NJLCA New Jersey Landscape Contractor Magazine - September 2015

The New Jersey

Fall 2015

Landscape Contractor

The Official Publication of the New Jersey Landscape Contractors Association

The Business of Landscape u u u u u u

Reduce Loss, Reduce Cost Marketing: The Ultimate Growth Engine Common Issues in Landscape Contracts Cost-Based Estimating Add More Green to Your Bottom Line Preparing for Insurance Audits

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Published By

The New Jersey Landscape Contractor magazine is the official publication of the New Jersey Landscape Contractors Association, dedicated to the professional landscape industry of New Jersey. NJLCA was founded in 1966 as the Bergen County Landscape Contractors Association, and is today comprised of over 550 member companies throughout New Jersey.

New Jersey Landscape Contractors Association 465 Boulevard, Elmwood Park, NJ 07407 Phone | 201-703-3600 -- Fax | 201-703-3776 E-mail | info@njlca.org Visit our website at www.NJLCA.org Publisher/Editor Gail E. Woolcott Contributing Writers Tom Barrett | Joe Bolognese | Captain Safety Greg Carpenter, CLT | Josh Ferguson, Esq. | Richard Gaynor Bob Hibler | John Hodapp | Matt Moskowitz Patrick Schlagenhaft | Jody Shilan | Marcus vandeVliet Danny Wood | Gail Woolcott NJLCA Combined Board Executive Director | Jody Shilan, MLA President | Tom Canete Vice President | Nelson Lee Treasurer | Richard Goldstein, CLT Director | Anthony Agudelo Director | Jeff Baker Director | Tom Barillo Director | Greg Carpenter, CLT Director | Justin Flatow, CLT Director | George Futterknecht, CLT Director | Dan Kindergan Associate Director | Joe Bolognese Associate Director | David Gaynor Associate Director | Eddie Slaska Advisor | Dr. Bruce Clarke, Rutgers University Advisor | Dr. Steven Fischer, Bergen Community College Advisor | Dr. James Murphy, Rutgers University The New Jersey Landscape Contractor magazine is published triannually. 500 print copies are distributed to members and over 3,000 digital issues are sent to professionals in the Green Industry of New Jersey, as well as educational and governmental institutions. Subscription rates: $45.00 per year; $15.00 per copy. New Jersey residents only, please add 7% sales tax.

To advertise in The New Jersey Landscape Contractor, please contact Gail Woolcott at (201) 703-3600 or e-mail gwoolcott@njlca.org.

Article and photo submissions are encouraged and may be sent to NJLCA at the above address. Publisher assumes no responsibility for safekeeping or return of photos or manuscripts, and reserves all rights to edit material submitted for publication. Š 2015 New Jersey Landscape Contractors Association. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the publisher.

Cover Photo: By Design Landscape, Inc. PUBLISHED September 2015

contents FALL 2015

FEATURES

5 How to Prevent Tick Bites (English/Spanish)

9

Reduce Loss, Reduce Cost

10 Marketing: The Ultimate Growth Engine

13 The Business of Landscape

15 Important Questions to Ask Your Soil Supplier

16

Common Issues in Landscape Contracts

19

Preparing for Liability and Workers Comp Insurance Audits

22

Cost-Based Estimating

23

Add More Green to Your Bottom Line

NJLCA News Briefs

IN EVERY ISSUE...

4 Executive Director’s Message

6 Contractor Focus: Genesis Landscape Contractors, Inc.

7 Associate Focus: Ransome CAT 28 Calendar of Events

29 Landscape Industry Certified Exam

33 Landscape Achievement Awards

34 Welcome New Members Columns

5 Safety Corner

9 Design/Build Sales

11 Legislative Wing 15 Certifiable

19 Turf Talk

23 Your Equipment

25 Business Brief NJLCA.ORG

3

tion

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Executive Director’s Message

T

his issue of The New Jersey Landscape Contractor focuses on The Business of Landscape. Over the past 50 years, our industry has grown from long haired, t-shirt wearing, grass cutting, landscapers into professional organizations run by experienced businessmen and women, who probably wish they still had hair. Who would have ever thought that the original green industry would have companies publicly traded on the New York Stock Exchange, as venture capitalists search for the next big thing in our multi-billion dollar industry.

As New Jersey’s premier landscape association, we have participated in this incredible growth, starting with our humble beginnings in 1966 when we were first founded by six men, Roger Dammer, Bob DeRosa, Skip Powers, Skip Gallione, Aubrey Hampton, and Don Leuffgen, as the Bergen County Landscape Contractors Association. Since then, we have worked everyday to provide you with the information that you need to run your businesses safely, legally and profitably. We do this through our weekly e-blasts, membership meetings, NJLCA University, our trade show, Landscape New Jersey and, of course, our very own magazine, The New Jersey Landscape Contractor, developed by our very own Director of Operations and Editor-in-Chief, Gail Woolcott.

Just take a look at some of the topics we are covering in this issue of The New Jersey Landscape Contractor and you’ll realize that when we say business, we mean business. Learn how to reduce your insurance premiums by following some simple and knowledgeable advice from John Hodapp. Interested in improving and upgrading your marketing? Then check out Tom Barrett’s article. Want some insight from leading industry professionals who have successful businesses, then read Gail Woolcott’s piece featuring Mitch Knapp of Scenic Landscaping, Eric Cross of Dukes Landscape Management and Michael Kukol of Horizon Landscape Co. Not sure if your contracts will stand up in court? Read attorney Josh Ferguson’s article on common problems with landscape contracts.

Learn how to properly prepare for a liability and workers comp insurance audit with none other than, Richard Gaynor. How could we possibly have a business issue without including a few words from Marcus vandeVliet on estimating? Next, Matt Moskowitz will show you how to collect debts from your customers, instead of writing them off. And last but not least, Patrick Schlagenhaft will help you grow your profits with topsoil.

In every issue of The New Jersey Landscape Contractor, you will find interesting profiles on two of our members, one is a contractor and the other is an associate. In this issue we profile Chris Paul of Genesis Landscape Contractors located in Middlesex, NJ and learn how he has successfully grown his landscape construction business.

We are also profiling associate member Ransome CAT. If you’re short on time, why not check out one of our industry columns that focus on everything from sales to safety.

On a sad and final note, we lost a very important member of our NJLCA community last month. Tom Boglioli, passed away on August 25th, at the young age of 57. Tom was the Director of Landscape Equipment Sales of Storr Tractor for over 18 years.

We are dedicating this issue of The New Jersey Landscape Contractor to Tom Boglioli, his family and everyone at Storr Tom Boglioli Tractor. Tom was a great man Storr Tractor and a true friend to the NJLCA. 1958 - 2015 He will be missed.

Jody Shilan, MLA NJLCA Executive Director

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Safety Corner Not a Golden Tick-et

L

et’s talk about another hazard that landscape contractors face. Lyme Disease is caused by infected deer ticks and is not something you want to get! So let me give you the good news and bad news about this danger. The bad news first---- If you are bitten by an infected deer tick and do nothing about it, many people will see an expanding red rash that looks like a target in about a week. If you see that, go to the doctor! See a doctor if you develop a fever, a rash, severe fatigue, facial paralysis, or joint pain within 30 days of being bitten by a tick.

Be sure to tell your doctor about your tick bite.

It is important to get treatment right away. If you do not get treatment, you may later experience severe arthritis and problems with your nerves, spinal cord, brain, or heart. The longer you wait to get treatment, the harder it will be to cure. By the way, you can get Lyme Disease again, if another tick infects you.

Now for the good news! If you find yourself with a tick bite and remove the tick promptly, even if it was infected, you may be just fine. And if you are infected, antibiotics will take care of the problem, if you get them quickly.

Lyme Disease is one of those hazards that can usually be avoided. Ticks can attach to any part of the human body, but are often found in hard-to-see areas, such as the groin, armpits and scalp. In most cases, the tick must be attached for 36-48 hours or more before the Lyme disease bacterium can be transmitted.

So how do you protect yourself against tick bites and Lyme disease? See the sidebar on the right to learn how to pull a tick out correctly and tips to avoid being bitten. If you get rid of the tick quickly, the chances of your becoming infected are much less.

Captain Safety can only be contacted through Bob Hibler of Gamka Sales Co. in Edison New Jersey. Bob can be reached at 732-248-1400 or you can e-mail him at bob@gamka.com.

News Briefs How to prevent tick bites when working outdoors Ticks can spread disease, including Lyme disease. Protect yourself: • Use insect repellent that contains 20 - 30% DEET. • Wear clothing that has been treated with permethrin.

• Take a shower as soon as you can after working outdoors.

• Look for ticks on your body. Ticks can hide under the armpits, behind the knees, in the hair, and in the groin.

• Put your clothes in the dryer on high heat for 60 minutes to kill any remaining ticks.

How to remove a tick 1. If a tick is attached to you, use fine-tipped tweezers to grasp the tick at the surface of your skin.

2. Pull the tick straight up and out. Don’t twist or jerk the tick—this can cause the mouth parts to break off and stay in the skin. If this happens, remove the mouth parts with tweezers if you can. If not, leave them alone and let your skin heal.

3. Clean the bite and your hands with rubbing alcohol, an iodine scrub, or soap and water.

4. You may get a small bump or redness that goes away in 1-2 days, like a mosquito bite. This is not a sign that you have Lyme disease.

