MAINTENANCE: Over the Line

Overseeding is a simple and profitable add-on service.

Overseeding can be an easy service add-on, and with a little care, it can yield a profit. That is what Ben Elliot learned when he started the service. Elliot, president of Oak Hill Landscape Group in Marietta, Ga., has been in the business for 12 years, since he was in high school, but has only been incorporated a little more than two years. He learned about 10 years ago that overseeding could be an easily profitable add-on service and recommends it even for businesses just starting out. “For somebody starting from scratch, it’s one of the easier add-ons to try,” he says.

THE BASICS. In Georgia, fall is the best time to offer the service, but some clients request the service twice a year. Customers are contacted within a week of when the job will be done, typically when the weather is in the low 80s. 
 
Overseeding is only offered with aeration, which consists of creating holes in the lawn with solid or hollow tines, breaking through thatch (organic matter buildup) to allow oxygen into the soil, promoting root growth and with it healthy turf. Elliot prepares by shaving down the client’s lawn, a step the customer can complete if desired. Elliot mows the turf down to 2 inches and removes the thatch with a dethatching mower attachment. After the aerator is run, starter fertilizer is applied to promote growth and hay is placed over the lawn to protect the seeds. Overseeders can also be used in this process.
 
It is cost-efficient to rent the aerators twice a year, Elliot says. On average, it costs $75 per machine per day, plus the cost of gas. To make the most of the rental, all the overseeding jobs are scheduled together in a two- to four-day window. For smaller properties, he tries to overseed 20 to 24 lawns in a day.
 
Elliot charges $50 for aeration alone. If an entire bag of seed is used, Elliot adds $20 to $25 to the price of the bag and adds that price to the aeration price.   Customers don’t contest the price of the seed, trusting the right amount is applied, Elliot says. He doesn’t charge to spread hay for most jobs.
 
The service accounts for about 2 to 3 percent of Elliot’s overall revenue, but the profit margin is about 65 percent. Among all the services he offers, overseeding rates in the top three of the highest profit for the time needed. A certain minimum is necessary to make that profit, though. To make a profit, Elliot needs at least 15 properties a day.

December 2007
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