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Scaling In New construction landscaping? Advice...help!!!

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mulchgypsy

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Discussion starter · #1 ·
Hey guys I don’t post much here. Just been busy. I have struggled to get out of the $2.5-$3mil revenue range for awhile. I’m a young guy and I run a install only business in Dallas. I got in house install crews 3-4. One irrigation crew. One masonry crew. Then subs...I finally started sourcing material from farms versus nurseries and just really tightening down on operations (still need a green house bad)..and getting Systems and polices in place. It’s a process though! But scaling at this level is hard. We do high end design and we get some super nice outdoor living design jobs/ pool remodel/full landscape design then just your standard landscaping work (flowers mulch etc). Lately I have had home builders two specifically sending me custom home build landscape/irrigation installs. I think I really want to try and scale with my volume coming from builders but still have my high end retail side of the business too.

So my question is who has experience growing a install company with a emphasis on home builders for volume to scale?? There are some companies in Dallas doing over $20 mil plus and it’s all install from builders and then retail with some commercial...


Side note I’m still bidding commercial install but had to take a break from that side of the biz. I got burned so bad i thought I was going to lose everything....

Sorry this post has a lot of my ADD in it but I just want to hear from someone who runs an install business and has gone the home builder/production builder route to scale into those big numbers....
 
#2 ·
Interested to see what others have to say.

I did mostly resi design/build last year, and have gone to 95% commercial new construction this fall, currently running at about a 1.5MM/year pace. I have always wanted to add some residential new construction work to diversify (Its probably only a matter of time till we get burned)

I am attending Marty Grunder's GROW event in Charlotte this February, LOVING companies is hosting this year, they do like 30MM+ and it is 95% new home builder work. Hoping to learn some things that can help us move into that market, and scale from there.
 
Discussion starter · #3 ·
I might need to attend that. But yeah I know of some guys living really good and nice areas doing 90% new home construction.


***quick side note I’m only saying my numbers so maybe somebody who broke that $1-$5mil range can speak up....I was reading some of my posts from 2016 and mannnn I sounded prideful...grew fast got a big head but for sure been humbled in 2017/2018....I just hear there are challenges from 0-$1m, $1-$5m,$5-$10m and so on...***. Promise I’m not profiting much with this overhead/reinvesting....
 
#5 ·
I do final grading for some home builders in my area. I’m no where near your numbers... but my advice you get 60% up front bc they will stiff you in a heart beat and go to the next sucker of a contractor. I do a few new installs for the homes as well but what your talking about is 60 homes are built in a new neighborhood and you want to do the landscaping sod plants ect for all 60 through the builder of the subdivision right? If so that stuff is bid so dirt cheap a hand full of pocket change wins those bids I’m not kidding... be ready to deal with a lot of flat tires roots trash ect in the dirt. Not very profitable either. If I were you I would stick to the high residential new installs that what I like to do.
 
#6 ·
Housing market takes a dump and you will be right there with your employees in the unemployment line. You have to have diversity in your strategy. Loving group has all their eggs in one basket !

I work in and around Loving Group's jobs, I am in their Charlotte market. The company is run by a young hipster who has done very well at getting a lot of millennial workers to work for him via empowering them to work in a very loose atmosphere. Loving's quality is no better then any other company, they have done well getting big contracts, but their quality of work is marginal at best, and their employees are barely qualified to drive trucks.

I have sat in a taco bell parking lot next to a loving truck while the two employees smoked weed. I called their office to report what was going on to a women in HR. When I asked if she wanted the truck number or description of the workers she said "no thanks I believe you"

Sorry.....rant mode off!
 
Discussion starter · #7 ·
I was just about to reply earlier. So custom builders i find I can get a 25-30% gross on the whole install. I am pleased with my two custom builders. I am still marketing to custom builders to get more of them. It takes a lot of work and honestly just hitting them with emails and mailers etc.

Now the production builders is what I was speaking of and I do agree with what your saying it’s pocket change. Bloomfield homes just emailed me back and they do 1300 homes per year. They currently get 7 zones, 500 yds of sod, 4 3 gal bushes, 8 5 gal bushes, 1 15g tree, 1 3” caliper tree, 12 bags of mulch, 1/2 yd of river rock for $4,000.00. I did the math and sourcing from growers and sod farms we are into that $4,000 about $2300. With labor it’s super tight $3200-$3400.00. I only see it do able if you can bang out 4 houses in two days. Have a irrigation crew laying pipe and landscape crew install material. But there is no room for error. This is not meant to be my main line of business. This is volume to pay overhead then my retail and high end design stuff is super juicy!

