How to Price Commercial Lawn Care [Contractors’ Guide]

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📝Key Takeaways:

  • This post will explain how to estimate commercial lawn care contracts so it can benefit both you and your customers.
  • With these tips, you can bid on more customers, resulting in more leads.

Landscaping and lawn care businesses can help you generate substantial profit margin from commercial lawn care contract. According to the statistics, the lawn care business is all set to surprise the great milestone of $128 billion in revenue by the end of 2022. 

Lots of commercial lawn care contract opportunities coming your way might make it confusing for you to decide what to charge from your commercial clients. While bidding for commercial contracts, you need to be sure that you are charging fair pricing from your clients.

So what next?

You might think it’s complicated, but it’s not.

To help you with proper guidance, we have put together a comprehensive guide to price the commercial lawn care contract. 

What is a Commercial Landscape?

Having heard of gardening services, but have you heard of commercial landscape maintenance? In this service, all lawns and gardens of your company’s property will be professionally maintained and taken care of.

From lawns and flowerbeds to trees and pavements, the best commercial lawn care contractors keep commercial clients’ places looking their best.

How Much Do I Charge for Commercial Lawn Care?

The question arises, what could be the right price for commercial lawn care jobs? Should you keep your commercial jobs pricing set or variable?

Depending on the current market situation, a lawn care service can cost between $50 and $250. Prices are affected by various factors, including the size of the lawn, the local economy, and whether additional services are requested, including trimming, weeding, or landscaping.

To ensure your employees get well-paid, handle equipment costs and make your company profitable, you should set standard pricing for each service.

Optimizing your workflow is key to balancing lawn care prices, minimizing expenses, and maximizing profits. If you want to get some high-paying commercial clients, then it is advisable to keep the commercial lawn care contracts prices genuine.

The pricing of lawn care services plays a crucial role in the success of your lawn care company.

To charge for lawn services, you first have to understand how you will be able to charge for them, and this is to figure out what your costs will be. There are three main contractor payment methods: by the hour, by the square footage, or by the job.

Hourly rate

It is also possible that you can charge for your lawn care services from your commercial client as per the hourly rate, which is the simplest method of charging for your services. 

Especially if you’re starting and don’t have much experience in the industry, the hourly rate method is excellent for your lawn care business. 

Additionally, it is a good option if you only offer a limited range of essential services, like lawn mowing and trimming, to your clients. 

If you are unsure of the time it will take to complete the lawn care job. You can consider charging the cost per hour for your commercial contracts. In addition to your travel time, you will also have to consider other expenses like assigning project managers, hiring a reputable team, etc.

Charging by the square footage 

Consider charging by the square foot if you offer more comprehensive services, such as edging, fertilizing, and weed control. 

This is in addition to your basic services. As a result of this method, it may take a little longer than charging by the hour, but there are a lot of advantages associated with it.

It is not difficult to calculate how much lawn care should cost in the first place. If you know the size of the yard, then all you need to do is multiply it by the rate you are charging per square foot. 

In addition, you can also use this method to determine the price of your services based on the level of service you provide. Last but not least, it encourages your customers to use more of your services, which can, in turn, lead to higher profit margins.

Charging by the job

You can charge by the job as a third way of charging for your many lawn care businesses. This is a viable option to consider when you have several services to offer or have a lot of experience in the industry. 

Make sure you consider the amount of time it will take you to complete the job. This is when you price your services based on your job. Also, you need to consider any materials you might need and any other expenses you may incur in the process.

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How to Bid for Commercial Lawn Care Projects?

To secure a commercial lawn care contract bid and be profitable, new landscapers must cover all four areas of the business to maintain a viable business. Whenever you estimate a job, you will have to consider your labor costs, materials costs, overhead costs, and your desired profit (after income taxes have been calculated).

If your prices are based solely on your competitors, you set yourself up for bankruptcy. A good way of estimating the price for commercial lawn care contracts quickly and accurately is by figuring out your expense categories in advance, which can assist you in generating profitable commercial lawn care contracts more quickly.

Determine your labor costs

Performing the labor yourself might lead you to believe that you do not have any labor expenses. However, you will incur an opportunity cost even though there will be no direct expense. 

When estimating commercial lawn care contracts, you should bid higher if you can earn a salary of $18 per hour. 

Calculate the cost of the materials

As long as you offer only essential lawn care services, such as mowing, edging, trimming, and blowing, your main materials cost might be fuel. 

Your bids need to include seeds and aeration, fertilizing, and shrub care if you provide these services to your commercial clients and you want to charge them.

As you go about your accounting, you may include your expenses for spark plugs, air filters, blades, equipment maintenance and repairs, and any other items you may need to purchase in your materials costs. 

For example, say you estimate you will have $900 in expenses for $300 jobs in a year, and you would have to add $3 to each job to compensate for these expenses. 

Depending on your formula, you may charge a higher percentage on large projects than on small projects.

