How to Price Landscaping Jobs [7-Step Pricing Plan]

You are here:

The landscaping industry in the United States is expected to reach $115.6 billion in 2022, and the industry will scale at a 4.5% CAGR in the coming years.

The demand is rising, and so is the competition. Many contractors try to manipulate the pricing of the service to allure the clients toward their landscaping business, but it shrinks their profit opportunities.

Unlike other service industries, the landscaping industry prices vary based on the landscape job requested.

Different landscaping tasks can become complex during the execution if you don’t dig deep into the customer requirements, which can increase the costs and minimze your profits.

So, you must understand how to price landscaping jobs effectively beforehand to avoid future troubles and stand out from the competition.

Let’s understand the nitty-gritty elements essential to estimate landscaping jobs properly that can help you earn decent profits.

Steps to Price Landscaping Jobs for Profit

We have shortlisted a few important steps to help you finalize the ideal landscaping job price based on the specific requirement that can help you deliver a quality customer experience and run a profitable business.

steps to price landscaping jobs for profit

1. Get a brief about the job

Before starting the estimating process of a landscaping job, you need to understand the brief about the work and the scope of the project.

Get in touch with your clients through different communication channels and ask them specific questions, such as:

  • What is the measurement of the yard?
  • Where is the job site?
  • Is there a time constraint?
  • Are there any safety hazards or accessibility issues?
  • What landscaping services do you want?
  • Do you have any special requests?
  • What material do you want to use?

Answering these specific queries can help you get a crystal clear idea about the project and as well as the estimation price.

You can advise your clients about different aspects that you feel need specific changes based on of your experience and knowledge of the industry.

You can also try to upsell the client different landscaping services that can increase your profits and solve different landscaping problems of your clients that they were unaware of.

📝 Key Takeaways:

Create a checklist you need to ask every client to understand the job before bidding your price.

2. Ask clients about their budget

You can deliver your landscaping services to your clients within the limited budget they have. You need to ask them about their budget so you can deliver a tailored estimate.

Once you have the client’s requirements and their budget, you can now decide to offer them your tailored landscaping services that fit both.

Moreover, the budget for commercial landscaping jobs can differ from residential jobs. So, your overall job pricing can also differ.

📝 Key Takeaways:

Create a checklist you need to ask every client to understand the job before bidding your price.

3. Know your labor rates

Total labor costs include the most vital component of your landscaping job estimate. You need to calculate your labor cost by multiplying it with the total number of hours required for the task completion.

There’s no hard rule to choose between hourly vs. fixed landscaping task prices, but based on the preference, project scope, and your expertise, hourly rate are mostly better. There’s less pressure on your team to complete the project faster, creating a smooth workflow.

Moreover, sometimes different complex situations may arise during the completion of the landscaping task that gives hourly-based pricing a slight edge over the fixed rates.

Add Your Markup Effortlessly

Create estimates with markups in a zap. All you need is to mention your markup and the rest is calculated by InvoiceOwl automatically.

Calculate the number of hours for completing the landscaping task

You need to determine the hours your team can take to complete the task. You need to multiply the number by the total employees working on the job to get a valid data point.

For example, if five people can take 40 hours on the job, that’s 200 labor hours.

You can also use tracking software to help you estimate the average hours your team takes to complete the task.

Calculate the labor cost per hour

You also need to calculate the total labor cost per hour, which includes the payroll, salaries, insurance, and expenses you spend on your employees.

You need to calculate the monthly expense of your single on-ground employee and then boil it down to the landscaping hourly rate based on the total number of hours they work in a month.

You can also check the national average hourly wage of employees in your city, then add a percentage of workers’ compensation, benefits, and sales tax.

Select one of the methods and then multiply the total labor hours with the hourly labor cost to get your overall labor rates.

📝 Key Takeaways:

Knowing the labor hourly rates helps you pitch an accurate estimate. And it get’s better with experience.

4. Know the material costs

Once you have the client’s requirements for particular project, you have an idea about the list of materials required for completing the required task. You need to add the pricing of different landscaping materials used during the cost estimation.

You can purchase some commonly used materials like compost, floodlights, cement, lawn turf, gravel, boulders, landscaping rock, timber, and fertilizer in bulk that can help you offer decent discounts to your customers.

You can advise your clients about the quality of different materials used in the project to help them get the best quality products at a better price than retail rates.

Offering a lower price than the retail doesn’t mean you lose money; you can cover that aspect from the service pricing.

You must balance the overall estimate to help your clients get your industry’s best landscaping cost estimates.

📝 Key Takeaways:

Knowing the material rates you can pitch different price packages depending on the quality of material to be used. This also helps you in knowing your last price before negotiating.

5. Calculate overhead

Calculating overhead costs is a vital component that some contractors miss. You need to include the taxes, equipment repair, vehicle expenses, advertising, legal fees, office rent, equipment cost, business insurance, internet bills, utilities, insurance, and other tools to help you achieve a better estimate.

Including the weekly overhead cost can help you achieve a break even point and ensure that you cover the expenses in your estimation.

To achieve a balanced and accurate estimation, you also need to include different unbillable things in your overhead costs, like holidays, employee training, traveling time, and other aspects.

📝 Key Takeaways:

Calculating overheads provides you a safety net if the project is under budget. It also covers the miscellaneous expenses for doing the job.

