In spite of a severe drought in his market, Charlie King, president of King Green, Gainesville, GA, keeps smiling because
of ongoing growth.
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The frustrating aspect of the lawn care business is that there are some things you just can't control. The weather. The economy.
Gas prices. Customers who don't (or can't) water their lawns. Neighbors who don't pick up after their dogs.
Certainly, for many regions in the country, 2007 did not provide ideal business conditions. Parts of the Southeast and Southwest
dealt with prolonged droughts and water restrictions. The Northeast saw floods. Around Landscape Management's home editorial office in Cleveland, lawn care companies were applying their spring treatments over two feet of snow. And no
region could escape the housing slump and $3-$3.25 per gallon gas prices.
Despite all the negative press, lawn care respondents to Landscape Management's 2008 Outlook Survey remained optimistic about the industry. More than 70% of lawn care owners and managers described the Green
Industry in their region as "Healthy," and 15% more said the economy was "Thriving."
More so, our survey found that 68% of lawn care respondents said sales increased in 2007 versus 2006, while about 26% said
sales were flat. "Last year was our 31st year in business, and for the 31st year in a row it was our best year ever," says Jack Robertson,
owner and president of Robertson Lawn Care in Springfield IL. "We expect the same next year. Of course, there are variables
out there that concern us all. We could be looking at fertilizer and fuel costs going up 25% next year. We're certainly going
to feel that in our pocketbook."
Like Robertson, most of the industry remains optimistic, as 74% expect their sales to increase in 2008, and 19% expect sales
to stay roughly the same.
"I don't have a pessimistic bone in my body," says Charlie King, president of King Green in Gainesville, GA. "Given the economy
and drought in Georgia, I'd say we had a pretty successful year, and we will again in 2008. Guys who plant trees and shrubs,
they just aren't planting. The one area that affected us more than anything else was our overseeding business, which is pretty
big for us. We probably lost a couple hundred thousand dollars worth of business there. We hope to recover there.
"If we come out of next year with a 5% to 7% growth, I'll be pretty satisfied," King added.
Planning for growth
Since no one is predicting a quick turnaround for the economy, how do lawn care businesses expect to keep growing?
Aside from performing rain dances, we heard quite a few different tactics that companies will be using to boost sales, including
new and more efficient equipment, better marketing, more personal service, more referrals, new hires and, in some cases, acquisitions.
Yes, some things cannot be controlled. Rather than taking a "wait-and-see" approach, focus on what you can control to improve
your operations and service. In the end, success comes down to companies playing up their strengths and tightening up on their
weaknesses.
King and Robertson both talked about strategies that will increase business, provide better service and cut fuel costs.
