Are you offering too many services at your lawn or landscaping company? While this may seem like the logical path to growth and profit, it could actually be hurting your brand image, profitability, and overall organizational health.
In this podcast episode, Landscape Leadership® president, Chad Diller, and green industry consultant, Jeffrey Scott explore this complex subject.
Audio Podcast
Video Podcast
The temptation to add more services can be overwhelming. On the surface, diversification seems like a logical path to increase revenue, capture more market share, and keep your competitors at bay.
But what if I told you that adding too many service divisions could actually be hurting your brand and, more importantly, your profit?
I’m Chad Diller, Vice President at Landscape Leadership®, a sales and marketing company that works exclusively with the lawn and landscape industry. I've also been in the green industry for 25+ years.
Oh, the things I've seen...
Today, I’m diving into a conversation we recently had on our podcast with Jeffrey Scott, a seasoned industry consultant who has helped over 350 companies in our industry grow more profitable businesses. Together, we explored how over-diversification of services can lead to diluted brand identity, operational inefficiencies, and reduced profitability.
The Illusion of Growth Through Diversification
Many business owners in the green industry share a common goal: to grow an amazing, profitable business that stands out as a leader in the market.
But in the face of stiff competition, the urge to offer more services—lawn care, tree care, landscape design, maintenance, irrigation, and more—can seem like the best way to differentiate and attract more customers.
Oasis Turf & Tree is a great example of a company that specialized, adding efficiency and profitability.
As Jeffrey Scott pointed out, “Business is a game of margins, not a game of volume. Companies fail because of thin margins. Frankly, successful companies are profitable companies.”
In other words, adding services might increase your top-line revenue, but if it spreads your resources too thin or adds complexity without corresponding profitability, it could be a losing strategy.
Understanding Positioning: The Key to Strategic Growth
One of the most important concepts in marketing is positioning. Simply put, positioning is about defining what services you offer and who you offer them to. It’s the foundation of your brand’s identity and dictates how potential customers perceive your business.
Imagine you’re standing in a vast grass field with a shovel. Each time you add a service, you dig a new hole. If you add too many diverse services, you end up with a lot of shallow holes spread across the field—representing a brand that tries to do everything but excels at nothing. You're "Just Another Landscaper".
On the other hand, if you focus on a core set of services and dig deeper into those areas, you create a stronger, more defined brand.
From a marketing perspective, too much horizontal diversification—offering too many unrelated services—can dilute your brand. It can make it harder for customers to understand what you do best and why they should choose you over a more specialized competitor.
Jeffrey sees this issue frequently: “Diversification, if not done smartly, can lead to higher equipment costs, underutilized assets, and ultimately, lower profitability.”
The Hidden Costs of Diversification
Over-diversifying doesn’t just hurt your brand; it can also strain your resources and lower your overall profitability. Each new service you add requires new equipment, specialized staff, and often, a different approach to marketing and customer service. This can lead to higher operational costs and complexity that your business might not be able to sustain.
Jeffrey shared an example: “I’ve seen more diversified companies tend to have higher equipment costs, meaning they don’t make full use of their equipment as they would if they were just all in on one thing.” The same principle applies to your team, technology, and even your company culture. When your resources are stretched across too many areas, none of them get the attention they need to truly excel.
When to Say “No” to New Services
One of the most challenging aspects of running a business is knowing when to say “no.” It’s easy to get caught up in the excitement of launching a new service, especially if customers are asking for it. But just because you can offer something doesn’t mean you should.
In our podcast, I brought up the idea of focusing on vertical positioning—deepening your expertise in a specific area—rather than broadening your service offerings.
Joshua Tree Experts is a great example of a company that has developed deeper service offerings within their company.
For example, if you’re already offering tree care services, you could expand into more specialized areas within that field, such as plant healthcare or root excavation, rather than branching out into entirely new services like irrigation or lawn care.
Jeffrey agreed, highlighting a key consideration: “You can sell more services to the same client or have one service and sell it to more different kinds of clients.
But when you go for new services and new clients, that’s like a whole new business.” The takeaway here is that strategic growth often means doing more of what you’re already good at, rather than trying to do everything.
Recognizing the Signs of Over-Diversification
How do you know if your business is suffering from over-diversification? Here are some signs Jeffrey and I discussed:
High Operational Costs
If you’re running multiple CRMs, have diverse equipment needs, or are struggling to keep up with the expertise required for each service, you might be spread too thin.
Diluted Brand Identity
If your marketing materials are trying to communicate too many different things, or if your customers don’t seem to understand what your company does best, it’s a red flag.
Internal Cultural Divide
Different service divisions can create silos within your company, making it harder to maintain a cohesive culture. This can lead to inefficiencies and a lack of collaboration between teams.
Stagnant Profit Margins
If your revenue is growing but your profit margins are not, or if some divisions are dragging down the overall profitability, it’s time to reassess your service offerings.
Making Tough Decisions: Pruning for Profitability
So, what do you do if you realize your company is over-diversified? The answer might be tough, but it’s necessary: you need to prune.
Jeffrey introduced a concept called “Fix, Fire, Fill,” which he uses to help businesses evaluate their service divisions. “You have to look at your divisions and decide which ones need fixing, which ones should be cut, and which ones you should focus on growing,” he explained. Sometimes, this means letting go of services or clients that aren’t profitable, even if they’re bringing in revenue.
KD Landscape made a bold move to transition to a commercial landscaping company over a 3-year period. This improved efficiency, profitability, and their brand message.
For example, one of Jeffrey’s clients had a garden center that was bleeding resources. After a thorough analysis, they decided to shut it down and redirect their focus to a more profitable division. Another client found that they were great at flat work but not as strong at building walls, so they chose to subcontract the wall work and focus their resources on what they did best.
Strategic Growth for Long-Term Success
In the end, the goal isn’t just to grow your business—it’s to grow it strategically. By focusing on what you do best and being selective about the services you offer, you can build a stronger brand, increase profitability, and create a more sustainable business.
As business owners and entrepreneurs, it’s natural to want to do more. But sometimes, doing less—and doing it better—is the key to long-term success. If you’re feeling the pressure to add more services, take a step back and consider the impact on your brand, your team, and your bottom line.
As Jeffrey wisely put it, “Successful companies are profitable companies.” And in many cases, focusing on profitability means resisting the urge to diversify too much.
If this conversation has sparked some thoughts about your own business, I encourage you to reach out to industry experts like Jeffrey Scott. He can help you look more closely at your company’s health and guide you to make more profitable decisions.
Love tough conversations like these? Subscribe to our blog. And, if you're ready to talk about how to create a comprehensive marketing plan to support profitable growth at your green industry company, request a consultation with us. 
Resources
You can listen to past episodes of the Landscape Leadership Podcast here.
Questions? Email Chris at chris.heiler(at)landscapeleadership.com or Chad at chad.diller(at)landscapeleadership.com. You can also connect with both of us on LinkedIn.
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Thank you for listening. To your success.
