It’s now 2024. Here’s something for you to think about.
Everything that happens in your company is subservient to how you price your work.
There’s no faster way to improve profits than giving out price increases to the right customers.
There’s rarely a situation where an “across the board” price increase to all of your customers is in your best interest.
At any given time, 20% of your customers (or accounts) are the least profitable. Figure out who these customers are and increase their prices. This strategy will help you double or triple your net profit within twelve to twenty four months.
The number one most common pricing mistake is underestimating the labor required to do a lawn or landscape job.
The number two most common pricing mistake is failing to properly charge your customers for the equipment used in providing lawn and landscape services.
Lawn and landscape business owners often underestimate the costs associated with overhead expenses such as marketing, insurance, financing growth, bad debt and funding their retirement.
The cost for lawn and landscape labor will continue to grow in 2024.
How much will wages grow in lawn and landscape companies in 2024?
Here’s the BLS Report Excerpt from 1-5-24: In December (2023), average hourly earnings for all employees on private nonfarm payrolls rose by 15 cents, or 0.4 percent, to $34.27. Over the past 12 months, average hourly earnings have increased by 4.1 percent. In December (2023), average hourly earnings of private-sector production and nonsupervisory employees rose by 10 cents, or 0.3 percent, to $29.42.
The data shows the USA average increase in wages is .4% in the month of December 2023. Twelve months times .4 is 4.8% per year. What’s your plan for wage increases in 2024?
Since the average wage in the landscape industry is $22.08/hour and the national average wage across all industries for non-supervisory employees is currently at $29.42, wages in the landscape industry have a lot of room to go up before we catch up with the national average.
Lawn and landscape business owners who Price Right are generating $135,132 per full time equivalent employee or $67.56 per man hour (as of year end 2022).
Building an exceptionally profitable lawn or landscape company is 100% possible when you know your numbers.
The highly rated Profit Builder Training event is the place to build a budget, organize your financial statements, learn production rate based estimating and set clear financial goals.
In summary, our graduates know their numbers!
We have two seats available for the January 2024 event. Purchase tickets here.
If you have questions, just hit reply and ask.
Happy New Year!
Tony Bass, founder
PS – The only sustainable competitive advantage is to outlearn your competition. When you invest in your education, you are investing in your future success. The first step to building an exceptionally profitable lawn or landscape business is to know your numbers.
You can watch over 100 video interviews of lawn and landscape business owners who have gone on record to talk about their Profit Builder experience. Watch these videos here.
Will 2024 be your best year ever?
It can be IF you know your numbers!