I will say maybe just focusing on custom builder and good general contractors is better then production builders. I have heard of guys getting their credit maxed out by the production builders then being slow payed and cash gets tight now it’s difficut to operate becuase you just put in landscaping and paid labor on 40 houses for the month. Which builders in Dallas do zero deposit.....invoice when done. It’s always been that way. Only larger jobs I can get draws at substantial completion.

So I guess I’m still looking for people with experience in the new construction realm....just to see if it’s worth even pursuing or if I should stop knocking their doors...

The big production builders here are. Bloomfield, Highland homes, History Home makers, Drees, Ashton woods, Lennar, Centex, First Texas Homes, Pulte Homes, Shaddock Homes, Our Country Homes, Toll brothers...
 
Discussion starter · #9 ·
We had a rain day today so I’m at home just researching stuff. I just checked out Loving site. They have a turf farm...the big landscapers in Dallas who work for production builders have sod farms too....I almost wonder if they do that with the intention that more of the profit is worked into selling the grass rather then labor to install it. Like just sell your grass and plants to the builder and sub the labor is what I’m sure they do...lol too bad sod farms cost a cool $3,000,000
 
#11 ·
mulchgypsy said:
I think I need to fly out to this seminar that Loving will be at? You mean to tell me a millennial is running a $30 mil operation? Did he grow it that way or did he get hired as CEO??
Click to expand...
He grew it from a maintenance company into what it is. It started as The Loving Group and morphed into just " Loving "

Mike Haynes " owner" of loving, hard part and skinny jeans included lol

Image
 
Discussion starter · #14 ·
Wow! Loving has some really cool branding. I’m honestly impressed. That guy has done something right. I actually like the truck decals it’s simple. He has so many skid steers too! I’m just gonna keep grinding and trust God with the results! It’s all you can do in business. I might attend that February meeting that was mentioned earlier in this thread since Loving is hosting it. Plus I can expense it.


Side note...David weekly is huge here as well. Completely forgot about them...
 
#15 ·
Did this Mike Haynes guy of some kind of massive amount of money to start off with?!?
 
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#17 ·
mulchgypsy said:
Hey guys I don't post much here. Just been busy. I have struggled to get out of the $2.5-$3mil revenue range for awhile. I'm a young guy and I run a install only business in Dallas. I got in house install crews 3-4. One irrigation crew. One masonry crew. Then subs...I finally started sourcing material from farms versus nurseries and just really tightening down on operations (still need a green house bad)..and getting Systems and polices in place. It's a process though! But scaling at this level is hard. We do high end design and we get some super nice outdoor living design jobs/ pool remodel/full landscape design then just your standard landscaping work (flowers mulch etc). Lately I have had home builders two specifically sending me custom home build landscape/irrigation installs. I think I really want to try and scale with my volume coming from builders but still have my high end retail side of the business too.

So my question is who has experience growing a install company with a emphasis on home builders for volume to scale?? There are some companies in Dallas doing over $20 mil plus and it's all install from builders and then retail with some commercial...

Side note I'm still bidding commercial install but had to take a break from that side of the biz. I got burned so bad i thought I was going to lose everything....

Sorry this post has a lot of my ADD in it but I just want to hear from someone who runs an install business and has gone the home builder/production builder route to scale into those big numbers....
Click to expand...
I know you're in Texas
But
Dennison's our if Maryland is HUGE they have an entire division called "home builder"
No they don't build homes, it's the landscape division that only does the home builder work.

you may shoot josh Dennison or someone over there an email or a call to see if they can talk to you on some pointers.

typically you just form a relationship with a builder and you work out a "volume deal" and they give you their work with it needing to bid it
 
#19 ·
mulchgypsy said:
Yeah I follow Dennisons on instagram. That is another very nice company. I do find some of the larger companies have investors and thats how they went from a million in sales to $30 mil in around 10 years or so...
Click to expand...
You can get investors too

some times ... the investor IS the builder.
You'd be surprised how happy they are to have you interested in their projects
 
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