Value via Focus

2016 Landscape Industry Hidden Gems discuss what they're doing to create more value in the eyes of the customer.

Landscape Industry Hidden Gems 11701615

Landscaping Services is about as fragmented an industry as you'll find. There are lots and lots of smaller companies offering different combinations of services. Some specialize in a service or two while others have decided to become one-stop shops. There are pros and cons to both approaches. The bottom line is that if you enjoy it, can make money at it and your customers value it, it's a sound business model for your individual company.

Service offering aside, there are other ways today's best, fastest-growing landscape companies are adding value in the eyes of the customer. Here are some great examples.

North Point Outdoors in Londonderry, NH, has only been in business since 2010. Growth has been explosive, particularly last year when sales jumped 48%. The company is still growing—adding an estimated 25% to the top line this year. North Point now employs 36.

"We never thought we would be at the spot we are today, certainly not this fast," says Dave Fairburn, who co-owns the company with Andrew Pelkey. "We have simply focused on developing and training our young team. They make us stand out, servicing our customers and community with a high level of pride, professionalism and capability that we couldn't be more proud to lead." Both Fairburn and Pelkey are 29. The average production crew member is 26.

In addition to developing team members, the partners have focused on the utilization of technology to not only increase operational efficiency, but to improve the customer experience. For example:

  • Office automation of sales process, i.e. new leads, estimate acceptance, communication (call ahead, meeting confirmation)
  • Mobile tablets in all production vehicles for work orders, rout dispatching
  • GPS tracking on all vehicles and equipment
  • North Point Outdoors AutoPilot Program – allows for automatic completion and billing of pre-determined services
  • Auto invoicing on credit cards
  • Online client portal to view and manage account
  • On-site estimating
  • Estimates sent with "accept now" link

"Our process is ideal for the homeowner who readily relies on cell phone email and credit cards," Fairburn points out. "Services are completed and billed with minimal to no interaction with the homeowner." This is still a people business—but some people (customers) want to do business in different ways. North Point Outdoors is delivering.

Father & Son Lawn Solutions in Navarre, FL, made an abrupt change in May 2012: They stopped being a full-service landscape company in favor of focusing on monthly lawn treatments. "We changed our name from Father & Son Landscape to Father & Son Lawn Solutions," says Skip Orth, company owner. The "Son" refers to Skip's son, Buddy, who has been helping to run the company since it was founded in 2003.

Since the course correction four years ago, the company has moved in a very positive direction. Customer base has grown from 70 to over 500. Sales are back to their peak level when the company was full-service—the difference being that the company is generating that sales volume with six employees as opposed to 17. Sales grew 11% last year and continue to skyrocket.

"At the rate we're growing, we should be doing over $1 million within the next year or two," Skip relates. "I attribute our growth rate to all of the marketing we've been doing, which includes a combination of direct mail, Facebook, TV and newspaper."

The marketing is highly targeted, which has helped to build route density. "All of our customers are within a 30-mile radius of our office," Skip points out. "The way we are growing is scalable. We are paying for expansion as we go so we don't run out of credit or hit a debt ceiling. Our profit margins are good. The national average people pay for a lawn treatment service is $50/month. Our average is over $85."

Tab Property Enhancement in Brunswick, OH, is a Hidden Gem for the third straight year. The company grew 59% from 2012-2014 and a whopping 39% last year. This year has been strong too. Truth be told, company owner Trace Baum says growth could be even greater if the company could find good employees. "This country is going to be in serious trouble in 20 years if young people don't start getting into the trades again," Baum laments.

That's a topic for another day. Today, Tab Property Enhancement is growing. Baum credits two reasons why: their quality of work and their customer service. The online consumer review site Angie's List has played a big role too. "About 90% of our new work is coming from Angie's List," Baum relates. "The other 10% comes from traditional referrals. On Angie's List, we have over 200 'A-grade' reviews. It's the only advertising we do."

Tab Property Enhancement has a unique service offering. Decks and paver patios account for more than half of sales. Pressure washing accounts for about 5%. The other third or so comes from landscaping, fencing and home remodeling.

"Almost every job we do has multiple components," Baum says. "Customers really appreciate working with one contractor for a variety of home services."

There is a handful of services Baum has stopped offering: mowing and maintenance, fertilizing, snow removal and deck maintenance. He says the margins are fairly low on this type of work in his market. "There's a lot of overhead and equipment needs involved," Baum says. "Other companies that don't have as much overhead tend to price these services really low. Sometimes, in order to compete, we weren't even making any money. We just got out of it and now focus on what we do best—and what customers appreciate most."

Complete Tree Care in Millsboro, DE, owned by husband/wife duo Toby and Julie Schlick, has been in business since 2006. Sales really took off last year, climbing 67%. "This year has been just as fantastic," Julie adds. The company now employs nine peak-season employees and six year-round.