Calculate the overhead costs for the project

An overhead cost is a cost that is incurred in the course of running a business. Whether you work on vacation or during the winter, you must pay for these expenses. 

This includes a wide range of expenses that are not directly related to your jobs, such as insurance, a business license, website, accounting fees, bank fees, toner, and other expenses.

Determine your desired profit

Do you want to make a certain amount of money each year from your business? Calculate your expenses to see what you need to cover them. It is possible to start planning your expenses using invoicing and estimating software or app such as InvoiceOwl.

You should determine the additional savings you would like to contribute for saving targets such as vacations, house down payments, and emergency funds, and then add any extras you wish to contribute.

Run estimates

Once you’ve figured out all the numbers, run some projections. Based on the size and service of your yard, estimate your fee. The cost of labor and materials, overhead contributions, and each job’s desired profit should be added.

InvoiceOwl allows you to create professional-looking estimates that you can provide to residential clients and municipalities by generating your invoice using the software.

How to Determine Lawn Care Pricing?

Here are the top ways that assist you in determining lawn care pricing:

1. Define your situation

The most effective way to determine your business’s proper lawn care pricing is to create a customized lawn care estimator. This will consider the unique features of your business.

2. Determine profit margin needed

There has already been a mention of overheads and the importance of having a monthly figure at the forefront of your mind. This is something that you need to attain each month. 

Following the discovery of this number, the next step is to determine the appropriate profit margin for your business. 

In business, profit is what remains after overhead costs, materials, and labor costs have been deducted from the business’s profits. 

Getting a clearer picture of the standards in your area can be accomplished by contacting trade associations. In addition, it can also be accomplished by evaluating your competition to determine what type of pricing model will be profitable for your business.  

Regardless of whether you need a lawn care estimate calculator that works for everybody, it is not an easy task. That’s why it is often a wise idea to consult with an accountant if you want to get your pricing and profit margins right. In addition, don’t be afraid to revisit pricing every quarter or year, and ask for feedback from your clients regularly. 

3. Seasonality is an imperative factor to consider

As a side note, lawn care tends to be cyclical, so it is wise to consider this. A surge of business is usually experienced in this industry during the spring and summer months. Drop-offs typically occur in the fall and winter, so keep that in mind when calculating your budget. 

Frequently Asked Questions
  1. What do most lawn care companies charge?

    • There is a wide range of prices for lawn care, ranging from $48 up to $211. A typical price for this service is about $129 on average.
    • There is a national average of $45, ranging from $25 to $150 per week for lawn mowing. As a rule of thumb, lawn mowing costs vary depending on whether the yard is large or small. Aside from that, it also depends on how often it is mowed and what services are included in the package.
    • Many lawn care companies charge for commercial jobs based on size and service, with regular clients often receiving discounts.

  2. What is the best way to estimate lawn mowing?

    To come up with competitive prices for lawn mowing jobs, you need to conduct extensive research and understand your business as well as your target market.

    Follow the steps below for accurate, efficient, and timely price lawn mowing jobs:

    • Calculate your hourly wage
    • Examine the lawn
    • Choose the number of employees
    • Take special services and materials into account
    • Don’t forget overheads and equipment

  3. What is the cost of professional lawn care?

    Depending on the customer’s yard, professional lawn care costs vary from $48 to $211. In the case of a customer who only wants basic lawn mowing services, they will have to pay between $25 and $150 a week.

    According to the figures above, professional lawn care fees may differ in your area, and rates per hour and square foot can also vary.

    Lawn care prices are affected by a variety of factors, but the following are the most important:

    • Lawn size: The cost will naturally be higher due to the additional work required to maintain a more extensive lawn. Due to their size and lack of detail, large lawns may cost less per square foot than smaller ones.
    • Labor requirement: The lawn care needs for large lawns may be greater. A job with a high cost will likely be assigned to more lawn care professionals.
    • Lawn layout is easier to maintain a flat lawn without fences and trees than a hilly lawn with fences and trees. A more complex lawn will require more labor and cost more.
    • Travel expenses: You will usually be charged for travel expenses as part of your hourly rate. A travel surcharge for clients living far away may be assessed to cover fuel costs.
    • Equipment costs: Lawn professionals can efficiently accomplish their tasks with advanced equipment, but it comes at an increased cost due to the higher maintenance costs.

Grow Your Lawn Care Business by Improving Your Pricing

Keeping track of lawn care pricing trends, estimating your costs accurately, and keeping a pricing chart will allow you to quote jobs consistently and help grow your lawn care business.

As a business owner, you may not be accurate with the pricing, but getting regular feedback from clients will help you get better at a price and satisfy potential customer needs.

Author Bio
Jeel Patel
Jeel Patel

Jeel Patel is the Founder of InvoiceOwl and is the main curator & writer of the content found on this site. With ideals of quality, commitment, and perseverance, he believes in creating lasting business relationships with the clients.