Uh Oh

[Willy P]

The ServiceMaster Co. reported its net loss nearly tripled last year to $126.4 million.

Total operating revenue was $3.31 billion for 2008 compared to $3.36 billion in 2007, according to its annual report filed with the Securities and Exchange Commission.

Operating income was $197.8 million, up from $177.2 million in 2007. Though operating income jumped, the company was hammered, in part, by an almost 66 percent increase in interest expense to service the company’s $4.3 billion in debt.

Interest expense increased to $347.2 million in 2008 from $209.6 million in 2007.

ServiceMaster is now privately held, but continues to provide financial reporting to the SEC because the company holds public debt.

Based in Memphis, ServiceMaster serves residential and commercial customers through its brands TruGreen, TruGreen LandCare, Terminix, American Home Shield, InStar Services Group, ServiceMaster Clean, Merry Maids, Furniture Medic and AmeriSpec. The company has about 2,200 local employees.

 

[Mikey P]

I noticed in the paper that Keith Collins no longer uses the name Service Master of Santa Cruz.


and I'm pretty sure I saw a yellow truck on Saturday with Watsonville water damage and tattoo removal airbrushed on the side.

 

[Brian R]

I think things will swing to the o/o as far as carpet and other cleanings

Floods and stuff, people still want National but that is not as big either.

As long as all of us provide flood service, it's up to the customer/homeowner to choose their company.

I don't like to see companies go under, but this will help out the little guys.

 

[Lyman]

How much do you think they spent on nascar this year.

 

[Desk Jockey]

Servicemaster still gets the majority of the work in our town.

However what has happen is Servicemaster is now sharing more of the pie with Servpro and Paul Davis and a few of us independents, where a few years ago they had all the franchise work tied up.

 

[Joel D]

What Servicemaster owns all those other companies? I didnt know that. Am I understanding this right? So all those companies with those business names are in trouble all over the country?
I see trugreen and terminex all over. We get stuff in the mail from trugreen. "Get your first visit by us for only $29" or something like that.

 

[Desk Jockey]

I doubt many if any are in trouble.

They are the franchisee, the parent franchise is the one with losses.

 

[ascrubabove]

I used to service and repair TruGreen Land Care, and TruGreen Chemlawn trucks in Wilmington NC.

 

[Guest]

The ServiceMaster here scraped most of the lettering off their vans. I called the headquarters and they said there was no ServiceMaster cleaners in Yerington, NV.

 

[packfancjh]

From what I understood from Shawn is that putz closed up about 8 months ago Josh.

 

[Guest]

LOL!

The vans are still running around with the same drivers. As far as I know he still uses the same phone # too.

 

[packfancjh]

That's funny. I wonder what name he is operating under?

 

[Brian R]

I don't understand why anyone would want to run a franchise unless it is for the name.

Even then, you pay way more for the name than what it is worth and with a couple years hard work, your name should be just as big in the area you are servicing.

I think some people look for an easy way out rather than doing it themselves...you might as well be an employee on commission if you "own" a franchise.

 

[Johnny]

I don't understand why anyone would want to run a franchise unless it is for the name.

Even then, you pay way more for the name than what it is worth and with a couple years hard work, your name should be just as big in the area you are servicing.

I think some people look for an easy way out rather than doing it themselves...you might as well be an employee on commission if you "own" a franchise.

Word.

_____________________


STOP GLOBAL COOLING!

 

[KeithCo]

Uh Oh.....I better go back to pushing a wand.

 

[Bob Foster]

I bet the resto division did OK but the other units dragged down the numbers.

 

[KeithCo]

You would be 100% correct, Bob.

There's definitely some anchors attached.

 

[Desk Jockey]

The franchises have a lot of value when it comes to Restoration. They get work spoon fed work, not need to advertise, the deals have been made at a corporate level.

They have major insurance companies saying use these people and only these people or we may not pay for the work being done or we will only stand behind the work of those that we recommend.

Corporate makes deals with large corporations and entities to cover there losses nationwide. A loss happens at a nursing home and they are told to call a franchises because they have a national account with them.

It's not a level playing field, the franchises have a distinct advantage that in the past was not there.

Is it worth it?

If you're talking about Servicemaster or Servpro, I think so!

 

[Willy P]

Correct me if I'm wrong, but doesn't the homeowner have the final say on who does the restoration? :?:

 

[Desk Jockey]

Yes they do but the insurance representative will do everything they can to steer you in their direction.

They may even make misleading statements, all but outright saying you must use their company.

And yes if the customer is strong enough to stand up for whom the want to do the work they will let them.

However that takes a person with a strong desire to use you, one that understands that all companies are not equal and see's value in your company.

Many will fold and just give in and do what they are told is their only option.

 

[Joel D]

Well one mistake trugreen is making is wasting money on marketing to people with too low of an income level. I just got another postcard from them.

seriously though

 

[tim]

I've used trugreen for the last 5 years and I have reached the end of my rope. Didnt know they were the same company, figures. Crappy job, decent price, come back out to "fix" problems, still have weeds. Just fired them and looking for a good, owner/operator business. Will cost more, I know, but will actually do what they are charging me for!