The Schlicks own a second company, Complete Lawn Care, which was founded in 1980. It is roughly the same size as its younger Tree Care sister. They keep the companies legally separate to more palatably manage skyrocketing workers' comp premiums on the tree care side. To the customer, though, the two companies are very much one and the same.

"I call it 'continuity of care,'" Julie explains. "Having the same group of people caring for an entire property—from the soil in the ground to the upper canopy of trees—is really appreciated. Our crews work together to share information, give recommendations and provide services that are beneficial to the entire property. We work with many businesses, homeowners and communities in our area."

The Schlicks also work hand in hand with other smaller companies to foster economic growth in the communities they serve. "We work with local vendors as much as possible as opposed to price shopping outside of our community," Julie adds. "This includes advertising which is a huge cost for us. But we do it because it impacts our community in a positive way."

WAC Corporation of Greenville in Greenville, NC, was first introduced to the industry at large in 2008 when the company was one of our Pros in Excellence award winners. At that time, Corey Handley was 29 years old and working hard to build upon the strong foundation his father and business partner, William, had established since the company's founding in 1978.

WAC had 25 peak-season employees in 2008. Now it has roughly 40, 25 of whom stay on the payroll all year long. Sales grew 12% last year and are up over 15% this year. "We could grow even faster but the labor crunch has us holding back slightly and being selective on bidding projects and contracts," Corey says. "We can easily outsell the availability of quality labor."

They've been growing plenty, though, and are keenly focused on finding ways to boost efficiency so they can continue delivering high-level service to existing clients. They run four-day workweeks, giving employees an extra day off on most Fridays. "This extra day each week allows employees more time with family and helps avoid mid-season burnout," Corey says. Fridays are then reserved for equipment maintenance. "We're one of the only companies in our area that does this," Corey adds. "It helps us in the constant search for talented employees. All of our employees are E-Verified and drug-tested."

WAC has also transitioned its mower fleet to propane—several years ago, actually, when it was still a fairly new concept. "This is the right approach to take for both the industry and the environment," Corey says. "Passionate about our industry and its image, we feel that we must preserve the environment which we depend on for our livelihood."

Yes, WAC Corporation has grown considerably in recent years. But, as Corey points out, growth has been controlled to allow the company to continue operating at peak efficiency and profitability. "We do not take every job if it does not fit our niche and desired client profile," Corey explains. "We aren't afraid to pass on a job or refer it to another firm that may be a better fit. Uncontrolled growth stresses staff and resources and can hamper even the best-managed operations.

"We operate with this motto in mind: Sales volume without profits creates a job—not a sustainable business that can grow and prosper while creating opportunities for its employees. We have chosen to run a business and not allow that business to run us." At the end of the day, the client benefits from that approach as much as anyone.

Organic Solutions! in Nampa, ID. Mike Joelson founded Organic! Solutions in 2000. The company grew 38% last year and now employs roughly 12-14 people. "Sorry I haven't been able to get back to you sooner," said Aaron, Mike's son, in an email response to Green Industry Pros. "We have been insanely busy!"

Not surprising. The company has been on a multi-year roll, thanks in part to several accolades it has received for customer satisfaction and overall excellence in lawn care and landscaping (i.e. Thumbtack.com and Pulse of the City News).

"We've worked hard to provide an excellent quality of service while still being environmentally conscious," Aaron points out. "Not every service we provide is 'organic'. But by remaining conscious of the environment, there are ways we can reduce waste—and chemical overuse if one of our priorities."

The company uses organic food-grade urea as the base mix for its fertilizers. "Then we add minerals, humic acid and live microorganisms," Aaron explains. "We mix it to be most effective for the soil in our area, which is a very important point. Most fertilizers are very generic and made for many different types of soil. We want our fertilizer to be effective here, where we work. We not only want to keep the grass green, but also build the soil."

There's another way Organic! Solutions is reducing waste and being more environmentally conscious. Its maintenance crews haul all grass clippings to area dairy farms. The yard waste makes for great cattle food, helping both the farmers and Organic! Solutions reduce cost.

"We've worked with several different farms over the past six years," Aaron tells. "Cattle feed can be very expensive. Most of the dairy farmers we approach openly welcome fresh green grass to supplement their cows' diets. Most of the cows at dairy farms never get to eat fresh green grass. The cows are happy about it too. Many times when we pull in, the cows will be lined up by the fences waiting for the grass. The cows are happy, the farmers are happy, and we are happy.

"I have read many reports that estimate the local landfills contain roughly 30% grass clippings," Aaron adds. "So we are also positively impacting our environment and our communities by not hauling the grass to the landfill. We try to approach dairy or cattle farms that are located within a reasonable distance from our business location. This way my mowing crews can dump the grass on a daily basis and keep it fresh for the cows."

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