By Cheryl Higley
When winter hits the American heartland, Greg Scharf, CSP, brings out the “big iron” for his Greg’s Lawn & Landscaping clients. His affinity for the heavy machines began in 2002, when he bought his first front-end loader. He owns seven, and recently upgraded his fleet so that every piece of larger equipment is model year 2009 and newer.
Scharf, who serves the Iowa market in Cedar Rapids and Iowa City, is known for getting the most bang for his buck—whether he’s buying, selling or operating some of the biggest equipment in the industry.
Heavy equipment comes with a heavy price (and tremendous overhead), which is why Scharf puts so much effort into equipment and market research, as well as dealer relations.
Buying power
Scharf freely admits that salesmen don’t always like to see him coming, but when you’re making such a large investment (his latest piece cost $165,000), you better believe he’s going to drive a hard bargain.
“I learned how to buy from my father, and I’m very good at asking questions—sometimes the dealers don’t even know the answers to what I’m asking. I expect a lot out of the sales guys and I can be hard on them,” he says. But when a customer like Scharf is routinely making these substantial investments, dealers know that customer service is key.
“Whether I need pricing information or have a problem with a piece of equipment at 2 a.m., I expect a timely response. If I don’t get it, there are other dealers who would love to have my business,” he says. “It comes down to loyalty and building those relationships. If they know you are a loyal customer, they will do the best job they can for you,” he says.
Donna Scharf and Greg Scharf, CSP
Why not rent?
Given the substantial amount of overhead that comes with owning the big iron, why not rent? Scharf’s wife, Donna, who manages the internal systems of the business, says they rented for a few years but found it wasn’t a good fit. “We found the support level wasn’t there. If we were renting a piece of equipment and someone wanted to buy it, the dealer could just take it back,” she says. “We didn’t want to be in a situation where we couldn’t be accountable and provide the service for our customers. Buying just gives us more control.”
Greg says buying equipment is a good investment that allows him to keep the fleet current. For example, he was willing to make the investment on a loader knowing that he would get a better return at resale than on a smaller piece of equipment.
“I bought that machine understanding that with regular maintenance and the few amount of hours I would put on it that three years later I would be able to sell it at a competitive price,” he says. “Buying a smaller piece of equipment for $45,000 and then having it be worth $10,000 three years later isn’t a good buy for me. I look at the value line, and the ratio is a lot different on the bigger equipment.”
Scharf not only specializes in buying the best equipment, but he also is a dealer. Knowing how important customer service is to him, he strives to provide it to his customers. “I try to buy and sell the best equipment in the marketplace. If it’s 2 a.m. and it’s snowing, my mechanics are here. As an end user, I realize how critical it is to have someone ready in case of a breakdown,” Scharf says. “Some people don’t want to buy from us because they see me as a competitor (on the operations side). But I’m not the cheapest, and I can’t plow everything.”
Growing pains
He might not be able to plow everything, but his reliance on large equipment has made Greg’s Lawn & Landscaping extremely efficient. As a result, the company has experienced tremendous growth in the past few years.
That growth required the Scharfs to evaluate the impact on the company’s systems and internal processes and make some changes. “We took a quick leap in growth in a short time. We weren’t able to have the same relationship with the clients as in the past and that bothered us,” Donna says. “In hindsight, we learned that it is very important to grow the inside of the business with the outside. We had to hire staff, learn to let go of the control and put our faith in them to make the right decisions. All of that takes time.”
The opportunity is there for Greg’s Lawn & Landscaping to continue to grow, and Scharf attributes that to the company’s quality of work. “We’re picking up a lot of properties that we had in the past. They left for a cheaper price only to find that when the big storms hit their contractor failed them,” he says. “They have since come to the realization that Greg’s Lawn & Landscaping has what it takes to make their properties safe.”
Greg’s Lawn & Landscaping’s teachable moment
As Greg's Lawn & Landscaping continued to grow, there came a time when Greg Scharf, CSP, realized “I can’t run the whole thing by myself.” He and his wife Donna rely on several loyal team members, many of whom have been with the company for several years, to help steer the ship.
Providing those leadership opportunities is key, Donna says: “Our success is a team effort. It’s not just Greg and I. It’s everyone who is here. They are taking ownership of their work and are vested in the company’s success.” As he looks toward retirement, Greg has researched the feasibility of rewarding that loyalty by creating an ESOP (employee stock ownership plan).
“The ultimate goal is to sell the business to them. Not too many local companies could afford to purchase the business, so it would be neat to sell to our employees instead of a national company. But I still have a lot of goals to accomplish before I retire.” Greg and Donna have two children—Nick (16) and Jackie (13)—but don’t want them to feel obligated to take over the business.
“We want them to do what they want to do and to be happy,” Greg says. “Doing what you love brings a lot more happiness and success in anything that you do. That’s what I want to instill in them.”
Greg’s Lawn & Landscaping’s Top 3 Challenges
- “Chuck in a truck.” The market in and around Cedar Rapids, IA, is rife with inexperienced, uninsured operators who buy a truck and a plow and start trolling for business, Greg Scharf, CSP, says. “It’s huge in our marketplace—and the customers aren’t asking the right questions.”
- National service management companies (NSMCs). Scharf says NSMCs have entered his market. Given the huge amount of liability contractors are being asked to assume and the low margins—which affect not only Scharf but also his subcontractors—he says he has had to pick his battles and “take our loaders and go elsewhere. We have good systems and are as efficient as possible, but even if they paid us the full amount we still wouldn’t be able to do the job. Contractors need to know their true costs of doing business and learn to hold their ground,” he says.
- Personalities. Donna Scharf says managing all of the personalities in the equation can be difficult—especially during the storms. Believing that if you treat others how you want to be treated and that respect will be returned, Greg has zero patience for lying or stealing. Donna says it’s important to collect all the information before you make a decision because “there are always two sides to the story.”
View a video interview with Greg and Donna Scharf here.
Cheryl Higley is editorial director of Snow Business magazine. Contact her at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Photos by Mark Tade.
