Pay att. to the small details when setting up, its a long list, but once you have things set up it will be easier to run. The internet is very imporetant for advertising, look at competitors web pages, take a seminar on how to get your page on top when googled. Once your up and going add a pest control license for "Lawn and ornamental" then you can add services with your existing customers, who would rather deal with one company, one bill ect. Lawn insect control, weed control, fertalizer, deep root injection for trees and hedges. Lots of money in this, all you need is a tank, pump, motor, and hose reel on a truck or trailer. If you have the truck or trailer, used rigs can be purchased for 600 and up. Add a general pest control license to add general house pest control [GHP] to your routes. Aim at the high end homes as they have the money and not the time to take care of their homes. If they love you and your work, they will tell all their friends and family, and you will be very busy. Its not always about price, but service and quality of your work. I always pick up my clients newspapers, garbage cans or help with their grocerys, pick up any trash in the yard ect. Treat it as your own home. Books have written on this subject, these are just a few tips and ideas to ponder. Good luck.
Starting a business...
- Thread starter snowlover
- Start date
Here is something I received in a news letter recently. It was spam from some forum
<blockquote><hr size=0><!-quote-!><font size=1>quote:</font>
How To Really Bid A Commercial Account
I had never been more frustrated than I was when I received a phone call from a property manager of a place I really thought I was going to get. He called me and I could tell instantly that I did not get the job. He told me that he pulled hard for me to get the contract with the people who make the decision, but they went with another company.
I hung up the phone in a daze. I know I did everything right. I met all of their needs, I answered all of their questions, I knew my numbers so my prices were right and I even threw in some freebies.
I called the property manager back and asked him why they chose another company instead of me and I will never forget his words…
“Sean, your proposal was impressive. You came highly recommended. However, they have a budget and your mowing price was $140 more a cut than the company they went with.”
Now wait a minute – mowing price? There were a ton of different services they wanted everyone to bid on – edging, mulching, shrubs, aeration, weed control, leaf removal, flower changes, and even some power washing. How the heck was just mowing the deciding factor? More importantly, how in God’s name did another professional company with the equipment and manpower bid $140 less per mowing than me? This was a 32 cut contract that they asked for – that is almost $4,500 less than my bid?
It did not make any sense… well, not at first.
I could not stop thinking about this and it really upset me and made me angry. There had to be a reason, some sort of magical formula or some nonsense they were using that made it possible for them to win this bid over me.
Then like most things, it hit me. I was so focused on thinking about things from my perspective – the only perspective I knew. I realized that I had to think like the property managers and decision makers thought. I had to literally pretend that I was the one pulling the strings and calling the shots. I had to stop thinking like a landscaper.
So I sat down and decided to do just this. If I had 10 companies providing me bids for my property, what would be the first thing I would look at?
Price.
Of course, price. They don’t care if you are a nice guy or what you’ve done in the past. The first thing they care about is price. So that lead me to the idea of just simply low-balling my prices from there on out.
Wait a minute. I am not a charity organization; I need to make money I thought to myself.
If I went in and just lowered all of my prices I would be losing money – yea I would have all kinds of commercial clients, but I would be broke. That wasn’t the answer.
Ok, what else do they look at when considering a company? Well of course they want to know that the companies are insured, capable, etc… but that should be a given. What else are they looking at?
I could not figure out anything significant other than price. So I dug deeper. What part of price are they looking at? What would I look at? I would look at mowing price first since it would be the most frequent charge. Oh my…. That property manager told me that their mowing price was $140 a mowing less than mine. That is obviously what the powers that be looked at.
Wouldn’t they look at the overall price? I mean, what’s the difference between me charging $140 more per mowing but my overall price being the same or even less?
I had to call the commercial property manager back and see if he would help me get to the bottom of this. I got him on the phone and asked him if he would be willing to help me figure this out.
