Factors Influencing Revenues of the Landscape and Lawn Care Companies

Abstract The purpose of this study was to determine the impact of key factors influencing the landscape maintenance and lawn care industry (LM/LC) sales or gross revenue as well as partial net revenue (gross revenue less labor cost). A single-equation framework was applied for the estimation of gross and partial net revenue models. Analysis showed a positive influence of labor cost on gross revenue. In comparison to individually owned firms, corporations can expect larger revenue increases. Companies with extended business experience (measured by the number of years in operation) could expect not only greater gross revenue but also greater partial net revenue. The level of education of supervisory personnel was specifically important for partial net revenue. Offers of price discounts for services enhanced gross revenue but not partial net revenue. Price discounting may help in the management of labor and cash flow in the short run, but the LM/LC company must recover overhead costs to stay in business. Population density continues to play a major role in improving the revenues of LM/LC companies.