Archive for January 2012

Maintaining Quality Production on Your Landscape Projects.

As we are all aware the economy down turn has affected our ability to staff our companies properly. By cutting staff where ever possible we have been able to save money. This reduction in staff can hurt the quality of the field production with less eyes viewing your projects. Is this the best place to cut back staff and does it hurt the overall quality of your companies productions? Are your customers as happy and satisfied as they were 4 years ago when this economic down turn began? What can you do to change this trend?

Field production supervisors are the last place to cut back. These employees are the eyes and ears of your company. This group of employees is responsible for your customer satisfaction as well as some of the employee satisfaction. This group is the profit making portion of your business. Without this group you have nothing. Let’s look at ways to improve effectiveness of your supervisors to gain the most bang for your buck. First, what is good number of crews for each field supervisors to manage? This will depend on your type of work, the type of customer you serve and the experience level of your employees. The type of work will dictate how detailed the work is, for example estate gardening will require more detail work from your crews than a commercial property. Why? Because the estate most likely has more gardens or shrub beds than the commercial account requiring more weeding and pruning and more technical expertise than most commercial properties. The skill level of your work force will also require more or less supervision, depending on the crew’s skill level.

The production supervisor will need to train your production crews as well as monitor their progress on each property. This requires time and  good routing for the supervisor to find the time to help your staff. A production supervisor will need to walk your sites to determine the quality of the workmanship performed by your staff. Making notes of areas that need improvement and perhaps additional training. The production supervisor can handle between $500,00.00 to $1,000,000.00 in sales revenue depending on the type of customer you service. You customer will tell you when they are not happy, but the production supervisors should be telling you before the customer expresses any dissatisfaction.

The quality of your work may well determine your ability to increase sales and retain your current customers. Don’t cut back in the area that affects your customers the most, field production.

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5 Key Elements of a Successful Landscape Sales Person

There are five key elements that make a successful landscape sales person, whether it’s maintenance, design build or bid build. These key elements must be evident when you hire the individual to sell your company and your services. They are: passion, industry knowledge, basic sales technique, people skills and drive to succeed. These characteristics are necessary to be successful and have a rewarding career in sales.

Passion about helping people achieve their goals and helping them solve a problem. Sales is really about the ability to help people solve a problem through finding solutions that are acceptable and a perceived value for them. In sales you become a problem solver, a trained investigator, working with people to determine what it is they are searching for, reading their reactions to proposals and finally finding the solution that they were searching for. This passion to help people find a solution to their problem is as important as any other skill they must have to be successful.

A good sales person should have industry knowledge of the product or service they are selling, in this case landscape or landscape services. Does the sales person need to be a Horticulturist? No, but they must understand the plant pallet, understand the basic installation techniques and understand the basic maintenance principles in your area. Also a knowledge of the competition, who they are, what is their sales proposition, what is their pricing strategy and their strengths and weaknesses.

All sales people need to understand basic sales techniques, how to ask the right questions, how to probe the customer to find the answers, how to read the unspoken buying signals and finally how to ask for the sale. Sales is a learned art , not a science or a born gift, but a technique that requires training and practice. Sales techniques need to be practiced and practiced until they are second nature to the individual.

People skills are a special quality that is developed and learned with practice. Being comfortable talking with people and knowing the right questions and the right time to ask the right questions is all about people skills. A good sales person must really like being with and helping people.  Look for those skills when you look for a sales person.

Lastly, a good sales person needs to have a drive to succeed. This person is on an island, working alone many times, without direction from management. They must be able to work alone and have the drive to accept rejection and keep on moving down the sales path with the next sale. Not every one can work alone, but sales people thrive on the ability to help the next customer and gain the self worth by helping that customer reach the goal or solve the problem.

Using these 5 key elements to assist you in finding your next sales person will go a long way to making them, and you successful.

 

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Sales: Turning Complaints into Sales for Your Landscape Business

Every one realizes that customer complaints are part of any business. However, there is a way in which you can handle those complaints that can make money for your company. First, always handle complaints head on, don’t allow them to linger. Second, make it a win-win for the customer and for your company. Third, as the owner or manager, you deal with the customer complaints. Fourth, make sure that the customer is taken care of completely before closing the file on the complaint. We all know that at some point a customer complaint will be unfounded or unrealistic, but you need to address all complaints no matter how honest or true the complaint, knowing that at some point you may resolve the complaint by agreeing to part ways.

