FIRE YOU HIRE & GROW MARKET EXCLUSIVE RESEARCH ON WHY CLIENTS SPONSORED BY IN PARTNERSHIP WITH. 60 march 2016 lawnandlandscape.com

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1 GROW MARKET EXCLUSIVE RESEARCH ON WHY CLIENTS HIRE & FIRE YOU SPONSORED BY IN PARTNERSHIP WITH PHOTOS COURTESY OF PAVER RESTORATION 60 march 2016 lawnandlandscape.com

2 IN OUR SECOND GROW THE MARKET Lawn & Landscape has conducted a national survey of American homeowners to understand what they think of landscaping, lawn care and hardscaping and, by extension, what they think of the contractors who provide those services. In the three SURVEY, years since we did our inaugural Grow the Market survey, much has changed. Design/build services have come back strong and technology has continued to change the way contractors buy and sell. But what hasn t changed is the fact that Americans still love the grass and plants that surround their homes. They still see the green space that you maintain as having a positive impact on the environment, and as something they re not just spending money on, but investing their money in. On the following pages, we ve crunched the numbers to bring you an analysis of U.S. homeowners and what they think of your business. We ve broken it out by main service segment, followed by an outline of major purchasing motivations and perceptions. (For information on who took this survey and how data was collected, turn to page 71.) Throughout the year, we ll print more features that help you use these numbers tactically at your own company. So read on to get a better understanding of your customers and learn how to grow your market. Chuck Bowen LANDSCAPE MAINTENANCE: PG. 65 LAWN CARE: PG. 66 INSTALLATION/ HARDSCAPING: PG. 68 WHY THEY BUY: PG. 70 DEMOGRAPHICS OF THE AMERICAN LAWN: PG. 74 PERCEPTIONS OF THE INDUSTRY: PG. 75 lawnandlandscape.com march

3 CUSTOMER INSIGHTS TO GROW YOUR BUSINESS AT SYNGENTA, we understand that you re under pressure to keep customers lawns healthy, while keeping costs down, maintaining an effective seasonal workforce and being environmental stewards all while trying to manage your finances. Amidst this pressure, we re here to help make life a little easier for you by providing unique tools, programs and products to help you grow your business. We ve created homeowner-focused sales materials geared specifically toward your customer base to help you sell your unique services. These materials feature easy-to-digest language so customers can understand and appreciate the full value of your services. Some of the most successful businesses experience growth by relying on their instincts. Cultivating new ideas for continued growth often comes from obtaining customer insights. As a tribute to your hard work and dedication to the industry, Syngenta is pleased to partner with Lawn & Landscape on the following exclusive consumer research report that offers customer insights on how your business can better meet their needs. We encourage you to take a careful look at the results to see what small business adjustments could help boost your sales in Thank you for your steadfast dedication to the lawn care industry and for keeping our green spaces beautiful. We remain committed to your success through assurance programs such as the SecureChoice Mosquito Assurance, Advion Fire Ant Bait and Barricade Guarantees, homeowner-focused marketing materials and a portfolio of reliable products including Tenacity herbicide, Acelepryn insecticide and Headway fungicide. We enjoy being your partner in enhancing the lawn and landscape business and we look forward to helping you grow in 2016 and beyond. Stephanie Schwenke STEPHANIE SCHWENKE SYNGENTA LAWN AND GARDEN Turf Market Manager, Syngenta 2016 Syngenta. Important: Always read and follow label instructions. Some products may not be registered for sale or use in all states or counties. Please check with your local extension service to ensure registration status. Acelepryn, Advion, Barricade, Heritage, SecureChoice and Tenacity are trademarks of a Syngenta Group Company. 64 march 2016 lawnandlandscape.com

