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Are Commercial Landscape Services Worth the Money?

Posted on 2022-08-27 By Rebecca B. Levy

In this article, we’ll discuss the benefits of hiring a landscaper, as well as their cost. In particular, we’ll examine the psychological impact, profitability, and multiple revenue streams. And we’ll consider how to charge a fair price for this service. There may be commercial landscape services St. Louis, MO that you’ll find are well worth your money and time.

Profitability

While it is important to understand the competitive landscape market, the profitability of your landscape services also depends on the number of employees. Many business owners struggle to find quality workers, and this remains the number one challenge for the landscape industry. While wages have increased significantly since 2008, the competition for workers has not decreased. Additionally, the cost of hiring, training, and onboarding employees must be minimized if you want to increase your profit margins.

Overhead is the cost of running your business that is not directly related to landscaping. This includes office rent, utilities, insurance fees, and employee salaries. However, any commissions outside of a yearly salary should be attributed to the individual job. Profits from the service are therefore higher when you have many satisfied clients. To increase your profit margin, reach out to your previous clients and offer them exclusive discounts and free deals. Profit margins will increase, but the costs of doing business are higher than you think.

Psychological effect

Many studies have shown that beautiful landscapes are beneficial to our health. One such study showed that a look at a landscaped area can lower the stress hormone cortisol. Mental health professionals have even used plant-care projects to lure patients. Walking outdoors and seeing a beautiful garden can even help listless patients stay active. Landscapes can also reduce employee and customer stress. A study conducted in Japan found that employees who had access to greenery in their workplaces reported higher job satisfaction.

Employers are now aware of the psychological effects of a pleasant working environment on the productivity of their workers. While there are many factors that contribute to employee well-being, the aesthetic appeal of a property can have a significant impact on employee morale and productivity. In addition to boosting morale, the physical health benefits of a landscaped property can improve the productivity of employees. To learn more about the benefits of landscape services for your business, keep reading!

Multiple revenue streams

Depending on your business model, you may need to offer different types of services in order to increase your profits. Full-service landscapes require certain services in order to maintain a client base. However, if you only offer installation services, you may have a lower value of your company. Moreover, the number of installations you can complete is limited to a small percentage of your overall revenue. Consequently, focusing on installation work can be risky.

Besides landscape maintenance, other business opportunities can be found in the green industry. For example, a landscape business can offer driveway sealing or interior home renovation services to boost its profitability. Likewise, a landscape company can expand their offerings by offering services like driveway sealing to attract customers in the wintertime. If you have a long list of satisfied customers, you can also add additional revenue streams through these services. Besides, a strong customer list can also provide you with a ready market for these services.

Cost

If you’re in the landscape business, you’re probably constantly under the pressure of pricing your services. Whether you’re a design/build firm or simply a lawn care service, you’re constantly competing with lowballers and clients who have been cornered. That’s why it’s essential to know your numbers and know when to lower your prices.

Overhead costs include office rent, advertising, legal fees, telephone and internet bills, business equipment, and marketing materials. Assuming you work for yourself, your overhead costs will total at least $1,000 per week. That’s quite a few dollars per hour! You should also figure in your desired profit margin or markup percentage. For instance, you’ll likely want to spend $1,200 on your business’ marketing materials and $5,000 on advertising and business tools.

Outsourcing

Outsourcing commercial landscape services is a great way to save money on maintenance without sacrificing quality. Outsourcing the maintenance of your landscape gives you more time to focus on other aspects of your business, like tenant screening and recruitment. Additionally, professional landscapers will provide safety and quality results, which you simply cannot guarantee yourself. DIY commercial landscape maintenance is not only risky but can also lead to injuries and damage to your property. By hiring a landscape provider, you’ll avoid these hazards and get top-notch service while you focus on other aspects of your business.

Despite the growing popularity of virtual assistants, many businesses are still not taking advantage of these benefits. Virtual assistants work from home and are compensated per project or by the hour. Since you’re only paying for the work they perform, you’ll save money on overhead. Outsourcing your business will free up your time to focus on the core revenue-generating activities. By letting someone else take care of all the tedious, time-consuming tasks, you’ll be able to focus on growing your business.

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