Always address complaints as soon as possible, the longer it lingers with the customer the more upset they become. As the owner or manager it is an opportunity to see the work your crews have done and the commitments that were made to the customer. It is an opportunity to look at your company through the eyes of the customer. It is important to the culture of your company that you establish a system to deal with complaints without creating a negative tone and, as said earlier, view complaints as an opportunity for more sales.

Customer complaints can be a win-win for both parties if handled correctly. The old adage that “customers are always right” is the mind set that you must have going into this meeting. However, keep in mind that this is also an opportunity to up sell the customer to resolve the complaint. In this way both parties win and you have a satisfied customer. Even, if for what ever reason you can’t get an up sell, but resolve the complaint, use this as an opportunity to get a referral or even a testimonial from the customer. Wins are not always immediate.

The complaint is often a way for you to look at your company through the eyes of the customer. It is perhaps a training opportunity for your production staff, it can be a training opportunity for sales, or it could be a system issue that needs to be addressed in your company. View this from a positive stand point.

Insure that the customer is completely satisfied before you walk away from the project. There is nothing more damaging to your company’s reputation than to incorrectly resolve a complaint. Make sure the customer is happy and ask the question: “Would you recommend our company to a friend”? This is one way to know if they are truly satisfied.

Customer complaints are inevitable, but how you handle the complaint came be the difference between happy customers and lost customers.

 

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Sales is Not Always About Getting the Sale in the Landscape Business

Sales is about closing deals, right? Not always. Sales is about building relationships and helping a customer solve a problem that they have. But it doesn’t mean that you and your company are always the best solution to your customers problem. Think of it this way, if a customer asked you and your company to install a drain line away from the house and you don’t do that type of work ,would you do it anyway just to say yes, or because you needed the sale? That can, and often does, lead to more problems than it’s worth. The better answer may be, “I am sorry but our company doesn’t do that type of work, but I can recommend a company that can handle that for you.” Or better yet, “I am sorry our company does not do that kind of work, but I will hire a subcontractor for you and manage the project.”

A good sales person knows their company’s limitation and capabilities and does not cross that line just to get the sale. In the landscape contracting business there are many ways to serve the customer, and the customer may not buy today, but may buy next month,  or next year. You want to build a relationship that is long term and one that finds the right solution for your customer in the long term.  It may take a long time to gain the confidence of your customer, but once you gain that trust and confidence, they will be your customer for life.

There is nothing wrong with saying “no” to a customer as long as you help them find the answer to thier problem. That answer may not be your company. In fact, by helping them find a solution it may be more help in the end, than if you do the work and create a bigger problem. The true definition of sales is helping a customer find a solution to a question or problem for an agreed upon price, not get a project. Because, if you think about it, in  exchange for a solution your pay is gaining trust and building a relationship for future opportunities.

I think that sales persons and business owners are sometimes too short sighted and so hungry for the sale they forget that the goal is to help the customer find a solution to their problem. Help your sales people understand that sometimes “no, but” is the correct answer.

 

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Customer Reference Letters Can Help Sell Landscape Services

We all purchase products and services. Having a reference from a past or current customer may help sell the next project. Today many consumers are using the web to shop for services, having a review or reference section can help build the confidence and assist you in selling your work more easily. When consumers use the web, they want to find a company that they can trust to perform work on their property. The best way to gain that trust is to use the current customer references that you have asked for after completing a project. Most contractors are so accustom to finishing a project and moving to the next that they forget to ask the customer for the reference.

No matter whether you are a maintenance, design build, bid build or an interiorscape contractor, references are an important tool in selling potential clients for future work. Make sure that you post these references on your web site and use them in your sales presentations. Create a list of past or current customers that are willing to be called by your future customers and hand this list out to potential clients. Each year you will need to update and contact your customers on your reference list to insure that they are still willing to remain on your list of references. Take advantage of your reputation and good work by using your past customers to sell future work. Also, create a group of customers that would allow you to take potential customers to their property and tour them through the landscape as part of your sales presentation.

There is nothing that is more impressive to a new customer than to show the yard of a current or past customer. It allows you to show off your work and it tells the prospective customer that you have and maintain contact with your customer even after the project is complete. As we called these tours with prospective customers Garden Tours, it allowed us to describe the complexity of the project and introduce features that the potential customer may consider for their project. When using this technique for our maintenance customer we would insure that the yard was spotless, edges were clean and crisp, mow lines were straight and that the property owner knew we were visiting their property that day.

Customer references are a powerful tool if used correctly in the internet world. Without ever speaking with a potential customer they already have a sense of the work you do and the relationship you have with your clients. In today’s fast paced world this is a winner. Ask for a reference letter when you complete the project or at the end of the season, but don’t forget to ask.

