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Optimizing Profit: Small vs. Large Projects

6:27
11:58
78.7K views

At 6:27 in

Ponds - The Biggest Money in landscaping

What happens here

Greg continues to explain the 'good, better, best' approach to pond sales. He highlights a larger 'Bullfrog Ecosystem Pond' (10 ft by 14 ft) with a 7-foot stream, starting at $8,999 installed (or $180/month). He mentions that while some might go for a very large $24,999 pond (or $500/month), which takes 40-50 man-hours, it's actually harder to make a 50% profit margin on these larger, more complex projects than on smaller ones. He cautions against 'going too big too fast,' emphasizing that the highest profit margins (up to $253 per man-hour for standard installations) are often found in smaller, more repeatable jobs, contrasting this with lower per-hour revenue in traditional landscaping sectors like design/build ($51/hour), commercial maintenance ($36/hour), residential maintenance ($40/hour), and irrigation ($57/hour).

Goal: Understand the strategic advantage of focusing on smaller projects for initial profitability.

Tools and materials

  • Aquascape Bullfrog Ecosystem Pond — Example of a larger pond kit with higher cost and profit potential

What they say

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when you're going to college, then you can do these like this. So, you work your way up to this pond. You do. But the problem with contractors, and you know this, they're opportunistic. They get greedy. They get greedy and they take they take on a job that they can't do and then it costs them their shirt. They're not making their 50% gross profit margin. It's harder to make 50% gross profit margin on a $2,500 one than it is on a $7,500 one. Now, it's important to listen to that last warning very carefully. Greg's company's done over $300 million in business just in the last 10 years alone. And what he's telling you is it's easier to make a 50% profit margin on the smaller projects when you're just starting it out than it is on the bigger projects. Don't go too big too fast, guys. Too many things can happen. God, that is a gorgeous koi. Aren't they beautiful? Not to switch the topic, but they're all cool. And they come right up. You eat my turtles. You know, this is what this what inspired me to get into this hobby right here. I like turtles. The easiest way to be successful in life is to find somebody doing what you want to do and what? Do what they did. Now, a survey was done over 70 different companies trying to determine what their typical profits per hour were. For a design build company, a hardscape company, they're making about $51 per hour. A commercial mowand blow guy is making around $30ome per hour. A residential mow and blow guy, his profits go up just a little bit. He's in the $40 per hour category. An irrigation guy, his profits, since he's more niche, will be hitting it closer to the $50 per hour range. But a certified aquacape contractor doing custom pond installs is up to $260ome dollar per hour. But now a certified aquacape contractor just doing average pond installs, nothing special, is still at $253 per hour. And this is something that you guys can do. I physically get ill looking at this number. $265 per manh hour produced by our custom crew. Why does it want to make me bob? Go ahead, Kim. Because all the other people could be making $265. So, my frustration in life, why a contractor? And you know what? What is the number one response I get when I talk to a mowand blow guy or a hardscape guy or an irrigation guy of why they don't want to get into this category? You tell me why. What's that? Ponds leak. Oh, I don't want to mess with water. They're a lot of work. I don't want to do that cuz I had one bad experience. Sure, boss. Okay, the…

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