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.

Commercial Account


General Business Discussions

A place to talk about general business discussions.
Reply
 
Thread Tools Search this Thread
  #1  
Old 04-07-2006, 09:00 AM
myrlin myrlin is offline
Members
 
Join Date: Jun 2005
Location: Port Charlotte, FL
Posts: 242
Rep Power: 11
myrlin
Default

Hello everyone,

We are a fairly small residential lawn mowing service Co. (47 customers). We just received a call for an estimate on a small gated community (10) homes plus mowing around pond area and front entrance area. We have never submitted a bid like this before and not sure how to properly word this bid or even price it. They want a price on a yearly contract. We live in SW Florida. All our customers are on a yearly contract priced arount $70.00 per month. Any suggestions or help would be greatly appreciated.

Thanks in advance.......Myrlin
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 04-07-2006, 10:36 AM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,945
Rep Power: 10
Steve has disabled reputation
Default

Lawn care business tipsLawn Care Business Book
Hi myrlin,

Before I give you my thoughts on this, could I ask you some more questions to learn a little more. What do you think of this bid? Are you excited about it? Or does it unnerve you etc?
What do you feel this bid could do for your business both good and bad?
How many employees do you have now or are you an owner operator?
__________________
- 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
  #3  
Old 04-07-2006, 11:05 AM
myrlin myrlin is offline
Members
 
Join Date: Jun 2005
Location: Port Charlotte, FL
Posts: 242
Rep Power: 11
myrlin
Default

Hi Team Gopher,

My husband is the sole owner. At this time we don't have any other employees. We are excited about this opportunity but at the same time a little nervous due to the fact it is only my husband. He feels he would be able to handle this account.
The good side for our business would be the income it would generate, more cash flow. The bad side could be more equipment breakdowns, down times, which would affect all our customers.
Your thoughts would be helpful.
Thanks....Myrlin
Reply With Quote
  #4  
Old 04-07-2006, 01:00 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,945
Rep Power: 10
Steve has disabled reputation
Default

Hi myrlin,

This is my view and I do hope others will jump in here and offer their input as well.

I would say don't get involved with the commercial account. Why? First off they are notorious for paying the absolute bare minimum they need to get the service done.
Generating cash flow alone is not a good enough reason to take on such jobs. Cash flow has nothing to do with how profitable a job is. Remember, the goal is profits and not cash flow.
Because you are new to the commercial world, there is a good chance you will underbid. Then if you win the bid, you will be locked into a large account for the year. This is the type of move that knocks out many small businesses.

Slow and steady wins the race. I would suggest taking smaller more steady steps. Don't rely on one large customer. Spread out your risk with many smaller customers.

If you decide to go this direction though we do have contracts here.

What are your thoughts?
__________________
- 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
  #5  
Old 04-07-2006, 01:35 PM
myrlin myrlin is offline
Members
 
Join Date: Jun 2005
Location: Port Charlotte, FL
Posts: 242
Rep Power: 11
myrlin
Default

Hi Team Gopher,

Thanks for your input. I do hope others can input their thoughts also. I agree with most of your post. We probably would be safer just adding a few residential accounts here & there.
My husband was thinking whatever we would normally charge a residential account, then double the price for this new account.
Your thoughts?

Thanks....Myrlin
Reply With Quote
  #6  
Old 04-07-2006, 03:43 PM
tiedeman
Guest
 
Posts: n/a
Default

If you do not have the equipment or help, then I personally would not do it. Try not to over extend yourself to much. I would thank them for the opportunity to bid, and mention that perhaps you would love to submit a bid for next year instead. By then, perhaps you might have more equipment.

The worst is having too much accounts and not being able to handle them, also put into place of what if something happens to your equipment, then you are really backed up big time
Reply With Quote
  #7  
Old 04-07-2006, 03:53 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,945
Rep Power: 10
Steve has disabled reputation
Default

It's a big jump going from 47 customers and then adding a block of 10.

Myrlin,
Tiedeman has been through a lot too. He had over expanded in the past and ran into big problems with it.

What kind of advertising have you been doing to attract new business?
__________________
- 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
  #8  
Old 04-07-2006, 07:17 PM
myrlin myrlin is offline
Members
 
Join Date: Jun 2005
Location: Port Charlotte, FL
Posts: 242
Rep Power: 11
myrlin
Default

Hi Team Gopher & tiedeman,

Thank you both so much for your replies. It really helped us in our decision. We really thought it over and decided it would be too much to take on at this time. You are definitely right about the possibility of not having enough equipment or help to handle it. That could really break us.
We advertise in our local community paper and it has done us well. Now that our season is starting up again, the phone keeps ringing. Just today we had 4 calls for our average residential estimates.
We are thinking about including a free fertilization for new customers in our ad.
Thanks again for your input and suggestions. You really do help alot of people on this board. Keep up the great work!
Myrlin
Reply With Quote
  #9  
Old 04-07-2006, 07:35 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,945
Rep Power: 10
Steve has disabled reputation
Default

Hi Myrlin,

I think you made a wise decision. I am glad to help. I can't tell you how many business owners I talk with get so excited over the prospect of a big account that they jump in without looking.
Run your business for the long haul. You need not only to make a profit but build up your infrastructure as you go and grow. Part of this infrastructure is knowledge on how to run your business. That can come by reading and trial & error.
If you get too big too soon you won't have the infrastructure to deal with it and you can implode.
Read past posts on this forum and you will see stories how the largest lawn care operations in town look from the outside as going great guns but in reality they are losing money and are on their way to extinction.

