Is there a magic number?
I used to follow the belief that there was a magic number in terms of how many lawn accounts you had to have in order to be doing “OK”.
Most of my friends in the lawn care industry also had the same thought process.
It was usually along the lines of “How many accounts are you up to?”…….and then followed by “I only need to get 30 more”.
I finally realized it wouldn’t matter if I had a million accounts.
The low profit margins on lawns in my area just didn’t make sense to me any more, and I realized I had to get out.
No matter how many lawn accounts I added, it ended up being a matter of the more accounts I added, the lower my profit margins were.
New employees, more expenses, higher insurance, broken equipment, high stress, it simply was not worth it.
Having a lawn route can be beneficial, it depends on your end goal
My wife kept harping about the fact that there was simply no profit in lawns, and she was ultimately right.
In my area, there really is no profit in lawns.
Unless you are really good at closing deals at about twice the going market price.
Lawn maintenance can be a good stepping stone.
It can also be an entrance into the more profitable work such as rock jobs, installs, etc.
I just could not wrap my head around keeping a lawn crew going and taking on the risk when they weren’t really making any profit.
Many people do it and make it work, I just chose not too.
There’s still ways to make money servicing lawns, but you need to be very particular on which lawns you take on
Commercial accounts, high end residential lawn accounts, entire blocks or subdivisions, what it really comes down to once again is profit margin.
If you can service 15 lawns in one stop, then you will be able to finish quicker and that brings the profit margin up.
Regular residential lawn accounts spread all over the place simply take too long to service unless you are really getting really good pay for those accounts.
When you start building up your account base, keep in mind, it’s all about profit margins, not how many accounts you have
If you are only making 1% profit after expenses, you will need an awful lot of accounts to ever get anywhere.
Know your cost, and know your revenue at all times.
Look at the bottom line constantly and know if you are really making money, or just letting money change hands all the time!
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