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LM EAB: August 2020

August 17, 2020 -  By
Editorial Advisory Board graphic (Graphic: Landscape Management)

Graphic: Landscape Management

What’s your advice for companies looking to add a new service offering?

Landscape Professionals

Richard Bare
Arbor-Nomics Turf
Norcross, Ga.

“Plan on a new service offering costing twice as much as you planned on and only generating half the revenue. This is a very deep question that could be talked about for hours. The closer the new service is to your core business, the easier it will be to implement.”

Paul Fraynd
Sun Valley Landscaping
Omaha, Neb.

“Be strategic and only add services that fit your clients’ needs and your operational expertise. If you are going to do something, do it to a high level!”

Aaron Katerberg
Grapids Irrigation
Grand Rapids, Mich.

“Over the years, we have added new services multiple times. Some with success, but many with failures. When adding a new service, the first thing we look at is our vision statement, and the second thing we look at is our niche. If the new service takes away from those and is just about more work or adding revenue, it is not a fit for us. We would rather be great at one thing than mediocre at many things. In the green industry in the north, our season is already short so why do I so often try to muddle our focus and skill set if it doesn’t already add value to our customers and our employees in what we are already doing?”

Jerry McKay
McKay Landscape Lighting
Omaha, Neb.

“Make sure it is similar enough to your core business that you don’t confuse your customers. You must also allocate enough human and financial capital to guarantee success.”

Industry Consultants

Marty Grunder
The Grow Group
Dayton, Ohio

“Adding new service offerings is something you should constantly be looking at. It’s what smart businesses do. Things change; you don’t get better or grow by standing put. Generally, however, it’s wise to try things and see what clients and prospects will write a check for. People do business with people they know, like and trust. Remember that and bring offerings to them that you have thought through well and can do well. Asking your clients what their ‘unmet wants’ are is often a great source of new offerings. You don’t have to have the offering perfected to try it. Keep the sample size small, learn as you go, give a shot and ramp it up.”

Phil Harwood
Grow the Bench
Grand Rapids, Mich.

“Do your homework to fully understand the pros, cons, implications and, most importantly, ‘the why’ behind adding a new service.”

Jeffrey Scott
Jeffrey Scott Consulting
New Orleans, La.

“A profitable way to grow! First look at ‘new services to existing clients’ (what do they need, want or are buying from someone else?), then look at ‘new clients to buy existing services’, and only then should you consider ’new services to new clients’. Add on services should raise aggregate net profit of your divisions. New divisions should ideally aim to reach $1M headed by its own division manager.”

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