Turf Magazine - September, 2008
CENTRAL FEATURES
Covering All the Bases
Diversifying business
By Patrick White
“We’re
aggressive. We’re superaggressive,” says P.J. Kapfhammer,
co-owner of Maumee Bay Turf Center (www.maumeebaylandscape.com) in Oregon,
Ohio. One look at the ever-expanding scope of the company shows that he is
perhaps understating things.
In just three years, Kapfhammer and Co-owner Brad
Morrison have built a widely diversified company with 40 employees that
maintains landscapes, sells professional power equipment, constructs
athletic fields, installs irrigation systems, plows snow and more.
“If you call us for something that we don’t do, we’re
going to figure out how to do it,” says Kapfhammer of the
company’s aggressive approach to doing business.
Just three years ago, he was running a lawn
maintenance business and collaborating during wintertime on a plowing
business with Morrison, then a local landscape and athletic field
contractor. “Three winters ago, it was incredibly dry. We
weren’t plowing, so we weren’t making money,” explains
Kapfhammer. “Brad and I sat down to talk about how we could
diversify, so we wouldn’t be hurting when it didn’t snow. We
drew up a game plan in about 20 minutes, and
we’ve been following that plan ever since.”
| Photos courtesy of Maumee Bay Turf Center. |
 |
| Brad Morrison, left, and P.J. Kapfhammer formed the company three years ago and have been following their original, aggressive business plan ever since. |
 |
| One of Maumee Bay's seven loaders is deployed during a snowstorm. The company operates more than 40 trucks and pieces of snow removal and deicing equipment to quickly serve the needs of its customers. |
The need to diversify went well beyond winter work.
“We were seeing a shift in the lawn maintenance business; there were
many other contractors who were taking on work at really cheap prices. The
profit margins were so tight anyhow that I thought, ‘I can’t
compete with them that way, so maybe there’s a way to make money off
of them,’” he says.
When they joined forces to create Maumee Bay Turf
Center, Kapfhammer and Morrison included an equipment sales and service
division. Now the retail center offers Hustler mowers, as well as Echo and
Tanaka two-cycle equipment and many other brands and types of outdoor power
equipment. The service department is an engine service dealer for Honda,
Kohler, Kawasaki, Briggs and Stratton, and Tecumseh. They also sell
products such as fertilizer and, says Kapfhammer, “anything else you
might need outdoors. We want to be a one-stop shop.”
In fact, the approach of trying to serve all needs of
all customers is a trademark of the company. “If a customer calls us
to wash windows, we’ll be out. It’s unbelievable what people
have asked us to do, but we have the workforce leaving here every day. All
we have to do when we take on any job is to figure out how much we have to
charge per man-hour,” says Kapfhammer.
Currently, about 70 percent of Maumee Bay Turf
Center’s lawn maintenance accounts are residential; the other 30
percent are commercial. “Usually, our commercial jobs are pretty
large. They might want us to come install 3 or 4 acres of sod, for
example,” says Kapfhammer. Ten employees are assigned to this
division.
One niche market that’s growing especially
quickly for Maumee Bay Turf Center at the moment is high school athletic
field construction and maintenance. “We’re now servicing 95 to
100 high schools for their everyday needs, everything from infield mix to
Turface drying agent,” says Kapfhammer. “We’ve also
installed single fields, as well as entire athletic complexes, and
we’ve done both natural and synthetic turf installations.”
He says this market, in particular, works on word of
mouth. “One booster club sees a beautiful field we’ve done at
another school, and they realize they want a field that nice. So, they call
us.” In addition to the new field installation jobs, two full-time
crews handle athletic field maintenance such as spraying, fertilizing,
topdressing and aerating for high schools. They also do line painting
before games.
 |
| Maumee Bay crews excavate an athletic field at Clyde High School in Ohio prior to installing a Mondo Turf USA synthetic field. Huge investments in heavy equipment allowed the company to get the job done two weeks ahead of schedule. |
 |
| Maumee Bay recently reconstructed and laser-crowned this natural-turf athletic field at Perrysburg High School in Ohio. This fall, the company will be installing
a new synthetic field at the school. |
“We’ve found this to be one of the hottest
things we’ve got going on at the moment,” says Morrison. Many
times, the maintenance staffs at the schools don’t want to maintain
the athletic fields because of the chance they might do something wrong and
be under fire from coaches and booster clubs. “Or, sometimes,
we’re called to bail them out. If the wrong mix gets put into a
sprayer and damages the field, for example. We’ve seen it all, and
it’s fun to help in those situations, because athletic fields are a
real passion for us.”
