According to the
Bureau of Census Service Annual Survey
, the lawn care and landscape business is a $46.8 billion industry in 2006.
One reason for the growing demand of this service is the growth of two
income families. The increasing number of double-income families means the
number of people with no time but has money on hand is increasing. In fact,
according to a nationwide survey conducted by International Communications
Research for the
Bayer Lawn Care Institute, “the average homeowner spends nearly eight hours each week on lawn care
and landscaping tasks around their home and would consider hiring a
professional service in order to acquire more free time.”
The target market of the lawn care and landscaping businesses are
homeowners with larger size lawns. Larger lawns, such as with 4,000 – 7,000
square feet, typically yield better margins when factors such as
transportation time and costs are considered. The typical target market also
include middle class suburban families with large lawns and no teenage
children, as teenagers are likely to be tasked to mow and take care of the
lawns. Middle-aged homemakers are also more likely to rely on a lawn service
compared to younger homemakers who are more likely to do the lawn
themselves.
Lawn care services can be residential or commercial. Residential lawn
care services typically include lawn cutting, trimming, edging and removal
of clippings. The service is typically offered once a week through the
frequency can depend on the customer’s requests. This side of the business
is made up of many small companies. This occurs because of high labor
intensity, low startup costs, and nature of the industry.
The commercial side consists of apartment complexes, business parks, and
common areas of subdivisions, schools and others. The commercial side is
typically serviced by larger lawn care landscaping services.
Table 1. Target Market
of Lawn Care and Landscape Businesses
|
2006 Gross Sales |
Single family
residential |
Multi-family
structures |
Commercial/
Industrial |
Government/
Institutional |
|
Less than
$50,000 |
79.8% |
3.4% |
13.7% |
1.0% |
|
$50,000-$99,000 |
72.2% |
6.2% |
18.7% |
2.6% |
|
$100,000-$199,999 |
67.6% |
5.9% |
22.6% |
4.3% |
|
$200,000-$499,999 |
66.1% |
5.1% |
25.1% |
1.9% |
|
$500,000-$999,999 |
56.4% |
12.1% |
25.7% |
5.4% |
|
$1 million or
more |
45.9% |
10.7% |
30.7% |
11.2% |
|
Average (sales
from) |
66% |
7.0% |
22.0% |
4.0% |
Source: “2007 State of the Industry Report: Luck of
the Draw”, Lawn and Landscape Magazine, October 2007, pp. 4-5
In Table 1 above, businesses with less than $50,000 in gross sales mostly
focus on single-family residential clients, accounting for 80 percent of
their portfolio while only 14 percent of their business comes from
commercial/industrial clients. Big companies, or those with $1 million or
more in gross sales get a third (31 percent) of their business from
commercial/industrial and less than half or 46 percent from single family
residential.
Table 2. Types of
Services of Lawn Care and Landscape Businesses
|
2006 Gross Sales |
Lawn Mowing/ maint. |
Lawn Care |
Construction Design-
Build |
Irrigation |
Tree & Ornamental
Care |
Snow & Ice Removal |
|
Less than $50,000 |
58.0% |
8.5% |
13.3% |
3.0% |
8.3% |
2.4% |
|
$50,000-$99,000 |
49.6% |
10.8% |
14.7% |
6.3% |
6.3% |
3.7% |
|
$100,000-$199,999 |
37.7% |
10.7% |
21.7% |
7.1% |
6.3% |
3.8% |
|
$200,000-$499,999 |
31.3% |
14.4% |
26.3% |
11.4% |
4.2% |
4.1% |
|
$500,000-$999,999 |
27.1% |
10.8% |
32.5% |
7.7% |
3.8% |
4.8% |
|
$1 million or more |
21.3% |
10.0% |
32.9% |
12.5% |
4.0% |
4.2% |
|
Average (sales from) |
40% |
11% |
22% |
8% |
6% |
4.0% |
Source: “2007 State of the Industry Report: Luck of
the Draw”, Lawn and Landscape Magazine, October 2007, pp. 4-5
Larger companies tend to offer more services, while smaller businesses
tend to be more specialized. Table 2 above shows that smaller companies
(those with gross sales less than $50,000) tend to focus on lawn mowing and
maintenance services while the big companies (those with $1 million or more)
tend to be diversified offering wider varieties of services, but with
particular emphasis on construction and design/build projects.
There are many types of services you can offer with a lawn care and
landscaping business. You can do landscape design, plant selection, creation
of water features, and planting of the plants and trees. In terms of lawn
care services, you can offer mowing services and weed control, landscape
maintenance, lawn care analysis, tree and bush trimming, putting in
fertilizers, tree and shrub care. Some also offer services to control fire
ants and to maintain and correct the soil's Ph levels.
Specifically, you can offer the any or all of the services below:
- Landscape Design
- Landscape Installation
- Seeding or Sodding
- Turf & Ornamental Installation
- Bedding Plants & Color Installation
- Irrigation Installation
- Landscape Lighting
- Hardscape Installation
- Water Features
- Landscape Maintenance
- Landscape Renovation
- Turf Fertilization
- Turf Aeration
- Tree & Ornamental Care
- Tree & Stump Removal
- Irrigation Maintenance
- Erosion Control
- Pesticide Application
- Turf Disease Control
- Turf Insect Control
- Turf Weed Control
- Tree & Ornamental Pesticide Application
The downside of the lawn care and landscaping business is that it is
highly seasonal. Your location can spell a huge difference in the potential
success of your business. The demand in Florida is higher than the demand in
Maine or Michigan or in other states that remain buried in snow for a longer
period of time.
