Landscapers Ask: What’s the Most Profitable Service? Landscaping, Lawn Maintenance or Hardscaping?
Dear Landscape Business Owner,
The answer might surprise you…
If you aren’t totally happy with your profits today, here’s something you need to know, right quick.
The fastest way to improve profits in any service line is to raise prices…period. Nothing makes a bigger impact on profits with the least possible effort. Raise your prices! Got it?
But is there one type of service that can produce higher profits than the others?
Here’s the short answer…
Nope…one service line is super profitable in one company and in the next company it’s a different service line. We’ve witnessed lawn maintenance departments operating at 23% net in one company. The same business, managed by the same people can barely produce 3% net in hardscaping or landscaping.
Turn around next week and we will find a company that can barely pay their bills from lawn maintenance operations but can make a fat juicy 23% net in landscaping and hardscaping.
Here’s what you need to know…
Companies that have specialized teams (focused on one service line) paired up with the right equipment and technical training win the profit game. Teams who fail to specialize rarely outperform those who do.
Specialization leads to increased productivity. Increased productivity leads to lower production costs. Lower production costs helps boost profit margins. Bigger profit margins increase the confidence of the estimators and managers. The service line grows.
It rarely matters what the TYPE of work (or service line)…what matters is how well the company prepares (or plans) to do the work, how confident the team becomes working together and how well equipped (and trained) they are to maximize productivity.
Productivity is not solely managed in the field. Productivity can be impacted by the company’s sales system, billing system, collection system, warranty system, communication plan, and referral system.
You already know that your best clients often find you from referrals from your past best clients. Referrals buy faster, negotiate prices less and spend more than those folks who find you online. So don’t ignore the fact that office and marketing systems impact financial performance.
The Wealthy Landscaper System
You can become a wealthy landscaper regardless of the service line. Get focused on how you plan, prepare, equip, and train your team and you can become super-wealthy from any service line – lawn maintenance, landscaping or hardscaping.
If you have a lawn, landscape or hardscape company that is not meeting your profit goals, don’t give up. Get some training and guidance to help you figure out how to make the adjustments needed.
We’ve helped improve the profits of hundreds of lawn, landscape, and hardscape companies since 1998. We’d be thrilled to get the chance to help you meet your profit goals, too.
Give us a call at 478-822-9706 or send an email to Tony@TonyBassConsulting.com with your name, company name, web address, phone number and written summary of your single greatest business challenge.
We will follow up. I promise.
Here’s to your wealthy future!
Tony Bass, founder
478-822-9706