5. Note: Do not put hot matches, nail polish, or petroleum jelly on the tick to try to make it pull away from your skin.

Cómo prevenir picaduras de garrapatas al trabajar al aire libre Las garrapatas pueden transmitir enfermedades, como la enfermedad de Lyme. Protéjase: • Utilice repelente contra insectos que contenga 20 a 30% de DEET. • Use ropa que haya sido tratada con permetrina.

• Dúchese tan pronto termine de trabajar en ambientes exteriores.

• Revise que su cuerpo no tenga garrapatas. Las garrapatas se pueden esconder debajo de las axilas, detrás de las rodillas, en el cabello y en la ingle.

• Ponga su ropa en la secadora a una temperatura alta durante 60 minutos para destruir las garrapatas que puedan haber quedado ahí.

Cómo quitarse una garrapata 1. 1. Si se le pegó una garrapata, arránquela de la superficie de la piel con unas pinzas finas.

2. 2. Jale derecho y hacia afuera para arrancar la garrapata. No la retuerza ni la sacuda porque pueden desprenderse partes de la boca y quedarse en la piel. Si sucede esto, trate de arrancar con pinzas las partes de la boca. Si no puede, deje todo como está y espere a que sane su piel.

3. Limpie la picadura y sus manos con alcohol, restregando yodo o con agua y jabón.

4. Puede que le salga un bulto pequeño o se le enrojezca la piel y que se le vaya en 1 o 2 días, como las picaduras de mosquito. Esto no es un signo de que tiene enfermedad de Lyme.

5. Nota: No ponga cerillos calientes, removedores de pintura para uñas o glicerina en la garrapata para intentar sacarla de su piel.

Information provided by the Centers for Disease Control.

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News Briefs

Contractor Focus: Genesis Landscape Contractors

by Gail Woolcott, Director of Operations

C

hristopher Paul, Owner of Genesis Landscape Contractors, Inc. earned a degree in Civil Engineering, with the intentions of doing site work. He decided he would work towards purchasing the equipment needed for this type of work by getting into the landscape industry first. “Like the mafia”, he jokes, “once you’re in the landscape industry, you never get out.”

But Chris is happy (like all of us, some days are happier than others) to be doing what he does now. He excitedly told me about an amazing project he just completed and will be entering in this year’s NJLCA Landscape Achievement Awards.

Genesis Landscape Contractors offers a variety of services to their clients, from pools, lighting, irrigation and hardscaping to artisan masonry, curbing, foundations, fencing and even some site work. They also provide mostly organic turf care programs to their clients.

Chris is the founder of the New Jersey Organic LandCare Association and is staunch proponent of continuing education for all contractors.

When we talked about why he belongs to associations like NJLCA and the NJ OLA, Chris responded that the number one reason is the sense of community he gets from being a member. He said, “In the past, if I’d run into another contractor at a vendor, we would barely say “hello”. It is so great to now be able to be friendly and have relationships with other contractors in the industry.” He relishes the fact that he can now call up a fellow contractor to brainstorm, bounce ideas off of each other, or even talk about how they handled a specific situation. (As a sidebar, I can agree that this is definitely one of the greatest perks of membership. We had a member come into the NJLCA office who was having trouble with a waterfeature he was building. We put him on the phone with another member right away and within 20 minutes they had figured out how to solve the dilemma.)

Chris feels that the biggest issue in the landscaping industry are the illegal businesses that the legit contractors need to compete with. In addition, he is bothered that landscape contractors are not viewed and treated as professionals, like an electrician or a plumber. He wishes that more people, in and out of the industry, treated landscaping as a profession and spent more time learning and honing their craft by getting more education, speaking with and learning from others who have done things better for longer.

Chris recalls a story of when he was teaching a class to other contractors. One of the attendees asked, “Why are you doing this? You’re telling us how you are doing everything and we are your competitors.” Chris’ response? “One day I will lose a project to each and every one of you. I’m ok with that if the customer receives a quality job at a legitimate price.” Chris would be more than happy to compete with others, as long as it is on a level playing field.

He feels that we, as landscape professionals, need to raise the bar in order to be treated and paid as professionals. The standards need to be raised and there needs to be a customary way of doing things, so each homeowner receives the best possible work and each contractor is able to charge a fair rate.

“I would like to pay my guys, who work so hard, more. But competing with companies that are not paying their registration fees, not operating legally and charging such low rates, prevents me from doing so. Nobody can afford health insurance for their employees anymore. So how do you attract good employees and retain them?” His answer is that all contractors need to remain educated, follow proper laws and give back to the communities you live and work in.

I asked Chris what he would tell a young person starting out in the industry. His mantra, that he stands by and teaches his three children, is “Do what you say you’re going to do. Do it when you say you’re going to do it. And do it at the price you promised.” He suggests that contractors need to be realistic with their timelines. Don’t get in over your head on a project.

Know your limits and weaknesses and plan for them accordingly. He says, “If you make a mistake, even if it is in estimating a project, you have to own it and deal with it, not the customer.” And above all, Chris says that you must have integrity!

Genesis Landscape Contractors Inc. has won multiple NJLCA Landscape Achievement Awards for their work.

Chris has over 20 years of experience in the landscaping industry and is currently organically managing more than 200 properties representing 3 million square feet of land area in central New Jersey. He is a licensed pesticide applicator and irrigation contractor and has a bachelor’s degree in civil engineering. Chris is also a NOFA Accredited Organic Land Care Professional, founded the NJOLA (New Jersey Organic LandCare Association) and was certified through the Rutgers Cooperative Extension Organic Land Care Certification program.

To find out more about Chris and Genesis Landscape Contractors, Inc., visit www.GenesisLandscape.com.

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News Briefs

Associate Focus: Ransome CAT

by Gail Woolcott, Director of Operations and Jody Shilan, Executive Director

G

iles & Ransome was founded in 1916 by Arthur Giles and current President, Kristin Bromley Fitzgerald’s great-grandfather, Percy Allan Ransome, Sr. In the early years, the company sold primarily concrete mixers and pavers and was located at 17th & Sedgley, then later on Allegheny Avenue in Philadelphia. In 1932, they became a Caterpillar dealer. Over the years, the business grew, and P.A. Ransome’s three sons became involved in the business. Eventually, the second generation assumed leadership positions and P. Allan Ransome, Jr. became President of Giles & Ransome and Ernest L. Ransome, III became Executive Vice President.

Dawson Ransome became Vice President of Sales but, after a few years, left the company and founded Ransome Airlines, which at the time it was sold in 1986 was the world’s largest commuter airline.

By 1960, the company had grown to the point where it was necessary to move from their Philadelphia location. The Ransome family’s territory for which they have sales and service responsibility…for the entire Caterpillar construction and engine product line…is Southern New Jersey, New Castle County, Delaware, and Southeastern Pennsylvania; which includes the Philadelphia region, as well as the Lehigh Valley and Reading areas. They currently have two New Jersey locations, one in Hammonton, one in Toms River & a parts drop in Wrightstown.

Ransome provides EPG (Electric Engine Power), Marine Engines, Industrial/Commercial Engines, Caterpillar Heavy Equipment, Truck Rental and Leasing, Equipment Rental, Weiler Asphalt/Paving Equipment and Bandit Land Clearing Equipment at their facilities.

More recently, Ransome Cat has expanded their equipment line to include compact construction equipment specifically designed and built for the needs of the landscape contractor, who typically work on properties that are under an acre. This includes the two most important pieces of

equipment to landscape contractors, the skid steer and miniexcavator. Ransome Cat and Caterpillar recognized the needs of this segment of the market and wanted to provide equipment that serviced smaller contractors, while still maintaining the quality and performance of their larger backhoes, wheel loaders and excavators.

The Ransome Family of Companies’ mission, as a familyowned business, is to foster an environment that stimulates their employees to achieve professional growth and personal satisfaction, create and cherish long term, mutually rewarding relationships with their business partners by providing superior value and exceptional service and to be socially responsible and provide resources and support to improve the communities in which they live.

Ransome’s owners and staff participate in several charitable works and foundations. Their most valued partnership is with the National Multiple Sclerosis Society, Greater Delaware Valley Chapter – participating in their Mud Run, Walk MS, Bike MS, and Challenge Walk MS events.

They also participate in Arbor Day Celebrations, Night at the Phillies, Bring Your Child to Work Day and Dorney Park Day. In doing so, Ransome challenges themselves to gain a sense of pride and personal satisfaction through events while creating bonds and crossing boundaries.

If you would like find out more about The Ransome Family of Companies visit www.Ransome.com.

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Design/Build Sales That’s More Than We Wanted to Spend

One of the most common responses that prospects have when seeing your proposal for the first time is, “That’s more than we wanted to spend”. Some are being truthful, while others know that this is a great strategy to get you to lower your prices.

The assumption, of course, is that the client is looking for a “deal”, which may or may not be true. Unfortunately, most contractors immediately panic and just lower their price for fear of losing the job. The problem with doing this is that all you’ve done is removed some or all of your profit and opened the door to future negotiations on everything - from change orders to the final payment. A much better strategy is to respond in a logical fashion that doesn’t reduce your profits and stops the negotiation game dead in its tracks.

