TECHNOLOGY: Technically Speaking

Technology. It can be scary, intimidating and downright confusing. Staring at a computer screen full of instructions or holding a handheld device with a million little buttons can be a contractor’s worst nightmare. But technology can also be one of the best investments a company can make to increase profitability, productivity and organization, even though it often presents the dilemma of trying to teach that old dog some new tricks. “Most people are actually more technologically savvy than they think they are,” says Russ Heilig, product manager at Davis Instruments, Hayway, Calif., a manufacturer of vehicle monitoring systems. “Everything we use today is technological in some sense, and a well-designed product should be easy to use.”
 
There is a myriad of gadgets contractors can utilize to simplify and streamline their day-to-day operations. Business and design software, GPS and PDA systems, weather stations and handheld modules are a few options contractors can choose to get on the technical track. It’s not always possible to learn a new piece of technology overnight, so a little research goes a long way in helping contractors purchase the right devices for their businesses. With the right attitude, contractors can be on their way to a more productive business in no time. “Most contractors will encounter a learning curve,” says Paul Mandragouras, vice president of sales for software maker Insight Direct, Boston. “How difficult it will be to overcome depends on the personality of the business owner.”

WHAT’S THE POINT? Adjusting to change is one of the biggest obstacles contractors face when adding new technology. Depending on how tech savvy the company and its employees are, manufacturers agree it can be a simple transition or a slow, painful process. “Change is always difficult for people,” says Dan Wellbaum, sales manager for Real Green Systems, a Walled Lake, Mich.–based software manufacturer. “Every company has its own rhythm and systems, so when you start throwing new things at them it can be a challenge.”
 
But technology is making great strides within the landscape industry. According to 2007 Lawn & Landscape research, contractors spent 25 percent more on business software and 12 percent more on design software in a year. They also spent 9 percent more on GPS systems since 2006. Manufacturers say much of this increase is due to a new generation of business owners stepping up to the plate. “Many owners of landscape companies are passing down their knowledge to the next generation, which has grown up on computers and isn’t afraid of the technology available,” Heilig says. “These newcomers are aware of the ways technology can help a business, and it’s fun to watch them grow because of it.”
 
It’s important for contractors to understand the benefits that come from embracing technology and its capabilities, Wellbaum says, adding manufacturers are constantly trying to “push the technology envelope” of products used both in the office and in the field. The primary goal of business technology is to organize and streamline every-day operations, which increases efficiency and benefits the bottom line.
 
For example, a purely paper-based company that invests in business software can expect a 70- to 80-percent increase in efficiency, Mandragouras says, adding a company that uses a “hodgepodge” of various technologies and switches to an end-to-end solution software package can expect to be 40 percent more efficient. This can result in a company finding the time to add one to two additional jobs a day using the same crews for a 5- to 15-percent increase in annual revenue. “Scheduling more effectively, making fewer errors and pairing the right employees with the right jobs can have a huge impact,” Mandragouras says.
 
Knowledge of technological tools also can enhance a contractor’s marketability, Heilig says, particularly in the irrigation field. “Contractors who embrace irrigation technology can help their clients get the most out of their landscapes using the least amount of water,” he says.
 
Jim Austin, cofounder of A&H Lawn Service, Saline, Mich., has spent the past five years researching the benefits of weather stations. He was able to present this knowledge to a water-conscious customer who wanted to redo his condominium complex’s irrigation system in the most efficient way possible. “We took the steps necessary to educate our customers that weather-station technology can reduce the amount of water they use and save them money,” Austin says, adding his weather-station clients have since experienced a 15- to 20-percent reduction in their water bills.
 
When investing in any technology, manufacturers remind contractors that most of the time they get what they pay for. Price represents not just the product itself, but also its accuracy, reliability and durability – all factors that are important to technological equipment. “Contractors need to think about how long a piece of equipment will last and any problems that can arise while it’s in place,” Heilig says. 

