There are many different services your landscaping business can offer once you are up and running. But let’s face it, some services will simply make you more of a profit than others. Let’s take a look at exactly which services your business can earn the most from.
The four most profitable landscaping services are installing a pool, putting in a driveway, installing an outdoor fireplace, and putting up a patio cover. The costs of these services are largely affected by the manpower and the cost of supplies needed to complete the project.
Like all things, many factors go into setting the price for landscaping services. Landscapers don’t simply settle on a magic number and stick to it. Factors such as cost of labor, cost of supplies, whether the landscaper is specialized, and competitor prices all go into determining the cost of a service. Read on below to help you determine what goes into setting service prices.
What factors affect the price of services?
The two biggest influencing factors when it comes to pricing landscaping services are going to be the cost of labor and the cost of supplies. You need to make money off your services, so you can’t quote your clients a smaller number than what you will be shelling out on payroll and supplies. The longer amount of time a job takes and the more supplies, or more expensive the supplies you’ll need the more you’ll have to charge your client to make a profit.
Take a look at this list from homeguide.com that talks about the different services that fall under landscaping, and the average prices that landscapers charge. As we talked about above, services such as building a deck and laying down a driveway are the two most expensive services by far. With a deck project running a client around $7,000 and laying a driveway anywhere from $4,200-$5,500 depending on materials used.
Also considering what we discussed beforehand on cost of supplies and cost of labor – it checks out since both of these would take quite a while to complete! Installing an outdoor fireplace or patio cover is also a costly service, ringing in at $4,000 and $5,500 respectively.
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Hardscaping vs Softscaping
Hardscaping, as its name would suggest, uses hard materials such as metal, stone, concrete, and brick. Services would include building a deck, patio, or gazebo, or laying a brick walkway. These services tend to cost clients more due to the cost of the supplies needed and the time it takes to complete. Hardscaping services can cost a client anywhere from $2,000 to $45,000 depending on the scope of the project.
Softscaping on the other hand deals with “soft” materials such as flowers, plants, trees etc. These services tend to cost clients less since materials are usually cheaper as opposed to hardscaping materials and the time it takes to plant flowers vs building a whole deck is vastly different. Softscaping will typically run a client around $11 per square foot.
Landscape Designer/Architect
Like all things, when a field is specialized enough that the workers need a degree to get the job, the services they provide price increase. The same can be said for landscape designers and landscape architects. These individuals must typically have a design or architecture degree from a university before they can get their position. A landscape designer will take a look at your space and determine what work needs to be done to make it look aesthetically pleasing to the eye. Landscape designers work with both individuals and big businesses.
Often time designers who are more renowned or who have been in the business for a long time charge higher prices. Landscape designers can charge anywhere from $1,000 up to $15,000. So, if you or someone on your team has a degree and has these specialized skills, you can charge higher rates for your services. The longer you’ve been in business and the more you build up your name, the higher the rate you can charge.
This may be something you keep in mind when hiring your team. You may or may not already have landscaping degrees under your belt yourself. However, bringing on additional members can add even more value to your company and will validate raising the price of services.
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Installing a Swimming Pool
Now let’s take a look at the costs of installing a swimming pool, or what I like to call, the crème de le crème of landscaping services. If your business has the permits and equipment required to install a pool, just a few of these per summer and you are set. According to this list from forbes.com, the average cost of a pool installation is $35,000, with the typical range being anywhere from $28,000 to $55,000 with some higher-end pools reaching up to $100,000!
Just like we looked at with other services, the cost of goods plays a huge role in the cost of installing a pool. Landscapers who can provide this service need specialized licenses and need to buy or rent expensive equipment – such as a crane! – to properly provide this service. So, while it is a highly profitable service to be able to provide, you also need to spend quite a bit to get there.
Unless you have the starting fund to do so, this may not be a service you can offer right off the bat. But in due time, you can use the profit you make off of other jobs to pay for the equipment and licenses needed to be able to install a pool for clients.
Other Services That Make a Good Profit
There are also a few other services that can add up to pull in a good profit. Services such as installing a sprinkler system, removing trees, fertilizing the lawn, and installing turf are all great services to offer. According to homeguide.com, these services all have a range of potential prices, so you’ll have to take into account the factors we talked about earlier to determine what you should quote your guest. Aside from the factors we looked at above, you’ll likely also need to consider what other local businesses are offering price-wise. You’ll need to remain competitive to beat out your competition!
If adding the four big services into your business at the moment doesn’t seem feasible due to costs or timing, do a bit more research into these immediately-priced services. Some of them may be easier to add to your business, and once these services start bringing in decent revenue, you can aim for the four big guys!
Determining which service best suits your business
Now you’ve learned all about which services are the most profitable when it comes to landscaping. You’ve also learned about what exactly plays a role in why the price is set so high and what you need on your end before you can provide these higher-end services – such as degrees, permits, and equipment. Now you’ll need to take a look at your business to determine what makes sense for you. Do you have the capital available at the moment to expand your range of services? If so, how about the time needed to get these additional permits and/or degrees? You have the basic tools needed to make the decision that is the best fit for you. So, take some time to think it over, and all the best!
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Frequently Asked Questions
Is it reasonable for me to include all of these services when getting started?
Unless you have a very large starting capital, and a lot of time before you’d like to start making a profit, it might not make sense to include all of these services when just getting started. As a new business, it will take you a bit to start getting jobs and clients, so if you spend all of your money buying out expensive equipment and studying for permits, it may take a while for your business to take off. On the other hand, try starting with a handful of services that are most popular in your town, start to make a profit off of that, and then continue to expand your range of services while simultaneously taking on new jobs.
What is a good time to add additional services to my business?
A good time to add additional services would be when business is doing well and you are making a good profit. This will give you the capital you need to invest in any new services you are trying to add. As far as time goes, your slow season may be a good time to pass exams for new licenses or degrees. Since this means you’ll have the time to set aside and focus on it. You don’t want to take on too much during your busy season, and then not have time to study and successfully pass the exam.
To learn more on how you can start your own landscaping business, check out my startup documents here.
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Meet Shawn Chun: Entrepreneur and Landscape Business Fan.
I’m a happy individual who happens to be an entrepreneur. I have owned several types of businesses in my life from a coffee shop to an import and export business to an online review business plus a few more and now I create online resources for those interested in starting new ventures. It’s demanding work but I love it. I do it for those passionate about their business and their goals. That’s why when I meet a landscape business owner at a job site, driving down the road or anywhere else I see myself. I know how hard the struggle is to retain clients, find good employees and keep the business growing all while trying to stay competitive.
That’s why I created Landscaping Business Boss: I want to help landscape business owners like you build a thriving business that brings you endless joy and supports your ideal lifestyle.