The next time a client says, “That’s more than we wanted to spend”, here’s all you need to say. “I completely understand. There are several ways that we can do this. We can reduce the sizes or quantities of the plants, make the patio smaller or use a cheaper paver or eliminate some work altogether and install it later in another phase”.

For those clients that truly wanted to spend less, you’ve given them some “Unfortunately, great options without forfeiting most contracany profits. For tors immedithose clients that were truly looking ately panic and to play the negojust lower their tiation game, you price...” squashed them before they could even get out of the gate.

Jody Shilan, MLA is an award-winning landscape designer and former landscape design/ build contractor. He is the Executive Director of NJLCA, the editor of FromDesign2Build.com and host of Landscape Live! He can be reached at 201-783-2844 or jshilan@gmail.com.

Feature Story

Reduce Loss, Reduce Cost Helpful Insurance Tips

by John Hodapp, CPCU, Senior VP, Hortica Insurance & Employee Benefits

I

nsurance is a necessity for every business and as you know, it can get very expensive. With that said, there are many ways to properly manage your premiums and minimize increased costs in the future. In real estate it’s all about location, location, location. Well in insurance, it’s all about safety, safety, safety. Here are some great insights to help you control your insurance costs year after year.

Property Insurance Reduce loss, reduce cost. Avoid leaving equipment on job sites overnight and if you can’t, at least fence it in. Focus on anything that will make the equipment less desirable to steal, including making equipment look like it belongs to your company with painting, logos and emblazoning the company’s unit number on each piece, installing interlocks, and putting the VIN number in more than the one place the manufacturer put it.

Worker’s Compensation More than likely, workers’ compensation is a large percentage your overhead. The key is a safety culture to keep the number of claims at a minimum.

Conduct tailgate safety meetings in the morning on topics that are closely tied to whatever they are doing on the job site that day, so the information is fresh in their minds.

Form a safety committee made up of four to six management and nonmanagement employees. A safety committee is responsible for reviewing accidents and near-misses and recommending corrective procedures.

Be proactive and handle claims immediately, as opposed to letting the situation drag on. Show empathy and let the employee know the situation is being cared for. You’re not taking the blame, you’re just taking action. When employees return, a “return to work” program should be in place.

Auto Insurance The best predictor of future driving is previous experience. Employees should not have DUIs or have been cited for careless or reckless driving. One or two minor violations in the last three years might be OK, but if it’s anything beyond that, you might want to assume that driver might be more likely to be involved in future accidents.

Business owners should ask their insurance companies about a credit for vehicles not being utilized in the winter. Also consider asking the insurance company to put on a defensive driving course for all employees. Cell phone use should be limited to minimal use of hands-free devices in uncongested areas. Texting while driving should be prohibited.

Operators must make sure every load is property secured. Large insurance claims often result when unsecured cargo dislodges from trucks.

General Liability Focus on managing claims costs. This includes transferring risk to responsible third parties, such as make sure subcontractors have proper insurance.

Don’t lower liability insurance to try to save a few bucks. You’re betting the farm. In even the most safety-conscious companies, accidents still happen.

Document changes and bring them to the attention of your insurer. Improvements won’t save money if the provider doesn’t know about them.

Make your insurance company understand why you deserve a better price.

If I’m the underwriter and one company has a written safety program, a safety committee and a good plan to prevent theft and another company doesn’t, it’s obvious which one will get a better price.

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Feature Story

Marketing – The Ultimate Growth Engine for Landscape Contractors

by Tom Barrett, Master Mentor, Brand Launcher, Inc.

T

he economic recovery is in full swing and, for the landscape industry, it is predicted that 2015 total industry sales will exceed pre-recession level sales.

Profitability is up, home starts are up, and the home improvement market is forecasting accelerated growth through the first quarter of 2016.

Yes, the business outlook for landscape contractors is excellent.

The question is how can you capitalize on the growth?

The short answer is marketing. And it has never been easier or more affordable to stand out from the crowd than in today’s Internet-driven consumer marketplace. Yet, in our digital age, marketing has never been more confusing. In short, Internet marketing has a lot of noise, jargon, and confusing best practices. You need a website, you need SEO (whatever that is), AdWords, Google, and this social media thing that drives me bonkers. I’ll ask three marketers what to do and I get six answers.

How do you cut down the noise? Most companies simply give up. Maybe they’ll send out postcards or take out an ad in the local lifestyle magazine because…well because that is what they have always done.

First Things First – Outstanding Customer Service

Despite all the change and chaos, as some things change other things stay the same. Great customer service never goes out of fashion. Take care of your existing customers while your competition offers panic-driven discounts. Know your customers. Talk to your customers. Great customer service is all about communication.

Great customer service also means great quality. The value proposition of your company depends upon delivering what a customer wants. It also depends on delivering it when your customer wants it. Finally, delivering all this at a value a customer expects is what separates you in the market. Quality has never been more important.

Satisfied customers are still your best source of new customers. The value of a referral will always be number one.

Several landscape industry studies have discovered that over 70% of homeowners add a feature to their landscape because their neighbor improved their landscape.

Brave New World – The Internet

The bright side to developing referrals is that the Internet easily allows us to amplify and develop excellent ratings.

Conversely, a poor rating can cost your business. Over 80% of consumers will Google your business before they ever call you. A five or four-star rating can put your business over the top. So, how do you get there?

Start with Your Website

With the widespread adaptation of smart phones and tablets, it is critical to have a mobile responsive website – a website that effectively communicates your message across all platforms. We recently completed a consumer Facebook advertising campaign and discovered over 80% of our audience viewed our ad on a mobile device.

If your website is over two years old it probably needs to be upgraded.

An effective website is more than just a beautiful Internet brochure. Your website has two primary audiences. The first audience is Google. Google will deliver over 70% of your web traffic. Google ranks your website on three primary criteria: 1. Relevancy – Does your website contain the term, or keyword, being searched by the consumer?

2. Recency – A newer post on your website will outrank an older post on your competitor’s website. So if you are not continuously adding information to your website, you will loose your Google ranking.

3. Location – Today’s web browsers tell the search engines where the consumer is located and will deliver the consumer to the nearest available business.

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Legislative Wing A Win for NJLCA and ASCA!

In June, the NJLCA attended a Day in Trenton with the ASCA. We had meetings with several legislators to discuss the issues surrounding frivolous slip and fall litigation that affects anyone who provides snow and ice management services.

One meeting in particular, arranged by Tom Castronovo of the Gardener News, provided a win for the NJLCA and ASCA. As a direct result of this meeting, New Jersey Senate Bill S.3121 was introduced by State Senator Christopher “Kip” Bateman (RSomerset). The bill prohibits snowplow or deicing service contracts from indemnifying the promisee against liability for loss or damage in certain instances. Please reach out to your Senators to ask that they sign on to Senate Bill S.3121 and your Assemblymen to sponsor an identical bill in the Assembly.

Feature Story Content is King to Google

All the beautiful pictures in the world will not help Google find your website. Google reads text. It takes in only words and more text is better than less.

It takes the correct words consumers use when searching for a landscape contractor, which are not the words we use to describe ourselves.

Knowing that consumers, when searching for a landscape contractor, search “gardens” and “gardening” more often than searching for “landscape,” “landscape contractors,” and “landscaping” is important.

Going Local

One of the greatest advantages a local landscape company has over a national company is being local. Your location, and the markets you cover. have to be clearly identified within your website, preferably on your home page.

Google My Business is a free service that allows you to set up your business to appear on the right side of Google search results. It takes about an hour to set up and allows your customers to review and rate your business. You’ve likely seen this when searching for a company or a local business online and their Google My Business profile shows up in your search results.

Furthermore, this past July, as we do each year, NJLCA Board Members and members attended the PLANET (now NALP) Day on the Hill in Washington, DC. This year, our efforts were focused on a few main objectives.

At the top of the list, of course, is the situation with the H-2B program, including the cap on how many foreign workers may enter the country and the wage rates that are being provided to users of the program.

Next on the agenda was the snow and ice management lawsuit issue, but this time, the attendees tried to encourage their legislators to H.R.758 (S.401). The Lawsuit Abuse Reduction Act of 2013, which would penalize litigants and their attorneys if they are found to be filing a frivolous lawsuit.

Other issues discussed included the STARS Act, which would create a universal definition of seasonal workers (in regards to the amount of time they work for a company).

Please watch your email for any Calls to Action we may be sending your way!

Gail Woolcott is the Director of Operations for NJLCA. She has been with the association since 2006 and was named “Legislative Champion of the Year” from FEWA in 2009.

Developing Your Sales Funnel

A good website, one that is both attractive to prospective customers and easily found by search engines, is the starting point for developing a sales funnel. At this point you are further than 80% of your competitors.

Once an interested client reaches your website ask yourself, “What happens next?”

Developing a relationship with prospective customers is often the most misunderstood aspect of marketing.

• Where do you start?

• How do you do it?

You start with an email. Emails are forty times, not 40%, more effective at converting a prospect into a customer than any other media available today. I know this seems hard to believe given our aversion to spam.

However, spam is an unwanted email. The key distinction between spam and an email is the fact that you want to read the email; you don’t want to read the spam.

There are two primary factors to consider when developing an effective email campaign. The first factor is developing content that your prospective audience wants to read and see. The second factor is building an audience that is interested in your business.

