Last time we checked in: LaMont Hess and Kimberly Rowe purchased Outdoor Expressions in July of 2017. The Pennsylvannia company was once a multimillion-dollar success but fell on hard times and Hess and Rowe hope to resurrect it. They needed to go through each customer and sort out which ones were profitable and should be kept. They also needed to get rid of broken down equipment, hire more people and pursue more commercial work.
Latest updates: Along with winning a 47-home HOA job, the couple has taken a big step in raising prices for residential jobs about 15 percent, and some 40 percent. They also made everyone prepay for mowing services at the Harrisburg, Pennsylvania company. “I wanted maintenance paid up front otherwise our money is out 45 days,” Rowe says.
They sent contracts to the accounts, explaining to customers there would be a price change, and customers would now be expected to prepay at the first of every month. They sent the letters in mid-February and as of late February received four signed agreements, no questions asked.
Hess explained in the letter that to keep costs “at or near where we were, we need to make the following changes.”
“I didn’t address anything about going up,” Hess says. Also, Rowe says there was no reason to “create a negative.”
For commercial clients, Rowe says they are communicating the increase face-to-face.
“If you are going to do commercial in this day and age you need to be seen and they need to know who they are dealing with and that you care,” she says.
Rowe and Hess admitted they were a little nervous that none of the contracts would come back signed, but they had comfort in knowing that their biggest client, which is another HOA, was already on board. Because of the importance of that client, Hess attended an HOA board meeting to discuss those changes in person and he received very little pushback.
While they hope to raise the prices for unprofitable clients or drop them as clients, they also want to add new customers to their portfolio.
Hess used loopnet.com, a website that lists commercial properties for sale. He targeted the 60 most active realtors in the area on the site and sent fliers to their offices that say, “Does your client measure up?”
After researching contact names, a week later, they visited the office asking to speak to the right person and left tape measures (this fits in with the measuring theme) with Outdoor Expressions’ contact information on it. Hess will then follow-up with phone calls.
Rowe says anyone who doesn’t like making cold calls on the phone or in person should make a flyer about their business, visit the properties and hand out the flyer and a business card to someone at the office and leave.
“Just try and start the conversation; maybe they’ll get their foot in the door,” she says.
As far as employees, they have a strong foreman in place who was with the company when it was operated by the previous owner. The foreman has recommended an employee, and Hess and Rowe hope to have seven employees for the season and two crews.
“We have enough work to support one crew every week (for the season) but that’s maintenance,” Hess says. For enhancements and spraying, they’ll need two to three more people.