Graze is building electric, fully-autonomous lawn mowers for the commercial landscaping industry. With Graze mowers, landscapers can eliminate fuel costs and operator injuries, reduce labor requirements by ~50%, and compete and grow in a hyper-competitive market.
Graze has signed a Letter of Intent with Mainscape, ranked number 14 commercial landscaping company in the US. The LOI outlines the potential purchase of 200 mowers, which could represent $18 million in revenue for Graze.*
Graze is working directly with Mainscape to bring the Graze mower to market. Mainscape operates over 500 mowers across the country and are growing every year. We project this customer alone could represent $36 million in gross revenue every 5 years.
The $54 billion commercial landscaping industry in the US is a very manual, low-skilled, and low margin sector. Mowing is one of the lowest margin services offered, with labor accounting for about 45% of gross revenue. The best companies in the industry generate only ~10% margins from mowing as rising wages and labor shortages drive costs up and heavy competition drives prices down.
Graze believes the introduction of an electric, self-driving mower to the market will be highly disruptive. With Graze, landscapers may reduce 4-5 person teams to 2 people, eliminate fuel costs, increase operating margins, and win new business by undercutting competitors, if desired.
Many hardware and equipment manufacturers suffer from “one and done” customer purchasing. This is not the case in landscaping. Commercial landscaping and maintenance companies regularly purchase new equipment at the end of useful life spans (i.e., every 2-5 years). Because of this, Graze has the potential to have meaningful and predictable recurring revenue.
*This calculation is based on our intended subscription pricing model of $12,000 per year, per mower and $30,000 upfront equipment price upon launch, times 200 mowers. The Company is currently pre-revenue. This statement reflects management's current views with respect to future events and is subject to risks and uncertainties.
