Have you ever wanted a yardstick to measure your company’s performance against others in the industry? Look no further than the 2021 Financial Benchmark Study.
This study presents a detailed analysis of key operating and financial data from lawn care and landscape professionals in the industry and allows you to analyze your company’s strengths and weaknesses.
Based on confidential surveys completed by 169 companies, the Financial Benchmark Study includes a compilation and analysis of data segmented by: High Profit Firms, Number of Employees, Revenue, Revenue Categories, and U.S. Region. Below are some examples of the data you will find in the study.
Of the companies who participated, in 2020 they had a median of 305 customers and generated $12,798 per customer. These companies’ close ratio was 54.7 percent. Their average contract value per job was $17,512.
The typical (median) respondent’s return on assets performance during 2020 was 27.9 percent for the year. The most profitable companies experienced a 45 percent return.
In 2020, a little over half of all companies reported positive sales growth for the year. The typical company reported an increase of 5 percent, and the most profitable companies saw growth of 9.5 percent. Companies in the $1 to $5 million range saw the least amount of growth at 1.4 percent.
The number one concern for respondents was finding qualified employees at 82.1 percent. The most profitable firms are those who are managing the costs with these staffing issues the most effectively.
Users of the study can also dive into detailed stats and see income statement items as a percentage of total revenue. This detailed information is broken down by firms by the number of employees, firms by the revenue, firms by revenue categories and firms by census regions.
The study also provides a guide on how to understand the metrics and what it means for your company if overall profitability or performance measures are too low or too high compared to the rest of the industry.
Please note the information in the study should be used as a tool for informed decision-making rather than absolute standards.
The 2021 Financial Benchmark Study was compiled, tabulated, and analyzed by Industry Insights Inc., an independent professional research and consulting firm that specializes in conducting financial and operating performance surveys, compensation studies, market assessment surveys, customer satisfaction research, educational programs, and other forms of customized research.
This study was sponsored by AriensCo.
Access this digital report to gain insights and data for your company here.