4 LANDSCAPE MAINTENANCE About a quarter of American homeowners hire a landscape contractor to cut their lawns. This is up from 12 percent in For those who are already your customers, the majority are happy with the service. Fifty-four percent are what the Net Promoter Score system, a rating scale identifying respondents as promoters or detractors, calls promoters. The top reason they hire you is because they think professional landscape contractors can keep their lawn looking better than they can. A close second motivation is that they think a well-maintained lawn adds to the value of their homes. Two-thirds of these customers also pay for additional services. (Hardscaping, lawn care and tree trimming top the list.) NOTES: NOT ALL PERCENTS EQUAL 100% QUESTIONS ASKING ABOUT PURCHASE MOTIVATIONS WERE ON A SIX-POINT SCALE. PERCENTAGES SHOWN REPRESENT THOSE HOMEOWNERS INDICATING A GIVEN RESPONSE WAS IN THE TOP TWO BOXES AND IMPORTANT TO THEM. WHAT BEST DESCRIBES YOUR APPROACH TO THE MOWING, TRIMMING AND EDGING OF YOUR GRASS? HOW LIKELY ARE YOU TO RECOMMEND THE CONTRACTOR CURRENTLY DOING THE MOWING, TRIMMING AND EDGING OF YOUR LAWN TO FAMILY AND FRIENDS? HOW IMPORTANT ARE THE FOLLOWING AS MOTIVATIONS TO HAVE A CONTRACTOR DO THE MOWING, TRIMMING AND EDGING OF YOUR LAWN? (1: NOT LIKELY... 10: EXTREMELY LIKELY) 8% 26% 5% 61% I/we do the work ourselves I/we have a contractor do the work I/we have someone else (friend or family member, neighborhood child, etc.) do the work I/we don t have any grass % 19% 19% 14% 6% 2% 1% 1% 3% 0% The contractor keeps the yard looking better than I/we could 71% 70% 58% A well-manicured yard adds value to my/our home I/we have things to do other than spending time working in the yard 45% 45% I/we dislike yard work I/we have health issues that keep us from doing the work Most people in the neighborhood use a contractor 29% ALL THUMBNAILS PETMAL THINKSTOCK NO: 36% YES: 64% DOES THE CONTRACTOR WHO DOES THE MOWING, TRIMMING AND EDGING OF YOUR LAWN DO ANY OTHER LANDSCAPE/HARDSCAPE WORK FOR YOU? WHICH OF THE FOLLOWING YARD MAINTENANCE/UPGRADE ACTIVITIES DOES THE CONTRACTOR PROVIDE FOR YOU? PLEASE CHECK ALL THAT APPLY. Annual or semi-annual activities (mulch, aeration, overseeding, tree/shrub trimming, etc.) Application of fertilizer, weed control, pest control products, etc. Landscaping (new planting areas, planting flowers, shrubs, trees, etc.) 57% 53% 43% Hardscaping (walkways, patios, outdoor kitchens, etc.) 15% Snow and ice removal 14% lawnandlandscape.com march

