For smaller contractors, green industry consolidation is a mixed bag. For some, this pressure is a source of increasing frustration, while for others, the influence of newly merged mega-companies is a welcome motivation to improve business strategies. Overall, consolidation has made it clear that there is a place in the industry for smaller contractors. They just have to find it.
KNOW YOUR NICHE. Consolidation has indirectly helped many smaller contractors by forcing them to recognize and capitalize on their strengths. “Seemingly, the bigger the big guys get, the more impersonal and more bureaucratic they get,” said Michael Skye, general manager, Skye Landscape Detailers, Austin, Texas. “And the bigger they get, the more of an advantage it gives the small guy who’s willing to look long-term at his business and make it professional.”
Smaller contractors who focus on their strengths needn’t worry about keeping up with the bigger companies, added Christy Webber, owner, Christy Webber & Co., Chicago, Ill. “For companies under $5 million, the sky is the limit if you can find an edge and sharpen it, instead of trying to compete with the large guys,” she said. “In this industry, you can make a niche for yourself and do quite well.”
Webber’s niche is being a “women business enterprise,” a distinction the city of Chicago makes to provide opportunities for minority-run companies. “Our whole business plan is based on the need for quality services in the city,” said Webber, who frequently works as a subcontractor for larger landscaping firms. “I think our focus is what sets us apart from the big boys.”
For Skye and his team, which he jokingly referred to as a “mowing mafia,” building long-term relationships with residential accounts is his company’s key to success. “Everybody in the neighborhood knows us. New people moving into that area wouldn’t think of calling some stranger – they go with who everyone else is using,” Skye said. “When you’ve built a high level of trust with clients, you can get all of their landscape related business. The big guys cannot compete with those relationships.”
Similarly, Stacey Werner, owner, Tryon Creek Landscape, Portland, Ore., has made superior customer service to high-end residential properties his hallmark as a smaller contractor. By concentrating on his niche market, he doesn’t need to worry about larger competitors. “A lot of the big guys can’t give the customer service that I can,” pointed out Werner, who does about $1 million in volume annually. “We’re small enough that I’m personally involved in every job.”
Image Works, Springfield, Va., has made commercial accounts ranging from $30,000 to $70,000 annually its specialty. A few of these accounts really add up, and the best part is, national players won’t come down to that level, according to Mike McCarron, president. “Smaller commercial accounts are an unbelievably untapped market,” he pointed out. “If you’re under $500,000 in volume, that’s the good ground that’s left. It’s a level that you can do really well at.”
In this age of consolidation, smaller contractors can readily succeed if they build on their strengths and differentiate themselves from the larger competition. “Don’t try to do everything and be everything until you’re really good in one area,” Skye said.
Webber agreed, adding that many customers want service that differs from the industry norm. She recalled that when she was in Bali on vacation recently, she had trouble finding the perfect souvenir because the stores were all alike. “What astounded me was that every other little shack sold the same old thing. If one had offered something different, I would have entered the shop,” she said. “That holds true for our industry – do something different and you’ll get business.”
Lawn & Landscape wants to know what smaller contractors are thinking. Send your comments and ideas for future “Mind Your Business” topics to cgreenleaf@lawnandlandscape.com.
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