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How Service Diversification Boosts Landscaping Businesses

Apr 17, 2024

Landscaping is far more than just a lawn mowing service and gardening. It encompasses a broad spectrum of services, from installing green roofs to creating festive holiday displays. However, the decision to diversify services should be driven by more than the mere ability to offer them; it should fundamentally fit the business and its market. Giles Lambertson's article in *Turf West* explores this concept through various landscaping companies that have navigated the challenges and opportunities of expanding their service offerings.


Strategic Diversification in Landscaping


The key to successful service diversification is recognizing what truly adds value to both the customer and the company. Peter Haakon, founder of Lawn Business Consultants, highlights that expansion is most effective when there is sufficient demand and when the new services complement the existing ones. For example, Paradise Lawns, a landscaping company in Freeburg, Illinois, carefully assesses each potential service addition. Despite the potential profits from snow removal, the geographic and climatic uncertainties made it an unsuitable venture, showcasing the importance of aligning service offerings with environmental realities and market needs.


The Paradigm of Profitability and Preparation


When Paradise Lawns' owners, Dena and Mike Kreher, took over the company, they initially planned to increase their share of residential lawn mowing. However, after evaluating its profitability, they pivoted towards the commercial market and broadened their service spectrum to include specialized offerings like pest control and tree care. This strategic shift was backed by thorough market analysis, particularly when the emerald ash borer posed a new threat to local vegetation. By preparing and educating the community about the pest ahead of its arrival, Paradise Lawns could seamlessly integrate this new service into their business model.


The Role of Education and Experimentation


Education is a cornerstone of Paradise Lawns' strategy. Rather than pushing promotions, they focus on informing their customers about potential issues and solutions, which builds trust and positions them as a knowledgeable authority in the landscaping industry. Moreover, they rigorously test new services before fully launching them, ensuring that each new offering is both effective and desired in the market.


Adapting to Market Dynamics


Kevin Ethington's journey with All Seasons Landscaping in North Salt Lake, Utah, underscores another aspect of service diversification: the personal satisfaction and business growth stemming from adapting to customer needs and market changes. Starting solely with grass cutting, Ethington expanded his services to include building projects and sprinkler system installations, driven by customer requests and his personal interest in construction. His business now thrives by offering a comprehensive suite of services, reflecting a well-rounded response to client needs and seasonal dynamics.


Conclusion: Strategic Growth and Focus


Adding services in the landscaping industry is not just about growth but about strategic enhancement of the core business. Industry consultant Ken Thomas advises that while diversification can bolster a company's resilience against economic fluctuations, it should not dilute the company's expertise. A focused approach, coupled with a clear understanding of costs and market demand, is essential for any service expansion to be beneficial.


As the landscaping industry continues to evolve, companies like Paradise Lawns and All Seasons Landscaping demonstrate that strategic service diversification, grounded in thorough market research and customer education, can significantly enhance business value and sustainability.


Source: Lambertson, Giles. "Beyond mow blow & go: how adding services (sometimes) adds value to your company." Turf west, vol. 27, no. 4, Apr. 2014, pp. A8+


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