It came as a surprise to my clients when I made this bold recommendation in 2018. In case you missed The Wealthy Landscaper 5-part plan, you can read my original publication of this report right here.
As I reflect on these five powerful guiding principles of wealth creation for owners of landscaping companies, I wonder if these ideas sound crazy to you? OR have you been inspired to adopt these five wealth building actions as your own?
I’d love to hear from you and how you have (or have not) embraced this plan for wealth creation. Hit reply and let me know. I read every response.
Will You Become Wealthy from Landscaping?
Over the past few weeks, it’s becoming crystal clear that something is just not right with our economy.
Here at the Wealthy Landscaper, we have reported on the killer inflation infecting our economy and forcing the biggest price increases we’ve experienced in three plus decades of small business. It’s clear…this inflation thing ain’t going away anytime soon. If anything, it’s accelerating as I write this message.
Unfortunately, some of my clients have failed to take decisive action to raise their prices. The impact of increasing wages PLUS input costs of materials has put a stop to increasing net income. You might call it “margin squeeze”.
If you and your company are feeling the pinch of “margin squeeze”, you would be a perfect candidate to join me at an upcoming Profit Builder Training Event.
You see, principle #1 in the Wealthy Landscaper formula requires you to operate an exceptionally profitable landscape business. Until you have mastered the skills to create a six figure personal income AND hold one year of company overhead in cash, you’re not wealthy.
We made three trips this past week to local retail stores in search of basic supplies like paper towels, window cleaner and tire shine. (We are heading out to the Green Industry Expo – Hardscape North America event in Louisville, KY this week.) We had to make three trips because the stuff we need was not available by shopping at one store.
Always curious, I approached the manager of the dairy department at my local Publix Grocery Store. I said, “Sir, I’d like to compliment you on how good your department is looking. It appears you have a good inventory of product today.”
He said, “I might be doing a good job at hiding the problem. We are missing 70 to 100 cases of ordered product each truck and I get 3 a week. We never know anymore what might come in and what might be missing.” Dang…
There’s an old-fashioned law of economics called “The Law of Supply and Demand”. When supply goes up, prices go down. When supply goes down, prices go up. It’s not a complicated law to understand.
I called this law “old fashioned” because it was first described in the year of the founding of the USA in 1776. Adam Smith wrote in his book titled “The Wealth of Nations” that:
…the concept of supply and demand as an “invisible hand” that naturally guides the economy. According to Smith, the invisible hand is the automatic pricing and distribution mechanisms in the economy. Smith described a society in which bakers and butchers provide products that individuals need and want, providing a supply that meets demand and developing an economy that benefits everyone.
Beware the Fedzilla!
But of course, for that old-fashioned law to work, you must count on the government keeping it’s dirty paws out of business. You already know it…this just ain’t so anymore.
When Fedzilla stepped in to shut down the economy, dropped money from helicopters into the streets of the unemployed USA and began “cancelling” every red-blooded American who stood up and said “this just ain’t making no sense”…the old fashioned law of supply and demand was affected instantly.
Remember…there wasn’t any toilet paper available in any store in April of 2020.
Which brings us back to this:
YOUR future wealth is tied to YOUR ability to operate an exceptionally profitable landscaping business.
If YOU can hold together a team (employees + vendors + equipment) to provide services today, the only way you will be able to continue to hold the team together in the future is to raise your prices.
Based on my personal analysis of my own company, my interactions with my nationwide clients and the data released by publicly held companies, I expect price adjustments to be a quarterly exercise in 2022.
You can say you heard it here first…the idea of setting your prices based on an annual budget won’t work moving forward. Nope…prices are going up very fast today…they may be crashing around the corner.
Supply and demand will be shifting and changing and evolving faster than anytime in my business history of 34 years. I’ll sum it up for you…Adjust your prices or be destroyed!
Can Landscapers REALLY Save America?
I believe in entrepreneurs.
I trust entrepreneurs.
I’m rooting for entrepreneurs everywhere.
If we lose the ability to hope and dream for a brighter future, then our lives lose purpose.
I shared my hope and belief that Landscapers Can Save America in March of 2021. My commentary received significant praise. I also received a pretty good chunk of hate mail. That’s ok with me. I published the responses (pro and con) in an effort to educate my clients and the entire landscape industry.
Here’s what I know today.
If the owners of small businesses lose hope for a brighter future, our country…this thing called the USA…well, it’s future is in jeopardy. Your business is as American (idea-force-entity) as you can find anywhere.
My friends…failure to raise prices prevents you from being able to create and save jobs. And our entire economy is built on this Christian idea that “the dignity of work” is a healthy idea.
As a job creator, I believe you deserve wealth.
Keep me posted on your progress.
Finish strong in 2021!
Tony Bass, founder
PS – Are you an exceptionally profitable landscaper? Compare your financial performance to the best in our industry. Take The Wealthy Landscaper Productivity Challenge by clicking here and watching the short video. I hope to hear from you soon.