Lawn Care and Landscaping in Bucks County, PA
PO Box 32, Jamison, PA 18929
Monday - Friday: 9:00 AM - 6:00 PM
17 Jul 2018

The Inside Scoop on Mowing

Tom Eckhardt

Tom Eckhardt

CEO, Jamison Lawn Care

Lawn mowing is many landscape company’s main service. There is a healthy demand for this service and we have to provide it to compete. 

However, there is a dark side to mowing. From tax evasion to scams, let’s break down each section of the lawn mowing industry.

Let me start off by saying that companies are here to make a profit. Meaning, after all expenses and salaries, there is some money left over to either reinvest or pay the business owners. There is also two types of companies, legal and illegal. (Illegal meaning taking cash payments to avoid taxes). There are also companies that don’t even have insurance. 

These illegal companies have WAY less expenses than legitimate companies. For example, for our small company of 5, we pay roughly $1,000-$2,000 a week just in payroll taxes. Add that on top of worker’s compensation and liability insurance, we are on the hook for $5,000-$10,000 a month. Those expenses have to be figured into our pricing. So we take all of our expenses, add them to labor cost, and add our profit margins into the price. Our average price is around $35 for an average sized lot. At a 10%-20% profit margin (standard for this industry), we make $3-$6 per lawn with roughly $60,000 worth of equipment on site. 

Since these illegal companies don’t have to pay $5,000-$10,000 a month, plus evading taxes, they make out richly. Their expenses are way low, so they can undercut other company’s pricing. They get these jobs and take cash. So at this point, they are committing tax fraud for Federal, State, and Local taxes. On top of that, they are not charging sales tax (which should be charged), so they can charge another 6% less on that as well. 

Not only are they committing fraud, these illegal operations are conditioning customers to expect prices that are 50% less. Legitimate companies cannot compete with their pricing.

This is one of the most frustrating things for me. From day one, our company was legitimate. We wanted to be ethical and fair. But the success of these illegal operations make legitimate business owners second guess their decision to be ethical and fair. 

The only thing that we can do is separate ourselves from those illegal operations by providing a better service and experience for our customers. I think that my company very well does that, and I will continue to educate others about what is going on in our industry. 

 

Tom

16 Jul 2018

Your Lawn is Like Your Car

Your Lawn is Like Your Car

Tom Eckhardt

Tom Eckhardt

Owner, Jamison Lawn Care

Cars are one of the biggest investments that we make in our lifetimes. Usually the only bigger investment…is our homes. We maintain our cars by investing in maintenance, repair, and cleaning. We also maintain our homes by doing the same thing. In this article, you’ll find that these two investments are much more alike than you have ever thought!

In my previous career, I was a highly talented vehicle mechanic. I started at the local oil change place, and worked my way up to working on armored tractor trailers that transported the nation’s most expensive resources. It is easy for me to compare your home and vehicles – but have you ever thought about it this way? Let’s dive into it. 

 
We all know by know that homes are expensive! We save our hard earned wages furiously in efforts to purchase our homes – and then we spend even more to maintain and upgrade our dream home. In comparison, we also save our money and invest more to maintain our vehicles. 

 

By now, you know why we need to perform ongoing maintenance to our vehicles.  It keeps your car going strong, prevents breakdowns, and even more expensive repairs. You willingly invest your money into maintenance to prevent future loss of money. Maintenance is investing – not spending – and it has a great return on investment. 

Lawns also need sustenance and maintenance to survive. Just like maintenance on your car, lawns require ongoing work to survive. Proper mowing height, blade sharpness, irrigation, fertilizing, and weed control is your work schedule to keep your lawn healthy and prevent more costly repairs in the future.

Your lawn is not frivolously spending money – it is also an investment. Whether it be with time or money, it requires an investment. Repairs can cost thousands of dollars, whereas ongoing maintenance is less. Even after you repair a damaged lawn, you still need to keep up with it to prevent more repairs in the future. 

Can you see why it is so important to invest your time and money in your lawn? It is not only an attractive landscape to look at, it is an investment in your home. When you bought your house, did you look inside or outside first? You probably saw the outside first. The outside is what made your first impression. 

Just like you spending money to keep your car healthy and reliable, lawns also require the same attention. 

Invest in your lawn and you invest in your future well being. It is not easy, but it is worth it. 

 

 

Tom