EDUCATE
PURCHASE WITH A
PURPOSE BY BRYAN MOURS, VICE PRESIDENT OF CUSTOMER EXPERIENCE, ASPIRE SOFTWARE INCREASE YOUR LANDSCAPE COMPANY’S PROFITABILITY BY MAKING BETTER PURCHASING DECISIONS
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urchasing has never been easy for landscape companies. Low supply, tight margins and timelines—and factors like weather, labor and supply chain concerns—play into your ability to obtain materials. What can you do to make smart buying decisions and finish your projects profitably and on time? Here are a few tips for tackling your purchasing challenges. Start with an accurate estimate Estimating accurately can help guard against any unplanned purchases—any items not on your “grocery list” of materials on the estimate. A solid and accurate estimate based on careful and detailed analysis of the job site
will include an accurate amount of materials and labor hours at the correct costs and meet your target net profit margins. When your estimates aren’t accurate, any additional material purchases made after you’ve won the work will chip away at your bottom line. Set guardrails around your purchasing process Purchasing can get out of hand when your crew leaders have the ability to purchase whatever they need on the fly. Business management systems like Aspire allow companies to better control spending by limiting purchasing to approved vendors and requiring receipts to match the materials in the estimate. If you’re not using a business software, limiting who can create purchase orders in your organization and asking your vendors to require POs for any transactions can help curb spending. Make creative and strategic changes To get creative and make changes that will improve your purchasing process, you’ll have to understand your entire financial picture and budget. Perhaps you can make some strategic changes like operating with smaller vehicles that don’t require commercial driver’s licenses, discussing financing with your longtime vendors, direct shipping materials to job sites or shifting your book of work based on the materials that you’re able to acquire.
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Pro Landscaper USA South May/June 2022
Communicate with your clients about pricing changes When you estimate accurately and have a clear understanding of your job and material costs, you have all the data you need to justify price increases when they’re necessary. Chances are your clients know price adjustments are coming, since they watch the news too. Don't be afraid to communicate the fact that your prices are increasing—but be fair. A little creativity and cost efficiencies can go a long way to help you increase prices only where it’s needed, so that you don’t have to pass along every increased cost to your clients. Good luck streamlining your purchasing process this year!
A B O U T A S P I R E S O F T WA R E Since 2013, Aspire has helped revolutionize the landscape industry by empowering contractors to transform the way their businesses operate. Now, Aspire provides industry-leading software for landscaping and janitorial businesses, trusted by contractors everywhere. www.youraspire.com
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