5 LAWN CARE Slightly more homeowners hire out their lawn care services than maintenance services about a third pay for a professional lawn care operator to treat their turf. But they re not as satisfied with LCOs as they are with maintenance contractors. Just 36 percent can be classified as promoters, and lawn care as a business gets an NPS score of 21 half that of landscape maintenance. But your current customers do value your expertise the top motivators for hiring an LCO are that you have access to better products and have the knowledge to keep the lawn looking better. Also, half of homeowners say they would likely pay for additional treatments if their LCO recommended them. But they wouldn t pay too much extra. Two-thirds say they would be willing to pay $50 or less, even if they were guaranteed better results. DO YOU TREAT YOUR LAWN, SHRUBS OR TREES WITH FERTILIZER, WEED KILLER OR INSECT CONTROL PRODUCTS? 22% 28% 50% Yes, I/we do it myself/ourselves Yes, I/we have a contractor do it No IF YOU HIRE A LAWN CARE CONTRACTOR, WHICH OF THE FOLLOWING SERVICES DO YOU PURCHASE SPECIFICALLY? CHOOSE ALL THAT APPLY. 83% 77% 62% Weed control Fertilizer application Insect control (grubs, chinch bugs, etc.) Disease control (large patch, snow mold, etc.) 41% DO YOU FEEL YOU HAVE BEEN PROPERLY EDUCATED BY YOUR LAWN CARE PROVIDER ON WHAT SERVICE THE COMPANY WILL DELIVER AND WHAT IT WON T? 12% Yes No 88% HOW INFLUENTIAL ARE THE FOLLOWING AS MOTIVATIONS TO HAVE A CONTRACTOR APPLY THE FERTILIZER, WEED KILLER AND/ OR INSECT CONTROL PRODUCTS? The contractor has the knowledge of which products to use to keep my yard looking its best The contractor gets better results than I/we ever could The contractor has access to more effective products than I/we can get in the store I/we have things to do other than spending time working in the yard I/we would prefer not to be in direct contact with the chemicals I/we dislike yard work I/we have health issues that keep us from doing the work Most people in the neighborhood use a contractor 28% 39% 34% 56% 56% 70% 83% 79% 66 march 2016 lawnandlandscape.com

6 WHAT ARE YOUR EXPECTATIONS FOR YOUR LAWN WHEN YOU HIRE A LAWN CARE CONTRACTOR? 13% 51% 36% HOW LIKELY ARE YOU TO RECOMMEND THE CONTRACTOR CURRENTLY APPLYING FERTILIZER, WEED KILLER AND/OR INSECT CONTROL PRODUCTS IN YOUR YARD TO FAMILY AND FRIENDS? (1: NOT LIKELY... 10: EXTREMELY LIKELY) HOW MUCH DO YOU SPEND ANNUALLY ON LAWN CARE? (FERTILIZER, WEED CONTROL, INSECT CONTROL, ETC.) 67% 19% 11% 3% 1% Absolutely no weeds and no insects Some weeds and insects are OK, as long as the company comes back and retreats Some weeds and insects are OK, and the LCO will get to it on the next visit 3% HOW LIKELY ARE YOU TO PURCHASE MORE THAN THE BASIC TREATMENTS (FERTILIZER, ETC.) TO MAKE YOUR LAWN AND PLANTS HEALTHIER OR MORE ATTRACTIVE WHEN THE TREATMENTS ARE RECOMMENDED BY YOUR CONTRACTOR? LIKELY MAY OR MAY NOT UNLIKELY 1% 0% 3% 6% 9% 13% 26% 16% 26% IF YOUR LAWN CARE CONTRACTOR COULD GUARANTEE YOU BETTER CONTROL OF WEEDS AND INSECTS THAN YOU CURRENTLY HAVE, HOW MUCH EXTRA WOULD YOU PAY PER YEAR? 54% Less than $500 $500-$999 $1,000-$1,999 $2,000-$2,999 $3,000-$3,999 WHICH ONE PROBLEM IS MOST LIKELY TO CAUSE YOU TO FIRE YOUR CURRENT LAWN CARE OPERATOR? 36 PERCENT 33 PERCENT 24 PERCENT 7 PERCENT 15% 13% 6% 5% Less than $50 $50 $75 $100 $150 7% More than $150 LARGE BROWN PATCHES WEEDS IN YARD LAWN DISEASES GRUBS HAVE YOU EVER HAD TO FIRE A CONTRACTOR YOU HIRED TO APPLY FERTILIZER, WEED KILLER AND/OR INSECT CONTROL PRODUCTS IN YOUR YARD? NO: 82% YES: 18% HOW INFLUENTIAL WERE THE FOLLOWING ON YOUR DECISION TO FIRE THE CONTRACTOR? Dissatisfied with the quality of work Being taken advantage of (felt I was overcharged, etc.) Dissatisfied with the timelines of the work Found a less expensive contractor Decided to do the work myself/ourselves for a period of time 75% 52% 42% 33% 31% lawnandlandscape.com march

