Mulch producers know how important it is to keep an accurate set of books. Like any small to mid-sized business, you need to keep a close eye on your expenses to ensure profitability. But one line item that is overlooked too often is your labor and loader cost. Often considered a sunk cost, understanding what you pay toward labor and loader operations can help shed light on an opportunity to improve efficiency in your mulch yard. Let’s take a closer look at how to accurately calculate your labor and loader costs, and how identifying these costs could help improve financial results for your business.
As a commodity product, it can feel like you have little control over the price of your fiber. The construction company, pallet company or brush clearing crew you get your fiber from sets a price and you pay it. There may be some negotiations based on quantity, but that can feel like the only wiggle room you have. Thankfully, there are other ways to think about fiber that can help you save money in the long run. Here are some tips to keep your fiber price in check and ultimately grow profits for your mulch production business.
To maintain profitability as a mulch producer, you need to carefully track all expenses and keep your costs in check. Most producers have a good handle on fiber and transportation costs. But despite best efforts, there are some costs that often go overlooked by some mulch producers. Here's a look at some of the hidden costs associated with running a mulch yard as well as some tips for how to reduce them.
In order to keep the finished product up to your standards there are a few things you should verify. Take a moment to consider the following steps. Monitoring these points should help simplify the optimization of your coloring process.
What is the first thing you think when your finished product looks different than it usually does? It must be my colorant; I need to call my vendor.
Intermediate Bulk Containers (IBCs) commonly know as "totes" are too large to throw away and because they contain chemicals must adhere to environmental regulations. So, how do you get rid of them? Companies like Schuetz offer tote recycling programs that handle all of it for you. But there is one provision, they must be in acceptable condition or it could cost you! Here are the steps to take to properly handle and recycle empty totes.
Everyone wants their landscaping to look amazing. But few people are willing to put in the work. From commercial properties looking to cut costs, to homeowners looking to spend more time in front of the TV, people everywhere want low-maintenance landscaping options. This creates a tremendous opportunity for mulch producers who are able to communicate to customers all the time and cost savings that come with using a quality mulch product. Here are just some of the ways you can do less with more mulch.
Why mulch producers should target golf courses
Golf courses present significant opportunities for mulch producers as colored mulch is fast becoming the preferred material for greenskeepers who want to improve aesthetic beauty while conserving water and saving money. To help grow your business, here are some ways to discuss mulch with golf course prospects and clients.
Turning a problem into an opportunity for growth
Woodscape of Utah started as a recycled pallet company and business was good. But they had a problem. The cost of bringing waste to the landfill wasn’t sustainable. They had to find a cost-saving alternative, and after attending several trade shows, they decided to give colored mulch a try. They purchased Amerimulch colorant and ColorTrom coloring equipment from ChromaScape, and it wasn’t long before the orders started rolling in.
Sourcing fiber is perhaps the single greatest variable in the mulch industry. Some producers routinely have trouble finding material, while others enjoy markets that are consistently flooded with cheap fiber. More and more these days, that cheap fiber comes in the form of green waste. While the influx of green waste has created opportunities in many cases, it has also brought disruption to the industry. That’s why mulch producers need to understand all of the issues surrounding green waste, including the true costs. Here are a few things every mulch producer should know about green waste mulch.