TOP 100: Many Eggs, Many Baskets (Lipinski Outdoor Services)

Asked to define the key to Lipiniski Outdoor Services success, President Doug Cook sums it up with one word: diversification.
 
Take snow removal, for example, which accounts for half of the Marlton, N.J.-based full-service company’s $28 million revenue. Diversifying how it approaches its snow operation, which extends from Virginia through Maine, has allowed the company to prosper during low-snow winters. 

“What we’ve been seeing over the past three years is that it’s been more ice events than snow removal,” says Cook about the mid-Atlantic region. “So while we’re not getting a lot of plowable snow, we’re getting a lot of activity.”

Lipinski also diversified its commercial contract base between charging clients flat-rate seasonal contracts and on a per-inch plowed/per-application of salt basis.  

“We’ve worked that based on average inches of snow in the various regions we operate,” Cook says. “And we’ve found that we’ve got to have 30 to 35 percent of our revenue in seasonal contracts to give us an insurance policy in down years. Diversified contracts take some of the risk out of a bad winter.” 

Diversification also brings about new growth opportunities. Three years ago, in response to client requests, Lipinski added parking lot maintenance to its service mix. This service, which includes lot sweeping, sealing and restriping, represents about 12 percent of Lipinski’s overall revenue, Cook says.

“Our clients are looking for more of a wrap service – snow removal, landscape maintenance and parking lot sweeping,” Cook says. About 95 percent of Lipinski’s work comes from commercial clients. “We have some strong opportunities on the table before us and we expect this service to grow pretty rapidly.” 

Most recently, Lipinski created a janitorial division, again in response to client needs. The company sees great potential for growth in this area – as much as 40 percent in 2008, Cook says. 

“We have a lot of competitors in the retail market who offer all of the service lines, but in the corporate and industrial markets we’re pretty unique,” Cook says. “I believe we’re one of the only companies that straddles so many different service lines.” 

Overall, Cook projects between 25 and 35 percent growth for Lipinski over the next year, and maybe more if this winter yields numerous snow and ice events. Regardless, the company’s diversity of service offerings ensures profit will be more likely than loss.

“We’re very optimistic,” he says. “A lot of our growth is coming organically from our existing client base. Everything indicates strong growth. We’re going to continue to work to improve our systems internally and it’s giving us some strong opportunities into the next year.”