Most landscaping business owners price jobs one of two ways: copying what competitors charge, or guessing based on how the job “feels.” Neither approach builds a profitable, sustainable business.
Landscaping is brutal on margins. Low barriers to entry mean constant price pressure. Seasonal swings create cash flow chaos. And the difference between a busy landscaper and a profitable one can be $50,000 a year—on the same revenue.
This guide will show you how to price landscaping work systematically—so you know exactly what you’re making on every job, every time.
Understanding Your Costs
Before you can price anything, you need to know what it actually costs to run your business.
Labor: Your Biggest Cost
For most landscaping companies, labor is 35-45% of revenue. But calculating true labor cost is tricky.
Loaded labor rate calculation:
Base hourly wage: $18/hour
+ Payroll taxes (7.65%): $1.38/hour
+ Workers' comp (varies, ~8%): $1.44/hour
+ Paid time off/holidays: $1.00/hour
+ Training time: $0.75/hour
= Loaded rate: $22.57/hour
But that’s not your billable rate—that’s your cost. To set a billable rate:
Loaded rate: $22.57
÷ Productivity factor (0.75-0.85): ÷ 0.80
= Effective hourly cost: $28.21
The productivity factor accounts for drive time, breaks, equipment loading, and non-billable time. A crew that’s “working” 8 hours generates maybe 6.5 hours of billable work.
Equipment Costs
Every piece of equipment has a true hourly cost:
| Equipment | Purchase Price | Life (hours) | Maintenance | Hourly Cost |
|---|---|---|---|---|
| ZTR Mower | $12,000 | 2,000 hrs | $2,000 | $7.00/hr |
| Walk-behind | $4,000 | 1,500 hrs | $800 | $3.20/hr |
| Truck | $55,000 | 150,000 mi | $15,000 | $0.47/mi |
| Trailer | $6,000 | 10 years | $1,500 | $0.75/day |
| Trimmers | $600 | 500 hrs | $200 | $1.60/hr |
| Blowers | $400 | 400 hrs | $150 | $1.38/hr |
When you’re running a mower for 8 hours, that’s $56 in equipment cost—before labor, fuel, or overhead.
Overhead
Monthly overhead adds up fast:
- Insurance (liability + auto): $1,200-2,500
- Office/shop rent: $800-2,000
- Software/technology: $200-400
- Marketing: $500-2,000
- Admin/bookkeeping: $1,000-2,500
- Owner salary (yes, this is real): $5,000-10,000
- Miscellaneous: $500-1,000
Typical monthly overhead: $9,000-20,000
To absorb this overhead, you need to know your total billable hours per month. If you have 3 crews running 160 billable hours each, that’s 480 hours. $15,000 overhead ÷ 480 hours = $31.25 overhead per crew hour.
Pricing Maintenance Work
Recurring maintenance is your bread and butter. Here’s how to price it right.
Per-Visit Pricing Model
The most common approach—charge per visit regardless of time (within reason).
Calculating per-visit price:
Step 1: Estimate time required
- Drive time to property: 15 min
- Mowing: 25 min
- Trimming: 15 min
- Edging: 10 min
- Blowing: 10 min
- Total: 1.25 hours
Step 2: Calculate costs
- Labor (1.25 × $28.21): $35.26
- Equipment (1.25 × $10): $12.50
- Fuel: $8.00
- Overhead (1.25 × $31.25): $39.06
- Total cost: $94.82
Step 3: Apply margin (35%)
- Price: $94.82 ÷ 0.65 = $145.88
- Round to: $145/visit or $150/visit
Man-Hour Rates
For complex or variable work, hourly billing makes sense.
Competitive hourly rates by region:
| Market | 1-person crew | 2-person crew | 3-person crew |
|---|---|---|---|
| Rural/small town | $45-55/hr | $75-95/hr | $100-130/hr |
| Suburban | $55-75/hr | $95-125/hr | $130-170/hr |
| Urban/affluent | $75-100/hr | $125-175/hr | $170-250/hr |
These rates should achieve 30-40% gross margin when your cost structure is dialed in.
Monthly Contract Pricing
Recurring contracts are more valuable than per-visit work because:
- Predictable cash flow
- Lower sales cost per dollar of revenue
- Better route density over time
Contract pricing strategy:
Per-visit price: $145
Visits per year: 32 (weekly Mar-Oct, biweekly Nov-Feb)
Annual value: $4,640
Monthly contract: $4,640 ÷ 12 = $386.67
Round to: $385/month or $399/month
Pro tip: Offer a small discount (5-10%) for annual contracts paid monthly vs. per-visit billing. The predictability is worth it.