7 INSTALLATION/HARDSCAPING A third of American homeowners have done a major landscaping project (adding trees or new planting areas, replacing a lawn, etc.) in the last five years, and a quarter are planning one in the next two years. Key motivators for homeowners to spend on their landscaping are a sense of personal pride, the ability to enjoy the outside space and their belief that landscaping adds to the value of their home. Twenty percent of homeowners say they re planning a hardscape job in the next two years, and a majority say they ll hire a contractor to do it. IN THE PAST 5 YEARS, HAVE YOU DONE A MAJOR LANDSCAPING PROJECT (ADDED TREES, DEVELOPED NEW PLANTING AREAS, REPLACED A LAWN, ETC.) ON YOUR PROPERTY? 72% 28% ARE YOU PLANNING A MAJOR LANDSCAPING PROJECT (ADDING TREES, NEW PLANTING AREAS, REPLACING A LAWN, ETC.) IN THE NEXT TWO YEARS? 77% 23% HOW INFLUENTIAL ARE THE FOLLOWING AS MOTIVATIONS TO IMPROVE YOUR LANDSCAPING? A sense of personal pride The ability to enjoy the outside space Adding to the home value Addressing a specific problem (disease, insects, etc.) 49% Having an outdoor entertainment area 47% Repairing storm damage 41% A sense of environmental responsibility 38% Fitting in with the neighbors, meeting their expectations 19% Conforming to the Homeowner s Association standards 18% 68% 68% 66% Yes No 31% 17% WHEN WE DIG into these numbers, we find that for homeowners who already employ a landscaper to do their lawn maintenance, LIKELY: 31 PERCENT say they are planning a major project soon. For homeowners who cut their own grass, only 17 PERCENT are planning a similar project. Yes No HOW INFLUENTIAL ARE The ability to enjoy the outside space 70% THE FOLLOWING AS Adding to the home value MOTIVATIONS TO IMPROVE 65% A sense of personal pride YOUR HARDSCAPE? 64% Having an outdoor entertainment area 47% Fitting in with the neighbors, meeting their expectations 20% UNLIKELY: 41% 59% IF YOU ARE PLANNING A MAJOR HARDSCAPE PROJECT, HOW LIKELY ARE YOU TO HIRE A PROFESSIONAL CONTRACTOR? IN THE PAST THREE YEARS, HAVE YOU MADE ANY CHANGES IN HOW MUCH OF THE LAWN CARE AND LANDSCAPING YOU DO AROUND YOUR HOME? NO: 73% YES, I M HAVING MORE WORK DONE BY OUTSIDE CONTRACTORS: 14% YES, I M DOING MORE WORK MYSELF: 13% But, for homeowners who already hire a landscaper for their lawn maintenance, the numbers look even better: 29 PERCENT say they re having more work done by outside contractors, and only 7 PERCENT say their doing more of the work themselves. ARE YOU PLANNING A MAJOR HARDSCAPE PROJECT (ADDING WALKWAYS, PATIO, OUTDOOR KITCHEN, ETC.) IN THE NEXT TWO YEARS? YES: 20% NO: 80% 68 march 2016 lawnandlandscape.com

