How Does Rural System Propose to Make Money?

Our staff is often asked, “How does Rural System make money?” Recently a reader also sent us the following question about the profits reaped by the community:

 “I understand [Rural System, Inc.] to be a system of land management that generates profit, both for the people who live in rural areas and for absentee landowners. What I’m less clear about is exactly how it does that.”

We’re happy to answer these questions! There are many layers to how our company proposes to achieve “profit” and we’ve touched on aspects of economies of scale, groups, reduced waste, reasonable expectations, and what we offer the landowner. But the real key to Rural System’s success can actually be understood not as profit per se, but as savings. The profit ceiling may not change much if at all, but the profit margin is wider because costs have decreased – the idea behind “lean manufacturing” practices. Thus, more money is conserved within the company and invested in the community. [Read more…]