When determining where any market is going, it’s a good idea to look at its health. The landscaping industry is in great health. It experiences $77 billion in annual revenues, according to an IBISWorld Report. This report also identifies that the industry employs around one million and has an annual growth of 3.5%. The real estate market is strong, which fuels the seller’s market in many areas of the country. This is and always will be a good indicator of the demand for landscape services.
Is the landscape industry ready for an online marketplace?
Based on the growth patterns, the easy answer is yes. However, while most industries are well married to technology, the green industry has been slower to adapt, at least when it comes to technology solutions to streamline the supply chain.
Technology hasn't been totally lost on this industry, though. According to an article from Landscape Leadership, technology reaches into other areas of the landscaping industry. Companies have embraced virtual reality type experiences for their clients. They’re using technology to enable better marketing and communication.
Yet online marketplaces have only just come to fruition for the industry and can still benefit from more buyer and seller adoption. Early adoption of platforms like LandscapeHub are proving that the industry is ready for a marketplace. Much of the time an industry doesn’t know it needs a technology solution until it happens.
The answer to remaining competitive
With great demand and growth on the horizon, you’ll have the chance to grow but you will also face more competition. In a healthy market, barriers to entry are lower. Competition is fierce as 20% of the industry consists of new companies, per the same report. If you aren’t facing competition, then you will be soon. With competition comes the need to be more flexible and find differentiators between yourself and the rest. That edge is achievable when you expand your opportunities and improve workflow.
Increased demand helps suppliers
High demand is great for landscapers when they have lots of work. This gets moved downstream to suppliers, who are enjoying this demand. But if you aren’t where the buyers are, it’s hard to reap the benefits.
In the marketplace, you can connect directly with new customers but also count on the platform to handle the details. On LandscapeHub, we handle quoting, orders, and logistics. This means less time spent on the everyday tedious aspects of getting your product to those who need it.
You will also be able to price better. In a transparent online market, it’s no longer a guess about your competitor’s pricing and what the market is willing to pay.
Suppliers will also be able to forecast more accurately with the market knowledge gained from the marketplace. Better forecasting begets better planning, which means better sales in the long run.
Expect a better cash flow, too. When the platform assumes the credit risk for your sales, it’s a lot easier for you to be confident in the marketplace. Because LandscapeHub has a central payment solution for all transactions, you’ll get paid on time without worry.
Finding success on an online marketplace
For both buyers and sellers there are best practices to be successful when operating in a marketplace.
- Add as much detail as possible
- Communicate with buyers in a timely manner
- Include options for delivery
- Update your products regularly to reduce frustration of buyers thinking you have something you don’t
- Embrace the marketplace and encourage your buyers to shop your products online. Don’t hide the fact that you are participating in an online marketplace, as that defeats the whole purpose. The more you publish, the more your name is exposed in the market and that equals more buyers, more orders.
- Attempt to have as much lead time as possible
- Ask questions
- Understand that the lowest price isn’t always the best or smartest option. Consider the cost of fulfillment.
- Respond when sellers send you the pricing or information you requested
- Be realistic about delivery methods and turnaround times
- Order what you need, and avoid changes and or cancellations
- Be open to substitutions
It’s a great time to join a landscape supply platform
From exposure to more options to streamlining fulfillment to better reconciliation, the advantages of being a part of a marketplace like LandscapeHub are evident. In an industry with such a fragmented supply chain, centralizing and standardizing sourcing offers efficiency for all parties.
LandscapeHub didn’t happen overnight. It was an idea for a long time before it became what it is today. We were committed to developing a solution for all stakeholders in the Green industry. In the beginning, the goals were to reduce costs relating to sourcing and fulfillment, produce industry insights, strengthen efficiency, and encourage standardization.
We’re well on our way to meeting those goals, and helping buyers and suppliers within the supply chain streamline operations and improve profits.
It’s a great time to join LandscapeHub and revolutionize your business. Start with our quick, free application form here. Don’t miss this opportunity to be more competitive and profitable!