Continued on Page 14 NJLCA.ORG 11

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Feature Story

The Business of Landscape

by Gail Woolcott, Director of Operations

S

uccess is defined as “the accomplishment of an aim or purpose.” In interviewing several successful NJLCA member companies, it is obvious that although they have achieved quite a lot, and what most of us consider success, they have not yet finished accomplishing their “aim or purpose”.

To reach success, one can no longer throw a mower in the back of a pickup truck and visit his/her own neighborhood, getting new customers by word of mouth. There is simply so much more that goes into “The Business of Landscape” in this day and age.

From insurance, permits, marketing and sales, to equipment technology, legislature, human resources and even the array of services a company offers, the business part of landscaping is just important as the work itself.

Let us take a look at how several successful landscaping firms got their start and what they feel the formula’s to their success are.

Scenic Landscaping - Haskell, NJ

Mitchell Knapp started his company at the age of 17 with nothing but a pickup truck, lawn mower and a dream (does this sound familiar to any of you?). It took a lot of passion, courage and determination to make his dream into the successful company that it is today. It wasn’t always easy. Two of Knapp’s best friends who helped start Scenic in its first year, were killed by drunk drivers as teenagers. Mitch Knapp continued in their honor, using this tragedy as the motivation to carry on and cope with their loss.

In considering the keys to his success, Mitch says, “Having parents that instilled in me a good work ethic was a key part of my success from the time I was playing ball, they instilled in me how important it was to work hard at everything I do.” He also always felt comfortable communicating with people early on, which helped him

network. He had the confidence to go door to door, asking neighbors for daily, weekly or weekend jobs. “I was helping my friend with his grass cutting business as a teenager, and when he was killed by a drunk driver,” he says, “I kept the accounts and the company going in his name.”

Mitch continued to build the company through his college years and pursued his own inner passion and dream to be the best, not the biggest in the industry. “I never let anything stand in my way,” he says, “I was predominantly self-taught for years, and took many courses in college and afterwards to advance my knowledge and keep up with the new material year after year.” With hands on experience, confidence drive for perfection, he felt he was always reaching beyond what was right in front of him.

Knapp says the best advice he can give to companies trying to grow is “Grow at a pace equal to the knowledge you have – do not grow beyond your means. More business with less knowledge will be the first path to get you in trouble – pursuing money is the wrong drive, pursuing your passion and a good business plan is the correct Continued on Page 21

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Feature Story Marketing - The Ultimate Growth Engine (continued) Think Like Your Clients

Content comes first because you cannot build an audience without information. The landscape industry is a very visual, life-style industry. Your audience wants a beautiful landscape. Think like your customers. Take pictures; take lots of pictures. Post them on your website. Write a brief description about your projects. Gather testimonials from your satisfied clients and tell their story to your prospects.

Remember, 70% of homeowners add a feature to their landscape because their neighbors did. Build on this momentum to upsell.

The Top of the Funnel

has held executive positions with Rain Bird, Kenney, Ewing, Netafim, and MacAllister Machinery, and he has been invited to collaborate on such noteworthy projects as Walt Disney’s Animal Kingdom in Orlando, FL, Aquascape in St. Charles, IL, and the Gates Residence in Seattle, WA. A nationally recognized authority on sustainable solutions, Tom gives over 30 presentations each year across the country and has authored numerous articles for national publications. He is also affiliated with the USGBC, the EPA’s WaterSense program, and the Alliance for Water Efficiency.

Next build your audience. If you offer something valuable, your prospective clients will give you their email address. Free e-book offers are great ways to attract prospective clients. Gather as many email addresses as possible.

Send emails regularly through one of the many online email-marketing solutions. These programs help you set up marketing automation based upon your subscribers’ activity, allowing you to target messages to consumers that are interested in working with you and your company.

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Certifiable Turf Equipment Safety and Operation in the Landscape It’s so easy, right? Taking for granted the proper steps to safely operating landscape turf equipment could be costly. We often think that mowing the lawn entails pulling out the mower and pulling the cord. But what we sometimes forget is the checklist before the “pull”. Grab a piece of paper and jot down a list of the things you would do “before” you start your engine…go ahead, I’ll wait. Now compare it to the following and see if you missed any. Are you wearing the correct protective and reflective gear? Do you have gloves, hats, vests, goggles, ear plugs or headphones?

Did you check the machine for proper height? Are the fluid levels at their peak? Did you clear your path of debris and mark or flag out obstacles like stumps, gas ports and irrigation sprinklers? Most importantly, is “everyone” out of the way from possibly being hit by projectiles that may be ejected by the mower?

This is just a sampling of the items looked for when judging one of the mower modules at the LICT exam hosted by the NJLCA. Landscape Industry Certified is a broad but powerful distinction for individuals who have taken their experience, skills and desire for excellence to the next level by studying, testing and becoming certified.

They stay on top of their game by maintaining their certification every two years through recertification.

Joe Bolognese is an inside sales rep for Gamka Sales, Inc. He is a Past Vice President and currently an Associate Director of the NJLCA. He is also Chair of the Education and Landscape Industry Certified Exam committees. He has over fifteen years experience in the landscape and irrigation supply industry and can be reached at jbolognese@njlca.org.

Feature Story Important Questions to Ask Your Soil Supplier

by Patrick Schlagenhaft, Advanced Soil Technologies hen most of us are buying topsoil, our biggest concerns are price and availability. When I field a call and the first question pertains to how much is your topsoil, I cringe! What good is cheap topsoil when your $85 bag of grass doesn’t germinate or your $25,000 landscape project fails to thrive? Worse yet, you may be receiving soil that is contaminated. Here are some important questions to ask your soil supplier before you buy:

W

Where did this soil originate?

At the very least, you should know the address or lot and block of where the soil originated. This is important to know because the last thing you want on your job site is soil that came from a project with contaminated soils.

When you take in soil, do you keep the soils separated?

If the supplier brings in soils from various construction projects and stockpiles them on top or each other, your consistent. Each load may vary, depending on where the soil originated.

Do you do chemical testing on the soil?

This testing is critical because it will provide information on metals, pesticides, volatiles and other important elements in the soil. These tests help determine whether or not the soil meets the NJ-DEP requirements for clean fill.

Do you do agricultural testing on the soil?

You need to know what exactly you are buying and the agricultural report will provide just that. These reports typically provide pH, organic content, nutrients and a variety of other valuable information.

The report should be recent, not one from a year ago. Ask for the last three reports on their soil.

Do you add or blend anything into your soil?

Some soil suppliers blend in sand and/or compost. This is not a problem, but is why it’s important to keep all of your inbound raw soil separated.

These questions and the answers you receive should help you decide if your soil supplier is for you and may help you sell your next landscape project!

Patrick Schlagenhaft is the VP of Advanced Soil Technologies (a WBE company), whose primary blending facility is located in East Brunswick, NJ. He can be reached at patrick@advancedsoiltechnologies.com.

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Feature Story

Common Issues in Landscape Contracts

by Josh Ferguson, Esq., Kent/McBride

I

have had the pleasure of representing landscape contractors in litigation and as general counsel for over ten years.

During that period of time, the scope and breadth of the contracts I have seen have run the gamut. I’ve seen book-length

contracts that would be better suited to a billion dollar commercial real estate deal. On the other end of the spectrum, I have seen contracts consisting of two sentences and hand written on the back of scratch paper.

Over the course of reviewing numerous contracts, I have also seen many errors that, left unchecked, can poise huge problems for the contractor. Below are five areas of concern and ways to address the issues.

First off, I often see contracts that are not signed by all parties. If a contract is not either fully executed, or executed in counterparts, it is simply not enforceable. The simple solution is to make sure your file contains a fully executed contract. Additionally, the contract should have a section that permits signing in counterparts, meaning that not everyone

has to sign on the same document. If the property owner/ manager signs on one contract and the snow plow contractor signs on another contract, then it would be considered fully executed.

Second, the duration of the service to be completed and the payment terms are often left out of the contract or not clearly identified. If the term of the contract is not clear, the opposing parties can make an argument based on whatever benefits them the most. Identify the exact terms of the deal and do not leave anything to chance.

Another major problem I see on a consistent basis is that the scope of work section does not properly detail the how, when and where the contractor will perform operations. Even when there is sufficient detail, there is often language that puts unfair, unattainable and unrealistic requirements on the contractor. Too many times I have seen conflicts arise because the property manager requests something that is unrealistic or inappropriate for the property. If the contract gives that discretion to the client, the landscape contractor is stuck in a tough position.

It is also important to include in the scope of work protective language that limits your liability for anything that occurs after services are completed. Identify that it is the client’s responsibility to inspect the work and that if they do not contact you in writing to identify concerns that all parties agree the services were performed satisfactorily.

Fourth, the contract must contain language to limit responsibility for acts of God or other events out of the contractor’s control. This aspect is often missing and could play a role in defending claims from the property owner/manager for failure to perform duties, as well as claims from a slip and fall Plaintiff.

Lastly, the indemnification and hold harmless language seems to be one of the most misunderstood sections of a contract. As a result, I see contractors sign documentation and ask questions later. Depending on whether the language is beneficial to the snow removal contractor or not, it can significantly impact the liability of the parties, including the obligation to defend and indemnify. This type of language increases exposure, as the contractor’s carrier will have to represent not only the insured, but also the indemnified parties. It is incredibly important to avoid language that requires the contractor and their carrier to provide defense and indemnification in the following scenarios: (1) based solely on allegations in the Complaint (look for the words “threatened or alleged”), or (2) without regard to whose act or omission could have caused the alleged condition.

