Mind Your Business: Psst... Did You Do Your Homework?

Keepin’ up with the Joneses’ in the green industry requires a little research and a bit of background work. From finding a happy pricing medium to differentiating services, contractors who keep their eyes on the competition will learn from both successes and failures.

“You want to make sure you are positioning your company to be competitive,” emphasized Chuck McIntire, president, Turf Pride, Atlanta, Ga. “You don’t want to go out and be twice as expensive as other companies, and it’s important to know from year to year if you are still competitive.”

While it’s important not to “let the competition run your business,” it’s also crucial not to ignore others in the market. When McIntire started Turf Pride years ago, he solicited estimates from other lawn care companies. He called competitors for pricing information and picked up more tidbits from his employees, some of whom had transferred from other facilities. He put together a list of services and costs from each company that he updates each year, sharing it with his employees.

While these statistics lend perspective, McIntire is careful not to depend on numbers too much. He differentiates his company by communicating with clients. “We all provide a very similar level of products and programs, so the only way you can stand out is through service and trying to spend some quality time with the customer, whether by phone or face to face,” he said, adding that explaining services to customers helps them understand pricing origins and secure sales.

Kris Hjort realized that creating a niche in his cutthroat Fairfax, Va., market would separate K&H Lawn Services from the rest. His company mows more than 400 lawns a week, emphasizing detail work like blowing off decks and patios and edging properties. “We were one of the first companies that started doing edging on a weekly basis, and now most others do it on a weekly basis, too,” he pointed out.

While his competitors picked up on one of his tricks, his watchful eyes noticed catchy features from their companies as well. “I saw another company offering gutter cleaning services – what a simple thing to add to your client base,” he related. “We probably clean 200 houses in the spring and 200 in the fall now by noticing what other companies are doing.”

Same goes for the mulching attachments he added to 10 of his mowers this year. “We had an employee we hired who had used them before,” he said. “Now we can eliminate hauling away clippings.”

In fact, opening up dialogue with area businesses benefits all parties. “We’ve been active in trying to help other companies around us, educating them as far as knowing what your costs are so you are bidding what you need to be successful,” said Jerry Merrill, president, Merrill Quality Landscapes, Rexburg, Idaho. “If everyone throws low-ball bids, it doesn’t help anyone because it keeps market prices down.”

With this in mind, Merrill builds reciprocal relationships with competitors, stressing the importance of approaching them without a hidden agenda. “If you frame your conversation with the idea that you are trying to be a better company and provide better value and learn where you need to be on pricing and quality of work, they are more willing to share the information,” he said.

Networking through national associations also provides pricing and business operation ideas, Merrill added. And contractors can indirectly obtain pricing information by collecting estimates and brochures from their own clients. He said many of his customers actually approach him with other companies’ information. “If you ask, most people are willing to share,” he said.
– Kristen Hampshire

The author is Managing Editor – Special Projects for Lawn & Landscape magazine and can be reached at khampshire@lawnandlandscape.com.