INITIAL INVESTMENT. Depending on the technology, the initial investment can vary drastically, and a company’s size is a good indicator of how large the investment should be, Mandragouras says. For example, a $200,000 company should initially expect to spend about 2 percent of its annual revenue on a business software package, and this percentage should grow as the company’s needs grow.
 
In the landscape industry, $5,000 is the average cost of a business software setup, including installation, training and service fees, he says. “The beauty of today’s technology is most of it does not require a humongous investment,” he says. “The larger a company gets, the more the price will increase.”
 
Most software packages come with the option of a maintenance agreement. Some are billed per year, some per month and others on an as-needed basis, Mandragouras says. The cost will vary by manufacturer, but most contractors can expect to pay 10 to 15 percent of their initial investment, or about $600 per year, he adds. A general maintenance agreement should give a contractor unlimited technical support and free software downloads and updates. Some packages also include discounts to manufacturer-sponsored technical seminars.
 
While some customers choose to pay for support services as problems arise, most manufacturers stress the benefits of investing in a maintenance plan. “We always recommend customers invest in support service, and most take us up on that offer,” Wellbaum says. “We would hate for a customer to invest in a system and then not use it because it’s not working properly. Just call us.” Most manufacturers will offer some sort of warranty or replacement policy should major problems arise, he adds.
 
The initial cost for GPS systems can range in price from about $120 for basic units to $450 for more complex, wireless units, Heilig says. Monthly fees may apply, too. The needs of some contractors can be met with lower-end units costing between $160 and $200, he adds. “If a contractor purchases GPS simply to ensure their crews drive safely, then a basic unit should suffice,” he explains. “Higher-end units offer a lot of monitoring capabilities that some contractors find unnecessary because they’re not interested in every last stop.”
 
The price of weather stations can range from $500 to $1,200, and landscape contractors tend to purchase higher-end units, Heilig says. “We find that contractors want more automated control and more sensors, so they invest their money in a quality system.”
 
CUSTOMER APPROVAL. Richard Churchill, owner of The Groundskeeper, Ashland, Mass., invested in his current business software system last year, after his previous system failed to meet his needs for reports and customer management.
 
To find a system that fit his business, Churchill searched the Internet and was drawn to a manufacturer’s Web site that features videos of how its software works. These online demonstrations show software functions that were missing from other company’s systems, he says.
 
For example, Churchill’s previous software was a single-user system and he was interested in a system that could be used by more than one employee at the same time. He was also looking for a system with flexible reporting capabilities so he could customize reports to include specific information.
 
“Before choosing a software package, contractors should do their research,” Churchill says. “They should really look at the different options and make sure it fits their needs.”
 
Churchill’s invested $2,000 in the software, and he chose to forego the monthly service fee. In the past year he’s called the manufacturer twice with technical questions, but says neither were serious issues. He continues to take advantage of the manufacturer’s free online demonstrations whenever he has questions.
 
The Web site also offers daily, live demonstrations that customers can tune into like a conference call, he says. The demonstrations last less than an hour and offer time for questions at the end. Different subjects are discussed each day, and the site includes a calendar with dates, times and topics so interested customers can plan ahead.
 
Training employees to use the software was relatively easy, he says, even though he is currently the only person who uses it. He acknowledges his employees are “pretty computer savvy,” which helped them catch on quickly. While he doesn’t think the system saves his employees much time, he says it gives him a better picture of what goes on inside his business. His favorite aspects of the program are its abilities to produce work orders, manage and assign crews and write production reports.
 
The software also tracks daily activity, like how many hours each employee works and how many and what materials are used for each job. It also has a billing feature which helps keep Churchill – and his clients – up to date on payments. “One problem many landscape contractors seem to have is getting work billed out quickly,” he says. “This program does that well.”
 
Manufacturers expect more and more landscape contractors to begin looking for technology to incorporate into their businesses as the industry becomes more advanced.
 
“For any landscape contractor who’s in it for the long term, technology is not an option, it’s a necessity,” Mandragouras says. “Nowadays it surprises me when companies don’t already have it, because you can only grow so much without it.” LL