8 WHY THEY BUY Americans love their lawns. A sense of personal pride and the ability to get outside and enjoy their lawns are consistently top reasons to hire professionals and spend money on their landscape. Two-thirds of homeowners say that compared to the inside of their home, it s equally important that the outside of their home looks nice and is enjoyable to live in. About 14 percent say it s more important. And when they compare their spending on lawn care, landscaping and hardscaping to other discretionary money, 60 percent of homeowners say investing in their landscape is just as important. A full quarter of them say it s more important. HOW INFLUENTIAL ARE THE FOLLOWING AS MOTIVATIONS TO IMPROVE YOUR LANDSCAPING? 66% 79% 64% 76% 61% 73% 61% IF WE DIG INTO THESE DATA, and split out two key groups those who hire a landscaper to maintain their yards, and those who don t we can see that the order of motivations like feelings of pride, the ability to enjoy the outdoors or adding to their home s value doesn t change, but they are felt more strongly by homeowners who already pay someone to take care of at least some of their landscaping. 47% 36% Do not hire a contractor 43% Do hire a contractor 27% 23% 16% 15% A SENSE OF PERSONAL PRIDE THE ABILITY TO ENJOY THE OUTSIDE SPACE ADDING TO THE HOME VALUE HAVING AN OUTDOOR ENTERTAINMENT AREA A SENSE OF ENVIRONMENTAL RESPONSIBILITY FITTING IN WITH THE NEIGHBORS, MEETING THEIR EXPECTATIONS CONFORMING TO THE HOMEOWNER S ASSOCIATION STANDARDS 70 march 2016 lawnandlandscape.com

9 TWO-THIRDS THE BEST WAY TO GET NEW CUSTOMERS is still to be referred by your current customers. TWO-THIRDS OF HOMEOWNERS say recommendations from friends or family are the most important when choosing a contractor to do their lawn care, landscaping or hardscaping. Another third put the most trust in online reviews not necessarily from people they know, but people who have already hired you. AS COMPARED TO THE INSIDE OF YOUR HOME, HOW IMPORTANT IS IT THAT THE OUTSIDE OF YOUR HOME LOOKS NICE AND IS ENJOYABLE TO LIVE IN? IN COMPARISON TO YOUR OTHER DISCRETIONARY SPENDING (VACATIONS, ENTERTAINMENT, ETC.), HOW IMPORTANT IS SPENDING ON YOUR LAWN, LANDSCAPE AND HARDSCAPE? 14% 24% 21% 16% 65% 60% IF YOU WERE TO SELL YOUR HOME TODAY, HOW MUCH OF THE MONEY YOU INVESTED IN THE LANDSCAPING PROJECT(S) DO YOU THINK YOU'D RECOVER? 54% Less than 40% 20% 40%-59% 10% 60%-79% 8% 80%-99% 7% 100%-120% 2% More than 120% Less important Equally important More important Less important Equally important More important WHEN SELECTING A CONTRACTOR TO DO THE MAINTENANCE, LAWN CARE, LANDSCAPING OR HARDSCAPING IN YOUR YARD, HOW IMPORTANT ARE THE FOLLOWING SOURCES OF INFORMATION? 66% RECOMMENDATIONS FROM FAMILY/FRIENDS 14% YARD SIGNS GENERAL PEST CONTROL 13% 25% 12% 15% WHAT OTHER HOME SERVICES DO YOU CURRENTLY HIRE A PRIVATE CONTRACTOR TO PERFORM AT YOUR PRIMARY RESIDENCE? EXTERIOR PAINTING 34% ONLINE REVIEWS NEWSPAPER ADVERTISING INTERIOR PAINTING SEEING TRUCKS IN THE NEIGHBORHOOD TERMITE CONTROL DIRECT MAIL ADVERTISING GUTTER CLEANING HOUSE CLEANING ONLINE SOCIAL NETWORKS 14% 10% 6% DOOR/MAILBOX HANGERS POWER WASHING SNOW AND ICE REMOVAL ONLINE ADVERTISING DOOR-TO-DOOR SOLICITATION LAUNDRY SERVICE SURVEY METHODOLOGY Lawn & Landscape partnered with Willard Brown Digital to conduct the Grow the Market survey. It was fielded between Feb. 1-10, and had a total of 765 completes, spread proportionally across the country. Respondents are adults who own their own homes and are the primary decision-maker when it comes to hiring a landscaper or lawn care operator. lawnandlandscape.com march

