 AM
by Just for Cuts
4 470
Business Cards
crieg122
10-25-2014 01:03 PM
11-11-2014 07:56 AM
by Just for Cuts
12 1,425
How the unregister?
alive101
11-04-2014 07:39 AM
11-10-2014 01:48 PM
by Steve
4 684
Belt adjustment question
googus
11-05-2014 06:43 AM
11-10-2014 01:38 PM
by Steve
5 587
Podcast
Shark1611
11-07-2014 05:42 PM
11-10-2014 11:41 AM
by Steve
1 383
hi, from Minnesota
rjklohn
11-07-2014 02:21 AM
11-07-2014 01:44 PM
by Steve
1 403
New to snow plowing
SS.Lawncare
11-05-2014 04:00 PM
11-07-2014 01:21 PM
by Steve
6 666
New Member
tonyap
11-05-2014 10:35 PM
11-07-2014 01:15 PM
by Steve
1 447
» Popular Tags
4wd aerocore apartment bid apartment lawn care estimate applying auger bid blades bob villa bush care charge commercial decorating deliquentaccounts demonstration ditches employee problems estimate ferris first truck four wheel drive gopherhaul growing a lawn care business hardscapes hiring how much to charge how to installation introduction john deere quik trac landscape services lawn lawn care lawn care busines plan lawn care business 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 mechanic monthly mulch mulch price new mower ordinance patio install per hour charge podcast profit on employee pto reo running a business shell snow snow plowing starting a business start up lawn care business steep lawns steve toro toro grand stand trailer mate pro tree truck new used landscape turfgrass consulting walk behind
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 04:33 PM.


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

All times are GMT -5. The time now is 04:33 PM.

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