Fertilizer Costs Sky Rocket

[CCLS]

I just talked to my distributor today and the fertilizer that I purchased last year will cost 20% more this season. I guess I will have to adjust my program or raise prices. The hard thing about raising prices is that around here yard monkeys will fertilize a 15K lawn for $40.00. Basically all the customer is getting is 4lbs of N over 6 applications in a season with one application of ghosting in the middle.

Anyone else feeling the cost crunch?

[jrservices]

I just talked to my distributor today and the fertilizer that I purchased last year will cost 20% more this season. I guess I will have to adjust my program or raise prices. The hard thing about raising prices is that around here yard monkeys will fertilize a 15K lawn for $40.00. Basically all the customer is getting is 4lbs of N over 6 applications in a season with one application of ghosting in the middle.

Anyone else feeling the cost crunch?

You goin thru lesco? I'm workin on different pricing thru lebanon turf.

[Laurel companies]

Sign of the times. tied directly to oil. problem in our industry is application costs are about where they were 10 years ago.
cost of doing business rises every day. Between oil, employees and insurance issues, very hard to remain independent.cost of oil will make some organic products worth a very long look. Oh did i mention regulations? Consumer confidence.........

[Ric]

Laurel

We are in a luxury business in the fact, people don't need Green Grass in order to eat. A ever growing booming economy over the last 50 years has created many Luxury service industries that might not stand the test of time in a down economy. Corporate America sold out to the Cheap labor of third world countries. We no long have industry, the real back bone of the industrial revolution that made us a world power. Globalization has killed our live style and America can not sustain the high standard of living she has come to know. We are dead and don't know it. The Moral blow has been stuck and we are just waiting to bleed out. Can the economic doctors stop that bleeding?? Transfusions of low interest rates are having a hard time keeping up with blood lost. It is not a matter of "IF" but "WHEN" our middle class living standard crashes. We will become a country of very rich and very poor people.

Prices in the green industry in general have not kept up with inflation. We are still getting our grass cut or lawns sprayed for the same price we paid 20 years ago. As more and more Industrial plants shut down, competition in our industry will increase. The once high margin enjoyed by service industries is now decreasing to the point of low margin or no margin. To combat this decreasing margin I am now offering a low ball lesser service option to my customers. The truth of the matter is my margin on this lesser service is actually high. I am hoping to survive by supplying what I feel will be in demand by the public. I only hope I die before the American economy does.

[Laurel companies]

Ric,
I concur with much of what you said. We either get smarter ( alternate service plan) or get consolidated. but we could go on and on on this topic. Frankly my angst about led me to sell several years ago. i now broker lco sales, and have my hands in several other ventures too.
Pains me to see it. the industry has been very good to me, and i fear for the young guy's trying to get started.
I see you gave up on ********? i used to banter back and forth with you there under different screen name.
Take good care

[CCLS]

Jrservices,

I use verdicon now UAP as my supplier and also the local co-op for a variety of products. I have tried lesco products and have never been impressed. Since Truegreen is now involved with Lesco, I will definately stay away from their products.

[Laurel companies]

Tru-green has always been a customer of lesco. buy your best price.

[CCLS]

Tru-green now owns a Lesco fertilizer manufacturing plant.

[Ric]

Tru-green now owns a Lesco fertilizer manufacturing plant.

CCLS

Are you sure of that?? or is that like SELECTIVE?

[Laurel companies]

folks lesco no longer manufacters fertilizer. they sold off all the plants. they simply are a customer of the new plant holders. and have fertilizer private labeled.

it's like blaming the chicken because frank perdue is ugly?

[Ric]

folks lesco no longer manufacters fertilizer. they sold off all the plants. they simply are a customer of the new plant holders. and have fertilizer private labeled.

it's like blaming the chicken because frank perdue is ugly?

Yep

My Fert Salesman from the old UHS now UAP has told me, UAP will now be selling fert from those plants. He immediately said Lesco always had a very clean product which I agreed with him. Part of the Sales agreement was to keep Lesco Blends. They are now available from UAP. I never knocked Lesco's products or blends. But I did Knock there prices.

Lesco is my 7-11 store, while Other Chemical suppliers are my Super Market. But I feel the smaller LCO are better off staying with Lesco for the service that Lesco gives. I still maintain a relationship with Lesco sales people and sometimes get that service advantage of there continuing education of New Products on the market.

[Laurel companies]

synthetic fertilizer is a commodity, buy from the people who best suit your needs as Ric just described. Service and support may indeed be worthy of slightly higher price.

[CCLS]

Ric,

I am 99% sure that Tru-green bought the lesco plants. Tru-green has roughly increased their prices roughly 30% in my area since the so called buy out. This is to cover their added overhead. The increases were pre Katrina.

I wasn't aware of this until the other day, that Tru-green owned Scotts.

Also Tru-green is operating in several citys under the name really-green or something close to it. This is the cheap knock off of the parent company.

As far as Lesco products go, we used them in the past and were not happy with the results.

Less distinct dark green color.

Less root development.

Quicker summer burn-outs due to lack of root development.

Substandard Crabgrass control, I don't remember the exact formulation of the product but it had barricade in it. Now we use UAP brand products which provide substantially better results.

[Ric]

CCLS

What can I say. Other than I don't agree with any thing you have said.

[CCLS]

Product results speak for themselves. Through close examination of the properties we service, we have noticed greater all around results with our new products as opposed to Lesco.