To further help its customers, each year Maumee Bay
conducts an athletic field educational session/open house that attracts top
turf experts, as well as representatives from 150 high school, university
and parks and recreation grounds maintenance professionals.
When the company was formed, its biggest equipment
investment was into a fleet of Kubota tractors. In the three years since,
especially with the strong demand for their athletic field construction
services, Kapfhammer and Morrison have purchased dozers, excavators,
loaders, skid steers and, most recently, an $80,000 tractor equipped with
laser-grading technology. “We’re one of the only companies
around with one,” says Morrison.
The pair says the significant equipment investments
haven’t been nerve-wracking, because they have confidence in the
company’s plans and the energy to continue to make Maumee Bay
successful. “All we know how to do is work,” says Kapfhammer.
“We’ve invested millions of dollars in heavy equipment so we
can jump on jobs at a moment’s notice,” adds Morrison. The pair
has made a commitment to putting profits back into the business in the
initial years, allowing them to purchase rather than finance equipment
whenever possible.
Winters are no longer slow times of the year, either.
The company has expanded its list of plowing customers and now handles a
number of major commercial accounts using more than 40 pieces of snow
removal equipment. It has also become a sales and servicing
dealer of plows, salt spreaders and other snow removal
equipment. “We’re open whenever it snows. We’ve had
people drive two hours to get a plow fixed at 3 a.m., because they know
we’ll be here,” says Kapfhammer. “Every time it snows,
we’ve got 30 trucks leaving here and we’ll have at least two
mechanics in to take care of our equipment if it has problems, as well as
our customers’ equipment.”
 |
| In just three years, Maumee Bay Turf Center has become a leading provider of lawn and landscape maintenance services, as well as power equipment sales, snow removal, athletic field maintenance and more. |
Selling and servicing equipment, whether lawn care or
snow removal, allows Maumee Bay to purchase equipment for its own needs at
a lower cost. “Not only do we sell the equipment, but we get all of
our equipment at cost,” says Kapfhammer. For example, when the lawn
maintenance division recently needed a new, larger hydroseeder he made a
call to Turbo Turf and Maumee Bay is now a dealer.
All the parts of the company have to work together, he
says. “Today, you’re crazy if you open an equipment dealership
and that’s all you did. Some of the old-timers will make it because
they have their longtime customers, but a lot of the new guys aren’t
going to make it. There’s not a lot of profit in sales anyhow, and
with competition from the Internet and other places, it’s even
tougher. For us, we’re the end user as well as the seller.”
Another example of that strategy playing out: Morrison and Kapfhammer are
golfers, so they opened a driving range with batting cages to let them work
on their own games.
They also have an unusual approach to working with
their competitors. “If someone is going to beat me on price, I feel,
‘Why not be buddies?’” says Kapfhammer. “I’ve
probably started six or seven other guys in the lawn maintenance business.
If I know they’re good workers, I’ll give them 20 accounts to
get them started, and I’ll steer people to them. Then they can come
buy mowers from me. It’s the same with snow removal. We’re
friends with all of our competitors.”
Not surprisingly, with its diverse business
undertakings, Maumee Bay added a full-time accountant to its staff to keep
all the financial figures in order. It also recently added an
ASAE-certified mechanic when the company began offering automotive repair.
The pair is still following the same aggressive
business plan that they drew up three years ago. “I thought it would
take five years to take off, but within a year we had hired 15 more
employees and we couldn’t keep up with demand,” says
Kapfhammer.
Morrison attributes the company’s success to its
aggressive approach and its customer service. “It’s all
about service, just being there for the customers,” he says.
Patrick White is a freelance writer and editor who is
always on the lookout for interesting and unusual stories.