How To Price Landscaping Jobs? Step-by-Step Guide
This guide breaks down labor, materials, and profit margins to help you price landscaping jobs like a pro.
Whether you’re new to landscaping or looking to grow, accurate pricing is key. It helps cover your costs, ensures a profit, and builds trust with clients.
Rapid urbanization and extensive infrastructure projects are driving a strong demand for professional landscaping services.
In the U.S., landscaping generates over $100 billion annually, with 600,000 businesses employing over a million people. From urban parks to backyard makeovers, demand for landscaping expertise keeps growing.
As cities expand and more people invest in improving outdoor spaces, the landscaping industry continues to thrive.
Residential projects like outdoor kitchens and sustainable gardens, along with commercial contracts for office campuses or public parks, are fueling this growth. With so much opportunity, the competition among landscapers is fierce.
In such a hot market, figuring out how to price landscaping jobs can seem tricky, but a clear approach makes it easier.
Let’s understand how:
What Exactly Is a Landscaping Estimate?
A landscaping estimate is a comprehensive breakdown of the costs required to complete a landscaping project. Think of it as a roadmap that outlines every aspect of the project. Share it with clients upfront to set clear expectations.
For example, if you’re creating a backyard patio, the estimate might include:
- Pavers: $2,000
- Gravel: $500
- Labor: $1,200
- Permit Fees: $150
This level of transparency builds trust with clients. It shows them exactly how you will spend their money. It also positions you as a professional, making it easier to secure projects and maintain strong client relationships.
For instance, consider a client who wants a detailed garden redesign.
They may be hesitant about the initial cost, but an itemized estimate showing exactly where their money is going—plants, mulch, labor hours—can help justify the expense and make them more comfortable with their investment.
Transparency isn’t just about breaking down costs—it’s also about setting realistic timelines and communicating potential challenges.
For instance, if certain plants are seasonal or a project requires specific permits that could delay work, including this information in the estimate can help manage client expectations upfront.
Key Steps for How to Price Landscaping Jobs
Step 1: Know Your Costs
To estimate landscaping jobs accurately, you need a clear understanding of the costs involved.
Let’s break them down:
Labor Costs (hourly or project-based)
Labor is often the largest expense. Calculate it based on time needed and hourly rates. For example, if a garden redesign requires two workers to spend three eight-hour days on-site. At $25 per hour each, your total labor cost would be $1,200.
Don’t forget to account for overtime or specialized skills. For larger projects, like installing a retaining wall or creating a custom water feature, you may need specialized contractors who charge higher rates.
Including their costs in your estimate ensures you remain profitable without undervaluing the job. For example, if a client wants a detailed stone wall built, you might need a mason whose rate is closer to $50 an hour.
Materials (mulch, plants, gravel)
Costs vary widely by project. As a simple example, 20 bags of mulch at $5 each would cost $100. By adding 10 shrubs at $15 each, the materials expense more than doubles, bringing your total to $250.
Don’t forget to factor in delivery fees for large materials like stones, sod, or gravel. If you source specialty items, like exotic plants or custom pavers, these costs can also significantly impact your estimate.
Equipment (mowers, trucks, or specialised machinery)
These costs include rentals, fuel, and maintenance. For instance, renting a mini-excavator for two days costs about $300, plus $50 to $100 for fuel depending on usage and local prices.
If your company owns its equipment, it’s essential to calculate depreciation, maintenance, and storage fees. Even if you’re not renting, these costs impact your bottom line.
Overhead
Overhead covers the necessary ongoing operating expenses required to keep your landscaping business running smoothly. These are indirect costs that don’t directly tie into a single project but are essential for operations.
Common overhead expenses include insurance, office costs, and vehicle maintenance. For instance, if your monthly overhead is $2,000 and you complete 10 jobs a month, your overhead cost per job is $200.
Seasonal costs, like snow removal equipment in winter or increased advertising during peak seasons, can also affect overhead. Ensure your pricing accounts for these fluctuations.
Tip! You’ll want to put overhead costs into your overall pricing structure rather than listing them separately. This might be adding a cost cushion to your other expenses.
Many landscapers add this as part of the “design and management” fee. This keeps pricing straightforward and avoids upsetting clients.
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Step 2: Setting Your Profit Margin
Once you’ve calculated your total costs, it’s time to determine your profit margin. Profit margin is the money left after covering expenses.
Most landscapers aim for a 15-20% profit margin, although this can vary based on the stage of your company, location and competition.
For example, if your expenses for a job add up to $2,475, adding a 20% profit margin would look like this:
$2,475 x 0.20 = $495
Total Price = $2,475 + $495 = $2,970
This amount covers all your expenses and adds a healthy profit, making it a sustainable rate for your business.
