Landscape Management, April 2018

3 CUSTOMER FOCUS Industry net Profit Distribution The chart shows the number of companies in each profit segment The information is based on companies with annual revenues between 2MM and 40MM consisting of maintenance construction and snow operations Less than 0 0 to 3 3 to 6 6 to 8 8 to 10 10 to 12 Increasing the bottom line for Shayne Newman owner of YardApes in New Milford Conn happened the moment he was able to pinpoint which clients were profitable Aspire allowed YardApes to correctly price properties essentially dropping clients that were costing it money Newman also broke down the real costs of each service adjusting the prices to ensure profitability It forced us to look at how we were doing estimating Newman says Now we can see where we are and arent making money Before implementing the software system the company was breaking even Today the company is profitable because contracts were properly repriced and low profit customers who did not accept the new pricing were replaced by customers who did According to Newman the software helps his team be more productive and make better decisions for the customer Thats led to a better bottom line 14 9 Getting to 12 The chart shows two income statements changing over time using a 4MM business growing by 25 and the savings in crew labor purchasing shop and overhead staff required to produce the improvement SPONSORED CONTENT Software that tranSformS Aspire allows Als Complete Lawn Care employees to be more efficient on the job how to get there using a system Small gains in a few places Labor Be two hours more efficient with every crew each week Material Save one percent on every material purchase Equipment Spend 150 less in the shop every day Staffing Limit staff growth to two people with this growth If you cant see it you cant manage and make it happen BUSINESS BREAKDOWN COMPANY YardApes AREAS SERVED Northwestern Connecticut ANNUAL REVENUE 32 million CLIENTS 75 percent high end residential 25 percent high end commercial SERVICES Maintenance lawn care snow removal design build and gardening ShAyne newmAn 4 THE OPPORTUNITY AND SOLUTION Most contractors can increase profits by investing in a system According to statistics actual net profits in the industry are far less than optimal net profit Incremental improvements in gross margins and overhead spending are achievable using a system driving best practices accountability and customer focus This can produce consistent 12 percent net profits Software is an investment in future profits Schill Sweeney and Newman all agree on this point When they were looking for a system they were looking for more than software They wanted a partner to help them make money and they found The Aspire Software Co was the right partner Its important to put a system in place so you can watch your numbers daily Sweeney says The more people who understand that the better our industry will become of Companies Net profit 5 14 36 23