Mississauga Organic Landscaper Foresees Challenging Year In Face of HST

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(Free-Press-Release.com) March 15, 2010 -- Operating a business in Canada over the past two years, amidst one of the worst recession’s to hit the country in decades has been a challenging task for any business owner. Ontario’s landscaping industry has not been spared as many sole proprietorships have been forced to cease operating due to a tightening economic climate.
Richard (Rick) Brzakala, owner of Mississauga Applewood Acres Gardening & Landscaping has been among a select few entrepreneurs who’s businesses has managed to buck the trend and flourish in these tough economic times.

Brzakala estimates that Applewood’s business has grown 20% since late 2007. He attributes much of the success to an increasing and growing consciousness amongst consumers and homeowners about the dangers associated with cosmetic pesticides and the increasing demand to move towards service providers, like Applewood, who practice organic land care and safe alternatives to pesticides.
Although Applewood’s business has managed to grow in these tough times, Brzakala, foresees storm clouds on the horizon that may challenge his business success and for the industry as a whole in the Ontario marketplace.
This coming July, the McGuinty government is set to harmonize the 8% Provincial Sales Tax with the 5% federal GST. Brzakala expects that an increase of 8% to the services many landscapers offer may result in sizeable decreases to their revenue’s as more consumers and homeowners decide to stay off landscaping projects or even basic weekly lawn care services.

Every year it gets tougher, says Brzakala. Last year’s tax reno credit (that also included landscaping work and materials) is gone. McGuinty’s ban on cosmetic pesticides did not help those service providers who could not remarket or rebrand themselves as more environmentally friendly. Many were forced to cut back employees or altogether fold up their businesses.
Brzakala also suggests that the real estate market, which helps feeds about 20% of Applewood’s business, will also be further impacted by the HST as realtors' will feel the pinch on their commissions, which will likely make it harder for company’s like Applewood to get business from them.

Let's not kid ourselves -- the cost of HST will come down to basically two choices for business like ours, says Brzakala : we can either down load it on our consumer or we make a business decision and eat the cost of the 8% on their behalf. Either way as Brzakala describes, it’s a big piece of pie to swallow.
In the face of the HST and added burden to its clients, Applewood has decided to freeze their prices for yet another year, meaning clients will yet again receive value added servicing at no extra cost.
We will, as always, give our clients more, says Brzakala. Whether its providing a free spring clean up, gutter cleaning, or a no-charge fertilizing or aeration visit, we will make up the difference and show that we want to keep their business but give back some valued added services free of charge.

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