I asked him why the other company was chosen aside from the mowing price. He told me that it was the only price they genuinely committed to. He said they bid on all the same services I bid on and their prices were about the same as mine, some higher, some lower, etc…. I asked him who’s bid overall was higher and he said he did not know, but he assumed mine since my mowing price was so much more.
The brightest light bulb I have ever seen went off in my head right at that moment.
Here’s the deal…
This company made certain that they included all of the requested services in their bid, but they manipulated the property manager and decision makers into believing that the only price that mattered was the mowing price. They convinced them that all of the other services, although necessary in some instances may not be necessary in other situations. They provided prices but said that the services would only be done if they were absolutely necessary.
In other words -
Their bid and their presentation was one in which they made it seem like they were as concerned with the company’s budget as the company itself. This was very attractive to the decision makers and the check writers. They used the approach of “loss-leader”. They knew if they could get their foot in the door with a lowered mowing price they would make that money back with the other services they would provide. They also knew that commercial properties have long-term advantages over bouncing from one residential to another – less drive time, easier on equipment; employees usually prefer it, etc….
I was starting to understand. But I was still stumped on the $140 mowing difference. I wasn’t using push mowers and brooms here. Their equipment could not be any different from mine. I knew I was organized and we were always efficient so it was not like they could do it much faster than us. I paid my guys well, but it wasn’t like I was paying them twice what this other company was paying. I paid taxes and so did they. I paid insurance and so did they. Even more importantly I knew that I would put our quality of work up against anyone’s any time….
Oh my….wait a second…. That was it…..
They did not do things as nice as we did – they did what needed to be done. They made the necessary areas look the way they needed to look (front entrance, view from the CEO’s window, parking lot, etc…) but everything else was done as quickly and inexpensively as possible. In other words, they trimmed only what had to be trimmed, they blew off what needed blown off, they edged only what could be seen, they applied mulch at 3 inches in the front beds and only at 1 inch in the back corner that no one can see, etc…
=======================================================================
For more reports like this, as well as examples of flyers, contracts, letters, proposals, how to estimate, how to advertise, taxes, insurance and a lot more, go to http://cts.vresp.com/c/?LawnCareSuccess/020a1f2d2d/8396be9d2c/1c8a558328
=======================================================================
Do you see what I am saying here? They were mowing and maintaining commercial properties differently than I was maintaining residential properties. Makes sense now, huh?
Every inch of Mrs. Wilson’s 10,000 square foot property had to be perfect. Every inch of the 20 acre industrial park did not have to be perfect. I was bidding based on the assumption that we would make every inch of that commercial property perfect. They don’t care about the bottom terrace in the back of the loading dock area – they care about the perfect edges and straight lines and weed-free beds at the front of the property.
That was it. It wasn’t that they weren’t doing a good job – and I am not suggesting this to you. What I am saying is, they bid according to the quality they provide.
The lesson here – show them you are worried about price as much as they are, get in the door by lowering your mowing price, make your money back with other services, and when you are doing the work, make the right areas look good and move faster and more inexpensively on the areas that no one sees or cares about.
My success rate on acquiring commercial properties of all kinds increased dramatically from that point forward.
I hope this information has helped you and if you have any questions feel free to contact me any time by visiting my site at http://cts.vresp.com/c/?LawnCareSuccess/020a1f2d2d/8396be9d2c/62cd250742
- and be sure to check out the information I provide for Lawn Care and Landscaping business owners like yourself.
Regards,
Sean Adams
Founder & Owner, Lawn Care Success
<!-/quote-!><hr size=0></blockquote>
<blockquote><hr size=0><!-quote-!><font size=1>quote:</font>
How To Really Bid A Commercial Account
I had never been more frustrated than I was when I received a phone call from a property manager of a place I really thought I was going to get. He called me and I could tell instantly that I did not get the job. He told me that he pulled hard for me to get the contract with the people who make the decision, but they went with another company.
I hung up the phone in a daze. I know I did everything right. I met all of their needs, I answered all of their questions, I knew my numbers so my prices were right and I even threw in some freebies.
