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Thread: Increasing customer base and selling "splits" - does anyone do this?

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    Senior Member conrad's Avatar
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    Default Increasing customer base and selling "splits" - does anyone do this?

    Hi all,

    I noticed on a recent discussion in a Facebook group a few guys with Jim's franchises saying that they sell splits every year and net an extra $30k. They just keep taking leads that are supplied to them and basically sell off the excess work... now that got me thinking - I wouldn't mind an extra $30k each year! But I wondered if anyone here has done this? I don't know how those guys manage to run their business like that - I am already flat out in summer, I'd need a full-time helper if I was going to keep up with that but if I sold any of the work I'd be too quiet - definitely too quiet in winter when I'm already working solo and having 1-2 days off most weeks!

    So what gives? Am I missing something? Would those Jim's guys have a larger territory managing multiple franchisees and simply split out the work as new franchisees come onboard?

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    Default Re: Increasing customer base and selling "splits" - does anyone do this?

    not sure but you could take on extra in Autumn and winter sell at the beginning of Spring also I'm pretty sure you don't have to sell anywhere near a full round 5-6 lawns could be added to others to make a round to sell to either established or new guys looking to increase their income or condense their round in that area Jims could also use these as part of their "work guarantee" I always remember someone on another forum saying that when they started with Jims they lived in Essendon (northern suburb of Melbourne) and were offered a clean up in it was either Mordialloc or Frankston (southern suburb) over an hours drive each way they knocked it back and the quoted price for this job was deducted from their work guarantee that week,apparently it didn't matter that it was a ridiculous offer it was still work he had knocked back so they could apparently offer this to people in the north,west and eastern suburbs before offering it to someone in the southern suburbs potentially saving themselves 3 lots of the guarantee,note I don't know if this has change or if it is what was actually happening just a story I remember reading
    Anything Ian says may or may not be garbage, it may also be his own opinion or it may not be his opinion at all, it may just be something he felt like stating anyone following his advice does so at their own risk and may be doing something Ian would actually advise against.
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    Senior Member conrad's Avatar
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    Default Re: Increasing customer base and selling "splits" - does anyone do this?

    Wow that sounds a bit crazy.

    The guy who was talking about splits seems really happy with the way Jims is working out for him (he's in NSW somewhere). I was just surprised that they would have that much extra work to be able to sell it for $30k year on year..!! Maybe they're exaggerating who knows...

    Anyway it doesn't take too much thinking to imagine all the extra stress and dramas that would go along with trying to maintain that volume of work. I'll just be happy with the loyal customers I have now and enjoy the extra days off during winter!

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    Member Matt1972's Avatar
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    Default Re: Increasing customer base and selling "splits" - does anyone do this?

    Not really an exaggeration. A vacant territory with no customers sells for around $20-22k so selling one with customers for around $30k seems about right but the cut value has to be above a certain amount (from memory around $2500-3000 but not sure as I've been out for 6 years).
    In terms of the work availability guarantee you have be taking leads 5-6 days per week and within 40k's of your territory to qualify. Basically you door knock and do promo work to the value of the WAG each week. Can't say I ever heard of someone having the value of a job deducted for knocking it back but it wouldn't surprise me.

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    Senior Member conrad's Avatar
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    Default Re: Increasing customer base and selling "splits" - does anyone do this?

    Cheers for that extra info Matt.

    So basically this is something that's done by franchises (specifically Jim's)? Not really doable to an independent contractor to be able to make an extra $30k each year by selling customer lists?

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    Senior Member RSM-Gazza's Avatar
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    Default Re: Increasing customer base and selling "splits" - does anyone do this?

    One of my best friends bought into Jims not so long ago and within the first 6 months of operation sold a split and pocketed 16G. Sounds good, but I'm happy to chug along picking and choosing my jobs to suit me. Sometime just knocking back work if I don't like what I see or where its at or the just don't like the vibe.
    Some of these Jimbo's have been flat out over winter caretaking rounds for others who take a month of during winter for there annual trip North or cruise.
    Cheers Garry

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    Member Redeye's Avatar
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    Default Re: Increasing customer base and selling "splits" - does anyone do this?

    Quote Originally Posted by conrad View Post
    Cheers for that extra info Matt.

    So basically this is something that's done by franchises (specifically Jim's)? Not really doable to an independent contractor to be able to make an extra $30k each year by selling customer lists?
    Don't see why not.....rounds get sold here as business concerns without equipment, whats the diff?




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    Member Matt1972's Avatar
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    Default Re: Increasing customer base and selling "splits" - does anyone do this?

    The franchisor also takes a 20% cut of any splits sold.

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    Senior Member BeetleJuice's Avatar
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    Default Re: Increasing customer base and selling "splits" - does anyone do this?

    With VIP we use to sell the customers to head office they then gave it to a area manager to look after it until there was enough come in from other nearby contractors to make up a round,you were only required to cut that job 3 times for it to qualify as a regular job.We never ever knock back a job with dollar signs on it.
    The other way was to take on a heck of lot of work 20-30 jobs then sell them to head office in one go.

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    Senior Member conrad's Avatar
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    Default Re: Increasing customer base and selling "splits" - does anyone do this?

    I'm thinking more as it applies to my own situation, but I'm sure it applies to others as well... but to be able to build up a large enough customer base to then sell the extras for $30k, there is just no way I'd be able to do that solo. So then lets say you get subbies or even an employee to help you out and maintain a larger customer base... is that even doable for just two guys? I don't know. Sure you would have enough work to be able to sell $30k worth, but then you have lost a BIG chunk of income and how do you support the expense of your subbie/employee and how do you increase your customer base quick enough again?