How many years have you been in business? Have you run other previous businesses before this one?
__________________
- 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
  #10  
Old 04-07-2006, 07:49 PM
myrlin myrlin is offline
Members
 
Join Date: Jun 2005
Location: Port Charlotte, FL
Posts: 242
Rep Power: 11
myrlin
Default

We have been in this business since March 2004. Yes, we owned a laundromat from 1995-2000. The overhead was just so expensive and got tired of 13 hour days, 7 days a week. In between 2000-2004 we both worked for other employers and then decided to go into the lawn business. My husband does all the lawn work alone & I do the office work (phones, computer work, scheduling etc.) Your program is great and has saved us so much time.
Thanks...Myrlin
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
Laying new grass, Sod...
WarriorLandscapingCAN
Yesterday 10:07 AM
Yesterday 08:41 PM
by Steve
1 29
I need some aeration...
rootytalbot
08-14-2015 12:32 PM
Yesterday 09:06 AM
by Daveylawns
10 3,731
Hello from Centreville!
Daveylawns
Yesterday 09:04 AM
Yesterday 09:04 AM
by Daveylawns
0 26
To mow weekly or Biweekly
WarriorLandscapingCAN
05-11-2016 04:09 PM
05-22-2016 11:45 AM
by jrs.landscaping
8 239
Prolin
rmccutchan
05-21-2016 04:53 PM
05-21-2016 06:36 PM
by rmccutchan
2 48
Upgraded to a new mower
Stevenor92
05-17-2016 08:17 PM
05-20-2016 07:08 PM
by Stevenor92
8 162
Intro
LaraRahmani
05-18-2016 02:54 PM
05-19-2016 02:43 PM
by Steve
2 86
Best Push Mower You Have...
markty
05-14-2016 03:46 PM
05-18-2016 07:34 PM
by Stevenor92
4 154
New mower!!!!
Stevenor92
05-18-2016 03:46 AM
05-18-2016 06:39 PM
by Stevenor92
2 87
Say Hello !!!
Steve
03-19-2007 11:18 AM
05-18-2016 02:59 PM
by LaraRahmani
1,249 434,404
Stupid idea?
hopolb33
05-13-2016 11:25 AM
05-16-2016 11:22 AM
by Steve
1 122
Planting SKYBOUND CEDARS
FrankieeLawnz
05-13-2016 03:59 PM
05-16-2016 11:21 AM
by Steve
1 110
Edging Fad...
Tree geek
05-10-2016 11:29 PM
05-15-2016 11:12 PM
by Tree geek
2 158
Business Overload
Chilehead
05-06-2016 09:27 PM
05-13-2016 11:15 AM
by Steve
11 346
Hello from great state...
Cel1980
05-11-2016 09:00 AM
05-13-2016 11:07 AM
by Steve
2 132
Did this job free to...
JJand M Lawncare
05-02-2016 02:33 PM
05-11-2016 03:54 PM
by JJand M Lawncare
10 390
How to tell Cust. to...
GeeGood
04-09-2008 09:55 PM
05-09-2016 07:08 PM
by JJand M Lawncare
16 5,484
Echo SRM 230 trouble.
Jack Rabbit
05-08-2016 06:16 PM
05-08-2016 11:22 PM
by Just for Cuts
1 132
Toro ZTR Issues
rsanchez1203
05-06-2016 09:27 PM
05-07-2016 10:26 AM
by Steve
2 149
Correct way to quote a...
WarriorLandscapingCAN
05-02-2016 11:52 AM
05-03-2016 10:59 AM
by Steve
1 257
Having an issue with...
Mr. Mow
04-27-2016 03:58 PM
04-28-2016 05:04 AM
by Sprinkler Buddy
2 273
Hello From Virginia
JJand M Lawncare
04-25-2016 01:02 PM
04-27-2016 05:20 PM
by Steve
5 310
knowledge is Key
Greg'slawnandlandscape
04-23-2016 02:23 AM
04-25-2016 02:40 PM
by Steve
2 292
Hello from Calgary
Freshcut
04-22-2016 06:10 PM
04-25-2016 02:38 PM
by Steve
1 257
» Popular Tags
advertising become an entrepreneur best mower be your own boss break business education business help business management contractor hacks deck lift dethatcher edging entrepreneur entrepreneur education estimates free lawn care fuel problems fuel pump half moon blade hydro increase customers jjandm lawncare landscape landscape design landscaping landscaping design company landscaping richmond va landscping lawncare lawn mowing lawnservice lowering grade marketing mulch new business planting plowing raising grade residential lawn care richmond va richmond virginia lawn care roundup safety scag snowblower snow plowing snow shovel solo solo backpack sprayer start a business start a lawn care business start business start up swzt toro timecutter tree tree pics tree service video walk behind what to charge work from home
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 01:55 PM.


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

All times are GMT -5. The time now is 01:55 PM.

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