Tiered Service Packages
Good-better-best pricing captures more revenue:
Example package structure:
| Tier | Includes | Monthly Price |
|---|---|---|
| Basic | Mow, trim, edge, blow | $169 |
| Standard | Basic + bed maintenance, shrub trim (2x/yr) | $249 |
| Premium | Standard + fertilization program, seasonal color | $379 |
Most customers choose the middle option. Some choose premium. Nobody feels forced into the cheapest option.
Pricing Installation Work
Installation projects (patios, plantings, irrigation, etc.) require different pricing math.
Material Markup
Standard markups for landscaping materials:
| Material Type | Typical Markup |
|---|---|
| Plants/trees | 50-100% |
| Stone/pavers | 40-60% |
| Mulch/soil | 50-75% |
| Lighting fixtures | 40-60% |
| Irrigation parts | 50-75% |
A $500 plant order should generate $750-1,000 in material revenue.
Labor for Installations
Installation work typically runs $40-75 per man-hour in labor charges, depending on complexity and market.
Example: Patio Installation
Materials:
- Pavers (400 sq ft × $6): $2,400 × 1.5 markup = $3,600
- Base material: $300 × 1.5 = $450
- Sand: $100 × 1.5 = $150
- Edging/poly sand: $200 × 1.5 = $300
Material revenue: $4,500
Labor:
- Excavation: 8 man-hours
- Base prep: 6 man-hours
- Laying pavers: 16 man-hours
- Finishing: 4 man-hours
- Total: 34 man-hours × $55 = $1,870
Equipment:
- Plate compactor (rental): $150
- Skid steer (rental): $350
Equipment total: $500
Overhead allocation: $400
Total project price: $7,270
Design Fees
Charge separately for design work, especially on projects over $5,000:
- Simple designs: $150-300
- Complex designs: $500-1,500
- Full landscape plans: $1,500-5,000
Credit design fees toward installation if they proceed. This filters out tire-kickers.
Seasonal Pricing Adjustments
Smart landscapers adjust pricing for seasonality:
Spring Rush (March-May)
- Highest demand period
- Price at full rates or premium
- Be selective about new customers
- Don’t discount to “fill the schedule”
Summer (June-August)
- Steady maintenance revenue
- Good time for installation projects
- Consider small discounts on large installs to keep crews busy
Fall (September-November)
- Strong for cleanup and planting projects
- Price fall cleanups at premium (everyone needs them at once)
- Aeration/overseeding generates good margin
Winter (December-February)
- Pruning, winter projects, planning
- Lower prices may be necessary to maintain cash flow
- Use slow time for equipment maintenance and training
Common Pricing Mistakes
Mistake 1: Pricing to “Win” Jobs
If you’re closing 80% of quotes, you’re too cheap. Your close rate should be 40-60%. Some people choosing competitors on price is healthy—it means you’re not racing to the bottom.
Mistake 2: Underpricing Small Jobs
A $50 mow that takes 45 minutes including drive time generates $66/hour in revenue. After labor, equipment, and overhead? You’re making $5.
Set minimums: No visit under $75-100, regardless of size.
Mistake 3: Not Charging for Drive Time
If a customer is 30 minutes from your core service area, that’s an hour of round-trip time built into every visit. Price accordingly or decline the work.
Mistake 4: Giving Away Extras
“While I was there, I pulled some weeds and cleaned up the beds.” Stop. Every extra service has a value. Quote it, get approval, and charge for it.
Mistake 5: Annual Contracts Without Price Escalators
Your costs increase every year. Your contracts should too. Build in 3-5% annual increases or you’ll be underwater within 3 years.
Know Your Numbers
After every month, you should know:
- Revenue per crew hour - Are you hitting your target rate?
- Labor cost percentage - Should be 35-45% of revenue
- Gross margin by service type - Which services make money?
- Customer profitability - Who’s worth keeping?
Track these monthly and patterns emerge. You’ll see which routes are profitable, which services have the best margins, and where you’re losing money.
Benchmarks for Healthy Landscaping Companies
| Metric | Target Range |
|---|---|
| Gross margin | 45-55% |
| Net profit margin | 10-20% |
| Labor as % of revenue | 35-45% |
| Materials as % of revenue | 20-30% (maintenance) / 30-40% (installation) |
| Overhead as % of revenue | 20-30% |
| Revenue per field employee | $80,000-120,000/year |
If your numbers are significantly off from these benchmarks, there’s opportunity to improve.
Getting Help
Pricing is where many landscaping businesses either thrive or slowly bleed money. If this feels overwhelming, you’re not alone.
Consider:
- Our profit margin calculator helps you model different pricing scenarios
- A fractional COO can set up job costing and route optimization systems
- Monthly financial reviews catch pricing problems before they compound
The difference between a landscaper making $50,000 and one making $150,000 on the same revenue often comes down to pricing discipline. Get this right, and everything else gets easier.
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