Monday, October 27, 2014

Welcome to the ASCA Blog!

www.ascaonline.org

Ok, so we’re going to try something a little different.

Blogs have been around for quite some time and many of you may even utilize one to communicate directly to your customer base. So there’s no need to go on and on about how they’re great tools to share information, or how the ASCA -- in conjunction with Snow Magazine -- will use this blog to bring you info that’ll help you save and make money.
Instead, we’re just going to jump into the deep end of the snow pile with our first blog post.
Being a snow-only operation is a business model applicable to only a small percent of the industry. The vast majority -- around 65 percent -- operate landscape businesses during the warm months they're not pushing snow.

Snow Magazine’s sister publication, Lawn & Landscape, prepares an annual State of the Industry report that is hands down the most useful report for contractors in that industry. We broke down some of L&L’s SOI data to learn more about the role snow and ice management plays in the overall business picture for the majority of companies in this industry.

Here are some findings you might find interesting:
  • For landscape companies who provide winter services, on average snow and ice management makes up less than 10 percent of their total annual revenue.
  • A third (33 percent) of companies offering snow and ice management services reported an increase in gross sales revenue last winter (2013-14). However, only 22 percent of contractors project an increase in gross sales revenue for this coming winter, and the majority (64 percent) expect this revenue to be flat.
  • In preparation for Winter 2014-15, 17 percent of respondents will be purchasing plows; 15 percent will be purchasing snowthrowers/blowers; and 17 percent will be purchasing salt spreaders. The average contractor plans to spend about $18,000 on new equipment prior to the start of Winter 2015-15.
  • Nearly 40 percent of respondents indicated they’ll be offering snow and ice management services for the first time this winter (2014-15). And of that number, more than half (61 percent) report more than $200,000 in total gross sales.