6. Get quotes for subcontractor fees

Delegating is the best way to provide the best services to your customer and handle multiple projects simultaneously. So, hiring subcontractors is a good strategy.

You can also include a subcontractor if the project scale is large and you have a limited team to handle the operations. The subcontractor can help you complete the landscaping project and offer you a lower price to help you lock in some commissions.

You can ask for a quote from the subcontractor to estimate your client’s quote.

📝 Key Takeaways:

Getting subcontractor quotes before pricing your services is a good idea if you don’t want to pay the subcontractors out of your pocket.

7. Add markup to the subtotal

The last step in estimating your landscaping job is to determine your profit margin and add the specific markup percentage to the project’s overall cost.

The profits margin is closely related to the markup, as it is your net sales revenue minus the material, labor, and overhead costs.

The higher the margin, the more the profits. You can retain more business money if you gain a higher profit percentage.

While a markup is an amount you add to the cost once the overall cost is calculated, you include the final estimate pricing once you add your markup in individual segments.

Products and services can have different markups; once the total price is calculated, it consists of your profits.

📝 Key Takeaways:

Markup is where you count in your profit margin and expenses like payment processing fees.

💡 Tip:

You need to ensure that you don’t overprice your estimate because it will increase the chance of losing your prospect to other landscaping businesses and minimize the chance of converting your prospect into a long-term client. You also don’t want to underprice your landscaping job estimate.

Sum Up to Get the Total Cost

Once you get the overall cost of your landscaping business operations and know your markup and profit margins, you need to sum up the total to finalize the estimate.

Using professional software, you can choose a manual estimation process or the latest and modernized automation process.

We recommend you choose a professional estimation software that can help you bypass the drawbacks of manual processing and ensure that you quickly achieve your desired goals.

Integrating a powerful estimate software can help you remove the inefficiencies and errors in the estimation process, help you maintain a secure record of previous estimates, and save time, effort, and resources.

You can choose a desirable template that can help you create professional estimates and includes vital details that can help you get the job.

Within a few clicks, you can get detailed information about your previous jobs, which can help you plan your future landscaping estimate better. You can file your taxes easily, and it’s smooth for your account management team to handle the year-end accounting.

But only a handful of estimation software can offer you quality features that help you stand out in the landscaping and deliver an excellent customer experience to your clients.

Our team has filtered the best to help you escape the research hassle and avoid hitting the wrong target.

Frequently Asked Questions
  1. How to estimate a landscaping job?

    You can estimate a landscaping job by analyzing different factors like weekly labor hours, material cost, and overhead. You need to choose whether you want to follow a fixed or hourly pricing method that can help you ‌cover your cost and earn profits from the landscaping service delivery. We recommend you to choose hourly cost based pricing because that can help you cover a holistic approach to cover your expenses and achieve a better final price.


  2. What’s the average per hour price charged by a landscaper?

    The landscaper’s average per hour price can differ from state to state in the United States because of the variation in demand. But on average, the overall landscape cost can be between $50 and $100 depending on the scale of the service operations, demand, and project complexity.


  3. Why choose software for creating landscaping estimates?

    Choosing estimation software in landscaping can help remove the traditional process dependencies and achieve accurate estimates. With prospects looking for quick and reliable estimation processing, powerful software can help you achieve their desired requests. You can create quick estimates based on the requirements and send them to your prospective client within a few clicks. You can check the history of your estimates and keep an overview of your operations. You can make changes to the estimation while reviewing it to ensure that you get an competitive edge.


  4. Which is the best estimation software?

    InvoiceOwl is the leading estimation and invoicing software you can use for your landscaping business. You can minimize the dependency on manual processing and automate the finance management system. The software can send real-time, quick notifications to your clients with well-vetted estimates and invoices that can be reviewed and approved quickly. You can save your time, efforts, and resources, which can be utilized to enhance your core business operations and achieve your business goals.


  5. Is the landscaping business profitable?

    Yes. The demand for quality landscaping services is rising, and there are a lot of opportunities for you to make great profits. You need to offer premium landscaping services for commercial jobs, maintenance landscaping, and other landscaping work at a highly reasonable price that can help you stand out in the crowd. Being a professional landscaping company, you can use different advanced technologies and tools to enhance your overall business productivity and minimize the cost of operations.

Estimate to Win the Jobs

Create and send professional estimates in minutes with InvoiceOwl to maximise your profits by winning more jobs.

InvoiceOwl Got You Covered

InvoiceOwl is the leading estimation and invoicing software for contractors that delivers a quality platform to create powerful invoices. You can send the invoices quickly to your clients within a few clicks and get instant updates on their decisions.

You can choose from different templates available on the software that can simplify the estimation process.

The software offers a wide range of features, like recording and generating sales reports, invoicing processes, and creating an estimation that strengthens your finance management ecosystem.

You can remove the manual estimation and invoicing process and digitize your operations to check the history, update changes, and update quickly.

The UI/UX of InvoiceOwl is smooth and easy to adapt, which helps your landscaping workers to use the software to its maximum potential. The blend of software pricing and the overall functionality and usability make it stand out from the rest.

You can rely on the software to help you prepare complex and sophisticated invoices and estimates that you require for different commercial large-scale projects.

You can also handle the simple yet challenging residential project estimation and invoicing for your landscaping business.

Access the and transform your landscaping estimation and invoicing operations.

Author Bio
Jeel Patel
Jeel Patel
Founder

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.

United States

Manassas

US