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There is a good reason that accounting firms are the most profitable businesses in America. Accountants have the courage to charge high prices for their services.

According to data released by the IRS, the average net profit of accounting firms in the United States is 18.3%. Good for them!

Accounting firms will be able to navigate (and survive) the high-level inflation that is infecting our country.

Why?

It’s pretty simple math. With inflation currently running between 5% and 10% on an annual basis, an accounting firm with an 18.3% net profit would still have an adequate amount of profit to survive… even if they made a huge mistake and failed to raise their prices.

Personally, I am worried about the financial health of many landscape companies. Here’s why. 

The average net profit of landscaping companies is a pitifully low 3%. That’s according to the latest profitability survey conducted by the National Association of Landscape Professionals (NALP).

With inflation rates running between between 5% and 10% as we publish this Wealthy Landscaper Letter, inflation will quickly wipe out the profit of the average landscape company in less than 12 months. That is…

Unless the landscape business owner demonstrates extraordinary courage.

Landscape business owners that have the courage to raise their prices and protect their net income will have the ability to survive this nasty inflation.

Unfortunately, many landscapers will hesitate to raise prices as they are fearful about losing accounts to price sensitive buyers.Many more will be fearful to raise their prices as the slow season creeps in and they want to “stay busy”. Listen…

Landscape companies that generate extraordinary profits have the courage to raise their prices. Let me tell you about one of my top profit producing clients. They are able to enjoy a seven figure net income on about $5 million in revenue. 

We met at the Green Industry Expo in Louisville, Kentucky last week. When they approached, I asked my favorite question, “Did you raise those prices like I recommended?”

“Yes Tony… we raised prices in a big way this year. We had to go up about 15%. We had $270,000 worth of maintenance contracts quit our company. However, we sold $325,000 in new contracts with our new price rates. It’s going to be our best year ever!”

One word – Courageous!

There’s one sure-fire way to get the courage to raise your prices. You must understand your costs of doing business. One way to do that is to build an operating budget for your company. When you have a well-organized written budget, you’ll have the courage to ask your customers for the right amount of money to cover your costs.

The budget should include a fair salary for yourself based on the job you do in the business. If your spouse or kids work in the business, they deserve to be paid a fair wage as well. Salary is NOT PROFIT. And…your PROFIT should NOT be your salary. You deserve a healthy salary AND an exceptional profit…even when inflation is spreading like that nasty Covert-19 virus.

If you think your company should be increasing your profits, you’re right! The risk you assume to operate your company these days is incredible. And…it’s not getting easier anytime soon!

Here’s an invitation.

Since 2010, my team and I have been on a mission to teach lawn and landscape business owners how to double profits. We’ve had some incredible success along the way. Here’s an excerpt from a text message I received this week from one of my students.

“Hey Tony, Here’s a quick update. We just hit $1 million in revenue this month. We are on pace to do $1.2 million for the season. I finally hit that mark I’ve been after for a few years. I’m making good profit as well. I pulled out $100k to make a down payment on a new house. I’ve paid myself $90k this year for salary. We still have $235k in the bank! I’ll see you in December!”

This is the story of the Wealthy Landscaper. It’s a true story. And…this could be your story, too.

I’d like to invite you to join me in December at the Profit Builder Training Event. The details can be found right here. Some of my top students have already reserved their seats.

We teach landscape business owners the skills to build a six-figure income as they build a seven figure future net worth. It’s a courageous goal. I hope you will accept my invitation.

With courage!

Tony Bass, founder

866-923-0027

PS – Fuel prices have increased 35% in less than a year. Meat, poultry and eggs have increased 15.7% in the last 12 months. You already know your employee wages are going up like crazy. Join my team and I at the upcoming Profit Builder Training event. We will help you get a rock-solid plan to price right in 2022. Details here.