LandOpt, a leader of on-demand business operating systems for the landscaping industry, says that its matured licensee partners have consistently increased both gross margin and net margin profits from 2008 through 2010.
In 2008 these companies performed at an average of 21% GPM and 0.2% NET profit. Once they fully invested into the LandOpt transformation, the success rate of the Nationwide Network grew significantly. In 2009 the average raised to a 32% GPM and 4.6% NET profit. While other contractors are pulling back and cutting costs, LandOpt licensees are seeking out new opportunities. Growth continues in 2010, where current averages have raised to 38% GPM and 13.8% NET profit.
One of the main contributing factors to this sustained growth is through customer retention. By providing solution-based sales, landscape contractors are able to build trusting relationships with their customers and communities, while continuing to take on new clients. This controlled growth allows Powered by LandOpt organizations to plan for sustainable long-term success.
“Prior to LandOpt, we just didn’t really know how to recognize the numbers we now use on a regular basis,” says Jeremy Miller, general manager of Miller Landscape outside of Detroit, MI. “Now we strategize and change course if we need to, based on the data we collect. We have goals to meet and we measure our performance.”
One of the keys to ensuring long-term success for each company in the LandOpt Nationwide Network is a comprehensive, proactive sales process. LandOpt constantly trains and coaches sales teams through onsite evaluations, weekly sales webinars and training sessions in LandOpt’s facilities in Pittsburgh. Even though sales in the landscape industry are known to fluctuate with each local economy, licensee partners have experienced an average increase of 29% in sales activity from 2007 through 2010.
“The landscape industry as a whole has not developed a professional sales culture,” says Tim Smith, President/CEO of LandOpt. “LandOpt institutes proactive selling practices. Companies engage prospective customers, rather than simply react to phone calls from interested parties.”
While other landscaping companies flounder in a soft economy, by clinging to outdated sales practices and business principles without goals for growth and sustainability, LandOpt is securing the future of each partnered company.
LandOpt provides all of its partners established business procedures for performing all business management functions, including sales and marketing, operations management, business management, human resources, and professional development. The procedures are supported with web-based applications and business success coaching, managed by LandOpt professionals.
“The Green Industry is going through a business revolution,” Smith said. “The methods we introduce place high standards and professionalism into the corporate structure. Our partners experience growth, higher profits and develop a professional workforce.”
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