In an industry where the pressure on pricing is relentless, tree care, lawn and landscape contractors are finding that cutting costs while maintaining quality is more challenging than ever. The economic landscape, compounded by inflation and increasing competition, demands a radical shift in how businesses operate.
As Frank Ross aptly notes, “How profitable a company is, depends on its price structure, sales volume, and ability to control costs. When price is removed from the equation, then sales and cost controls naturally assume a higher priority. Companies have to sell more at a lower price or reduce their overhead or do both. They have to start thinking out of the box.”
Customize to Differentiate
Understanding that each client’s needs are unique is the first step toward delivering value. The one-size-fits-all approach is a relic of the past. Today’s landscaping businesses need to be as flexible and adaptable as the environments they cultivate. This means:
- Offering customized service plans that cater specifically to individual client needs, rather than relying on standard packages.
- Innovating with service offerings such as liquid applications instead of granular or employing ‘tear drop’ mulching areas around trees to reduce maintenance time and costs.
- Leveraging bulk purchasing and early order programs to cut down on costs.
Forge Strong Client Relationships
To thrive in a competitive market, stick to your clients like roots to soil. Engage with them frequently, discussing the value your business brings and how you can help control their expenses while enhancing their property’s appeal. It’s about building a partnership rather than just providing a service.
Be Creative and Proactive
The industry has matured, and with maturity comes the need for innovation. Owners must be willing to invest upfront in optimizing long-term operating costs. This could mean adopting new technologies, rethinking crew structures, or re-engineering service processes to enhance efficiency. Strategies might include:
- Adopting ride-on application machines and modifying plantings to streamline operations.
- Combining treatment applications to minimize visits.
- Implementing right-sizing or sequencing of crews to enhance operational flow and reduce redundancies.
Present a Professional Image
In a market where clients still seek the best value, the appearance of professionalism cannot be overstated. Ensuring that staff are well-trained, that vehicles and equipment are well-maintained, and that every client interaction is handled with the utmost professionalism is crucial. This not only builds trust but also reinforces the value proposition of your services.
Engage Locally and Enhance Visibility
Active participation in community service projects not only enhances your business’s local profile but also demonstrates a commitment to the community’s well-being. This goodwill often translates into business benefits as community members are more likely to turn to a company they view as a positive local force.
Efficient Operations: The Backbone of Profitability
Efficient routing, smart crew management, and effective use of technology can significantly impact the bottom line. Here are a few practical tips:
- Optimize crew sizes for efficiency; smaller crews are often more accountable and less likely to waste time.
- Sequence jobs logically to minimize travel time and ensure that high-priority areas receive the attention they need.
- Invest in the right tools and technologies that allow for quicker and more effective service delivery.
Overcome Internal Resistance
Change can be unsettling. When proposing new processes or structures, engage with your team in an open and relaxed setting. Explain the changes, the reasons behind them, and, most importantly, how these changes will benefit both the company and the employees in terms of job security and potential earnings.
Conclusion
As we navigate through these challenging economic times, the ability to adapt and innovate becomes crucial. By rethinking how value is delivered and engaging more deeply with both the community and clients, lawn and landscape businesses can not only survive but thrive.
Save the Date: Upcoming Event May 21st
Join us on May 21st for an in-depth session on “Job Sequencing for Greater Profits,” where we will explore practical strategies to enhance your business’s efficiency and profitability. Save the date! More details to come.
Remember, as Arnold Glasow said, “One of the true tests of leadership is the ability to recognize a problem before it becomes an emergency.” Let this spring be a testament to your proactive leadership in the green industry.
Be Well, Do Good Work, and Keep In Touch.
Fred Haskett
To Learn More Contact Fred at TrueWinds Consulting