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Discussion Starter · #1 ·
Well, how many think you'll be quitting over the new grass cut pricing from Safeguard?
 

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To: Property Preservation Contractors
From: Vendor Management
Memo 1408: Revised Grass Cut Pricing Structure 2013

To address pricing inconsistencies, Safeguard will adopt a new pricing structure to ensure that pricing is fair and consistent regardless of the work source. This new consistent pricing structure will also reduce invoicing confusion. Effective April 1, 2013 Safeguard's pricing structure for grass cuts completed by any maintenance vendor on an initial secure, convey maintenance order, or recurring grass cut will be as follows for all loan types and in all states:

Square Feet of Lot Initial Grass Cut Grass Recuts
0-10,000 $60 $45
10,001-15,000 $70 $50
15,001-25,000 $80 $60
25,001-35,000 $90 $70
35,001 - 1 acre $105 $85
Desert Landscape
/Small Lots $50 $35

Trimming Shrubs $40

Accuracy of the lot size reported is critical and must be substantiated with documentation from the tax assessor or a rolling distance measuring wheel. The reported lot size should reflect the actual square footage of grass being cut and should not include wooded or paved areas.
As a reminder, initial grass cut bids will not be accepted if any one of the following apply:
• Lot size is less than one acre and the grass is less than 12 inches high
• The grass cut due date has passed
• There is incidental debris in way of the cut, please move the debris

Bids to trim shrubs will not be accepted if any of the following apply:
• Vendor did not bid or trim on the first grass cut trip to the property
• Shrubs are not causing damages to the house
• Shrubs are not impeding walkways and do not pose a threat of citation

Bids for grass re-cuts will not be accepted if any of the following apply:
• Lot size is less than one acre
• The grass due date has passed
• There is incidental debris in way of the cut, please move the debris

Thank you.
 

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To: Property Preservation Contractors
From: Vendor Management
Memo 1408: Revised Grass Cut Pricing Structure 2013

To address pricing inconsistencies, Safeguard will adopt a new pricing structure to ensure that pricing is fair and consistent regardless of the work source. This new consistent pricing structure will also reduce invoicing confusion. Effective April 1, 2013 Safeguard's pricing structure for grass cuts completed by any maintenance vendor on an initial secure, convey maintenance order, or recurring grass cut will be as follows for all loan types and in all states:

Square Feet of Lot Initial Grass Cut Grass Recuts
0-10,000 $60 $45
10,001-15,000 $70 $50
15,001-25,000 $80 $60
25,001-35,000 $90 $70
35,001 - 1 acre $105 $85
Desert Landscape
/Small Lots $50 $35

Trimming Shrubs $40

Accuracy of the lot size reported is critical and must be substantiated with documentation from the tax assessor or a rolling distance measuring wheel. The reported lot size should reflect the actual square footage of grass being cut and should not include wooded or paved areas.
As a reminder, initial grass cut bids will not be accepted if any one of the following apply:
• Lot size is less than one acre and the grass is less than 12 inches high
• The grass cut due date has passed
• There is incidental debris in way of the cut, please move the debris

Bids to trim shrubs will not be accepted if any of the following apply:
• Vendor did not bid or trim on the first grass cut trip to the property
• Shrubs are not causing damages to the house
• Shrubs are not impeding walkways and do not pose a threat of citation

Bids for grass re-cuts will not be accepted if any of the following apply:
• Lot size is less than one acre
• The grass due date has passed
• There is incidental debris in way of the cut, please move the debris

Thank you.
Is this for every state?
 

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That memo refers to maintenance or Preservation vendors ... It doesn't apply to the Seasonal Grass Cut Vendors Safeguard hires to do recurring yards. Those vendors are at a flat rate of $25-35 depending on what they negotiated in their area to cut up to 1 acre. The guidelines for those vendors has changed significantly this month as well, added a lot of work and doubled the photo requirements.
 

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Is this for every state?


To: Property Preservation Contractors
From: Vendor Management
Memo 1408: Revised Grass Cut Pricing Structure 2013
To address pricing inconsistencies, Safeguard will adopt a new pricing structure to ensure that pricing is fair and consistent regardless of the work source. This new consistent pricing structure will also reduce invoicing confusion. Effective April 1, 2013 Safeguard's pricing structure for grass cuts completed by any maintenance vendor on an initial secure, convey maintenance order, or recurring grass cut will be as follows for all loan types and in all states:

Square Feet of Lot Initial Grass Cut Grass Recuts
0-10,000 $60 $45
10,001-15,000 $70 $50
15,001-25,000 $80 $60
25,001-35,000 $90 $70
35,001 - 1 acre $105 $85
Desert Landscape
/Small Lots $50 $35

Trimming Shrubs $40

Accuracy of the lot size reported is critical and must be substantiated with documentation from the tax assessor or a rolling distance measuring wheel. The reported lot size should reflect the actual square footage of grass being cut and should not include wooded or paved areas.
As a reminder, initial grass cut bids will not be accepted if any one of the following apply:
• Lot size is less than one acre and the grass is less than 12 inches high
• The grass cut due date has passed
• There is incidental debris in way of the cut, please move the debris

Bids to trim shrubs will not be accepted if any of the following apply:
• Vendor did not bid or trim on the first grass cut trip to the property
• Shrubs are not causing damages to the house
• Shrubs are not impeding walkways and do not pose a threat of citation

Bids for grass re-cuts will not be accepted if any of the following apply:
• Lot size is less than one acre
• The grass due date has passed
• There is incidental debris in way of the cut, please move the debris
 

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the 1 regional that i work for rejected their prices for recurring gas cuts. they only wanted to pay $ 23 to the vendor up to 1 acre and the were spread out.


