The Decline of landscape lighting as a viable profitable specialized business model

The Decline of landscape lighting as a viable profitable specialized business model

By Mike Gambino

blown bulbI have been designing, installing and servicing landscape lighting systems for close to a quarter of a century. I originally trained under the pioneer of the low voltage outdoor lighting industry, have developed my own proprietary line of equipment and have successfully completed thousands of projects with thousands of satisfied clients so I feel I am most qualified to make such an assessment.

Recently there was an announcement that a representative of a lighting manufacturing company went to work for an online retailer with the supposed purpose of assisting with sales of their product to professional installers. You can read more about this on my colleague Mark Carlson’s blog.

The reason I feel the industry is in decline is for multiple reasons, most of which have to do with issues which are detrimental to the professional design and installation specialist.

1-Online product sales- Landscape lighting is a highly technical amenity. It is also very labor intensive to install properly. There are so many things that can go wrong from product selection to incorrect installation technique. Any one problem can be devastatingly expensive to correct.

I have written before about the pitfalls associated when the property owner selects their own components whether that be online or at a bricks and mortar establishment. It is a fool hardy decision that usually ends up costing them more than if they would have just left the entire process to the professional specialist. Briefly, problems range from lack of support from installer after the sale (owner assumes all responsibility for the products they purchased and must deal direct with the seller to resolve them and if purchases were made online this only complicates things).

2-Choice of the wrong fixture or LED- Experienced pro’s know what performs and lasts and what doesn’t, not only from their own field experiences but from networking and consulting with other pro’s around the country and world. The property owner misses out on all of this expertise when they choose to blindly purchase products which they have no knowledge or previous firsthand use of.

3- The availability of a wide range of “trades” who claim they can install owner supplied products. I call this the blind leading the blind. Landscapers offering to throw cable in their sprinkler pipe trenches to save installation costs. Handymen who dabble in occasional repairs or those electricians who believe it’s easy to install low voltage lighting. None of these service providers combined make a seasoned professional stand alone landscape lighting design and installation specialist.

4- The fact that so few specialists exist at this point in time especially outside of major cities- The market conditions described above make it very challenging to operate a successful and profitable stand alone landscape lighting specialty business. If you don’t have an excellent reputation and an established client base then you are in for one tough time trying to break into this line of work as a landscape lighting specialist.  In the past five years I have seen several companies go out because they were not profitable from the market conditions that exist. Everyone suffers as a result of this especially the property owner. What would happen if the new car dealer where you purchased your car went out of business in your community? Where are you going to go for not only warranty repairs but issues outside of warranty that are best suited to factory trained technicians. the same is true of your professional lighting installer. Nobody cares more about your system (if in fact they are a professional specialist) than them because your long term satisfaction will not only result in repeat business but also referrals which is the life blood of the custom design and installation business.

how to be an expert5-The proliferation of Jack of all trades installers- Sometimes known as trunk slammers, low ballers, scabs, hacks etc. The advent of LED lighting has brought an influx of these dubious installers. These are the types whose warranty ends once the check clears and you can no longer see the tailights of their pickup as it drives away. They have no business acumen, plan or future in the trade. Do not invest in their own education, take work just to keep their labor (who most times are being paid in cash, working without required workers compensation insurance) busy without clear thought of doing the finest job and making a fair profit for their efforts. they do not offer an extended service plan, will not come back to the property (aka scene of the crime) because they know the problems that exist will be expensive to correct and will have some explaining to do as to why those problems exist after such a short time.

6- Lack of education and presence of a strong industry association- Blogs such as the one you are reading right now do their best to educate the end consumer and I think we do a pretty good job but our reach is very limited. There is a landscape lighting industry association that exists however sadly they do little or nothing to promote or educate quality landscape lighting to the end consumer or general public. They are so bogged down and controlled by the industry giants (manufacturers and distributors) that they are petrified to take any kind of position or provide a solid message because to do so would risk losing their financial support which keeps them going. They have their hierarchy mixed up. For the industry to be strong it is the professional designer/installer who in fact should be driving most of the sales yet it is the occasional jack of all trades installer who gets the most consideration in the association. Common logic would dictate that a manufacturer would be concerned that their products are properly installed but that for the most part is not the case as they place their products in a position to be purchased by do it yourselfers and non professionals who in the long run cheapen their brand with early failure from improper use or installation.

So who is ultimately to blame for this decline and decay? The end consumer for supporting those products and service providers who are destined to fail?  The manufacturers and distributors for not making sure the products they manufacturer and represent are being properly installed by the right people and utilized to their optimum potential? The supporters ( buyers be they property owners, do it yourselfers or project installers) of online retailers who sell products at or near wholesale to the trade prices creating a scenario where the product is not being used or installed properly and supported after the installation? An Industry association that lacks the vision and courage to do their best for all involved instead of just those with a more narrow agenda?

What do you think I’d like to hear your thoughts.

This landscape lighting blog is published by Mike Gambino of Gambino landscape lighting inc. all rights reserved. Mike is a professional landscape lighting system designer/ builder and has been designing, installing and maintaining landscape lighting systems for more than 20 years. Mike resides in the Los Angeles area with his wife and 2 sons. To visit his website go to www.gambinolighting.com . To inquire about hiring Mike please click here .

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1Comment
  • Mark Carlson
    Posted at 06:01h, 31 May Reply

    Mike, again…you hit the nail on the head. There are several problems you have stated that are definitely hurting our trade profession, and it’s a sad thing to see. It is a combination of problems…the consumer’s continued pursuit to save a dollar by doing it themselves or trying to act as the contractor….the manufacturer and distributor trying to make an extra buck at any cost….and our own contractor base, not practicing sound business principles. I believe, as you do, that many will fail and there might only be a handful left that truly understand and practice this profession at a professional level. Thanks for posting.

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