As a landscaper, what’s one of the first things you think of when you think of the challenges you face every day?
Let us guess…
Is it pricing?
It’s no surprise, considering the difficult customers, needs of your crew members and competition to account for daily.
But, believe it or not, one of the best ways to lock in a solid pricing strategy is to learn from other local landscapers. And you don’t have to figure it out on your own, either.
Keep reading to learn how you can cash in on an effective pricing strategy as a landscaping company.
Different Pricing Models in Local Landscaping
Some local landscapers don’t have much of a structure to their pricing strategies. They tell one customer that they’ll charge them a certain amount. The next day, they end up at a different customer’s home and take a shot in the dark, ending up with a cheaper or more expensive price altogether.
This isn’t because every other landscaping contractor you meet is lazy, or doesn’t know what they’re talking about.
It has a lot more to do with uncertainty and a lack of confidence in their prices.
Not to mention the fact that every piece of land’s landscape is going to be unique.
So, first, understand your costs to complete an average job. Then, let’s dive into your choices for pricing models…
Market Penetration Pricing
The goal of market penetration pricing is to get more leads to become paying customers by offering them a cheaper price at first.
Think of it as your “in” to penetrate the market. With this sort of strategy, you’re generating more brand awareness for your business, and your new customers get to try out what you have to offer with less risk. It’s a win-win.
Eventually, you do bring your prices back up to their normal range, but you still want to keep those customers on once you do so.
Example: Internet providers like Xfinity often offer discounted packages to their new customers when they first sign on with them. After this time is up, customers have to pay full price to continue services with their Internet provider.
Economy Pricing
Economy pricing can be a difficult one, for lawn and landscape professionals in particular.
Why, though?
In order to make the big bucks (or even the small ones, really) with this sort of pricing, you have to do a lot of work. You will not have the time to put a bow on the top of the pretty landscaping package. In other words, you can’t really personalize any of your jobs.
This means you have to get the job done, and get it done quick. You don’t get the chance to work on customer retention, or building a loyal customer base. Plus, you’re missing out on upselling opportunities.
Example: Airlines love this type of pricing strategy. They offer economy-priced seats for way cheaper than first-class tickets. Those who choose economy tickets aren’t likely to be loyal flyers with a certain airline– at least, nowhere near as likely as those folks who buy first-class ones.
Service Pricing
Service pricing is a little tougher to define, but it’s something you see a lot more in service-based companies, like with local landscapers.
For local landscapers, service pricing can be a bit of a mystery. There are so many variables to consider, from the size of the property to the type of services requested. And then there’s the question of whether to charge by the hour or by the job. Thankfully, there are a few tried-and-true methods that most landscaping companies use to price their services.
The most common method is to charge by the hour. This is simple and straightforward, and it allows landscapers to give their customers an estimate of how long the job will take.
However, it can also be unpredictable, as unforeseen circumstances can extend the length of the job. As a result, some landscapers prefer to charge by the job. This means that they’ll give their customer a set price for the complete project, regardless of how long it takes.
While this can be more expensive for the customer upfront, it can provide peace of mind knowing that they won’t be charged more if the job takes longer than expected.
Whichever method you choose, be sure to communicate your pricing clearly to your customers before beginning work. That way, there will be no surprises when it comes time to pay the bill.
Example: A small residential property will typically cost less to maintain than a large commercial property. Similarly, a one-time project will generally cost less than ongoing maintenance. Of course, there are always exceptions to these rules, so it’s best to get a quote from your chosen landscaping company before making any decisions.
Premium Pricing
As any local landscaper will tell you, premium pricing is a hot topic in the landscaping industry. A landscaping company wants to be able to charge its customers a fair price for its services, but local competition can often force prices down. As a result, many companies are turning to premium pricing in order to stay afloat.
Premium pricing means charging a higher price for a service or product than the competition. This can be done by offering a unique service or by simply charging more for the same service. Either way, premium pricing is a great way to make sure that your company is getting the income it needs to survive and thrive.
But not everyone is a fan of premium pricing. Some customers feel like they’re being ripped off, and local businesses can often find themselves undercutting each other on price. However, at the end of the day, premium pricing is a great way to ensure that your company stays in business.
For example, think of all of those fancy designer clothing brands like Yeezy’s, Gucci, ect. These products are priced extremely high “premiumly” although the materials are the same as the less expensive ones.
For some help getting your landscaping company’s pricing strategy aligned with your success, book a call with Landscape Marketing Hero!
How to Charge for Your Local Landscaping Services
If you’re a landscaping company owner, then you know that your time and services are valuable.
But what about those customers who want a small project done? How do you charge for your time and services when the job is only a few hours or days long?