10 WHY THEY BUY WHAT OTHER HOME SERVICES DO YOU CURRENTLY HIRE A PRIVATE CONTRACTOR TO PERFORM AT YOUR PRIMARY RESIDENCE? 45% 38% 36% 31% WHEN WE EXAMINE THESE ADD-ON SERVICES MORE CLOSELY, we see that homeowners who hire you for some or all of their landscaping services are much more likely than not to pay an outside contractor for other home services. General pest control is the most popular, followed by exterior and interior painting. Homeowners who don t hire landscapers are more likely to hire exterior painters first, then termite control services and general pest control but at rates far below the non-diy cohort. Do not hire a landscape contractor Do hire a landscape contractor 15% 21% 19% 23% 21% 18% 16% 10% 9% 4% 7% 7% 6% 0% GENERAL PEST CONTROL EXTERIOR PAINTING INTERIOR PAINTING TERMITE CONTROL GUTTER CLEANING HOUSE CLEANING POWER WASHING SNOW AND ICE REMOVAL LAUNDRY SERVICE 72 march 2016 lawnandlandscape.com

11 DEMOGRAPHICS OF THE AMERICAN LAWN APPROXIMATELY HOW MUCH ACREAGE DO YOU MAINTAIN (LAWN, FLOWERS AND SHRUBS, OUTDOOR LIVING AREAS, ETC.)? 5 OR MORE ACRES 3 TO 4 ACRES 1 TO 2 ACRES 1/2 TO 1 ACRE 6% 4% 11% 22% HOW OLD ARE YOU? 22% 1% 3% 8% 9% 23% 35% 65% ARE YOU MALE OR FEMALE? 18 to to Male 21 to to 59 Female 30 to to 69 35% WHAT IS THE VALUE OF YOUR PRIMARY RESIDENCE? LESS THAN 1/2 ACRE 57% 18% 30% 20% 12% LESS THAN $100,000 $100,000 TO $199,999 $200,000 TO $299,999 $300,000 TO $399,999 WHAT WAS YOUR TOTAL HOUSEHOLD INCOME LAST YEAR (BEFORE TAXES)? 6% 8% 6% $400,000 TO $499,999 $500,000 TO $750,000 MORE THAN $750,000 11% 23% LESS THAN $25,000 $25,000 TO $49,999 25% 15% 18% $50,000 TO $74,999 $75,000 TO $99,999 $100,000 TO $149,999 5% 3% $150,000 TO $200,000 MORE THAN $200, march 2016 lawnandlandscape.com

12 PERCEPTIONS OF THE INDUSTRY PLEASE INDICATE YOUR LEVEL OF AGREEMENT WITH THE FOLLOWING STATEMENTS. 73% 62% 54% 57% 41% 46% 44% 39% 26% 23% LANDSCAPE INSTALLATIONS (PLANTING AREAS, SHRUBS, TREES, ETC.) DONE BY CONTRACTORS ARE PROHIBITIVELY EXPENSIVE I PREFER ORGANIC LAWN CARE TO TRADITIONAL PROGRAMS LANDSCAPING INCREASES THE VALUE OF MY HOME I SAVE TIME HIRING A PROFESSIONAL LANDSCAPE CONTRACTOR I THINK THE LANDSCAPERS I HIRE ARE PROFESSIONAL BUSINESS PEOPLE THE GREEN SPACE AROUND MY HOME IS AN IMPORTANT CONTRIBUTOR TO THE ENVIRONMENT A WELL-MANAGED LAWN AND LANDSCAPE CAN HELP IMPROVE THE ENVIRONMENT IN MY COMMUNITY I ENJOY MOWING MY OWN GRASS/ MAINTAINING MY HOME S LANDSCAPE I TRUST THE RECOMMENDATIONS I RECEIVE FROM THE LAWN AND LANDSCAPE CONTRACTORS I HIRE I WANT MY YARD TO BE THE ENVY OF THE NEIGHBORS lawnandlandscape.com march

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