“Yo

F

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All S

Feature Story

Josh has created specific language to limit liability for the sow plow and landscape professionals and would be happy to speak in further detail about these issues.

He can be reached at JFerguson@ kentmcbride.com.

Joshua G. Ferguson is a graduate of Old Dominion University and Widener University School of Law. He is admitted to the Bars of PA, NJ, NY, and U.S. District Courts for the Eastern District of PA and the Middle District of PA. Josh works primarily in the areas of commercial premises, motor vehicle, contract, and construction defect litigation, and has litigated cases throughout PA and NJ. He has also been retained as general counsel for a wide variety of businesses,

including but not limited to those in the snow removal and landscaping industries. Josh is also committee member for the Accredited Snow Contractors Association.

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Turf Talk It’s hot and dry and you are under water restrictions. What are you going to do to try and rejuvenate your lawns?

Number one, you are going to apply something that will not burn your lawns or make them worse. Try a fall combination product like fert-a-lime; the low nitrogen with a reasonably low W.I.N (water insoluble nitrogen) number. That combined with lime will make available many macro and micro nutrients that will green up your lawns with moderate irrigation.

Now you notice the spots in the lawn. Is it fungus? Not with our current temperatures – too hot, too dry – more likely the problem is sod web worm moth, so you will need an insecticide; but, wait until the lawn greens up so you can see which lawns are affected and better assess the needs of each location.

And no it is too hot for weed killer. Yes, the fertilizer will make them pop, but with continued hot dry weather and not much rain in sight, you will probably burn as much as you kill. Wait a few weeks, let the turf rebound, check future temperatures. See what is expected. If the 90’s are sticking around, it is not a good time to spray. Once the temperature breaks, you can kill the weeds. Then begin your real renovations – aeration, seeding, slit seeding, top dressing is the most common and each one is beneficial to the specific needs of the location.

Greg Carpenter, CLT is co-owner of American Beauty Landscape Design since 1983. He attended the SUNY Farmingdale Turfgrass Program and is an NJLCA Director.

Feature Story Preparing for Liability & WC Insurance Audits

by Richard Gaynor, CIC, CRM, Middleton & Company Insurance

W

hen your Workers Comp and General Liability policies are written or renewed, the payrolls for each classification are only estimated for the upcoming year’s exposures (payrolls, remunerations, total costs, gross sales, etc.). After the policy period expires, the insurance company will contact you for an Audit to determine your actual exposures If your estimated exposures were too low, there will be an additional premium charge. Conversely, if your estimated exposures were too high, you will receive a refund for your overpayment (unless you have a fully earned minimum premium policy).

How to Prepare for your Audit The auditor’s mission is to determine your actual exposures (payroll, sales or costs) for the expired annual policy period.

• Review your classifications with your Agent! Classifications not listed can be added by the Auditor and will usually be more expensive! The Auditor may ask you to describe the details of the work performed by each employee: “Less is More!” The less details you give the more you benefit! Don’t explain what the Employee “could or might” do. Keep it short and definitive! The auditor works for the insurance company! If the employee is your “estimator/salesmen” then stop with that as your description. If you don’t, the payroll will be charged the highest premium classification!

• Your records should delineate without ambiguity, the type(s) of work performed by your company, the work performed by each employee, overtime pay. And Subcontractor total costs along with Certificates of Insurance as proof of Liability & WC coverage for each subcontractor, for the policy period being audited.

• Ambiguity in your records will be MORE Expensive!

Get Help PRIOR to the Audit These items should be prepared prior to audit AND reviewed with your Insurance agent prior to your meeting with the auditor: • A copy of your payroll records for the policy period being audited.

The records must classify each employee using the same classification title(s) as classified on your policy.

• Classify each employee in their most appropriate classification – review this with your insurance agent to be most cost effective.

• We strongly recommend that you use a spreadsheet (in addition to your payroll records).

• Segregate Overtime pay – Only straight pay is chargeable (if you pay 1.5 times pay for overtime, the auditor should charge only the “1 times” pay.)

• NOTE: Prevailing Wage pay is ALL part of employees direct compensation if paid to the employee. The additional amount paid for “benefits”, if paid to the employee is still considered direct pay and is chargeable.

• Have 941 &/or WR-30 reports available for the 4 quarters closest to

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Feature Story Preparing for Liability & WC Insurance Audits (continued) •

• •

• •

your policy period. These reports must closely equal your total annual employee payrolls.

If you use Subcontractors, a Certificate of Insurance must be available for every Subcontractor and must include the following: • Liability limits equal to or greater than YOUR current coverage.

• Workers Compensation (Proprietors, Partnerships and LLCs should include owners as covered individuals in this case.)

• Subcontractors should be listed showing total costs paid to each.

A copy of your General Ledger, listing all of your subcontractors. We strongly recommend that you use a spreadsheet (in addition to general ledger records.)

NOTE: For your protection we also recommend that you require each subcontractor to add you as “additional insured” AND sign a hold harmless agreement in your favor agreeing to “protect, indemnify, and hold YOU harmless”. (Your Insurance agent should be able to help you with this.)

Ask the auditor for a copy of the audit worksheet before he/she leaves.

The more time an auditor needs to spend reviewing your records, asking questions about your operations and checking the details of each employee’s job func-

NJLCA_Magazine-Sept15.indd 20

tions, the more opportunity there is for him/her to be “creative” Less Work, Less Money!

If you make the auditor’s job easy, you will both benefit.

Don’t let your audit opportunity go to waste, be prepared!

Richard Gaynor is President of Middleton and Company Insurance. He can be reached at (973)383-5525 Ext. 220 or via email at rgaynor@middletonins.com.

9/11/2015 10:51:50 AM

Feature Story The Business of Landscape (continued) mind set to have. Not being able to reach out and consult with others would be a short coming to companies today.

Take advice and help from superiors, most people will have open arms to bestow pearls of wisdom to beginners in the industry. Learn to listen, be a better listener than talker. People who are driven by their wallet won’t make money. Those who are heart driven will make a career for themselves, as well as a profitable future.”

Today, over 100 people play a part in making Scenic Landscaping into the landscape company that it is. In 1997 Mitch started a sister company, Tapestry Landscape Architecture LLC, which is the design arm of many of the projects Scenic builds today.

Duke’s Landscape Management - Hackettstown, NJ

When owner Eric Cross had a meeting with one of their large corporate clients this spring to review the spring rush and plan summer activities, it happened-“You know we hired you for your people”, the client said, then leaned back in his chair and shrugged “you all have the same mowers”. Once again Eric was reminded of the importance of employee training and how it impacts their company culture.

Eric says, “Here at Duke’s, we feel training is essential to the success of the company. We train for customer service, technical aspects of the job and safety. We train year round for snow, landscape maintenance and design build.” They know, through employee surveys, that many of their team members come to Duke’s because of their training program, even calling our building a school.

Eric recently attended a SIMA (Snow and Ice Management Association) conference in Chicago and all of the educational sessions he attended had the same theme-the labor shortage will only worsen over time and if you don’t commit to improving your team’s skills and talent you will lose them.

Another speaker said that engaged employees will give you extra effort, are more loyal, and stay longer, while disengaged employees will only give 34%.

Eric asks, “How many hours are you training per year?

Do you track it? Do you track your employee turnover?

What about worker comp claims, client retention, damage from accidents? Do all employees know the company goals?

We track all of those and more. We average 42 hours and that’s for ALL employees including managers.”

Duke’s training sessions could consist of a 15 minute tailgate talk, an 8 hour pesticide class or an hour long Q & A with a client, to talk about what is important to them.

They have done all of this, as well as a hire a fireman to demonstrate what to do if they have a fire and a physical therapist to show how to properly lift and stretch.

Eric suggests that you also get some feedback post training. “Ask them what they learned; was it effective. There is tons of information online to create or improve your training program, you just have to commit to it,” he says. “We know that investing in our employee’s education and careers will not only enhance their lives, but will ultimately provide our clients with the highest caliber of service we can provide.”

Eric digresses back to his mention of the SIMA conference, “You too need to keep investing in your education, as this is an ever changing business we work in. Keep on reading magazines like this one, get involved with an association and attend some industry events. You’ll be glad you did!”

Duke’s Landscape Management was established in 1986 with a goal of developing into an industry leader. They have grown every year since their inception, now servicing over 7,000 condominium units and over 1,100 acres of commercial and residential properties from two offices. They are on the cutting edge of new technology; regularly attending seminars and trade shows throughout the country.

Continued on Page 27

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Feature Story

Cost-based Estimating

I

n a New York Times article title “Top 10 Reasons Small Businesses Fail”, the number one reason was “The math just doesn’t work. There is not enough demand for the product or service at a price that will produce a profit for the company.”

The two key questions every owner needs the answers to are “What is the demand” and “What should the price be”. I firmly believe the demand for landscaping is increasing. During the recent recession, both the residential and commercial landscape work load was dramatically reduced.

Most of my clients in the Northeast have indicated they expect 2015 to be a good year. Not great. The backlog of work is increasing, the average job size is increasing and so is the competition.