I called the property manager back and asked him why they chose another company instead of me and I will never forget his words…
“Sean, your proposal was impressive. You came highly recommended. However, they have a budget and your mowing price was $140 more a cut than the company they went with.”
Now wait a minute – mowing price? There were a ton of different services they wanted everyone to bid on – edging, mulching, shrubs, aeration, weed control, leaf removal, flower changes, and even some power washing. How the heck was just mowing the deciding factor? More importantly, how in God’s name did another professional company with the equipment and manpower bid $140 less per mowing than me? This was a 32 cut contract that they asked for – that is almost $4,500 less than my bid?
It did not make any sense… well, not at first.
I could not stop thinking about this and it really upset me and made me angry. There had to be a reason, some sort of magical formula or some nonsense they were using that made it possible for them to win this bid over me.
Then like most things, it hit me. I was so focused on thinking about things from my perspective – the only perspective I knew. I realized that I had to think like the property managers and decision makers thought. I had to literally pretend that I was the one pulling the strings and calling the shots. I had to stop thinking like a landscaper.
So I sat down and decided to do just this. If I had 10 companies providing me bids for my property, what would be the first thing I would look at?
Price.
Of course, price. They don’t care if you are a nice guy or what you’ve done in the past. The first thing they care about is price. So that lead me to the idea of just simply low-balling my prices from there on out.
Wait a minute. I am not a charity organization; I need to make money I thought to myself.
If I went in and just lowered all of my prices I would be losing money – yea I would have all kinds of commercial clients, but I would be broke. That wasn’t the answer.
Ok, what else do they look at when considering a company? Well of course they want to know that the companies are insured, capable, etc… but that should be a given. What else are they looking at?
I could not figure out anything significant other than price. So I dug deeper. What part of price are they looking at? What would I look at? I would look at mowing price first since it would be the most frequent charge. Oh my…. That property manager told me that their mowing price was $140 a mowing less than mine. That is obviously what the powers that be looked at.
Wouldn’t they look at the overall price? I mean, what’s the difference between me charging $140 more per mowing but my overall price being the same or even less?
I had to call the commercial property manager back and see if he would help me get to the bottom of this. I got him on the phone and asked him if he would be willing to help me figure this out.
I asked him why the other company was chosen aside from the mowing price. He told me that it was the only price they genuinely committed to. He said they bid on all the same services I bid on and their prices were about the same as mine, some higher, some lower, etc…. I asked him who’s bid overall was higher and he said he did not know, but he assumed mine since my mowing price was so much more.
The brightest light bulb I have ever seen went off in my head right at that moment.
Here’s the deal…
This company made certain that they included all of the requested services in their bid, but they manipulated the property manager and decision makers into believing that the only price that mattered was the mowing price. They convinced them that all of the other services, although necessary in some instances may not be necessary in other situations. They provided prices but said that the services would only be done if they were absolutely necessary.
In other words -
Their bid and their presentation was one in which they made it seem like they were as concerned with the company’s budget as the company itself. This was very attractive to the decision makers and the check writers. They used the approach of “loss-leader”. They knew if they could get their foot in the door with a lowered mowing price they would make that money back with the other services they would provide. They also knew that commercial properties have long-term advantages over bouncing from one residential to another – less drive time, easier on equipment; employees usually prefer it, etc….
I was starting to understand. But I was still stumped on the $140 mowing difference. I wasn’t using push mowers and brooms here. Their equipment could not be any different from mine. I knew I was organized and we were always efficient so it was not like they could do it much faster than us. I paid my guys well, but it wasn’t like I was paying them twice what this other company was paying. I paid taxes and so did they. I paid insurance and so did they. Even more importantly I knew that I would put our quality of work up against anyone’s any time….
Oh my….wait a second…. That was it…..
