Marketing & Sales Insight for the Lawn & Landscape Industry

In my last article I suggested you limit your production capacity at least until you reach the profit margins you desire.

In this article I'll give you some tips on how to manage your capacity. But, first, a caveat to this discussion...

The stronger your positioning the easier it will be to manage your company's capacity for work, and thus reap the benefits that come along with this strategy.

On the flip side, a full service one-stop-shop trying to be all things to all people will have a difficult time managing production capacity in a logical and strategic way as compared to a company with a crystal clear identity.

We've already burned through the first month in a new year, my friends. Wow...

At Landscape Leadership 2018 was one of our best years yet. I can say that based both on the financial goals we achieved as well as the meaningful impact we had on the green industry companies we work with.

I hope you had similar success in 2018.

In this article I want to share the single strategic initiative that I believe led to our success last year.

Roll back the calendar...it’s 2016. I’ve had my own frustrating experiences marketing at a $13 million lawn and landscape company and now, after coming to work at Landscape Leadership, I have realized my misfortune was a common green industry marketing epidemic.

Ask me the question, “Is Pay-Per-Click (PPC), specifically with Google Adwords, a good idea for a lawn care company?”

The answer then was, “No. Stop wasting your money.”

But...now I would say, “Maybe…” Let me explain why.

In my last article, "Squashing the Full Service Myth", I called bull shit on this idea that your customers want a one-stop shop for all their outdoor needs.

I can summarize it like this:

If "full service" is your company's calling card then you are undifferentiated to the point you are easily replaceable by any competitor claiming the same.

"Full service" is not a strategy, my friends. I think of it more as a "happy accident" you've either intentionally or unintentionally grown into.

While offering every service under the sun may seem like an ideal way to grow top line revenue (spoiler: it's not), this approach to diversification will undoubtedly limit your profit potential.

Have you considered spinning off one of your service offerings or divisions into a separate company and brand?

This is not an uncommon strategy in the lawn and landscape industry. We've worked with numerous companies who have attempted this.

Here are a couple off the top of my head:

Kingstowne Lawn & Landscape -->

-> Kingstowne Pest Defense

-> Kingstowne Home Services

Neave Group Outdoor Solutions -->

-> Neave Pools

-> Neave Decor

-> Neave Masonry

-> and others

This is exactly what Archie and the Greenbelt team are scheming about in our Green Ways comic.

Greenbelt Outdoor Services -->

-> Greenbelt Pools

-> Greenbelt Lawn Care

-> Greenbelt Tree Care

In the branding world this strategy is referred to as "brand extension".

Let me be clear: I'm not endorsing this strategy. I'm simply calling it out for what it is and offering an honest assessment of the opportunities and risks in this article.

If you’re a regular reader of this blog you’ve probably noticed my use of the phrase, “Just Another Landscaper”.

This isn’t a label you want your customers attaching to your brand. The reality, however, is that this is exactly where most of you find yourselves currently.

In the previous article I discussed common ways landscaping companies and professional landscape designers charge for landscape design:

• Freebie, foot-in-the-door offer
• Small lump-sum fee (ex- $500)
• Cost-based pricing (time x hourly rate)

Then I proposed the creative way I would price landscape design services if I still had my design firm today:

Price each client and project uniquely by offering three options and prices to choose from.

If you missed the previous article about whether or not to charge landscape consultation fees, I recommend you go back and read it.

Here’s a response to that article from a subscriber:

"What a great article on consultation fees! We’ve been using this strategy for two years. Not only does it do everything you stated in the article, charging a fee has opened up hundreds of hours per year of new time to work on my company as opposed to meeting with potential clients that have absolutely no intention of buying our services. Our close ratio went from 40% to 80% almost instantly when we implemented this strategy." ~ Carson Browning, ITM Landscapes

I love getting feedback like this from readers. Keep your comments coming.

Now, let’s talk about charging a fee for your landscape design expertise.

In the past week I’ve received emails from two landscape companies eager to break into the commercial market.

Like I mentioned in my last article, this trend towards diversification comes up in almost every conversation I have with lawn and landscape companies.

In this article I’m going to throw some cold water on this idea, which hopefully discourages some of you from pursuing this market.

For others, this may be the validation you’re looking for.

As you’ll see, the consumer (B2C) and business (B2B) markets are two different worlds. You need to understand what makes each unique and determine on which side your culture aligns.

Have you noticed how many landscape contractors are getting into commercial landscape maintenance? How about others now offering lawn care to their customers?

Maybe some of your competitors have made the move. How about you?

Based on the dozens and dozens of conversations I've had with contractors since the start of the new year, I would guess you're considering the same.

Let's explore why many lawn and landscape companies chase diversification, beginning with the justification I hear most: