A Funny Word for 'More Money'

Contractors say fertigation systems are poised to sell big when the economy turns around.

“Fertigation.” While the word may sound Greek to some, this method of strategically applying fertilizer via an irrigation system is far from novel. The agricultural and nursery industries have been reaping the benefits for years. And although it can offer many advantages, including significant water savings and reduction in both contractor labor and plant mortality rates, customers are slow to embrace this more environmentally friendly option.

Gary Moore, owner/operator of State of the Art Irrigation & Landscape Contractors in Sarasota, Fla., is an avid fertigation proponent. But he admits business is frustratingly slow.

Since Moore became a licensed fertilizer applicator last year, he has only been installing systems for his residential customers. Commercial properties have been delaying this type of financial commitment during the recession, he says. 

PRICING FERTIGATION SERVICES

Industry members stress that customer education is key to a better understanding of – and an increase in purchasing – fertigation systems. This includes showing clients vibrant, colorful, thriving landscapes that presently benefit from these types of systems.

And particularly during this recession when people are more hesitant to spend money, contractors agree that offering special discounts in the short term will prove to be beneficial in the long run. It’s not so much that the competition is putting the heat on, say industry members, but that people are afraid to spend money right now on a new idea.

To help combat this challenge, Calvert’s business decided to offer fertigation systems at cost to its already-existing customers. “We’re currently using it more as a sales tool and value to our customers to give us an extra edge when trying to secure a maintenance account,” he explains. “So if we put them in at cost, our savings and profits come by way of a labor savings.”

Landscape size affects the overall price, says Cavlert. Retail prices range from $1,260 for a 1.5-gallon system to $1,900 for a 10-gallon one. The cost is calculated based on an approximate two-hour labor cost and a 25 percent mark up, he says.

Taylor’s company has resorted to what he calls a “recession sale.” He has lowered the installation price from $500 to $400.

To determine pricing, Taylor takes his costs, including labor and parts, and adds a 20 percent mark up. He says he installs 90 percent of the systems himself. To help establish credibility with clients, he performs the first refill for free when he returns to check out the system. “From there, it provides residual income when it runs out of fertilizer. For this I charge $50 for full synthetic, and $80 for full organic fertilizer,” he explains.

To help increase sales and reduce installation costs, Donnelly plans to offer his customers a special discount, in which the price of the tank will be included in the monthly service payment for a set period until it’s paid for, he says.

And selling fertigation to homeowners has been challenging, he adds. Many back away from the up-front $450 installation cost he charges, as they are already paying $600 a year for granular fertilizer and don’t understand the benefit, Moore explains.

“The water savings argument doesn’t work in this situation, since most landscapes generally run on well water,” he says. However, for customers using city water, he has seen savings of 66 percent when they use fertigation instead of granular fertilizers.

“People don’t like change. What really sells it is when I suggest they visit some of the properties with fertigation systems to view how thick the turfs are and the beautiful annuals,” Moore says.

Ken Donnelly co-owns Accurate Underground Systems with son Kevin in Dunnellon, Fla. Donnelly branched out into fertigation in 2007 when he saw it as a natural addition to his irrigation services. His commercial clients – 15 percent of his customers – have no interest in fertigation whatsoever, he says. And out of his residential customers, less than 10 percent have fertigation systems.

“The idea is absolutely new to most people,” he says. “The interest is there, but they don’t want to be the first ones in the neighborhood to try it, and they’re not looking to spend the money in this economy.”

Seeing is Believing
Despite its slow acceptance, there are contractors who recognize its potential profitability.

For nearly two years Jamel Taylor, owner of Taylormade Landscapes in Las Vegas, has been aggressively marketing the advantages of fertigation systems. And it seems to be working. “Out here in the summer heat it’s an easy sell when your grass isn’t green but your neighbor’s is because of a fertigation system,” he adds.

His company’s revenue in the fertigation sector is $25,000 annually, with five to 10 percent yearly growth. He predicts it will only increase once the economy bounces back.

Taylor’s region is ideal for these systems because of the dry climate and the fact that everyone in the area already has an irrigation system in place. The fertigation side of business is doing well, he says, with his company installing on average one new system a week.

One of the most notable attributes is fertigation’s ability to provide nutrients to plants through micro-dosing – the process of continually delivering precise amounts of nutrients exactly where they’re needed. This eliminates the “feast or famine” effect that comes with granular use.

It also enables contractors to customize the process necessary for a particular soil type, note industry members.

This is paramount to the success of landscapes with challenging soil, says Drew Calvert, director of grounds management at Las Vegas-based D&K Landscape. The company recently added fertigation to its service mix, and it represents less than 10 percent of overall business, which is 95 percent commercial.

And because the fertigation process applies nutrients in soluble form, it’s significantly better for the environment in that it eliminates run off. Even in tropical climates such as Florida, it’s necessary to fertilize because the soil is sandy and isn’t conducive to chemical retention. “The normal root uptake is about 30 percent with traditional fertilizing methods, but it’s about 60 percent using fertigation,” Donnelly says.

Because most systems are installed underground, another advantage is that there are very little maintenance issues. Once installed, contractors return as needed to refill the tank for a fee.

The author is a freelance writer based in Lakewood, Ohio.

 ADDING FERTIGATION TO YOUR SERVICE MIX
Before venturing into the fertigation arena, industry members advise considering the following:

Do Your Homework
You should already be knowledgeable when it comes to irrigation, experts caution. After that, research is a must. Talk to other professionals who have already added fertigation to their mix. To determine which fertigation system is right for your company, test more than one. Upon making a selection, make certain your employees receive the proper training on that particular fertigation system.

Licensing Requirements and Restrictions
As this service is still evolving for the landscape industry, check with your local state and municipality regarding appropriate licensing, as well as any restrictions regarding when to fertilize and what fertilizers to avoid, if any.

Costs
Start-up costs are nominal, industry members say. Because you won’t have to haul heavy bags of granular fertilizer, this eliminates the need for a large, expensive truck. Some fertigation systems cost contractors as little as $150 to $250. What you charge the customer will be based on what you want your bottom line to be. In addition, determine your cost for refills. Some contractors use a service agreement.

Advertise Your New Service to Clients
It’s all about educating the customer, say industry pros. Discuss with them the water savings potential, the eye-catching results with lush lawns, healthier plants and breathtaking flowers. Not to mention how there is no run off into the environment, when compared to conventional granular fertilizer. This type of dialogue with clients only lends to your credibility as a professional, experts say.

Beware of Fertigation System Challenges
While these types of systems provide many benefits, some challenges do exist, say industry members. To begin with, the obvious must be true – the client must have a sprinkler system that is operating efficiently.

And if the system isn’t installed by someone knowledgeable, the potential for over fertilizing exists. This is unnecessary for the environment, especially during winter when most plants are dormant, say experts.

There are many different fertigation systems out there, and some are more trouble-free than others. Depending on the system, there is a life span on the tanks, and parts can wear out.

And if other entities are coming off the main water line that feeds a homeowner’s irrigation, the necessary reduced-pressure backflow prevention devices must be in place to avoid contamination, caution experts.


 

November 2009
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