They did not do things as nice as we did – they did what needed to be done. They made the necessary areas look the way they needed to look (front entrance, view from the CEO’s window, parking lot, etc…) but everything else was done as quickly and inexpensively as possible. In other words, they trimmed only what had to be trimmed, they blew off what needed blown off, they edged only what could be seen, they applied mulch at 3 inches in the front beds and only at 1 inch in the back corner that no one can see, etc…
=======================================================================
For more reports like this, as well as examples of flyers, contracts, letters, proposals, how to estimate, how to advertise, taxes, insurance and a lot more, go to http://cts.vresp.com/c/?LawnCareSuccess/020a1f2d2d/8396be9d2c/1c8a558328
=======================================================================
Do you see what I am saying here? They were mowing and maintaining commercial properties differently than I was maintaining residential properties. Makes sense now, huh?
Every inch of Mrs. Wilson’s 10,000 square foot property had to be perfect. Every inch of the 20 acre industrial park did not have to be perfect. I was bidding based on the assumption that we would make every inch of that commercial property perfect. They don’t care about the bottom terrace in the back of the loading dock area – they care about the perfect edges and straight lines and weed-free beds at the front of the property.
That was it. It wasn’t that they weren’t doing a good job – and I am not suggesting this to you. What I am saying is, they bid according to the quality they provide.
The lesson here – show them you are worried about price as much as they are, get in the door by lowering your mowing price, make your money back with other services, and when you are doing the work, make the right areas look good and move faster and more inexpensively on the areas that no one sees or cares about.
My success rate on acquiring commercial properties of all kinds increased dramatically from that point forward.
I hope this information has helped you and if you have any questions feel free to contact me any time by visiting my site at http://cts.vresp.com/c/?LawnCareSuccess/020a1f2d2d/8396be9d2c/62cd250742
- and be sure to check out the information I provide for Lawn Care and Landscaping business owners like yourself.
Regards,
Sean Adams
Founder & Owner, Lawn Care Success
<!-/quote-!><hr size=0></blockquote>
On the truck issue, consider the overall implications. You have a Yukon which costs you money and makes you no money. If you buy another truck for the business you will go to lower quality than you might want and will write it off to the business...the Yukon is still not making you any money. If you sell the Yukon and buy the 3/4 with a plow you write part of it off for the business use and it makes you money. You eliminate 1 nonperforming asset.
Just to be clear, I am not an accountant, but I do own a small business.
Just to be clear, I am not an accountant, but I do own a small business.
If it was me starting out and I needed a good plow truck I would not go with a half ton. After you put the plow on and if you salt a load of salt, and sidewalk blower you are going to wear out things on that truck quick. Some repairs might require lots of down time, Trans, frame damage etc. I had a buddy that was looking at plow trucks a few years back and actually found the best deal at a dealership. A chevy 3/4 ton diesel with a boss v plow with all the options, that had only been used to plow the car lot no personal use for two years. He got it for a steal, truck under blue book and they didn't run the price up on him for the plow. Plus in the summer a 3/4 or 1 ton will haul the trailer much nicer when you are full of clippings and such. Like was said before don't waste your money and buy cheap stuff that just gets the job done, be safe and get a truck that will stand up to the daily wear and tear and looks nice. I use to work for a company that had 1/2 ton trucks to haul around our equipment trailer and the were beat to heck and falling apart. When one died the boss ended up buying a newer 3/4 truck that was in good shape and business went up. You are driving a rolling billboard for your company at all times when your on the road. So keep it clean and shiny and be the guy that lets people in front of you and DON'T SPEED, road rage, or play your music loud in subdivisions. People really pay attention to that kind of stuff. Sorry for making it long but that is what I would do if it was me. A lot of people don't even thing about their business image when driving, they just want to hurry up and get done for the day. One other helpful thing I can tell you is make sure that your brakes are good on the truck and if you can get them on the trailer because people will pull out in front of you all the time, you have never been cut of as many times in a day as you will be when hauling a trailer on a daily basis.
