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.
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.
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.
Hesitation gives way to sustained
success for colored mulch producer
When Shawn Nutter bought Apollo Wood Products in 2014, he didn’t see much of a need for colored mulch products. But success would quickly change his mind.
The colored mulch market had been relatively slow to mature in southern California and there were already several competitors producing colored mulch in the area. As a result, Nutter didn’t even take the wrapper off his new ColorTrom machine for the first few months.
Landscaping may be a seasonal industry, but the mulch business operates on a more fluid calendar. Some mulch producers choose to shut down their coloring operations in the winter months, particularly in northern climates. Others forge ahead, coloring, bagging and shipping product all year long. In either case, when the weather turns cold, you need to take extra steps to protect your equipment or you could end up facing some costly repairs. To save money and keep your operation running smoothly, here are some tips on how to winterize your mulch coloring equipment.