 

Improve Sales in Your Landscape Company Through Relationship Selling

Landscape company sales methods vary from bid work to relationship selling, depending on your company’s approach to sales. Each require a different style of salesmanship and skill. The bid method is self explanatory, however relationship selling is a much different technique of sales. The relationship method of sales requires that your sales person develop a relationship, a personal bond with the customer. This personal bond can be by relating to the customer by age, sex, life experiences, common interests or by personality. Each of these elements help develop the bond between two people. We all know that we buy from people we like, therefore getting a sale can be as much about personality than the product or service.

Relationship selling can require time for the customer and the sales person to develop this relationship, but once that relationship is built, it will be very difficult for anyone to come between the people involved. Teaching sales people about relationship selling can be an eye opening experience for the young sales person. But if your sales come from relationship selling, then the sooner the better for your sales team to learn how to go about this method of sales. A large part of relationship selling is to use the art of conversation while working with customers. It’s not just about the product or services, but about being truthful, honest, and caring. In this method of sales you are showing you understand their issues and concerns. The sales person demonstrates a true caring and interest in the customers needs and wants.

Appearing on the same peer level is helpful in gaining the trust of the customer, it lets them become comfortable with the sales person. It makes the customer feel as thou you have the same likes and dislikes as the customer. You understand their position and view of the product or service. This offers you, as the sales person, the position of not selling, but consulting with the customer, providing alternatives and suggestions that if you were a hard driving sales person you would miss out on. It is about developing that relationship before the sales begin.

The relationship method of sales is very helpful with residential customers, as they are looking for someone who thinks like they do, who sees things like they do. In a commercial setting you can use this method to help get your foot in the door, but if it is a bid situation, it will most times be about the numbers. However, I have seen companies in the bid world who have developed a reputation that they are the best at a particular projects, win projects based on that relationship. Don’t discount developing relationships with bid customers.

Relationship selling requires patience to establish or position your self as the caring and honest sales person, but the rewards can be outstanding in the end. Think about how your sales people are viewed by your customer and which method works best for your company.

 

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Mother Nature Plays Cruel Tricks on Landscape Contractors

Once again Mother Nature proves she rules, as many contractors across the United States wait for the winter snows. Many contractors in the northern climates count on the winter snow removal revenue to make their, but again this year they are still waiting. The mild winter affects a large number of contractors who depend on the winter weather to keep employees working and provide needed income for the spring season.This will force many contractors to lay off employees and patiently await spring. But are there projects that you can sell customers to off set this lack of snow revenue?

Winter landscape projects are always a challenge, no matter what part of the country you live in. Customers, for the most part, think about landscaping during the spring and summer months, not in winter. So this becomes the sales challenge for most contractors, convincing your customer that you can do landscaping in the winter. Many contractors offer things like winter pruning. As we all know winter is most likely the best time to prune most plants and do the least amount of damage to the plant. However, how much pruning can you do, think about the other landscape functions that you can do: over seeding, patio and wall construction, outdoor living spaces can be complete in the winter months as well.

Over seeding can be done to some turf areas during the winter, as the seed will lay dormant during the cold months. Some construction work can be completed by using concrete blankets to cover areas and to prevent the ground from freezing over night. Your work day window is also smaller, but can be more productive if you plan for the project ahead of time. It may also involve other types of projects, depending on how talented your field staff is.  I have met contractors who flip homes in the winter using landscape crews to do the work. Recently, I have talked with contractors who do clean outs of repossessed homes. Again not the best work in the world, but it keeps your crews busy.

The idea is to plan ahead, no one can predict the weather, not even the meteorologist, but by keeping your eyes and ears open there are a number of projects that you can find for the winter months that can increase revenue. Think out of the box, do a survey of your employees skills, determine if they have skills that you didn’t know about. One more suggestion that comes to mind is to invoice your customer in the maintenance business over a 12 month period. This provides cash flow during the winter months. Yes, it reduces your available cash during the summer, but think how nice it is during a winter with no snow.

Running a good business requires that you always are looking for opportunities and sometimes you find them in the most unbelievable place. Don’t let Mother Nature get you down.

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Is your Landscape Company Keeping Up with the Changing Marketplace?

In the 40 years that I have been actively involved in the landscape industry I have witnessed  changes in the way customers purchase services. The interior landscape industry has certainly changed due to the changes by developer, open air malls and customers looking for ways to reduce costs. Also in the Design/Build world, which due to economy conditions is about half of what it was in the early 2000′s. This gives me cause to think about what the industry may  look like in 10 years from now.