    I just don't see it happening for indy's. Maybe a once off, but not year after year. Although I'd be happy to hear from anyone who has managed to do it!!
    For franchise guys I see it happening as a byproduct of the natural franchise system (the push to do each job that comes along, etc.)

    But like Gazza said - I don't want to be that flat out, I want to choose what work I do and I'm happy with the way everything is going right now.

    IF there was a way that I could make some small changes to make it happen, then sure... but I don't see how I could do it.

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    Senior Member RSM-Gazza's Avatar
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    Smile Re: Increasing customer base and selling "splits" - does anyone do this?

    My very good jimbo mate I mentioned has 2 other good mates who are also Jim's in his relative area whom I also knew in our past executive business life. All of us from the same ex business career, he is younger than me by 9yrs - so at a different stage in life. For me I do what I like or go for a Motorbike ride or hitch the Jayco or dedicate more time mowing lawns as the season changes because I enjoy doing it and the $'s.

    The Franchise Op has the peer pressure somewhat, the call centre, the overflow work from fellow jim's, monthly jimbo meetings and accountability to H/O, Regional mgr, customer and the rest of it.
    He sells ex amount of his round and the call centre feeds the work back in and the round recovers somewhat fast its appears. His business changes re customer base just for a brief period and recovers and moves on to repeat itself within the cycle of splits. Yes he earns more money than me especially with the splits income, but he is younger and working harder than me daily with the Jim's model structure at him daily.

    For us no call centre, but no fees and start up franchise costs which I was quoted $30,000 from their regional mgr based in Broadford when I had discussions and that's not including equipment or trailer back in 2010.
    My friend's last year entry price was a little smaller than my quoted entry figure when I inquired. I know a few Jimbo's within the heaps within my locality quite well and we wave to each other or stop/chat and learn more of what they do.
    I left all my witches hats at the tip once and a Jimbo found them at the tip, saw my name on them and bought them to my house after work. Nice people they are.

    Each operator has different financial situations, ie kids at school, rent/mortgage, loans taken to set up, blah, blah. Some operators have the kids off their hands, houses paid and super's set up from a previous life or maybe just supplementing a semi retirement.

    I'm in the later part of the above, having a solid regular high quality client base with a substantial very regular higher paying commercial work client base that covers me well across winter. (I worked on establishing such. plus some luck) Hence my comments a few posts back that "conrad" referenced about, picking and choosing and being selective for any additional work. But I took all the crap when I first started. Glad I didn't go the Jimbo path as I like the greater flexibility doing what I'm doing at 59.

    But my Jim's mate is one very happy zero stressed now little vegiemite and totally loves the Jimbo path taken with a smile like the entry to Luna Park everyday he leaves for work. He has some serious gear now with the instant success of the business and doh generated from the splits certainly has kicked him along the money path.

    Guess it's Franchise or Independent.
    Franchise is set up for you at a big cost with plenty of back up and initial training and new peer mates you can bounce of for help/guidance and virtually guaranteed income from start up day - splits income that follows. But you can still stuff it up and rapidly, one of our local Jim's lost it all in the first 12 months.
    Independent your alone and need bigger b*lls and maybe some business experience to make it happen and know how to put yourself out there - upsell - present your self to a potential customers and do a superb great job everytime. We have Dean's big book too.
    No franchise fees, but major risk that it will work for you across 52 wks especially across early June to mid August. Let alone having a family chirping away in the family nest waiting for you to bring home the bacon.


    Humm, selling Splits now that would be good, Nah life's Ok as it is.. ,

    Hope I didn't get off track too much.
    Cheers Garry

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    Senior Member GardeningSolutions's Avatar
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    Default Re: Increasing customer base and selling "splits" - does anyone do this?

    I know a independent lawnie that used to sell off parts of his round. He got together with another fella and put together a parcel of clients and sell them. Basically created a new round. Yes he made money, and it meant he chilled out while his round built back up again. He did this a couple of times. Problem was there was now two more operators he created and trained competing for work in the same area.

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    Senior Member AJD Mowing's Avatar
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    Default Re: Increasing customer base and selling "splits" - does anyone do this?

    During my time as a franchisee I never saw one happy franchisee, they were all struggling and stressed out. Best move I made was get out and start my own gig.
    AJD Mowing Giving Back Your Life

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    Member Matt1972's Avatar
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    Default Re: Increasing customer base and selling "splits" - does anyone do this?

    Quote Originally Posted by AJD Mowing View Post
    During my time as a franchisee I never saw one happy franchisee, they were all struggling and stressed out. Best move I made was get out and start my own gig.
    Have to agree. Although most weren't struggling, a lot weren't happy with the franchisor and the system. In my area we had 6 go Indy within 12 months. I left 6 years ago and glad I did. Only regret is I should've done it 4-5 years earlier.

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    Default Re: Increasing customer base and selling "splits" - does anyone do this?

    The problem with franchises from what I can see is that they can be good at the start you hand over your $30k and get an area and a income guarantee and you start making money straight away but then a few years later you have a fully established business and start to ask yourself what am i paying fees for and then you find it's not that easy to get out of it with your business intact,I remember some franchise members making a song and dance about how people pay that much in advertising anyway and I made the point that I would highly doubt I have spent $7k in advertising over the last 20 years and definitely not in the last 15 and if I had invested $5k per year at (2% after tax) I would have over $90k now or put it on my mortgage I would have paid off nearly 130k @ 6% interest.note $7k p.a would make those figure closer to $130 and $180k
    Anything Ian says may or may not be garbage, it may also be his own opinion or it may not be his opinion at all, it may just be something he felt like stating anyone following his advice does so at their own risk and may be doing something Ian would actually advise against.
    And if you don't like what Ian has to say use the ignore function if you don't know how ask i will gladly tell you

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