In this blog post, we’ll walk you through some tips on how to price your local landscaping services. We’ll also give you some advice on how to make the most of those smaller jobs! So read on for helpful information on pricing your services correctly.
Per Square Foot Jobs
If you’re a local landscaper, you probably know that one of the most important factors in pricing your services is the size of the area you’ll be working on.
But how do you determine the square footage of a property?
It’s actually pretty simple– just measure the length and width of the area you’ll be working on, and multiply those numbers together. For example, if you’re going to be mowing a lawn that’s 10 feet wide by 20 feet long, the square footage would be 200 (10 x 20).
Now that you know how to calculate square footage, you can start to think about how to price your services. Many landscapers charge by the hour, but if you’re looking to give your customers a more accurate estimate, charging by the square foot is a great option.
Of course, your prices will vary depending on the services you offer and the difficulty of the project. But as a general guideline, you can expect to charge between $0.50 and $2 per square foot. So, for our example lawn above, the cost would fall somewhere between $100 and $400.
Per Hour Jobs
If you’re a local landscaper, you probably know that one of the most important factors in pricing your services is the size of the area you’ll be working on.
But how do you determine the square footage of a property? Just measure the length and width of the area you’ll be working on, and multiply those numbers together. For example, if you’re going to be mowing a lawn that’s 10 feet wide by 20 feet long, the square footage would be 200 (10 x 20).
Now that you know how to calculate square footage, you can start to think about how to price your services. Many landscapers charge by the hour. But if you’re looking to give your customers a more accurate estimate, charging by the square foot is a great option.
Of course, your prices will vary depending on the services you offer and the difficulty of the project. As a general guideline, you can expect to charge between $0.50 and $2 per square foot. So, for our example lawn above, the cost would fall somewhere between $100 and $400.
Per Project Jobs
If you’re thinking about starting a local landscaping company, one of the first decisions you’ll need to make is how to charge for your services. There are a few different options available, but one of the most popular is to charge per project. This means that you’ll agree on a price with the client upfront, and then you’ll be paid after the job is completed.
This pricing model has a few advantages. First, it’s easy to estimate how much the job will cost, so there’s no need to worry about billing for extra hours or materials. Second, it provides a certain level of certainty for both you and the client.
They know exactly how much they’ll be paying, and you know exactly how much you’ll be earning. And finally, it can help to build trust and rapport with clients, as they’ll see that you’re transparent and fair in your pricing.
By Landscaping Types
Hardscaping
Are you a local landscaper looking to start offering hardscaping services? Or maybe you already have a landscaping company but want to add hardscaping to your list of offerings? Either way, you’re probably wondering how to charge for your local hardscaping services. Well, wonder no more! Here are a few things to keep in mind when pricing your hardscaping services:
- Material costs: This is probably the biggest cost you’ll incur when performing hardscaping services. Be sure to factor in the cost of materials when coming up with your pricing.
- Labor costs: Of course, you’ll also need to factor in your own labor costs when pricing your services. Be sure to account for things like time spent traveling to and from the job site, as well as any time spent setting up or cleaning up after the job is completed.
- Profit margin: Finally, don’t forget to factor in a profit margin when setting your prices. After all, you’re in business to make money, not just break even! A good rule of thumb is to add 20-30% on top of your material and labor costs to ensure a healthy profit margin.
Softscaping
Are you a local landscaper looking to start charging for your services? If so, you’re not alone. Many landscapers are turning to softscaping to supplement their income. But how do you charge for your local softscaping services? The answer may surprise you.
First, let’s take a look at what local softscaping actually is. Softscaping refers to the planting and maintenance of gardens, lawns, and other areas of land. This can include everything from planting new flower beds to trimming hedges. In contrast, hardscaping refers to the construction of features such as decks, patios, and walkways.
Now that we know what local softscaping is, let’s talk about how to charge for it. The most important thing to remember is that your prices should be based on the value you provide. For example, if you’re able to help your clients save money on their water bills by installing a drought-resistant landscape, then you should charge accordingly.
Likewise, if you’re able to increase the value of your client’s property by creating a beautiful garden, then you should also charge accordingly. In short, local softscaping services are worth whatever price you and your client agree
Xeriscaping
If you’re local and looking for landscaping services, you may be wondering how to charge for your Xeriscaping services. First, it’s important to understand what Xeriscaping is. Xeriscaping is a type of landscaping that focuses on using water-efficient plants and methods.
This can include anything from using native plants that require less water to installing irrigation systems that use less water overall. As a local landscaper, you may be able to offer these services to your community at a discount since you don’t have the overhead costs of a large company.
