Here are 6 Ways to Increase Your Gross Margin

While there are many financial pieces to business success, your company’s Gross Margin remains one of the most critical pieces. It requires a keen understanding of its importance, and the necessary focus to arrive at the desired levels.

    1. Dispatch in the AM, Yard Arrival in PM: Loading and unloading:
      This kills a lot of time each day! Try to get either covered trailers and trucks or secured open trailers and keep your tools and equipment stored in them. This will save a TON of money from wasted time paid towards loading and unloading each morning and evening.
  1. Have specific lists of daily tasks to complete & the time allowed to complete them:
    Don’t leave home (the yard) without them. Our workers really do want to do a good job we as leaders need to make certain that they do the right things and they do the right things right.
  2. Provide the right equipment for the task at hand, especially with mowing.
    Take a look at what equipment is being used to mow lawns. Wherever possible use the largest mower possible first then the next largest etc.
  3. An accurate estimating process is in place and consistently used:
    Measure the job by categories like Turf, Beds, Hedges, Seasonal Color etc. Establish production rates and continually adjust these as technology gets better.
  4. Have the proper mark up process to achieve desired Gross Margin: Know, understand and use the proper mark up process to achieve the desired margin. Margins may vary form job to job and by size and potential of the job.
  5. Add more sales of profitable work and lose the underperforming jobs:
    Ok that might be easier said than done but it really does have a positive affect on Getting Gross!

Action Step:

Take a good look at you operation and decide which of these 6 tips can help you get
more Gross Margin!

Bill Arman

Bill Arman

worked for and helped grow one of the biggest landscape outfits in the country. He’s seen how the big boys do it, how their systems and structures work. So his know-how is rooted in recruiting, hiring, training and growing great people—that along with quality assurance. Bill, alone, has gone on 15,000 quality site visits in his career. Nobody else has that, not that we know of anyway. He received Lawn and Landscape/ Bayer Environmental Science's 2006 Leadership Award. Read Bill's full bio.