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1 Ramblin Jackson Joins SIMA 2 Get More High-Quality Customers 2 5 Business Podcasts to Boost Growth 3 Upcoming Events 3 Take a Break 4 A Snow Removal Myth — Busted! INSIDE PO Box 1429 • Lyons, CO 80540 (303) 544-2125 • ramblinjackson.com
Residential Snow Removal Can Be Profitable BETTER VIEW LANDSCAPES BUSTED THE MYTH!
If your company focuses on residential landscaping, you probably hear this myth every winter: “Residential snow removal can’t be profitable.” It may be conventional wisdom, but that doesn’t make it true! In fact, this winter, Ramblin Jackson CEO Jack Jostes spoke with a landscaper who used one smart business trick to bust the myth wide open. Tory Chlanda operates Better View Landscapes in Hadley, Massachusetts. His company offers landscape design, building, maintenance, lawn mowing, and snow plowing. He told Jack that for a long time, the snow removal wasn’t profitable. Snowfall was variable, staffing was a challenge, and the income wasn’t reliable. Then, the lightbulb went on: Tory applied the 80/20 Rule to his snow plowing operation. The 80/20 Rule states 80% of outcomes come from 20% of causes. (For example, it’s likely that 20% of your customers generate 80% of your landscape company’s revenue.) Tory found 20% of his snow plow customers were more profitable than the other 80% because they were also using Better View Landscapes’ other services. So, his team came up with a plan. They
split their snow removal service into two tiers: a standard “per push” plan for the top 20% and an “unlimited program” with a flat rate for the 80%. Their goal was to weed out the unprofitable, one-off clients and secure steady revenue from the rest.
“We ended up losing about 30% of the snow list, which is exactly what we were trying to do,” Tory told Jack. “And so the outcome now is that if we have a comparable snow year from the year before, coupled with the unlimited clients we have, we’ll actually stand to make about 25% or 30% more in that year alone with about 60 fewer clients and with the same staffing we normally have.” Tory’s experience proves that in the right region, snow removal can be profitable and keep a landscaper busy year-round. You just need to sell to the right customer and charge the right rate! To learn more about Tory’s success, check out the “80/20 Snow Business” episode of “The Landscapers Guide to Modern Sales and Marketing” podcast.
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