By Glenn Curtis

In the highly competitive world of professional landscaping, the temptation to lower prices in order to secure projects is ever-present. In my more than 40 years of experience in the business, however, I have discovered that selling based on value — the quality and service you provide, as well as the long-term benefits of the work to the homeowner — is a far more profitable and sustainable approach.

In this article, I will share some of the insights and strategies that have proven successful for my own business, Plantenance Landscape Group. These strategies have proven effective in ensuring our clients are satisfied while creating a truly thriving business.

The risks of price negotiation

Before I get into pricing for value, let’s look at how engaging in price negotiations can actually cause real harm to your business. When clients realize that prices are negotiable, they tend to undervalue your services and expect discounts regularly, setting a dangerous precedent. This practice usually erodes profit margins, devalues your work and can even damage your reputation and client relationships. By standing firm on pricing and focusing on the value and quality of services you provide, you can maintain the integrity of your business and ensure fair compensation for your work.

The importance of transparent pricing

The first step in selling value over price is building trust — and transparent pricing forms the bedrock of that trust. In my experience, a well-informed client is a satisfied client. Clearly communicating the true costs involved in landscape projects demystifies the process and sets realistic expectations. Transparency should extend beyond just the numbers; it encompasses explaining the scope of work, quality of materials and the expertise required to execute the project.

When clients understand what they are paying for, they are less likely to negotiate and more likely to appreciate the value of your services. This approach not only fosters trust but also positions your business as a reputable and honest entity in the industry.

Knowing your numbers for success

Before you can provide transparent pricing that takes into account the value your company brings, you need to understand your numbers. Knowing the costs associated with materials, labour and overhead allows you to provide accurate and honest quotes to your clients. This understanding is crucial not just for transparency but also for effectively discussing price and demonstrating your expertise. Clients generally appreciate it when you can clearly explain and validate the costs involved, which builds their confidence and trust in your operations. This comfort and assurance often lead to better client relationships and successful sales and project outcomes.

I always like to keep John Ruskin’s common law of business balance in mind when thinking about pricing. As he puts it: "It's unwise to pay too much, but it's worse to pay too little. When you pay too much, you lose a little money — that's all. When you pay too little, you sometimes lose everything because the thing you bought was incapable of doing the thing it was bought to do.” Ruskin’s theory is that you can’t get a lot by paying little — if clients choose to deal with the lower bidder they are simply putting themselves into the position of having to pay more later.

Qualifying clients

Will every client say yes? Of course not. You are not the right fit for every client — and not every client is a good fit for your business. That’s all perfectly acceptable. I have found that qualifying clients from the outset can save time, money and valuable resources. To do this, I suggest you develop a set of criteria that potential landscape investors must meet before engaging in a project with them.

This might include budget range, project scope and alignment with your design-build philosophy. By focusing on clients who appreciate creativity, craftsmanship and service, and are willing to invest in it, you can ensure more successful and satisfying projects. In addition, consider implementing a minimum project value to filter out those who are only looking for the lowest bid. This ensures that you are dedicating your resources to clients who recognize and are willing to pay for the value you deliver.

Value is your competitive advantage

In the landscape profession, selling value over price is not just a strategy but a philosophy that leads to long-term success. By emphasizing transparent pricing, understanding your numbers, resisting the pitfalls of price negotiation and implementing strategies to showcase value, landscape entrepreneurs can build a loyal client base and enhance their reputation as industry experts. Moreover, carefully qualifying prospects can ensure that your valuable time and resources are best invested in projects that are both profitable and fulfilling.

As Warren Buffett, the renowned investor and business magnate, wisely said, "Price is what you pay, value is what you get." This quote effectively summarizes what should be the pricing and design-build philosophy for all landscape professionals. The exceptional lifestyles and true value that we, as a group, passionately deliver to our clients is what will always be remembered.
 
Glenn Curtis is the co-founder and president of Plantenance Landscape Group, a multi-award-winning design-build and horticultural care firm based in Pointe-Claire, Que. Glenn has more than 44 years of experience transforming everyday spaces into breathtaking outdoor escapes.