The customer is also changing. They are much more price conscious and have a number of pricing tools available to them, mostly on the Internet. This is not always good information and that is why educating the customer should be part of every presentation.

Most customers have an idea of what the “Fair Market Price” is for a particular product or service (or should I say the unfair market price). The problem is that these market prices usually do not reflect the full scope or quality of work being produced.

It is vital that you are able to clearly define the scope and focus on the quality of work in your presentation. Even a customer that is directly referred to your company will still do some pricing research and obtain a couple of other prices for the project. It is therefore essential for you to know exactly what the project will cost your company.

Project costs are based on direct costs plus overhead. The direct costs include labor, materials, equipment and subcon-

by Marcus vandeVliet, MV Consulting

tractor costs. Each project needs to recover a portion of the overhead costs to ensure all overhead expenses are paid for the year.

I recommend using the Multiple Overhead Recovery System to collect the correct amount of overhead. The system will collect most of the overhead on labor, some on equipment, some on materials and a small amount on subcontractors. The amount of overhead should be based on a company budget developed each year for the upcoming year. Developing a budget should start with your previous year’s Profit and Loss Statement. Compare the previous year’s income and expenses to the upcoming year. Will the revenue increase or decrease? How will that impact the direct costs and possibly the overhead costs? It is important to allocate the direct costs correctly. The labor costs would only include production labor and the labor burden associated with the field labor. This would not include supervisors, managers, salespeople and owners. Material costs would include all plants and materials used on projects. The material costs would only include the direct costs, shipping, handling and any taxes. The cost for each piece of equipment should be calculated including the purchase, operation and maintenance costs. Those costs should be recovered based on the number of hours or days the piece of equipment will be used in the upcoming year.

Your direct costs will be impacted by revenue. For example, if revenue increases by 10%, will materials increase by 10%; probably. Your equipment may not increase, but some equipment may need to be replaced. Additional Field labor may be increased, by adding an additional crew member or two. Growth should be controlled, and should not react to short term season changes. Growth should grow internally, by that I mean from referral and repeat customers.

Additional products and services could be added or your

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Your Equipment Lawn Mower Maintenance Keep your riding mower or walk behind mower running strong all season long with these tips from Ferris Mowers (www.ferrismowers.com).

Wash the unit as often as practical. Be sure to cover all electrical components to protect them from water infiltration. After washing, dry the lawn mower and grease all fittings.

Compressed air or a leaf blower helps dry the mower parts and crevasses that are difficult to access with towels and rags.

Store your mower indoors (a shed or garage) when not in use. Sun prematurely damages parts, and inclement weather accelerates the formation of rust.

Check oil before each day’s use. Visually inspect all belts, tires and the overall machine for loose nuts and bolts.

If the lawn mower will sit for an extended period, such as during winter, disconnect the battery cables, remove the battery and store it in a warm place and/or use battery tender to maintain its charge.

Periodic Lawn Mower Maintenance Every 25 hours • Clean deck • Check blades • Lubricate/grease unit • Check tire pressure for cuts and wear • Check/clean engine cooling fins & intake Every 50 hours • Check/clean the engine’s spark arresters • Change engine oil using the proper oil Every 100 hours • Check mower blade stopping time • Clean battery cables • Initial change of hydro oil Every 400 hours • Service hydraulics (replace filter, inspect & replenish fluid) • Winter storage • Clean underside of deck and lubricate • Fuel stabilizer

Feature Story

Add More Green to Your Bottom Line

by Matt Moskowitz, American Profit Recovery

I

s cash flow an issue in your business? Running a small business is challenging enough without having to constantly chase down those who owe you money. But any business that issues credit in some form will at times, need to be more assertive in their collections.

Implementing the following tips can go a long way in improving your bottom line.

Establishing a Policy for Payments: You need to inform new and existing clients of your company’s billing process. Establishing payment policies up front manages client expectations by informing them how and when they will be billed and giving them a time frame in which they are expected to pay.

Collect Debt and Retain Customers: It is possible to collect debt and keep your customers. Many small businesses will write off the debt to avoid alienating customers and damaging their reputations. Acting early on overdue accounts with a reminder sent immediately is a gentle way to let customers know you are firm about settling their account. A customer service call after a bill remains unpaid for 30 days is an effective way to reach out to a client and to also get feedback on your service in the process.

Get Help: Sometimes, regardless of the approach, a customer simply will not respond to requests for payment. After 90 days, it is best to seek outside help from a collection agency on long overdue accounts. A reputable collection team that is a good match for your business and who has your values and mission in mind will provide the best results on unpaid accounts.

Matt Moskowitz is one of four partners who founded American Profit Recovery in 2004. Since that time, he has helped the company grow from a one office organization to a leading accounts receivables management firm with offices in Massachusetts, Michigan and North Carolina. APR specializes in the collection of third-party debt in industries such as medical/dental, banking, trades, heating oil delivery, lawn care and other professional services. The firm serves approximately 3,500 clients. 1-800-711-0023 The firm’s web address is www.americanprofit.net.

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Business Brief The ABT’s of Selling!

Whatever we do, whenever we interact with the world, we do so through our attitude, behavior and technique.

We must get to know our salespeople well enough to be conscious of how these three dimensions may appear to prospects affect sales efforts.

Attitude often can be controlled and directed. It requires people to explore the roots of their attitudes, and then take positive steps to banish negative feelings by focusing on the positive. You must encourage the spread of the positive roots and “root out” all of the negativity.

Attitude influences people’s choices in life.

A positive attitude moves us toward a positive result, and a negative attitude toward a negative result. Even better, positive results lead to even more positive attitudes. Attitude, then, affects behavior.

Behavior is affected by other influences, as well, some controllable.

We can’t know what influences are controllable until we attempt to master our fate and consciously guide our behavior.

Encourage salespeople to repeat positive behavior until it becomes habit.

Behavior is often the simple acting out of a role. But, again, we must try to control the performance. Help your salespeople determine who they want to be, then, encourage them to play the role until they become it. That’s not masquerading; that’s personal growth on the part of the salesperson!

Technique, too, stems from conscious striving combined with unconscious impulses. But technique can be mastered even more easily than behavior, through training, observation, practice and mentoring.

Technique can compensate for poor attitude and poor behaviors, but only to a minor degree. A bad attitude and inconsistent behavior will torpedo even the most polished technique. All three aspects of our professional tool kit must work together for us to be complete and successful as sales professionals.

Danny Wood is a nationally known trainer and speaker on sales and sales management and a Sandler Training affiliate. He can be reached at Dwood@Sandler.com.

Feature Story Cost-based Estimating (continued) geographic territory could increase. I would not recommend increasing your revenue by advertising, as this will artificially increase revenue and require a long term commitment. Advertising should be short term, and be targeted to specific campaigns.

All other expenses are typically considered overhead. This would include advertising, rent, phones, professional fees, education, overhead salaries etc. Overhead costs are not typically directly connected to revenue, but will be impacted by a signification increase or decrease in revenue. Overhead and revenue should always be in sync. I revenue decreases, the overhead should also decrease. As revenue increases there is a point that overhead should increase. Overhead should support production, especially relating to sales, estimating, design, field supervision and administration. Overhead should produce a profitable project, and a great customer experience.

The first step to pricing any project is to determine your costs to product the project. Start by building the entire project in your mind. Determine the takeoffs for all work areas. I recommend starting with material quantities and then assign the adequate labor required based on standard production rates. Then look at general conditions. These are the project variables such as mobilization, site conditions, access, clean up, dumping, etc. This step is critical. I believe most estimators have a good idea of how long it takes to produce a project, for example a paver patio. But many do not correct the man-hours required for this specific project with its specific man-hour variables. When the total man-hours have been determined, then assign the equipment required. I recommend using a sitting rate for equipment on construction projects. The equipment is recovered based on the time on site, not its actual use on the project. This simplifies the equipment estimate. If the project is 5 days long for 3 men working 10 hours per day, then a truck and hardscape package is needed for 5 days.

A mini-excavator is required for 1 day, and a skid-steer is required for 3.

The next step in developing the price is to determine the break-even amount for the project. The break-even is the direct cost added to the overhead amount. This is your companies cost to product the project.

The break-even amount is required for effective negotiation. The difference between your break-even and the price is profit. The profit is what can be negotiated. The formula is COST + OVERHEAD = BREAK-

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Feature Story Cost-based Estimating (continued) EVEN. BREAK-EVEN + PROFIT = PRICE. The break-even amount is the most important tool in helping to educate the customer about the correct cost for the scope and quality of the work being produced.

In your presentation to the customer, focus on the scope and specifications on how your company will build the project.

Highlight the differences between your company and the low bid companies, such as years in business, employee experience, education and certifications, association membership and involvement, awards etc. Focus on the customer experience by using testimonials. But by also knowing the break-even, you now have the key component to discuss your price and to be able to justify it, not defend it.

I firmly believe that the low bid companies would not price their work out below your break-even if they knew

NJLCA_Magazine-Sept15.indd 26

their costs to produce the project. The direct costs are similar for all companies. The biggest variable in direct costs are labor costs. Overhead will vary a little based on the size of the company. Why then are there such huge variances in market prices? Because many companies do not use cost based estimating.

You cannot change your competition, but you can be better prepared to fight them with your knowledge and experience.

