You’ve started your landscaping business, gathered some potential clients, and need to quote your services. What should you include in your lawn care estimate to make sure your customers are happy, and that you make a profit? I’ve provided a simple guide to help you get started.
Items to include in your lawn care estimate are:
- Core services
- Property size and condition
- Additional or specialized services
- Labor and overhead costs
- Profit margin
As a business owner, the balancing act of keeping customers satisfied while earning a profit can be overwhelming. Knowing how to competitively price your services is crucial to running a successful landscaping business.
Core services
Your core services are those that are always offered to clients and can be done as a one-time job or as a repeating service. If services are performed frequently, such as weekly or monthly, you may consider providing a discount. This can entice clients to use your services regularly.
Mow, trim, and edging lawns
Most landscaping companies do some form of lawn care and lawn care maintenance, which includes mowing, trimming, and edging lawns. This is an on-demand service that can generate many sales and create repeat customers.
Understanding the local market is key to fairly pricing these services. Check out pricing from other landscaping businesses and keep your prices within range of those. Pricing too low may result in a profit loss, while pricing too high will discourage customers from using your company.
The costs of this service include labor, equipment, and fuel. You should expect to charge between $25 and $150 for this service.
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Fertilize, weed prevention, grub removal
Customers who pride themselves on a healthy, lush lawn may request fertilization, weed prevention, and possibly grub removal services. These services are relatively simple but require the purchase and application of materials. If you offer these services, be prepared to find a supplier for the necessary products.
The costs of this service include labor and materials. You should expect to charge between $65 and $150 for this service.
Trim trees and hedges
Another popular service to offer is tree and hedge trimming. While a common service, this can be time-consuming and require a skilled employee. Be sure to consider the precision and detail that goes into trimming when quoting this service.
The cost of this service includes labor, equipment, and possibly fuel. You should expect to charge between $35 and $100 per hour for this service.
Flowers and mulching
This may not be a regular service, but you should consider offering flower planting, pruning, and mulching services. Many homeowners have garden space in addition to their lawns. Your customers will appreciate your business being a one-stop shop to keep their lawns and flowers looking amazing!
The costs of this service include labor and materials, and vary greatly, depending on who supplies the flowers, and the type and amount of mulch needed to complete the project.
Property size and condition
It would help if you always considered property size and condition when quoting a job. A standard yard will be relatively quick to mow, but some clients may have serious acreage! This will impact your workers’ schedules and your ability to take on more clients.
The condition of the yard will affect time spent on projects such as trimming and mulching. A well-kept yard will require much less effort than a yard that hasn’t been maintained for years.
An average yard measures one-quarter of an acre or 10,871 square feet, but this will also depend on where your business is located. Some states have much higher average yard sizes.
A large yard measures one acre or more. These yards will require more time than the average yard and should be priced accordingly.
If you take on jobs with large yards, you must have proper equipment such as a riding lawn mower. These will cost more money to maintain and fuel, so be sure to include these costs in your estimate for oversized yards or commercial properties.
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Additional services
Additional services are add-ons or specialized projects that you may bid on. These can be any type of landscaping work that you feel comfortable offering. Some common add-on services include:
Lawn aeration
Customers who want a healthier-looking lawn may opt for lawn aeration, where small holes are punctured in the lawn to allow for water and air to circulate within the soil. This service typically costs $15 to $17 per 1,000 square feet.
Seeding and sodding
Customers needing grass may ask you to plant grass seed, stimulate growth, or install sod. The average price of seeding a lawn is between $0.10 and $0.20 per square foot. Sod installation is a little more costly, with average pricing between $0.85 and $1.75 per square foot.
Spring/fall clean-up
Spring and fall clean-ups are great services to offer clients who need help with leaf blowing and branch pick-up. These services are typically done at the beginning and end of each lawn care season. The average price can range from $100 to $500, but areas with more leaf cover can bring in even more for this service.
Disease control
Lawns may be susceptible to diseases from fungus, pests, and changing weather conditions. How these are treated will depend on the individual lawn and pricing will vary with materials and size of the yard.
Snow removal
If you live in a region with a short lawn care season, consider offering snow removal services to get through the winter months. Of course, this may require investing in additional equipment. For residential snowplowing, average pricing is between $30 and $100 per snowfall or $25 to $75 per hour of work with a lighter load.
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Hardscape services
Hardscape involves all non-plant services, such as laying down gravel, rocks, and patio pavers. These projects might require additional skills such as landscape design and hardscape installation. Pricing is very individualized and will include the cost of materials, estimated time to complete the project, and hourly wages.
Irrigation
Some landscaping companies offer sprinkler system installation, maintenance, and repair. If you have specialized knowledge of irrigation systems, you could package these services with your lawn care business. The average price of installing a sprinkler system is anywhere between $3,000 and 10,000 dollars.
Labor and overhead costs
Remember to build in labor costs and overhead costs when quoting your clients. Of course, you do not need to create a separate line item on the invoice or contract but be aware of recouping these costs through your pricing.
Labor costs should be negotiated with your employees, a fair amount that they agree to and that you can afford to pay. If you have a foreman, they may expect to make more than the grounds workers. You must also decide if you will pay your employees by the hour, or if they will make a salary. If your employees are full-time, you may consider offering them healthcare benefits, which will add to your labor costs.
Don’t forget to include overhead costs! Overhead costs are those required to run the business. This includes equipment, equipment maintenance, fuel, marketing materials, rent of building space, and more. These are just any costs that are accumulated as a result of running the landscaping business. Essentially, overhead costs are the bills you need to pay.
Profit margin
Finally, I will address the part everyone loves: the profit margin! The profit margin is the money leftover from your sale after all costs have been deducted. From this profit, you may choose to pay yourself a salary, reinvest the money into the company, or do both.
If your costs are high, you may consider raising your profit margin, but be careful not to overcharge your customers. If your costs are low, and your estimates are low, you can boost your profit margins.
Using an online estimate calculator or template may be helpful when deciding how to quote your services. Landscaping businesses should expect a net profit of between 5% and 20% of sales. Try calculating your gross margin before deciding your pricing, to ensure you are making enough money to sustain your business.
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Frequently Asked Questions
What if my prices are not competitive after including all items in my estimate?
If you create an estimate only to find that your prices are too high or too low for your market, you should make adjustments. If your pricing is too low, you may benefit from higher profit margins. However, if prices are too high, lower profit margins or reconsider some of your overhead costs. You may need to scale back on marketing costs or find cheaper materials.
Are promotional discounts worth it if they impact my profit margin?
Offering promotional discounts to new clients is a great marketing strategy to generate business. However, if the discounts are cutting into your profit margin to the point where you are losing money, you should consider decreasing the discount amount. Clients will be pleased to receive any level of discount but try to keep it at 10% or less. Another option is to offer a discount for first-time services but charge full price on future services.
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.