It is never too early to seek advice

This is probably the hardest time for garden companies since the early 90's when a bleak recession gripped the United Kingdom. Many businesses ceased trading as work dried up and competition cut margins to negative figures. We are now very close to exceeding these failures and I suspect that euphoria in certain quarters is succeeding in masking the reality of the dire situation that we are finding ourselves. Canny garden businesses need to act now to ensure that they are in the perfect health and following a model that is sustainable in the short to medium term. I have recently published a simple system for calculating what you need to charge yourself out to make a profit, however, how many garden businesses actually know if they are in a profitable situation or indeed on target to even avoid a trading loss? I have today written "Shock and awe, garden centre sales have plummeted" about my disbelief in the unwillingness to think ahead and the continued shock as new results prove we are reaching new lows. If your business is going to avoid a negative trading scenario, you need to think ahead. I am willing to help you by providing a consultancy and assist in a plan for your future. If you need help then do not hesitate to get in touch to discuss a way forward and if you feel I am sensationalising the news, wait another six months when oil prices have risen a further 20% and look back to today. Not everyone can survive a recession but with the right mind set, you can be the one who prospers.

Replies

Classic Gardens May 25, 2008 at 3:48pm

To be honest phil ive never been busier

Due to the fact that people arnt moving they seem to be spending more money doing there properties up.

I dont know if this is just my area or nation wide ?
David Riches May 25, 2008 at 7:17pm

Hi Kerrie,

How is the call out fee working out? Im also spending so much time and money going out to jobs where its clear they dont have the money or the motive for the job and have also been considering this.

As for hard times, im also experiencing rapid growth in this sector - ive just taken on extra labourers and have never been booked for so long into the future.
- Classic Gardens > David Riches May 25, 2008 at 7:55pm
  
  I found that a lot of builders are also taking to the landscaping business aswell :(
  
  Iam fully booked now and iam turning work away (mad i know) but iam just under the vat limit and i want to keep it that way. I know if i become vat reg then i will just get under cut by all the summer gardeners i use the name gardeners loosely.
  
  I also lose a lot of time and money on people who think it only costs £100 to re do a garden :) but i take it as part of the job.
Classic Gardens May 25, 2008 at 9:33pm

lol Hear Hear
1st Garden Maintenance September 20, 2013 at 9:43am

I see that you posted this in in May 2008, at the beginning of the recession when things were beginning to get tough.
We have been in the very fortunate position of drastically increasing our business over the last few years, simply by increasing our prices which enabled us to do more adverting. Now we have a very good customer base, we no longer advertise in the old conventional way as we get more than enough new work coming in from current customers and referrals.
It's a fact that the companies that charge the higher prices have the most new business.
Benjamin O'Neill September 21, 2013 at 12:57pm

could you explain why by putting higher prices means you get more new business ?

Adrian Noble said:

I see that you posted this in in May 2008, at the beginning of the recession when things were beginning to get tough.
We have been in the very fortunate position of drastically increasing our business over the last few years, simply by increasing our prices which enabled us to do more adverting. Now we have a very good customer base, we no longer advertise in the old conventional way as we get more than enough new work coming in from current customers and referrals.
It's a fact that the companies that charge the higher prices have the most new business.
PRO

Geoffrey King September 22, 2013 at 11:04am

It's a fact that the companies that charge the higher prices have the most new business.
That's very interesting, but also a very broad statement. Where do you get these facts from?

You are implying that if someone charges 10x the average then people will flock to buy that service / product. Surely all markets are governed by the laws of supply & demand.

You also imply that the only factor is the higher price.

But companies that charge more are often more competent or better equipped, and so on.