Marcus vandeVliet is the founder of a design build company in New Jersey that he re-directed into a niche business specializing in project management of high-end projects for the residential marketplace. Marcus is recognized as an expert in bidding and estimating in the construction industry. He worked with Vander Kooi and Associates and delivered presentations and conducted workshops throughout the United States. He has founded MV Enterprises and is dedicated to helping clients improve performance and profitability, to realize their potential and achieve long-term growth and sustainability.

9/11/2015 10:52:16 AM

Feature Story The Business of Landscape (continued) Horizon Landscape Co. - Wyckoff, NJ

Horizon was established in 1976

by Michael Kukol as a lawn maintenance company based in Saddle Brook, NJ. Using only a 21” mower and a 1970 pickup truck, the company grossed $6,500 in sales its first year. The company re-located in 1979 to Wyckoff. On April 15, 1980 the company name was changed to Horizon Landscape Company, Inc. Since 1976, they have diversified into all phases of the landscape contractor industry to provide clients with landscape design and construction, irrigation system design, installation, and service and grounds maintenance In 1996, Horizon moved to its new and permanent home in Wyckoff, NJ. During peak season employs more than 40 men and women, utilizing over 35 vehicles and trailers and an assortment of equipment to serve their clientele.

Michael Kukol, owner of Horizon, is sometimes a man of few words, but not today. When asked about the most important things attributed to his success in the landscape industry, he responded in a surefire Mike way, with a list: • Time, education and dedication.

• Networking, peer groups and consultants.

• Good accounting software and spending time running your business and not working in your business.

• Hiring great employees.

• Treating clients as you would want to be treated.

• Having ethics and integrity and living by them.

• Returning phone calls and following up.

Mike says, “Here is something I shared with an individual who wanted my advice about how to get started in a landscape business”: 1. Join a landscape contractor association, such as the NJLCA or NALP and get involved (network with other contractors), don’t just get a decal.

2. Take some business or finance courses in college or at night at a Community College.

3. Continue to educate yourself through extension classes, at your local community college or University, or at a local trade association.

4. Read books to improve yourself. (“The E Myth” by Michael Gerber, “You Can Not Teach a Kid to Ride a Bike at a Seminar” by David Sandler or “EntreLeadership”

by David Ramsey.... etc.)

5. When you can afford to hire a consultant or business coach - do it.

6. Register with the state and have a tax ID number 7. Work with your local supplier and develop a good relationship with them. They will be your best friend and a great source of information.

8. Be sure you have insurance and work with an insurance agent - he is not just a salesman. They and your insurance company have a lot or resources to offer.

9. Pay your employees first, your vendors second - you get what is left.

10. Start with a good software program and use it right from the start.

11. Have a professional website - your web presence will project who you are to the public and those who want to know about you will make a judgment based on what they see there.

12. Calculate your costs.... what you want to make.... don’t forget you will have to pay someone rent and whether or not you hire someone to be your secretary - you will have to pay them (or yourself) as well. They are all expenses that need to be covered.

13. Then when you get done with the above...you will realize that you are not only in the business of landscaping, but are have grown to become a business person!

Mike concludes, “Notice that I did not talk about trucks or equipment.”

Canete Landscape Design & Construction Wayne, NJ

Tom Canete, President of Canete Landscape Design and Construction, Canete Snow Management and Canete Garden Center, was an entrepreneur from a very young age.

At age 9, Tom’s father went to bat for him and helped him take on a paper route delivering the Passaic County Record.

Shortly thereafter, he began cutting the lawns of his newspaper customers on weekends, picking up 7 clients his first week trying. His first mower was the result of an arrangement he worked out with an older woman that he would Continued on Page 31

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Become a

L a n d s c a p e I n d u s t r y C e r t i f i e d Te c h n i c i a n What is Certification?

The Landscape Industry Certified Technician Exam is an internationally recognized hands-on testing program exclusively administered by the New Jersey Landscape Contractors Association in New Jersey, in conjunction with the Professional Landcare Network (PLANET). Certification seeks to recognize proficiency in the landscape workforce, upgrade the status of the landscape contractor, and provide the public with a means of identifying qualified landscape professionals.

Why Get Certified?

There are many benefits to becoming a Landscape Industry Certified Technician — it promotes safety and professionalism in the industry; international recognition and standardization; validates landscape skills; creates opportunities for career advancement; and instills pride in employees and companies. Individuals who pass the exam have the right to use the Landscape Industry Certified logo on all of their printed materials and vehicles and will receive a certificate and wallet card. Employers are encouraged to advertise that they have certified employees on staff. NJLCA, PLANET, and other participating associations promote the use of certified individuals to the public. To maintain your certification in good standing, you must recertify every two years by reporting Continuing Education Units (CEUs).

Upon becoming Landscape Industry Certified, PLANET will provide you with more information on recertification.

How do I become Certified?

To become a Landscape Industry Certified Technician, an applicant must pass all of the modules in one of four designations: Turf Maintenance, Ornamental Maintenance, Softscape Installation, Hardscape Installation. You may test in more than one designation; however, you may only take one designation per test date. Successful completion of the Maintenance Modules demonstrates that a person has the skills to maintain a landscape project in a proficient manner. Successful completion of the Installation Modules demonstrates that an individual has the skills to take a landscape blueprint and proficiently implement the design in the field. The written portion of the exam is available in English or Spanish and NJLCA provides Spanish translators on-site during test day for the hands-on portion of the exam.

Who is Eligible?

There is no prerequisite for taking the exam; however, to become Landscape Industry Certified, PLANET recommends that you have a minimum of 2,000 hours of work experience in the green industry.

Note: Certification is not a substitute for any state-issued pesticide, licenses, fertilizer applicator license, nor the Home Improvement Contractors Registration.

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Softscape Installation: 1.01 Common Core (W) 5.02 Softscape Plan Reading (W) 5.03 Softscape Horticultural Principles (W) 5.04 Irrigation Components (W) 5.21 Plant ID 5.22 Basic Program Controller 5.23 Lateral Repair & Head Adjustment 5.24 Tree Planting & Staking 5.51 Sod Installation 5.52 Plant Layout 5.53 Rototiller

CLTRegistration-2015.indd 2 NJLCA_Magazine-Sept15.indd 28

Exam ExamModules Modules Hardscape Installation: Turf Maintenance: 1.01 Common Core (W) 1.01 Common Core (W) 6.05 Hardscape Plan 8.07 Irrigation Components Reading (W) & Principles (W) 6.06 Hardscape Principles 8.08 Turfgrass Maintenance & Calculations (W) Principles (W) 6.25 Chainsaw 8.09 Turfgrass Maintenance 6.61 Grading & Drainage Calculations (W) 6.62 Instrument 8.22 Basic Program Controller 6.63 Paver Installation 8.23 Lateral Repair 6.64 Skid-Steer Operation & Head Adjustment 8.26 Power Blower 8.81 21� Mower 8.82 Intermediate WalkBehind Mower 8.83 Riding Mower 8.84 Edger & Trimmer 8.85 Aerator 8.86 Turf Fertilizer

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Ornamental Maintenance: 1.01 Common Core (W) 9.07 Irrigation Components & Principles (W) 9.12 Ornamental Maintenance Horticultural Principles(W) 9.14 Ornamental Maintenance Calculations (W) 9.21 Plant ID 9.22 Basic Program Controller 9.23 Lateral Repair & Head Adjustment 9.24 Tree Planting & Staking 9.25 Chainsaw 9.26 Power Blower 9.91 Pruning

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6/19/2015 11:42:42 AM

9/11/2015 10:52:16 AM

CLTRe

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Be Outstanding In Your Field

Landscape Industry Certification Exam

Bergen Community College, 400 Paramus Rd., Paramus, NJ 07652

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Full and Retake Exams Saturday, October 10, 2015 - 6:15 am

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The LIC exam has raised the standard of service we provide our clients, increased the pride and ability in the individual who put forth the work to achieve it and has made us a better company. We are very proud of our six LIC team members.

-- Chris James, CLT, Chris James Landscaping

NJLCA extends member pricing for the exam to all NY, NJ, PA, CT and all other state landscape association members

Year you entered the Green Industry: To become Landscape Industry Certified, PLANET recommends that you have a minimum of 2,000 hours work experience. Please check your work experience: q 1 year (2,000 hours minimum) q 2-5 years q 5-10 years q 10+ years Do you need an on-site Spanish translator? q Yes q No Study Guide to be sent in: q English q Spanish Do you have a disability that requires special accommodations? Please explain: _________________________________________ Name: ________________________________________________ Company: ___________________________________________________ Company Address: ______________________________________ City: _________________________________ State: _____ Zip: ________ Home Address: _________________________________________ City: _________________________________ State: _____ Zip: ________ Phone: ____________________________ Fax: ____________________________ E-mail: _________________________________________ I am a member of q NJLCA q Other _________________________ To pay by credit card: q MasterCard q VISA q Amex q Discover Card number: ___________________________________________ Cardholder’s Name: ___________________________ Exp.: __________

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Make all checks payable to NJLCA. Payments are due with this application form. No refunds will be given!

(Retakes: Please contact the NJLCA to find out which modules you need and/or fill in module numbers below)

NJLCA or Other Landscape Association Member

Maintenance Exam for Members: q Turf Maintenance or q Ornamental Maintenance...

Installation Exam for Members: q Softscape Installation or q Hardscape Installation...

