Photo: 401(K) 2012/FlickrOne of the most pressing concerns in any business is making a profit and sometimes it can seem quite a challenge to attract profitable customers to your company.
Two of the main downfalls of landscaping companies are undervaluing their services and failing to pursue the right clients.
You need to first determine what are your most profitable services with the equipment you currently have. If you’re first starting out, lawn maintenance for homeowners may be your only option, but if you can manage to put part of those earnings aside, eventually you will be able to invest in a mower that can handle larger properties.
The desire to grow your business is important, but be honest with yourself and your customers about your capabilities. When a customer asks you if you can do something out of your wheelhouse, be aware the job could end up costing more than you expected. If it turns out poorly, you may lose that customer and damage your company’s reputation.
After you’ve determined which of your services are the most profitable, look at who needs those services the most. If snow and ice removal is where you shine, figure out if commercial or residential plowing will earn you more money in the long run.
Don’t spend your time trying to market a service that doesn’t make that much money to the wrong segment; this is wasting your time and theirs.
If you’ve been in business for a while, take time to reevaluate your current prices. Are you breaking even more often than you are making a profit? Your estimates need to change with the economy; otherwise, your margins will begin to drop.
When advertising to clients or sharing information on social media, you need to walk a fine line between sharing what makes you stand out vs. bragging about your company. Your advertisements should touch on pain points that you can solve and they should always include a call to action.
People are looking for what you can do for them and sharing posts that have little value to them will not drive them to hire you. Along with sharing a photo of a job you’ve completed, include some tips related to the service you are selling.
Also, by being active in the community, you can attract customers to your business as you become a trusted face and a person who is known for giving back. When you engage with people and are genuinely helpful, they are going to want to return the favor.
By maintaining good relationships with current customers and suppliers, you are improving your reputation free of charge and word of mouth is still a powerful catalyst in driving new clients to your business.
As for undervaluing your services, you may be doing this unwittingly or in a purposeful effort to take customers from your competition. Before you go down the slippery slope of price cuts, remember there is always going to be someone out there who is cheaper. Your company will be the one hurting in the end.
Instead, hold yourself to a higher standard, provide quality services and stay focused on customer satisfaction. That way, your higher price will be a fair price.
