The lawn care and lawn maintenance business is a bright business sector that employs millions of people and agencies worldwide. However, lawn care is a demanding job, and only knowledge about lawn mowing and lawn grooming is not enough to survive as a business owner.
Building and growing an agency or contractual business in the lawn care segment requires the appropriate pricing model to deal with the competitive market and clients. In the end, it’s about client retention and profitability, which is not possible without quality service and a viable costing strategy.
We are here discussing a step-by-step guide to help entrepreneurs and ambitious business owners to decide how to price lawn care services.
Table of Content
Different Factors To Consider To Price Lawn Care Services
All the listed and explained crucial elements and their respective roles will eventually enlighten you about your service scope and price structure.
1. Market Rates
The first and foremost thing to do is check all the expense types and calculate them sincerely. Lawn services have some basic costs which need to be addressed as per the respective project and client.
- Cost of Labor
If you are a lawn care professional, including your labor charges is necessary to follow the disciplined, formal estimation method. The energy that you are investing in should be compensated despite the share of profit.
Similarly, counting their hourly wage becomes equally necessary if you are working with employees. As per the market and national laws, employees should get their fair wages, and that becomes your first essential expense while calculating the price.
If you know the coverage one employee can give, then it becomes very clear to estimate how many hours it will take to compete for the task with how many employees.
With some experience in the market or your own working experience, you can set the area one worker is supposed to cover, then you can divide it by the overall area to get the number of employees and hours.
Here, some basic calculation is needed to get approximate hours and wages for the final labor costs.
- The size and condition of the property
The lawn care service can not be calculated without looking at the size and condition of the location. If it’s a large garden space with messed up lawn conditions then you might have to give lots of time, attention, and energy, which won’t be the case with a small backyard garden of any residential place.
Lawn mowing service with proper grass cutting, weeding, and pest control can be an extensive service that is highly reliable on the state of the site. Proper location measurement will help you calculate the number of hours, employees, and materials.
So, to go further with the calculation of lawn service price, it’s highly important to get measurements of the yard size.
- Cost of material and equipment
Lawn professionals always try to understand lawn health to decide which material to use for certain treatments. Usually, the packaging of the material contains information about how much quantity would be enough for how much space. So, to calculate material costing, information on area and service type would be sufficient apart from brand and quality.
Furthermore, when it comes to equipment costs, whether you are purchasing or renting, you should give extra thought to this expense division. Rentals can be calculated per service or per square foot but purchases need to be added sensibly to not burden any specific bid and include its expense part at the same time.
- Cost of overhead and taxes
Overhead costs like electricity bills, transportation costs, marketing costs, rents, maintenance charges, etc., are also supposed to be considered while deciding the service price
To run the lawn care business and grow the company, income sources such as lawn service prices should have proportion to business expenses and taxes. Taxes are an important part of operations, and they also should be contributed to the service charges.
2. Your Goals and Targets
- Profit Margin
The profit portion is the last step of calculating the lawn care service price. Calculation of profit margin is a very individual subject. There is no one size to fit every contract and every business. You can keep any margin ratio as per your business and project to make a healthy deal for both parties.
- The Business Nature
The nature of common lawn care services is very fluid. Seasons like spring and summer get all the peaking points, whereas, seasons like autumn and winter make the business hard to survive. So this seasonality aspect is also important to know while taking business decisions.
- Price Type
It’s important that you decide how you want to price your service. With per hour and per square foot, multiple calculations take place. You will have to calculate everything and divide with per hour or square foot, which is a small unit. On the other hand flat fee or per-service fee, it is a bit easier. Both have different benefits, and as a business owner, you have to decide which one is more suitable for you. So, precise calculation with a clarified approach is a must to build a solid base for business operations.
3. Pricing Strategy
- To cope with the pricing and seasonality, offering valuable services like snow removal and pretty less intense lawn service during winters can increase your service range and keep the business going.
- Offering multiple plans is also a common trend in lawn care companies. That way, you can divide your services and create different price strategies.
- Once the lawn care prices are decided as per hour, per service, or per square foot it is not like they cant be changed. Due to different factors, prices are always changing, and you have to decide which factors will determine those changes.
- Helpful Pricing chart
An easy and useful pricing chart should be there in your office for your well-maintained lawn solutions. Generally, the yard sizes are in standard dimensions, or you will get to know the typical sizes of yards in your target area. So with that, you can keep track of costs and elements involved to standardize your pricing structure for easier use.
A spreadsheet for each common yard size containing the typical price range, services, materials, labor cost, overheads, equipment, and profit will be very helpful for daily business activities and to save time and energy in calculations as well.
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For commercial projects, the crucial factors are the same as discussed above. However, some extra expenses might be needed to provide and showcase the professionalism of your work.
Uniforms, safety tools, technical tools for landscaping, or recruitment of a landscaping professional can increase the price range. That’s why a commercial lawn care contract will need a more professional and wide approach for estimation.
The value and benefit that you provide are the primary keys to marketing. Even if you are practicing intense marketing activities or basic marketing activities, the convenience, appearance, cleanliness, and effective solutions your business is providing can be the core promotional pillars to convince and attract clients.
Lawn care pricing can be done in multiple ways. The lawn care pricing calculator is a very easy and helpful tool for performing basic calculations and getting a rough idea. Lawn care software is also another good option if you want to invest in something substantial for your business.
These advanced tools can be expensive or free, but they can make your work more organized and seamless. Calculations must need your inputs and focus as an automatic tool can not determine everything precisely, but it can surely support you in several ways.
Lawn care professionals decide their rates as per the latest market trends. However, when you want to establish a firm with a long-term vision, you can not allow the market to alter your service charges every now and then. That’s why by considering futuristic trends, upcoming technology, regional demand, global standards, and business objectives, one can come up with a firm pricing module that creates a reliable image of the company.
By understanding our lawn care pricing guide, any professional can decide his own service charges according to his city and market and run a lawn care business successfully. This guide elaborates on essential factors, and determining elements is very helpful to take the right direction when you are unsure of your new business and its commercial decisions.
Once you start your own lawn care business, then ensure that you start using FieldCamp, which is a leading service scheduling software. Using this software, you can schedule jobs, assign jobs to workers with a click, track progress, create reports, and manage payments. To know how FieldCamp will benefit your business, get access to a FREE trial, and explore many advanced features.