Hydroseeding

While hydroseeding might not be an everyday service, those who market and invest wisely can see a good profit.

When a hydroseeding job pops up around New Castle, Ind., Evan Taylor is there, ready to work.

The 25-year-old has a seeming monopoly on this segment – he has made his name know and there isn’t a lot of competition for the service in his area.
“I have a niche, locally,” he says.

Taylor owns Central Indiana Hydroseeding and ET’s Mowing & Lawn Care. He expanded into the service after helping a friend hydroseed some grade work. Now, he’s been in business for six years and he offers the service under his own company and works as a subcontractor for landscapers in the area.

Taylor says it’s hard to put a gross profit margin on hydroseeding, since the size, cost and drive time for jobs vary, but if everything is priced by the square foot, one could expect to earn 40 to 60 percent.

The investment is what usually deters contractors from offering the service, Taylor says.  Hydroseeding machines can cost anywhere from $5,000 up to $40,000. A 650-gallon machine could cost a contractor in the mid-$20,000 range.

Taylor’s best advice when it comes to jumping into hydroseeding: start small and test the market. He had a learning curve at first. He started on the maintenance side of the business, so he gained knowledge on different types of seeds and fertilizers through a learn-as-you-go process. One of the mistakes he sees contractors make is they buy huge machines and they’re knee deep in the thick of things without really understanding the service or the market.

By starting small, you’re not making an investment that is going to hurt the company in the long run, he says. And because hydroseeding jobs don’t typically crop up every day – Taylor said he might only get three to four hydroseeding jobs a year – it’s important to have a diversified business and develop name recognition for the offering in the market.

Based on Taylor’s experience, it’s important to maintain a large network. In his market, most hydroseeding jobs are factored into landscape installation contracts, so the winning company gets to do the work. But close connections with those companies helps him earn the subcontracted work.

“You’ve got to know the right people in the right places,” he says.

Photo by Finn

 

March 2011
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