In January 2002, Lawn & Landscape magazine sent 1,000 surveys to a randomly selected group of readers who identify their businesses as chemical lawn care companies. The survey included questions to gather more information about lawn care operators’ pesticide use – their purchasing habits and attitudes toward applications. This data offers statistics and summaries of the feedback collected from this survey.
SUMMARY
Most survey respondents indicated their businesses focused on chemical lawn care, excluding mowing (76 percent), while 12 percent of those who returned questionnaires identified their companies as landscape maintenance and 9 percent reported their service mix was predominantly ornamental tree care. Only 3 percent were landscape contractors who offer installation and maintenance services. These numbers depicted the survey sample group, which primarily was lawn care businesses.
More than two-thirds of respondents – 79 percent – described their 2002 gross sales as less than $1 million. This is consistent with industry statistics that show most companies are smaller-scale operations. Further supporting this observation, 16 percent of respondents said their gross sales were less than $50,000, and the most prevalent sales bracket was $100,000 to $249,000 (27 percent).
Regardless of company size or client profile, respondents allocated a generous portion of their budgets to pesticide expenditures in 2001. Forty-six percent spent more than $10,000 and 30 percent spent between $2,501 and $10,000. These expenditures increased for 62 percent of respondents from 2000 to 2001, while 30 percent said expenditures were steady. Clearly, companies continue to invest more in pesticide products, as only 8 percent reported cutting this line item in their budgets. For those who did report adjusting their expenditures between 2000 and 2001, the average increase was a prominent 14 percent, while decreases averaged 7 percent. Most of this money (86 percent) went toward turf purchases.
Contractors also were asked to estimate the percentage of their turf, ornamental and tree pesticide purchases, itemizing expenditures in the following categories: insecticides, fertilizers + insecticides/herbicides, fungicides, organics, herbicides and PGRs. Results showed that nearly half of turf pesticide purchases (48 percent) were allocated to combination fertilizer products, followed by herbicides (26 percent) and insecticides (18 percent). Organics amounted to 1 percent of expenditures, but figuring this category with only those who do purchase organic treatments, the number increased to 7 percent. (This percentage increase trend was consistent in each category when calculations included only those who do purchase a particular pesticide treatment. These results are tabulated and presented below the category averages.) On the other hand, insecticide products were favored for tree (56 percent) and ornamental pesticide purchases (47 percent), followed by fertilizers + insecticide/herbicide (23 percent for trees and 22 percent for ornamentals). This is probably because of the sheer volume of turf that is treated and that combination products are more easily applied to larger turf areas than as spot treatments on trees and ornamentals.
Several considerations accompany pesticide purchase decisions, which are made year-round according to 64 percent of respondents. Distributors are lawn care operators’ most common purchase source (56 percent), followed by dealers (31 percent) and then manufacturers directly (8 percent). Few turn to garden centers, formulators, mass merchandisers or online sources for pesticide purchases. Cost tops the list of buying concerns, then efficacy, safety, supplier location and dealer suggestion. Other considerations paled in comparison with cost and efficacy, however, which 60 percent of respondents chose as two of the three primary factors that influence their pesticide purchase decisions. Purchases are still split between granular and liquid products, 50/50.
In the meantime, lawn care professionals are considering environmental issues in their businesses, as 88 percent say “green” concerns affect their companies. On the other hand, few of their customers question pesticide applications’ affects on their properties. Only 34 percent of respondents said their clients express more concern for environmental risks accociated with pesticides than in the past.
Most survey respondents indicated their businesses focused on chemical lawn care, excluding mowing (76 percent), while 12 percent of those who returned questionnaires identified their companies as landscape maintenance and 9 percent reported their service mix was predominantly ornamental tree care. Only 3 percent were landscape contractors who offer installation and maintenance services. These numbers depicted the survey sample group, which primarily was lawn care businesses.
More than two-thirds of respondents – 79 percent – described their 2002 gross sales as less than $1 million. This is consistent with industry statistics that show most companies are smaller-scale operations. Further supporting this observation, 16 percent of respondents said their gross sales were less than $50,000, and the most prevalent sales bracket was $100,000 to $249,000 (27 percent).
SURVEY RESULTS
1. Which ONE of the following best describes your business? (Please choose only one).
- Landscape Contractor (Install. and Maint.) 3%
- Landscape Maintenance 12%
- Chemical Lawn Care (excluding mowing)
- Ornamental Shrub and Tree Care 9%
- Landscape Architect 0%
- Irrigation Contractor 0%
2. Which one of the following best describes your projected 2002 gross sales?
- Less than $50,000 16%
- $50,000 to $99,999 18%
- $100,000 to $249,999 27%
- $250,000 to $499,999 17%
- $500,000 to $999,999 12%
- $1,000,000 to $2,499,999 6%
- $2,500,000 to $4,999,999 2%
- More than $5,000,000 2%
3. Of your total pesticide application sales revenue, what percent is generated from pesticide applications made on commercial accounts (offices, institutions, multi-family units) vs. single-family, residential units?