Thank God
 

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I ran the numbers against all my lawns for last year. It's a 16.7% reduction in price on average from last years prices. My sheet had a mix of FHA/FNMA/FMAC/CV.
 

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I'm NOT defending SG or anyone else cutting prices, but does anyone think this is a result of the government, taxes and Obamacare? I'm sure a lot has to do with Greed, but I can't help but think that the little guys are getting punished by the government..:icon_rolleyes:
 

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I'm NOT defending SG or anyone else cutting prices, but does anyone think this is a result of the government, taxes and Obamacare? I'm sure a lot has to do with Greed, but I can't help but think that the little guys are getting punished by the government..:icon_rolleyes:
No, it's most likely just greed. SG is getting all of the same pricing. 16% reduction in lawn pricing is huge for them, considering the amount of lawns they have. That's probably $8k or better out of my pocket this summer, and figure there's thousands of other SG vendors.

I didn't disagree with the way they did it before(of course because it benefitted me). Hire grass only vendors in the urban areas for a lower pricing, make their $$ there, and pay guidelines in the other areas.
 

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Discussion Starter · #13 ·
This is greed. SG didn't get a pay cut. They are attempting to line their pockets.

I may be imagining things, but it appears SG is trying to make as much money as they can until everyone quits. May be a retirement plan. Or Klein and Jaffa know something we don't. Like the end is near for them. Government regulation coming? FHA/VA/FMC/FNM are about to change the way they handle their properties? And this is a money grab before it collapses?

But, whether it's intentional or not, I can't see any reputable contractors staying for the long haul with the constant reduction in pricing. There will always be those that will try to cheat and steal to make money at these kind of prices, so life may go on for SG.

I don't know. But I can see a time when all they can get is the "crackhead craigslist" contractors and they'll steal every water heater, stove, fridge, HVAC they can get in their trucks. And there won't be any way an "honest" man can make a living.
 

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Not sure if I can handle SG for another year. Been with them since 2009. They are getting worse and worse in terms of respect for their vendors. Their new zones are twice the size than last year (which were even too large then).

I just received two dozen orders tonight. They want me to drive two hours from my shop to mow a lawn. There are three lawns in that town, but driving two hours from my shop doesn't take into account that a major portion of the drive is a highway that is in gridlock from 630-900 am and 2-7 pm. I'm looking at three hours to drive to the first property!

Anyone have any luck with SG giving select zip codes to cover. I had a regional that told me they would do that for me and then they switched and formed a new GC department and they said they wouldn't do that.
 

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Those prices are competetive if they don't take their 25%

An acre, 12" tall for $105 is NOT competitive ESPECIALLY when you have to get rid of the clippings! That is what 15,000 Sq Ft paid 2 years ago and is STILL what HUD matrix calls for. An acre of grass 12" tall will FILL UP a 16' trailer nearly 3' deep. 1' of grass is AWEFULLY hard to mulch....
 

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An acre, 12" tall for $105 is NOT competitive ESPECIALLY when you have to get rid of the clippings! That is what 15,000 Sq Ft paid 2 years ago and is STILL what HUD matrix calls for. An acre of grass 12" tall will FILL UP a 16' trailer nearly 3' deep. 1' of grass is AWEFULLY hard to mulch....
And not to mention the zone sizes. It may be competitive in urban areas, but they want 100 mile x 100 mile areas covered(that you are most likely NOT in the middle of) for that pricing.
 

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Discussion Starter · #19 ·
I'm really at a loss as to what to do. I've had a full day to try and wrap my head around this. I went back and did some math on last years grass cut numbers. If I had completed last years GC's at these prices, I'd have seen a profit reduction of over $10K. That's a ton of money to me.

Looking forward, I see more than that in profit reduction. I can't afford it. But, i'm in a tough spot. If I tell SG to pound sand, I'm out over $300K in income. I can't afford that either.

If it were just me. I'd not have any qualms about shaking a finger at them (the one next to my ring finger, and not my pinkie). But, I've got 6 employees and my family to consider. I've got 3 other families that are depending on me- my employees families. Maybe some bosses wouldn't think twice about shafting their employees by anouncing they don't have a job anymore, as of next week. Me, I care. And the stress I'm feeling is because I don't want to let my people down. Makes me feel like a failure because I couldn't come up with a solution. It's not my fault SG is a prick of a company. I can't control what they do and the fact that they don't want to negotiate. But, I still feel responsible for my employees.

So, unless enough SG contractors apply pressure, and SG responds by backing off this stupidity, (not too likely) then I've got to line up with everyuone else, with my pants around my ankles, or find another revenue stream. Something I don't think will be possible. Our local real estate agents either don't maintain properties, or they already have their own crews. Checked into that last year. P&P is all I've done along these lines. I was a career saleman for 25 years before this. I can't take my employees with me if I go back. And I do NOT want to go back.

Going to work for a regional isn't an option. The pay there is worse. Going to another National, it's all the same BS, so what's the point?

what to do, what to do...
 

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Bama- your emotional response regarding the loyalty to your employees is refreshing. I applaud you for that.

Just remember though (and this will come off harsher than intended). You are running a business. When feasibility is no longer a viable option then tough decisions have to be made. Your #1 priority is to protect you, your family, and YOUR business. If people find themselves unemployed by this decision, that is unfortunate, but people in general are resilient. The cream will always rise to the top. Don't go broke only to protect those that you feel loyal to. Your employees will understand if they have half the compassion that you express.

Good luck on the conundrum.
 
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