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July 2021 LM EAB: How to contend with rising raw material prices

July 14, 2021 -  By
Editorial Advisory Board graphic (Graphic: LM Staff)

(Graphic: LM Staff)

How can landscape companies contend with rising raw material prices?

Landscape professionals

Richard Bare
Arbor-Nomics Turf
Norcross, Ga.

“I recommend frequently evaluating P&L ratios and adjusting prices in order to ensure the company’s fiscal health.”

 

Troy Clogg
Troy Clogg Landscape Associates
Wixom, Mich.

“Rising material costs are something that should lead to opportunities — opportunities to confirm our pricing structures and margins and to educate our team and our clients on what things really cost and therefore what they are worth.”

 

Paul Fraynd
Sun Valley Landscaping
Omaha, Neb.

“The landscape industry should easily be able to pass on price increases to customers with the demand we have right now for services. Keep your costs up to date for when your job will start and utilize a cost markup system for pricing instead of unit prices.”

 

Jerry McKay
McKay Landscape Lighting
Omaha, Neb.

“Communicate well with your suppliers and then relay that information to your customers. Brutal honesty is always well received.”

 

Industry consultants

Marty Grunder
The Grow Group
Dayton, Ohio

“Most reasonable people understand that we are all paying more for the inputs in our businesses. If your clients and prospects don’t seem to understand, show them data, be patient and stick to your guns in terms of pricing that covers all your costs and allows you to make a profit. Profit is NOT a dirty word.”

 

Phil Harwood
Grow the Bench
Grand Rapids, Mich.

“Prices are rising across the board, so your customers are expecting increases. Strike while the iron is hot!”

 

Kevin Kehoe
3PG Consulting
Laguna, Calif.

“Better, tighter estimating on job materials (less waste — yes, there is a lot) and raising prices by replacing the cost basis of the materials in the estimating system.”

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