The landscape industry will always have a presence in the maintenance of landscapes that are existing. Landscape bid build  companies will always have new project to bid on even if they are only enhancement type projects. But what other changes should we anticipate in the future? The economy down turn all but destroyed the Design/Build industry in many parts of the country and to date it’s not come back to any where near the levels of the years prior to 2007. It is difficult for me to think of any other industry that has gone through as much change as the landscape industry in the past 3 to 4 years.

We have observed the swing toward sustainable landscapes or in some cases, what we call native landscape. We have observed the rising interest in Green Roof construction and the growing concern that water is a resource with some constraints attached to it. However, I wonder if most contractors are thinking far enough in the future, about what their businesses will look like in 2020? We have not even addressed the economic conditions that face our nation with increased debt and how that will affect your business.

The point to all of this is that first, the landscape business is always changing, if not by man’s doing, then by Mother Nature. Secondly, you as a business owner large or small need to be ready to adjust your business to these changes, good or bad. Watching trends certainly seems a wise idea, but did you see the changes coming in the interior business or in the Design/Build world?

It would appear to me that the more involved with the landscape industry you are the more able you are to see the future coming your way. Stay informed, read the industry trade journals, meet with your peers and most of all watch your market place for changes around you.

 

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The Landscape Industry is Not Immune From Layoffs and Consolidations.

The Landscape Industry is not immune from lay offs and consolidation, as the industry faces cut back by clients. Many customers today are looking more closely at the costs of maintenance and construction as the economy slowly recovers. This has forced a number of companies to lay off non-production workers. Those workers that are management and supervisors are being laid off or consolidated so that the company can operate in a lean mode. This middle level of management was once considered the most difficult group of employees to recruit, is now facing job losses.

For small and medium size companies this presents an opportunity to improve the quality and knowledge of your staff. As these employees transition from their current employment, many will be looking for new opportunities. This will also hurt the industry as many will not be able to find positions in landscape companies and will begin seeking employment in other industries. It will take some time to replace the knowledge and experience that this groups brings to the table. This also will affect the students graduating from colleges and universities as positions in that middle level will not be available to them.

The landscape industry, for what ever reason, lags behind the other construction trades being affected by the current economy condition across the country. When the economy does rebound this level will again become in demand for most landscape contractors, with little or no back log of employees to chose from. For many years the large contracting companies hired this level of employee out to school. They will no longer be in a position to hire at that rate.This may in fact affect a young person’s career selection, seeking other industries that offer more opportunities right out of school than the Landscape Industry.

This situation has never been experienced by the landscape industry and will have a profound affect on the employees of the future. It may also create a new breed of contractor and increase competition in some markets. It has always been accepted that the larger companies train and produce a level of manager that small and medium size business would covet. Now that number will be reduced considerably. This is certainly an opportunity for small and medium size companies to improve their management level employee. Don’t miss out, keep your radar up and look for ways to improve your compan’s management.

 

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Selecting Professional Service Providers for your Landscape Business

Selecting a professional service provider for your landscape business is important as you grow your business. Seeking professionals who have experience or knowledge in your field can assist in making decisions that affect the future of your company. I find that many times a company’s choose professional service providers, such as accountants, lawyers, bankers and financial advisers based on a relationship, rather than an understanding of your business.

While relationships are important and can be useful, it may be better to look for professionals that have experience in the contracting world. For example, selecting an accountant who has no experience in contract accounting can cause serious short comings in their ability to see key indicators of problems in your business. An accountant working in a contracting world needs to understand job costing, if they lack that experience, you are missing a key ingredient managing your company. While he or she may be a great accountant they lack the knowledge and experience in your industry, that can make or break your company. In some cases they are hurting your business with this lack of experience.

This also includes the other professionals that you select. Attorneys that have little or no experience in contract law can be hurting your company more than helping. The lack of  experience that you need when developing a document for your business can come back to hurt you in the end. Missing key phases for instance, in a contract can be the difference between collecting payment or not. Attorneys with experience in contracting law will be able to assist with lien issues, collection issues and developing contracts that are based on your business needs.

Choosing any professional requires research and investigation of the professional’s background. Interview them like a new employee you would hire, making sure that they have the skills that are relevant to your business and company. It may also require that you hire more than one professional for your company that has legal or accounting experience. Make sure the you are getting the best advise when it come to running your business.

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