Landscaping covers a wide variety of projects. It includes anything from leaf removal and weed maintenance to full water feature installation and machine work. Since there is so much variation, it can be difficult to figure out how to price your services.
Knowing what factors should influence costs can help your business maintain profit gain. There is an important balance between affordable pricing, staying competitive, and ensuring that you’re bringing in profit.
In this article, we’ll break down landscape pricing, and what influences the cost. Using some tips and tricks, we help determine how business owners can set their pricing.
The Importance of Understanding Landscaping Prices
Landscaping covers a large scope of projects. Bigger landscaping projects cost homeowners around $9,000, with typical prices ranging from $2,000 to $20,000. This sliding scale of projects can make it hard to determine how to balance your pricing.
With over 600,000 landscaping businesses in the US, the market is competitive – and it’s growing. Understanding how to organize landscaping pricing can help ensure that you stay ahead in crowded industry. It also helps guarantee satisfied customers and employees.
Let’s look at a few of the factors that influence the cost of landscaping projects:
The size of the landscaping area
A project could be quick and easy for a smaller space. The size of the yard/work zone will be a big factor in how you price your services. On average, landscaping costs about $12 per square foot. This increases or decreases depending on the complexity of the project.
The complexity of design and implementation
Some landscaping designs may be simple. Others may want a custom stone walkway and a three-tiered waterfall. The desired design will influence the pricing model. The more complex, the more expensive the project will be.
The choice of plants and materials
Some plants and materials cost far more than others. Not every homeowner can afford the most expensive stones and rare flowers. But for those that can, the cost of the project will go up accordingly.
The availability of said materials
On the note of materials – not everything is readily available. Supply chains and locations will influence this. If certain materials have to be specially ordered and delay the project, this will be more expensive.
The location and access considerations
Hopefully, the project is accessible and easy to get materials to. However, there will be some project sites that are harder to get to. If a site requires increased labor to get materials to and from, the cost should reflect that.
Machine work and land moving
Some landscaping projects require machine work to relevel ground or carve out hillsides. Many landscaping businesses will have to contract out for this. The cost of operating/renting machinery isn’t cheap.
Automation and technology integration
Even the great outdoors can’t avoid technology. Many homeowners will wish for automated systems in their yards. This could be sprinkler systems, lighting, or even speakers wired into different areas.
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Landscaping Cost Breakdown
Landscaping is a blanket term for an array of services. Because of this, the price points can get a bit confusing. How one service is priced may not align with how you’d price a more complicated job.
Here are a few of the landscape costs that should be evaluated:
Initial Costs Vs. Long-Term Value
The initial cost of landscaping may seem expensive, but it pays off. Homeowners can expect a 15-20% increase in home value. Landscapers should feel confident that their prices are worth the investment.
Material Costs Vs. Labor Costs
Materials and labor are the two biggest factors in cost. Labor usually accounts for about 50% of the total project cost, while materials account for most of the other half. Labor tends to be more flexible and variable.
Cost Variations Based on Project Scale
Costs and pricing will vary according to the scale of the job. The complexity, the size, the materials, and the labor will all factor into this. Pricing can and should be adjusted for more labor-intensive work.
Hidden Costs to Consider Before Starting
Some costs may sneak up on you. Things like shipping costs for rare materials, overtime hours, water regulations, and permitting can all add up. Keep in mind that things happen, and little expenses may start to pile on.
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8 Easy Steps to Determine Your Landscaping Prices
Landscaping projects vary so much in scale and scope. Understanding what influences price and how to evaluate a project will help you set reasonable costs for your services. The key is to cover the essentials, while still creating a reasonable profit margin.
Follow these simple steps and your business could see an increase in profit:
1. Assessing the Scope of the Project
Consider the square footage, the access, and the amount of time and labor that it will take to complete the project. The details and complexity of the job, regardless of size, will also impact your price.
2. Factoring in Overhead Expenses
The costs of running your business (equipment, software, office labor, location rental etc.) should be considered when setting your price.
3. Determining a Realistic Profit Margin
Your profit margin is the take-home profit on top of the costs of labor and materials. Profit margins should be reasonable and attainable. Most small/medium landscaping companies see an average of 15% profit margin.
4. Evaluating the complexity of the job
The scope of the project is one thing – the details are another. The more complex the project, and the more particular the landscaping, the more expensive the ticket.
5. Estimating material and labor expenses effectively
Do your research on materials and consider doing a site visit before sending a quote. This will allow you to properly evaluate material can labor expenses.
6. One-off jobs versus ongoing jobs
Consider the scope of the job. Is it ongoing maintenance or one large renovation project? Larger, one-off projects often end up costing more. Your pricing should reflect this.
7. Choose a pricing model
Pricing models (either hourly or per project) can determine how you’ll quote projects. Choose one that best fits the services that you offer. Smaller, ongoing jobs may be best suited for hourly pricing. More complex projects are often better with a flat rate – though you’ll want to be sure you’ve quoted this appropriately.
8. Dial in your quoting process
A big component of setting a good price point and earning profit is how you quote projects. Learning how to evaluate the scope and assess materials is a helpful skill. Once you know how to do this, your quotes will get easier and more efficient.
Related Article: The Ultimate Guide to Pricing Landscaping Jobs
Top Takeaway Tips to Determine Your Landscaping Prices
Before you get started on setting price points, it’s important to cover the basics. Here are a few helpful tips for assessing pricing:
- Research the market. Know what your competitors are offering and what kind of services they provide. Being able to offer comparable prices and unique services will help you stand out and stay busy.
- Evaluate your client base. Do some research on homeowners in your area and what kind of clientele you typically work with. Understanding what homeowners can realistically afford can ensure that you aren’t pricing yourself out of the market. If you’re working with more affluent communities, you can price your services accordingly.
- Consider alternate supply retailers. One of the major costs of landscaping is the materials. Evaluate your local sources and what kind of business accounts they offer. Compare prices to areas around you. If possible, try to source materials at lower rates
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