Here’s a great example of setting a profit margin in a competitive market:
A Dallas landscaping company scored a $250,000 residential project by keeping their pricing simple and clear. The job included a custom patio, native gardens, and an irrigation system. They calculated $140,500 for labor, materials, equipment, and overhead, then added a 20% profit to bid $168,600.
What set them apart was a detailed, transparent estimate. They broke down every cost. They delivered on time and on budget, leaving the client thrilled. This success not only earned them referrals but also more jobs in the same high-end neighborhood.
Step 3: Choosing Your Pricing Model
Selecting the right pricing strategy—hourly rate or fixed rate—depends on the type of work and the client’s preferences.
Many landscapers find that hourly rates work best for routine maintenance or smaller, ongoing tasks. While flat rates make more sense for large, structured projects with a clear scope.
The best strategy is to choose a pricing model that aligns with both the complexity of the project and your client’s needs. Try to provide a fair approach for both parties.
Hourly Rate
Charging by the number of hours works great for maintenance or smaller projects because it’s flexible. If something unexpected pops up or the client adds tasks mid-project, you can easily adjust. Hourly rates can also be a good choice for ongoing contracts like weekly lawn care.
The downside? It can lead to tension if clients think the work is taking longer than it should, so communication is key.
For example, a Miami landscaping company charged $50/hour for yard maintenance, expecting a two-hour job. Extra tasks like planting flowers extended it to three hours, totaling $150. The client loved the work but was surprised by the final cost.
The landscaper learned to explain pricing upfront and include potential extra charges in estimates. This improved communication and prevented misunderstandings with future clients.
Fixed Rate
For larger projects with a clear scope, a fixed rate gives clients a predictable budget and reflects your expertise. However, underestimating costs can hurt profits.
For example, a Chicago company quoted $10,000 for a patio and fire pit. But they faced $1,500 in unexpected grading costs, which they had to absorb. The landscaper learned to add wiggle room in fixed-rate estimates to cover surprises and protect their profit.
Tip! Use fixed rates for large projects and hourly rates for smaller, ongoing tasks. This approach balances clarity for clients with flexibility for your business.
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Step 4: Pulling Together the Final Estimate
After calculating labor, materials, equipment, and overhead, compile it all into a detailed landscaping estimate. What to Include:
- Project Description: Outline the scope of work.
- Cost Breakdown: Detail labor, cost of materials, equipment, and other expenses.
- Payment Terms: Specify deposits, installment options, or full payment schedules.
- Timeline: Provide an estimated start and completion date.
A landscaping company in Austin was hired to revamp a backyard with a new lawn, garden bed, and stone pathway. They estimated $3,800, including $2,000 for labor, $1,200 for materials, $400 for equipment, and $200 for overhead. With 50% upfront and the rest due after, the clear breakdown and timeline (April 10–12) impressed the client, who approved quickly.
Creating and managing job estimates can take time. But our Estimate Generator makes the estimation process faster and more professional.
It breaks down costs by adding labor, materials, equipment, and additional expenses, giving your clients a complete view. You can also request deposits, apply discounts, and add taxes, all within the tool. Plus, once approved, estimates can be converted into invoices.
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Additional Tips for Accurate Pricing
- Track Job Times Use time-tracking tools to measure how long specific tasks take, helping you refine your estimates. For example, if building a stone pathway typically takes 10 hours. You can confidently quote future jobs based on this benchmark.
- Add a Pricing Cushion: Include a contingency fee for unexpected costs. For instance, if the cost estimate for a garden project is $2,000, add a 10% cushion.
- Study Competitors: Researching competitors’ rates helps you stay competitive without underpricing.
For instance, if competitors are charging significantly less for similar jobs, consider emphasizing your unique value. such as eco-friendly practices, faster timelines, or higher-quality materials, to justify your rates. A suburban landscaper adjusted their rates 20% higher. By balancing pricing with premium services, they started winning more jobs.
- Adjust for Seasonality: Demand for landscaping services often peaks in spring and summer. Adjust pricing to reflect seasonal demand. For example, offer discounted rates for fall cleanups or early spring bookings to attract off-season clients.
Final Thoughts on How to Price Landscaping Jobs
Learning to price landscaping jobs takes time and practice, but it doesn’t have to feel overwhelming.
Start by knowing your costs, setting a fair profit margin, and breaking everything down into a clear and accurate estimate. Over time, pricing will feel like second nature. Especially if you use our Invoice Maker or Estimate Generator to simplify the process.
Remember, pricing isn’t just about covering costs. It’s a chance to show your professionalism, earn client trust, and add value to your business. Whether it’s a small maintenance job or a big project, knowing how you price your landscaping job will help you stay competitive, make a profit and grow your landscaping business.
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