3 minute read
Executive Director message
Happy New Year!
Another year is behind us, and what a fast year it was! It seems as if every one of our members I spoke to and visited with were running at 100+ miles per hour. On top of running wide open, inflation, skyrocketing fuel prices, continued supply chain issues and a looming (if not already happening) recession were challenges faced by all. I usually share Kiplinger’s economic predictions for the new year in this letter, but at the time this magazine went to print, they were not available. What resonated with me, to share with you, are some comments from industry consultant Jeffrey Scott:
How you budget in 2023 will look much different from this year. The goldrush is over! You need a savvier approach to managing expenses and revenues. 2023 will be different. Are you ready?
1. Keep a fluid approach to cost adjustments - You can’t just plug costs into your budget and hit cruise control. You have to watch costs on-going! Be prepared to change cost assumptions monthly, or every other month, or at most every quarter.
2. Use value-based pricing. You can’t just push up prices non-stop. Clients will balk, in fact they already are! However, when you do raise prices, you should be raising value concurrently. To do this you must understand how clients perceive your value. Engage clients in conversations about their needs and wants. Listen for their pain points and what they appreciate about your services.
3. Ask your team to get L-E-A-N. Even if you can pass on cost adjustments, your profits will stagnate or go backwards in “real economic” terms. Put your teams on notice. Inform your people that the boom is over, and they have to now fight for cost and time savings in every nook and cranny. Tighten up your contract terms and your systems for collections and warranty prevention and management.
4. Maintain a backlog and whitespace. Be more strategic in what you grow, don’t over extend yourself. Flex your capacity between your divisions, use all your people to address peak needs without over hiring. Grow sales to existing clients. You hardly had time last year; this year become experts at upselling and cross selling.
5. Don’t forget to recover
replacement costs. Savvy budgeters recover all their equipment replacement costs in their pricing. Engage your team and engage your clients. The more they are engaged and on board, the better chances of winning in 2023.” You can subscribe to Jeffrey Scott’s Growth Tips here: jeffreyscott.biz/growth-tips-and-9-proven-profitstrategies/
We look forward to seeing our members and engaging in person many times in 2023! We’ll kick off the new year on January 31 with a networking event at Tucker Brewing Company. February will bring us back to a favorite location, Magnolia Hall at Piedmont Park, for a networking/education dinner – stay tuned for topic and speaker! April 11 will be our annual spring event at Topiary Courtyard, followed by an industry/student dinner at Chattahoochee Tech on May 4. Brand new for 2023: look for exciting news in the months ahead for information about a new networking/ marketing event with opportunity for vendor displays and equipment demos in late September, to be held at NG Turf’s Douglasville farm. We are also pleased to be announce that we’ll continue our partnership with NALP in promoting workforce development through a proposed new SkillsUSA landscape competition in June at the Georgia World Congress Center. Many of our members participated in last year’s event by volunteering in the career booth and/ or donating products, landscape materials and swag. More information about this will be available in early 2023. In the meantime, read about our progress (to date) with this initiative on page 37. We look forward to seeing you soon and thank all of you for your support through membership in UAC. Best wishes for a very successful 2023!
