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Business analysis

Discussion in 'Business Fundamentals' started by Mick, Mar 30, 2002.

  1. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    I don't know if this will help anyone in any way and not sure what to make of it. But it seems like there should be something to learn here. As some of you remember, I bought a new 2yd sander and a one ton truck last summer. We got about half of the normal snowfall for the winter and there wasn't much call for sanding. I was beginning to think the sander was a big mistake.

    In analyzing my business for the winter I found that income from sanding was 24% of the total gross income. Also, I got a few accounts because I have the sander, even though I didn't use it on those accounts. I wouldn't have gotten that business without it. When I add in the income from plowing those accounts, I find that 38% of the gross income was due to having the sander.

    Maybe it just seems like I didn't do much sanding because I can make more money, faster, sanding than plowing.

    Incidentally, I had also concluded that having my email on advertising was a waste. I had not gotten even one email for plowing. I had quit advertising in the local paper three weeks ago. Today, I got an email from an out-of-state camp owner asking if I'd be offering any summer services. He was responding to my advertising for sanding and plowing. We've been emailing back and forth today and it looks like maybe I'll be starting a whole new set of services - maintaining camp properties. Mowing, lawn cleanups, minor landscaping etc. Looks like I'm going to spend some time at LS for pointers.
     
  2. Lawn Lad

    Lawn Lad Senior Member
    Messages: 407

    Congrats Mick on the sander and the new business it brought you. We just added salting this year, and I am finding the same thing as you. Though I don't have specific numbers yet (hope to have this week), I feel much more confident about bidding new jobs because now we can offer de-icing. It adds professionalism. As well, with the light winter only plowing about 8 times, I de-iced about twice that many times. Now I just need to bump my salting route up to four or five truck hours.