Hello there,
I have worked for a small property factor for the last 13 years. We both started small and both have grown over these years. I was loyal and turned down loads of gardening jobs, from private to commercial.
As the factor got bigger, he kept pressurising me to take on staff etc but after doing my sums, I wasn't getting enough from said factor to cover an employee, especially with everything that's required nowadays.
He was actually pricing sites, including the garden maintenance, then expecting me to price within what he had priced......In June of this year, I was told he was putting them out to tender and asked me to submit a price for just two sites (id lost 12)
I got the sites and it turns out he's bought a van, tools and hired two labourers for less than he was giving me. They have no gardening qualifications, experience but are plodding along at his command.
Has this happened to anyone recently? as Ive heard of a few companies centralising grounds maintenance and keeping it in house. Huge loss for me and it going to be a tough winter but I must re-group and start afresh next season......
Any comments greatly appreciated,
Colin
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Replies
Can't blame him. That's business. You did well to keep it for 13 years, he must be a slow learner.
Two men is two men, why should he pay you more for just yourself? You don't need gardening qualifications for maintenance gardening, just some graft and decent tools.
Sorry to be harsh mate but that's the way it is. Don't be bitter, move on. If you were turning down all sorts of work then at least you know the work's out there.
Just need to kick on and prepare for next season. It's hard not to take it personally when I see the sites I once had looking great, now looking overgrown and unkept !
I beg to differ. Grounds maintenance requires almost no horticultural knowledge. So long as your hypothetical 4 men are 'plodding along' with reliable Stihl gear that doesn't break down, they will produce at least 75% of the output of your 1 man. Add in a decent foreman or some incentives and the gap closes.
I can't see how this guy can run a van, tools, and two staff ( plus holidays and all else that goes with staff), for less than he paid one man with his own equipment. It hurts your pride when you lose a contract but as one door closes another opens. Nothing lasts forever and no one is indespensible. I used to take it badly when I was undercut, and probably still do (!!!) But I'm old enough and experienced enough to know there are plenty more fish in the sea.
I do a regular maintenance at a large house and was asked to quote for turning an overgrown area ( over the road from my customer and to improve her view) into a lawn. I put in a fair price, I was even worried I may have underestimated the job. Then I turned up the next week to see some guy hacking through the foliage with a machete! I was furious, but kept my cool and did the lawns. My customer calmly informed me a week later that the guy had worked all weekend on top of the day I was there and eventually had to hire a flail mower. I now get the new lawn to mow in addition to the rest. If it doesn't pay, you're best out of it.
Minimum wage is £7.20 an hour. So that's £14.40 combined. £1500 gets you a serviceable van, and allow another £1000 for basic tools. No brainer if you have enough sites to keep them busy all year, plus take on a few extras. He's simply looked at Colin's yearly bills, and thought 'I can have two men at my beck and call for less than that.'
On a per month basis a minimum wage employee costs around £1300-£1400 including benefits. People don't like to admit it but staff are actually really cheap for what they can do. Why do you think McDonalds makes so much profit?
Your correct Ben. He always used to say how my work was 'front of shop', which it was.
He has slashed what he was paying but you are correct, they are at his beck and call. As contracted, my site visits were every fortnight but he'd constantly phone asking where I was, there were leaves to be collected etc. He saw me as an employee and not a contractor. He even wanted /expected me to wear his company workwear and offered to get my van signed with his company on it, all of which I rebuffed so it kind of came to a head.
I am now free to do what I want and have learnt a very valuable lesson on loyalty and putting my eggs in one basket, never a good idea and I was told that a good few times but you do get in to a comfort zone !
I would look forward, not back. Businesses have to be reactive at times. You're lucky that you're a small operation and can control costs to manage something like this. No point trying to find comfort in saying that the standard has dropped - that doesn't get you the work back! As above, the factor is a business and will make decisions based on money.
I know that personally I don't make allowances for long term relationships in business if the money doesn't attract me.
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