Mom and dad had acouple different busness. Grocerystore/butchering and sausage making, Landry mat, and full service gas station and garage. They always did there own work and only hired someone to work for them when they needed a day off or emergency. I have been thinking of trying to start my own business and dad has always said count on people being lazy and do that for them. Also offer quotes to companies that have lawns around them. With downsizing alot are getting rid of there caretakers for the grounds.
favoritos
Well-known member
Eao, that quote is pretty good. We hire out services for all kinds of stuff. I am not on the decision team for the bid process. But I do end up seeing the price sheets for the various services. The most obvious stuff is reasonably priced and used the most often. The obscure things like cleaning fences of debris/growth are expensive but needed at times. Our snow removal is unbelievably expensive when we do the whole complex. Most of the time we try to get by with a few small areas. We could literally pay for a skid steer with each full lot cleaning. The decision makers will look at the most obvious stuff when comparing bids.
I also look at your truck and trailer as a moving billboard of the business. Your personal appearance on the job site is also important. People believe that they will receive what they see.
I also look at your truck and trailer as a moving billboard of the business. Your personal appearance on the job site is also important. People believe that they will receive what they see.
groomerdave
New member
A guy I worked with at one time is doing this exact thing right now in Marquette. He is happy and doing well. Go for it.
I plow during the winter and have a few suggestions. We have done well with Fords for plow trucks and have had good luck with Boss plows. Get at least a 3/4 truck, Diesels weigh more and plow better because of it. The Powerstrokes that we use get around 9 mpg plowing, and the one gasser that we have gets around 4.5 mpg. A 4wd dually with dump flat bed seems to push the best by far, but gets very loose on the road over 45 mph in the snow. Sipe your tires, doesn't cost that much and makes lots of difference. If you get bigger and need a Loader for bigger areas look at leasing / renting. Protech pushers are the best, but others work almost as well. It's all about the rubber cutting edge on them.
Think Snow! -Dave
I plow during the winter and have a few suggestions. We have done well with Fords for plow trucks and have had good luck with Boss plows. Get at least a 3/4 truck, Diesels weigh more and plow better because of it. The Powerstrokes that we use get around 9 mpg plowing, and the one gasser that we have gets around 4.5 mpg. A 4wd dually with dump flat bed seems to push the best by far, but gets very loose on the road over 45 mph in the snow. Sipe your tires, doesn't cost that much and makes lots of difference. If you get bigger and need a Loader for bigger areas look at leasing / renting. Protech pushers are the best, but others work almost as well. It's all about the rubber cutting edge on them.
Think Snow! -Dave
Return all phone calls as quickly as possible, no matter how big or small. In the service industry one of the biggest complaints is "he never answers his phone" or "he never calls me back".
Also, join some type of business networking/referral group to get/give referrals. This is a great way to meet other business owners and network with them.
Also, join some type of business networking/referral group to get/give referrals. This is a great way to meet other business owners and network with them.
You are exactly right about call backs.
Nothing po's a customer more than being ignored. Another thing is not let you kids answer your business phone! I tried to get paving contractor and every time I called his business phone all I could get was voice mail, of the 2 times someone answered is was real young kid. None of my calls were ever returned. If you can't return your calls you probably can't be trusted at all IMO.
Nothing po's a customer more than being ignored. Another thing is not let you kids answer your business phone! I tried to get paving contractor and every time I called his business phone all I could get was voice mail, of the 2 times someone answered is was real young kid. None of my calls were ever returned. If you can't return your calls you probably can't be trusted at all IMO.
The biggest problems I see in the service industry has 9 out of 10 times been problems with not receiving a call back in a timely matter. The most successful people in the industry have always been the ones that "take the calls" when their phone rings or call back immediately. The problems seem to always escalate rapidly as someone "waits for a call back".
eao, your so right when you say if you can't return your calls you probably can't be trusted at all.
eao, your so right when you say if you can't return your calls you probably can't be trusted at all.