Grubs: Getting the Word Out

In Michigan, where grubs are a wide-spread problem, many of Paul Wagner's clients already knew about the damage these pests can cause and were receptive to the idea of prevention. It was then the duty of Wagner, owner of Masters Green, Walled Lake, Mich., and his crew to further inform them of the service and what it entails. “We found that if you inform the customer about what you’re offering them and why it’s necessary, it’s relatively simple to sell,” Wagner says. “The most important thing is that the service has to be needed. Grubs have long been a problem in our area so people jumped on the idea of preventing the damage.”
 
During the service’s initial promotion, Wagner and his crew handed out literature at the time of each client’s regular application explaining the benefits of grub control. A representative from the company would then follow up with a phone call further explaining the procedure and answering any questions the client may have. Wagner focuses more heavily on promoting the service in March and April, when people are “thinking spring” and eager to get their lawns in good shape to enjoy them in the coming months. During this time, information is added into the company’s newsletter distributed to all of its clients at every job. “As a percentage, our marketing costs for printing newsletters and inserts are very minor,” Wagner says. In 2007, he anticipates spending $6,500 on direct mail pieces and another $6,000 on additional sales costs like commissions and phone use.
 
Today, Wagner’s business performs about 6,500 grub control applications per year. The sector of his business has grown a steady 10 percent each year, which is basically what he expected, he says. He plans to grow the sector another 10 percent in 2007 by increasing marketing efforts with more inserts and pamphlets in addition to sending e-mail alerts. “We’ve made a very conscious effort to get all of our customer’s e-mail addresses,” he says. “Many of our clients choose to pay their bills online, which has been a helpful way to collect them.”
 
The marketing efforts are sure to pay off. Because the labor is already included and the switch to a different granular fertilizer had little to no financial impact on his business, the service has an 80 percent gross profit margin, Wagner says. After factoring in about 17 percent for product cost, he charges $12 per thousand square feet, or about $120 for an average 10,000 square-foot job, a price comparable to the competition. “Companies shouldn’t be afraid to offer new services that can benefit their customers,” Wagner says. “If lawn care operators offer things their clients need, they can increase their revenue, which is a nice byproduct for them.”