(total should equal 100%)
- Commercial 22%
- Residential 76%
- Other 2%
Respondents listed in this category included schools, athletic turf, municipal grounds, golf courses and parks.
4. What were your approximate annual pesticide expenditures for 2001?
- $1 to $1,000 6%
- $1,001 to $2,500 8%
- $2,501 to to $5,000 17%
- $5,001 to $7,500 14%
- $7,501 to $10,000 9%
- More than $10,000 46%
5. Have your pesticide expenditures increased, decreased or stayed the same from 2000 to 2001?
- Said expenditures increased 62%
- Said expenditures decreased 8%
- Reported no change in expenditures 30%
For those who said expenditures changed (70% of respondents), the average increase was 14% and the average decrease was 7%.
6. Based on pesticide application revenues, what percent of your pesticide business is (total should equal 100%):
- Turf 86%
- Tree 7%
- Ornamental 7%
7. Please estimate the percent of your turf pesticide purchases in each category. (total should equal 100%)
- Insecticides 18%
- Fertilizers + Insecticide/herbicide 48%
- Fungicides 6%
- Organics 1%
- Herbicides 26%
- PGRs 1%
Percentages changed when pesticide expenditures were figured including only those who purchase pesticides in a given category. For example, respondents who indicated they do purchase insecticides allocated an average of 21% of their budgets to this category.
- Insecticides 21%
- Fertilizers + Insecticide/Herbicide 56%
- Fungicides 10%
- Organics 7%
- Herbicides 32%
- PGRs 8%
8. Please estimate the percent of your ornamental pesticide purchases in each category. (total should equal 100%)
- Insecticides 47%
- Fertilizers + Insecticide/Herbicide 22%
- Fungicides 15%
- Organics 2%
- Herbicides 13%
- PGRs 1%
Again, percentages changed when ornamental expenditures were figured including only those who purchase pesticides in a given category. For example, respondents who indicated they do purchase ornamental insecticides allocated an average of 53% of their budgets to this category.
- Insecticides 53%
- Fertilizers + Insecticide/Herbicide 41%
- Fungicides 22%
- Organics 18%
- Herbicides 29%
- PGRs 13%
9. Please estimate the percent of your tree pesticide purchases are in each category. (total should equal 100%)
- Insecticides 56%
- Fertilizers + Insecticide/Herbicide 23%
- Fungicides 16%
- Organics 2%
- Herbicides 0.9%
- PGRs 0.1%
Here, too, percentages changed when tree expenditures were figured including only those who purchase pesticides in a given category. For example, respondents who indicated they do purchase tree insecticides allocated an average of 60% of their budgets to this category.
- Insecticides 60%
- Fertilizers + Insecticide/Herbicide 47%
- Fungicides 26%
- Organics 15%
- Herbicides 13%
- PGRs 6%
10. What percentage of your pesticide products do you purchase from the following sources?
- Dealer 31%
- Distributor 56%
- Garden Center/Retailer 3%
- Manufacturer Direct 8%
- Mass Merchandiser 0.5%
- Formulator 1%
- Online 0.5%
Percentages changed when sources were figured including only those who purchase pesticides from a given provider. For example, respondents who indicate they do purchase pesticides from dealers bought an average of 68% of their materials from this source.
- Dealers 68%
- Distributors 81%
- Gardener/Retailer 17%
- Manufacturer Direct 58%
- Mass Merchandiser 20%
- Formulator 24%
- Online 40%
11. When do you make your pesticide purchases?
- Quarter 1 (Jan.-Mar.) 12%
- Quarter 2 (Apr.-June) 13%
- Quarter 3 (July-Sept.) 9%
- Quarter 4 (Oct.-Dec.) 2%
- Year-round 64%
12. Which three factors have the most influence on your pesticide purchasing decisions?
- Cost 30%
- Efficacy 27%
- Safety 13%
- Supplier Location 8%
- Dealer Suggestion 7%
- Packaging 5%
- Manufacturer Reputation 4%
- Custom Formulation 4%
- Colleague Suggestion 2%
Other considerations mentioned included payment programs, shipping, availability, delivery schedule, service information, salesperson and whether or not the formula is non-staining.
13. What percent of your application programs are liquid or granular? (total should equal 100%)
- Liquid 50%
- Granular 50%
14. How many of your lawn care applicators are certified by a local, state or national association? Data not suitable to tally.
15. Do environmental concerns affect your company?
- Yes, environmental concerns affect our company 88%
- No, environmental concerns don’t affect us 12%
16. Do your clients express more concern for environmental risks associated with pesticides than in the past?
- Yes, they are more concerned now. 34%
- Clients never expressed concern or there is no change in concern from the past. 66%
Survey was conducted and compiled by Kristen Hampshire, Managing Editor – Special Projects for Lawn & Landscape magazine.