Stockner’s Nursery covers a lot of ground. A third-generation business in Rockville, Va., it offers commercial and residential grounds management, landscape design and installation, outdoor kitchen and lighting installation, drainage and irrigation installation and maintenance, a power washing service and a nursery. And with almost 40 employees, including two landscape designers, two account managers, two administrative assistants, a nursery manager and an office manager, things can get pretty hectic.
Stockner’s is owned by the three Stockner brothers: Daniel, 32, Gary, 28, and Dean, 24. Gary Stockner, who is president of the company, manages the landscaping division, while Daniel Stockner and Dean Stockner, both vice presidents, handle the grounds and field supervision. The brothers have been managing the business for the past eight years, and bought out their father last July. But the company was originally started in 1981 by their grandfather, who had retired from a large landscaping company. For years, the core of the business was landscape installation until irrigation and maintenance services were added in 2002. With annual revenue of $3 million, Stockner’s client mix averages 95 percent commercial and 5 percent residential. Service mix is 70 percent landscape construction and installation and 30 percent grounds management, with the new irrigation division growing rapidly.
In 2007, Stockner’s was ranked No. 2305 in Inc. magazine’s “Inc. 5000” list of the fastest growing small businesses in the country. Gary Stockner attributes that growth to “being in the right place at the right time, gaining new clientele and then, in turn, servicing those customers to the best of our ability.” Sales growth during the past eight years has reached up to 60 percent, but this year, growth has been around 15 percent.
“Our particular area with the current economic status is doing really well,” Gary Stockner says.
The Stockner brothers’ strategy for this year is to concentrate on getting processes in place to plan for another growth spurt. They are currently building a new, eco-friendly office and have plans to open a retail operation as early as next spring. But the Stockners say that the company is “a good size to do both small and large jobs,” so they don’t require a minimum size project. Two landscape designers provide design services. At one time, Stockner’s didn’t charge for consultations. But the owners found that in order to qualify potential clients, it’s better to charge a $100 consulting fee, applicable to any installation charges. Larger projects that require design are billed a design fee. A one-year warranty on plant materials is provided with an installation package, but the package doesn’t cover perennials.
Stockner’s owns all of its equipment, except for that which will be used for a short time, such as aerators. All of the company’s trucks are Isuzu box models, bought used, often at online auctions. The Stockner brothers make sure the trucks are running correctly, and paint them to look new and match the image that the company wants to project. A mobile truck maintenance company services the trucks and other large equipment on a regular basis. Smaller equipment is serviced in-house. Large equipment, such as skid steer loaders and tractors, is replaced as soon as the warranty expires, while trucks and other equipment are scrapped when they are no longer cost-effective to repair. Although Stockner’s has no formal replacement schedule, the brothers analyze the volume of scheduled work and consult with their accountant when deciding whether to replace equipment.
Smooth Operators
Keeping the business running at an optimal level involves systems that the Stockners have devised “through trial and error, as well as talking to and implementing successful systems implemented by our peers,” Gary Stockner says. A key element is keeping the two main divisions (grounds maintenance and landscaping) completely separate. Not only do the divisions have separate trucks and tools, but also separate office managers, sales representatives and laborers. However, the brothers are rethinking the separate sales departments.
“I found we were sending out double sales letters and things like that,” Gary Stockner says.
Now, the brothers are implementing a plan to coordinate some sales activities. A meeting every Thursday covers sales leads, existing jobs, collections, scheduling and personnel problems. Current projects include developing better job descriptions, to avoid problems such as a sales person getting involved in purchasing.
Like any company that has been in business for a while, a great deal of Stockner’s sales prospects are the result of customer referrals. The company also advertises on its shirts and trucks. In addition, the Stockner sales staff is always looking for new and innovative ways to market products, maintain existing accounts and attract prospects in the area. For example, sales representatives will visit a completed installation a year after it’s finished to check on the condition of the landscaping and meet with the property owner. Often this results in new sales, as the sales person and the customer discuss potential changes or enhancements.
With new residential construction, the company will schedule a free walk-through with the homeowner to tweak the system, which also can lead to additional sales. The display garden planned in conjunction with their retail operation will also provide a sales tool. The fact that Stockner’s facility is within five miles of two of the largest residential developments in Richmond, Va., is another sales advantage, and the owners have found that advertising in homeowner association publications pays off.
A Dedicated Workforce
The Stockners say that, as with many landscaping companies, one of their biggest headaches is finding competent employees. However, the company’s employee retention rate would be envied by most. Overall, 75 percent of their employees have worked for the business for more than two years and another 15 percent have been with the company for more than five years. When searching for employees, the brothers have found that “help wanted” ads aren’t productive enough for the money invested in them. They have had some success with posting on Craigslist.org, but find that suppliers can be one of the best sources for leads. Suppliers, the brothers say, are often aware of experienced people who are not happy at their current position and may be open to other opportunities. As an incentive, the brothers offer above-average benefits, including a good retirement plan and company-paid life insurance and disability insurance. They are aware of the value of their employees, and Gary Stockner says it’s one of the reasons for evaluating the company’s processes this year. The business, he says, was losing “the atmosphere that everyone is growing with the company,” and the brothers wanted to work on getting that back.
Although business slows somewhat in the winter, the fact that some employees choose to take the winter off helps to prevent layoffs. Commercial installation projects provide work, and Stockner’s offers snow removal services, although there has been little to no need for it during the past few years. Employees can also work in the holding nursery. The brothers are not set up to grow plant materials in the nursery, as space is limited. Because it can take 18 months to grow a three-gallon plant, they find it more cost-effective to buy materials and mark them up.
Most work is done by employees, except for summer kitchens – a recent addition to the company’s product portfolio. The Stockners saw kitchen demand increasing, and contracted the work to someone who is familiar with the design and building of outdoor cooking areas. Irrigation was handled by subcontractors, until the Stockners hired a manager of that division this fall. The addition of this in-house service has completed Stockner’s plan to offer “one-stop shopping.” The brothers say being able to get landscape and irrigation installation, grounds maintenance and irrigation repair from one company is appealing to customers.
Facing Challenges
Another headache familiar to most businesses is collections. “Cash flow is a constant problem,” Gary Stockner says. “We are very careful who we work for these days. One of the first questions we ask a new commercial client is how soon they pay.”
The Stockners aren’t surprised when commercial customers take 45 to 60 days to pay, but after that, they begin calling the accounts payable department or their contact at the business. In addition, the Stockners talk to suppliers and even other contractors to find out what kind of reputation the business has. This year, for the first time, they had to take two small contractors to court over unpaid bills. As a result, Stockner’s is pressing forward to increase its share of residential business.
Stockner’s has also taken action to decrease fuel consumption, including making sure that schedules are planned to optimize fuel conservation and discourage excess mileage. Among other policies, employees are encouraged to bring their lunches so as to avoid travel to and from restaurants. In addition, the Stockner’s say having a plant purchaser on staff has “saved a ton on money.”
When asked about the perils and pleasures of working with family, the brothers cite several advantages. “The trust factor comes into play, since you can trust your fellow employees with money, decisions, etc.,” Gary Stockner says. “We all share the same common goal and can bounce ideas off of one another. As family, we also know our boundaries with each other and what to say and how to say it.”
In addition, the brothers all try to leave the business at the door.
When asked to discuss the disadvantages, Gary Stockner simply says, “We’re family. What do you think?” PLD