BPLC - ch 14 economic sustainability

what all recessions have in common

Decreased consumer spending, unemployment, foreclosures, losses in investment portfolios, decreases in commercial & residential construction, & limited bank credit

challenges faced by landscape companies during recession

- clients are looking for more for less

- greater number of companies competing for jobs

- enhancement budgets reduced

- maintains quality & margins

hardest hit segment of landscape companies

design/build both residential & commercial

how did recession affect maintenance contracts on commercial scales

generally stable but additional enhancement expenditure income was significantly reduced

methods to weather a recession

- become leaner & keep a closer eye on waste & expenses

- lower indirect & overhead costs in relation to revenues & direct labor

results of becoming leaner & lowering costs

Lower prices & tighter profit margins

what should be emphasized when revenues are down

cost reduction & increasing revenue

furlough

time off from work without pay

what do furlough policies establish

amount of days an employee would not work within a specific period

marketing strategies

keys to opening up new revenue doors

branding

establishes a company's greater identity

what are marketing strategies intended to achieve

get companies greater exposure in their existing market through community involvement, with a targeted sales approach directed towards expanding market shares & branding

value engineering

increases the value of a contracted service by either improving the delivered service (more for less) or reducing its cost

multiple equivalent simultaneous offers (MESO)

enable clients to select options for landscape maintenance services that are adapted to the client's budget

what are packaged options in MESO based off of

- conversations with the client

- relating knowledge of the site

- maintaining maintenance standards

- meeting the client's budget

what should not be presented for MESO

- unclear expectations

- a service list without a cost estimate

- elimination of essential service schedules

how might overhead budget lines be reduced during recession

restructuring personnel in support divisions (maintenance or administration), eliminating salary increases & bonuses, deferring employee relation events/scaling them down, eliminating or reducing attendance at national conferences

3 things to focus on in a recession

1) increase revenue

2) lower margins

3) maintain stable overhead costs

examples of market niches that have increased revenue streams

- green roofs

- bio retention systems

- athletic turf installation

- biowalls

- water-conserving irrigation systems

- parking lot striping

- holiday decorating

how can landscape companies use drones

monitor construction projects and assess the health status of large property plant inventory & site topography