Luxury Keeps Getting Better

When the economy turned for the worse, these landscapers made changes to survive – and thrive – in the industry.

By Lauren Heartsill

Whether they are creating an outdoor kitchen, installing native plants to liven up a yard or building a retaining wall overlooking the Detroit Lakes, Luxury Landscaping and Lawn Care’s staff constantly looks for ways to set itself apart from the competition. This drive to be unique not only gives the business new clients; it also offers them new ways to grow and succeed during the down economy.

Luxury Landscaping created a fireplace for North Dakota State University's President's Mansion.

Beginnings

In 1997, Chris Songstad and his friend, Chris Okeson, started Luxury Landscaping in Audubon, Minnesota. Songstad, with a degree in corporate fitness, started mowing lawns with his brother when he was in the fourth grade and discovered a love for nature that led him to create a landscaping business. “I enjoy landscaping because I love being outside,” Songstad says. “I get to see the site change and see the project come to completion.”

After starting the business, they had to overcome a big learning curve. They gained knowledge on the logistics of different projects, managing a business, design software and working in the field. Okeson, who had experience with construction work, would visit the job sites and “get his hands dirty” to better understand the projects.

Adapting to Change

Luxury Landscaping, which began with lawn maintenance, was forced to evolve when the recession hit in 2008. Songstad and Okeson said they knew they had to change their business model if they were going to survive in the landscaping industry. Mowing and maintaining lawns required too many man hours with not enough profit. They expanded the business to include residential and commercial landscaping, as well as hardscaping and irrigation projects. Their annual volume, which was $30,000 after their first year, increased to $2.4 million in 2010.

Chris Songstad and Chris Okeson of Luxury Landscaping and Lawn Care, Audubon, Minnesota.

They also transformed their Garden Center, which originally sold plants, to sell materials such as rocks and mulch. “We’re always aware that the landscape market is changing, and we know how competitive it can be,” Okeson says.

Competition

Luxury Landscaping competes with landscapers from across Minnesota and neighboring states. “You’re always in competition with someone else,” Songstad says, “but the biggest competition comes from within. We’re always trying to become better: fine-tuning, lowering budgets, gaining more certifications.”

The landscapers use plants to liven up the stone walkway.

In a struggling economy, it can be tempting for landscapers to lower their budgets or make unreasonable agreements, such as impossible completion dates, Okeson says. “Landscapers can find themselves in a tough spot if their bids are lower than their overhead costs, or if they miss their completion date.” He suggests not taking on projects until after a contract is signed.

Employees