You can also choose to focus specifically on Xeriscaping and offer your services to local businesses or homeowners interested in reducing their water usage. When it comes to pricing, it’s important to consider the cost of materials and labor as well as the time it will take to complete the project.
You may also want to consider offering discounts for customers who sign up for regular maintenance or those who refer new customers to you. Whatever pricing structure you choose, make sure it’s fair and competitive so you can attract new business and build a successful local landscaping company.
By Regular Landscape /Lawn Care Maintenance Schedule
For local landscapers, the challenge is not only providing homeowners with quality services but also figuring out how to charge for your local landscaping services. One way to do this is by a regular landscape/lawn care maintenance schedule.
This type of service includes mowing the lawn, trimming hedges, and removing leaves and debris. By charging on a regular scheduled basis, local landscapers can ensure their customers are happy and getting their money’s worth. In addition, this type of billing helps to keep local landscapers organized and efficient. As a result, it is a win-win for both the customer and the landscaper.
Best Practices in Charging for Your Landscaping/Lawn Care Services
When it comes to billing for your landscaping or lawn care services, there are a few best practices you’ll want to follow. In this blog post, we’ll go over the most important things to keep in mind when creating your invoices and price lists. By following this guidance, you can ensure that you’re charging a fair price for your services while also making sure that your customers are happy!
How to Break-Even
If you’re in the business of making your local landscapers green with envy, you’re in luck. We’ve got the inside scoop on how to break even. Here’s what you need to know:
The key to making a profit in the landscaping/lawn care business is to charge enough to cover your costs, but not so much that you price yourself out of the market. In order to figure out your break-even point, you need to calculate your total costs. These include materials, equipment, labor, and overhead.
Once you know your total costs, divide that number by the number of hours it takes to complete a job. That’s your break-even point.
For example, if it costs you $100 to complete a job and it takes two hours to do so, then your break-even point is $50 per hour.
Now that you know your break-even point, it’s time to do some market research. Find out what other local landscapers are charging for similar services. If they’re charging less than your break-even point, then you need to either lower your prices or find a way to cut your costs. On the other hand, if they’re charging more than your break-even point, this leaves it open for you to establish a competitive, lower price.
Find Your Break-Even Point
When it comes to starting your own landscaping or lawn care business, one of the most important things to figure out is your break-even point. This is the point at which your income from jobs equals your expenses.
To calculate your break-even point, you first need to tota up all of your costs, including the cost of gas, equipment, and any other business expenses. Once you know your total costs, you can start pricing your services. To find your break-even point, simply divide your total costs by the number of hours you work.
For example, if your total monthly costs are $1,000 and you work 20 hours per week, then your break-even point would be $25 per hour. Keep in mind that your local area will play a big role in how much you can charge for your services. Be sure to research the going rates for landscapers in your area so that you can price yourself accordingly. By knowing your break-even point, you can ensure that you are making a profit on each job. As well as being secure in knowing your business is sustainable in the long run.
Add Net Profit Margin
If you’re in the business of landscaping or lawn care, you know that pricing your services can be a delicate balance. On one hand, you want to be competitive with other local landscapers and landscaping companies. On the other hand, you need to make enough money to cover your costs and turn a profit. So how do you find the right price point? One helpful way to think about it is in terms of your net profit margin.
Essentially, your net profit margin is the percentage of each sale that goes towards profit. To calculate it, you simply take your total revenue and subtract your total costs. Then, divide that number by your total revenue. For example, let’s say you bring in $1,000 in revenue in a given month. Your total costs for the month are $800. That means your net profit for the month is $200. To calculate your net profit margin, you would divide 200 by 1,000, which would give you a margin of 20%.
Now, when it comes to pricing your services, you’ll want to make sure that your net profit margin is high enough to cover all of your costs and then some.
Set Your Pricing Minimum
If you’re starting a landscaping or lawn care business, one of the first things you need to do is set your pricing minimum. This is the lowest price you’re willing to accept for your services. Many local landscapers and lawn care companies charge between $50 and $100 per hour for their services.
However, your net profit margin will ultimately determine how low you can go. For example, if your net profit margin is 30%, then you need to make at least $30 per hour to cover your costs and make a profit.
Therefore, your pricing minimum should be at least $30 per hour. Of course, you can always charge more than your minimum, but it’s important to have a bottom line in mind when pricing your services.
That’s a lot of information to take in, but don’t worry! We’re here to help. If you want more detailed advice on how to price your services, or if you have any questions about the tips we shared today, please book a call with our team at Landscape Marketing Hero.
We would be happy to walk you through everything and help get your business off the ground. Thanks for reading, and we hope this article has helped give you some ideas on how to price your landscaping services.