Retakes for Members (1 - 2 modules)...................................

Module #(s): _____________________________ Retakes for Members (3 or more modules)..........................

Module #(s): _____________________________ Manual for Members................................................................

q$250 q$250 q $85 q$185 q $70

Non Association Member: Maintenance Exam for Non-Members: q Turf Maintenance or q Ornamental Maintenance.....

Installation Exam for Non-Members: q Softscape Installation or q Hardscape Installation....

Retakes for Non-Members (1 - 2 modules)...........................

Module #(s): _____________________________ Retakes for Non-Members (3 or more modules).................

Module #(s): _____________________________ Manual for Non-Members........................................................

q$350 q$350 q$110 q$210 q $80

You will receive a study guide upon receipt of your application; however, the training manual is strongly suggested!

This form must be signed in ink by the authorized person in the company.

No refunds. Substitution of candidates is permitted up to 2 weeks prior to test date. A $25 fee is assessed for substitutions for administrative costs.

Signature: __________________________________________________________________

Date: ____________________________

AM

NJLCA_Magazine-Sept15.indd 29 CLTRegistration-2015.indd 3

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info@njlca.org

www.NJLCA.org CALENDAR OF EVENTS August 2015 13th Membership Meeting 6 pm The Terre Company

206 Delawanna Ave.

Clifton, NJ 07011

August 2015 19th Annual Bowling Night 7 pm Parkway Lanes

200 Route 46 East

Elmwood Pk, NJ 07407

September 2015 10th Membership Meeting 6 pm York Trailers

1212 Rt. 23 North

Butler, NJ 07405

September 2015 Membership Meeting Gamka Sales 983 New Durham Rd. Edison, NJ 08817

October 2015 8th Membership Meeting 6 pm Bobcat of North Jersey

201 Maltese Drive

Totowa, NJ 07512

15th

September 2015 NJLCA/IANJ Golf Challenge Jumping Brook Country Club Neptune City, NJ

17th 6 pm

10th

October 2015 Landscape Industry Certified Tech. Exam Bergen Comm. College Paramus, NJ 07652

October 2015 15th Membership Meeting 6 pm Garden State Bobcat

45 Route 22 East

Green Brook, NJ 08812

October 2015 26th Emergency Pest Credits 9 am NJLCA Headquarters

465 Boulevard

Elmwood Pk, NJ 07407

November 2015 19th Membership Meeting 6 pm Atlantic Irrigation Spec.

90 Newark Pompton Tpke.

Wayne, NJ 07470

December 2015 8th Holiday Gala/Achievement

Awards Dinner 6 pm Macaluso’s

Hawthorne, NJ 07506

November 2015 12th Membership Meeting 6 pm All Service Equipment

770 Route 23

Pompton Plains, NJ

Membership meetings are free to attend and open to all landscape professionals, members and non-members alike.

Please call NJLCA at (201) 703-3600 or e-mail info@njlca.org to RSVP before attending events.

NJLCA_Magazine-Sept15.indd 30

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Feature Story The Business of Landscape (continued) mow her lawn for one month and receive, in exchange, a 21” Bobcat reel type mower.

I think at that point, Tom was hooked on being able to make his own money and do it well!

At 14, Tom’s grandfather and mentor, Tom DiGiacomo taught him how to make stained glass in his shop in North Haledon. Tom learned how to make glass jewelry boxes and sold them throughout the year for Christmas, making $8,000-$10,000 for that one year. He had the taste of making money and watched his grandfather closely in how to handle his money as well.

One year in prior to getting his license, Tom purchased Truck #1, a 1966 Chevy Pickup for $500. He and his 2 friends in high school would go out after school and work on weekends cutting grass. He learned how to weld and would fix up mowers, bikes, etc. that he would find in the trash and sell them as well.

In his sophomore year, Tom and his friends maintained 35 houses a week, but by his senior year they were up to 70 per week. After high school, Tom attended William Paterson College, then Rutgers. Following college, he was now up to two trucks, two 3-man crews full time, plus himself, and two additional part time employees.

Today, Tom just purchased Truck #76, but he still has his first mower and 2nd Truck. He employs 80 people on the landscape side of the business and 800 for his snow operations (this includes the 500 he uses for MetLife Stadium, a 5-year contract that Tom negotiated, starting with SuperBowl XLIX in 2015). He has 45 - 47 trucks, plus loaders, skid steers, excavators, trailers, etc. He also runs a garden center and supplies salt from his location in Wayne. He certainly came a long way from his paper route, but he learned many lessons along the way.

When I asked Tom what his best advice is for a successful company, he said, “If you tell someone you’re going to

do something, write it down and do it. Your word and your reputation is the most important thing. Even if you lose your shirt on a job, do the job and leave the customer on good terms.” He suggests that if you are ever running late, always call and let them know and if you can’t finish on time, explain why and do it.

On growing, Tom says, “If you want to grow, don’t grow too fast, take it slow. Don’t go out and buy tons of equipment that might eat into your profits, especially if you have something that will do the job already.” He suggests holding on to equipment until it is no longer costs effective to keep it.

Keep them looking good from the start, take care of regular maintenance and your equipment will last. “When it gets to the point where my guys are breaking down on the road, then I know I am losing money, including towing mechanic, downtime, etc. That’s when it is time to purchase new.

Tom advises that you keep your employees happy. As an owner, you should be doing less of the work (depending on the size of your company) and being more of a delegator and motivator for your employees. Tom puts his money where his mouth is by hosting a barbecue at his garden center for all of his employees every six weeks during the season. He also provides his employees with holiday party and does his best to provide holiday bonuses. However, when it comes to hiring, Tom is very specific. “When hiring, look at their car, do they keep it neat. Look at past work they have done, did they do it well. A new broom always sweeps good, but you have to check it each year to make sure it is still effective.”

Tom’s final bit of advice is to always pay your bills on time, something both his grandfather and an old friend Bob Falcon of Falcon Hardware taught him. He says, “Always preserve your credit. The wrath you will come under if you don’t will affect if you can get a loan, interest rates on that loan, if you can get credit cards, and most importantly a line of credit.”

Although it is only for an emergency, he feels that having a credit line can help you through those rough seasons. “You need your credit to buy equipment,” he says, “to buy vehicles, to get good pricing and rates on materials. It is one of the most important things you have, along with your reputation and your good word.”

NJLCA.ORG 31 NJLCA_Magazine-Sept15.indd 31

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Do YOU want to be an Award Winning Company?

Enter the NJLCA’s 2015 Landscape Achievement Awards Deadline for Entries: October 15, 2015 Entering is easy!

1. Fill out three page entry form (visit www.NJLCA.org)

2. Save 5-15 photos, including the landscape design on a CD, DVD or USB Drive.

3. Mail entry forms, CD/DVD or USB Drive with check made payable to NJLCA.

Tips for a Strong Entry 1. Read the requirements carefully and submit a complete entry.

2. In all cases, pay careful attention to photo selection. Don’t show anything that could defeat the credibility of your project, such as brown leaves, debris, uneven pruning, etc.

3. Include overhead shots from a deck, upstairs window, ladder, etc.

4. Close-ups of construction details help convey challenges encountered.

5. Try your best to show before, during and after shots of the projects.

6. If seasonal effects are important, photos should be taken from the same place several times during the year.

7. Wetting hardscape areas, prior to taking photos, will enhance the color and overall feel of those areas.

8. Include photos that portray compatibility of materials and show textural qualities.

9. Keep descriptions concise. Make sure you include all of the challenges of the project and those unique points that make your project stand out as an award winner.

10. Identify any unique plants and materials in the project.

NJLCA.ORG 33 NJLCA_Magazine-Sept15.indd 33

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News Brief A warm welcome to our newest and returning members...

Alstar Seating Robert Concato Little Ferry, NJ Arcadia Realty Robert Carbognin Harrington Park, NJ Barnwell House of Tires John Kozik Fairfield, NJ Christopher Mazurek Student Montclair, NJ

Consolidated Human Resources Diana Brown Elmwood Park, NJ

M.J. Woetzel Landscape Service Corp.

Michael Woetzel Denville, NJ

EarthWorks John Higgins Easton, PA

Precision Companies Kylee Bilenski Oak Ridge, NJ

JutCor Enterprises LLC Janet Carpenter Paramus, NJ

R & R Greenscape & Design Jackie Wrobel Towaco, NJ

Landscaper Pro Kim Wampler Jasper, IN

Realty Mgmt. & Construction Richard Castaneda Skillman, NJ

Ronald P. Mondello, Esq. Fair Lawn, NJ Royal Lawns Of America Michael Miller Wayne, NJ Snowfighters Institute John Allin Erie, PA Xtreme Ice Control Ed Gorman Ringwood, NJ

Save the Date!

In 2016, NJLCA will be celebrating it’s 50th Anniversary!

In honor of this very special occasion, we will be holding a 50th Anniversary Celebration.

When: Thursday, April 28, 2016

6:30 pm - 9:30 pm Where: Seasons

644 Pascack Road

Washington Twp, NJ 07676 Who: All members and guests of the BCLCA/NJLCA!

Dinner • Dancing • Super Raffle • Memories Slideshow • Celebration

(If you have any memorabilia of NJLCA or BCLCA, please let us know and we will scan and include it - you keep originals)

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