Getting the right tools and knowledge about how to mow is only one part of starting and running a lawn care service. Today, businesses need to take care of a lot of different things to get started and do well. Developing a pricing model is one of these aspects.
With the correct pricing plan, millions of dollars can be earned.
Reports project that by 2022, the market for lawn care services will reach $115.6 billion. The landscaping market is expected to grow by 4.5% per year over the next few years.
There are many ways for the lawn care industry to reach new milestones and give clients high-quality services. As the number of people who need lawn care services goes up, it gets harder to set prices that are fair. To build your lawn care business in this competitive industry, you must set reasonable and competitive prices.
To help you decide, below are the basics of lawn care pricing estimation.
How to Estimate the Cost of Lawn Care
Pricing needs to be emphasized because it can be the deciding factor in whether or not your target audience chooses you over other landscaping businesses in the area.
So, how do you estimate the value of a lawn care business? What factors affect your company's pricing for lawn care services?
For more clarity, here are eight parameters that can be used to determine the cost of lawn care:
1. Overhead Expenses
First, you can figure out how much your lawn care services will cost by looking at the overhead costs. As a business owner, you should be as open as possible about your operational costs. This will keep you from having to use your profit margins to pay for operating costs.
To make your business more profitable and scalable, you need to look at your overhead costs and figure out how much you really spend.
When figuring out your lawn care business's overhead costs, it's important to include things like equipment, new technology, business insurance, office space, and worker or labor costs, among other things.
After calculating your overhead expenses, choose an average number of lawn care projects per month that you can handle. Divide your overhead costs by the number of lawn mowing services and maintenance projects you can complete per month to determine your overhead cost per job.
This is the cost of providing service for a specific lawn care job, which must be included in your service price.
2. Business Taxes
The cost of overhead may also include taxes. However, you should pay particular attention to business fees since they are likely to affect your lawn care package. Independent contractors can lower their tax bills by taking advantage of the many tax deductions that are available to them.
There are tax deductions for everything you buy, from the miles you drive to the equipment you purchase. You can include your expenses in your tax return, reducing the amount of tax you owe the government and lowering your taxable income.
During the auditing process, you must make sure that everything is written down and that there are no mistakes or differences in the way records are kept.
3. Weather Conditions
Taking a look at the weather is another important way to figure out how much a lawn care service will cost.
As part of the lawn care business, it's also important to point out that things tend to happen in cycles. In this business, things go up in the spring and summer but go down a lot in the fall and winter, so keep that in mind when figuring out your costs.
When setting prices for your business, the weather can be an important factor that is often overlooked. Even though contractors who work in cold climates might not have as much service work because there isn't as much work, most of the time the overhead costs will stay the same.
Depending on the type of business you have, you should make sure your business is winterproof so that you can use the profits from your busy season during your slow season. This will help your business last, grow, and scale in the long run.
Several people who take care of lawns give their clients the option of hiring a snow shoveler in the winter so that they can keep making money.
4. Service Area
Lawn services can cost a lot more or less in one area than in another. Prices can also vary a lot from one state to another. So the most important thing to think about when estimating the cost of lawn care is where you live.
A lawn care service in an area where the weather stays the same all year will charge less than one in an area where the seasons change. In that case, you'll need to buy different gear for each season.
Depending on where in the country you do business, you may need to charge different prices. This is because doing business in other parts of the country takes more work.
5. Labor Cost
As the number of people on your lawn care crew grows, your overhead costs will go up. This is because you'll have to pay more people and take care of more things. To price your lawn care services correctly, you need to figure out how much it costs to manage your crew. This will give you an idea of how much you can expect to spend on lawn care.
If you're figuring out how to give a customer an estimate for lawn care services, you should include the cost of the employee's time as part of the estimate so that the customer knows how much human resources will cost them over the course of the project.
So, you need to look at these factors and find a formula you can use to give your customers a more accurate and foolproof price for lawn care services. This will make sure that your services and price brackets are set up correctly.
When your customers see that what you offer is worth the price you charge, they are more likely to choose you over the other lawn care professionals in your area who aren't as good.
Use professional tools to make sure your business works well and has few mistakes so you can meet your customers' expectations.
If you're behind on figuring out how much your labor will cost, the best thing you can do is switch to an online invoicing and estimate solution like Blinksale. This will help you figure out how to price your garden cleanup business correctly.
You can try Blinksale for free for 14 days.
6. Profit Margin
We've already talked about overhead costs and how important it is to know the number you need to reach every month. After you know this number, the best way to figure out how much lawn care will cost is to look at the profit margin.
Profit is the amount of money left over after a business has paid for all of its expenses, supplies, and labor. Checking with regional trade associations is a good idea if you want to learn more about the rules in your area.
Look at what your competitors are doing with their prices to figure out what will work best for your business.
Getting used to invoicing and estimating software like Blinksale is a great way to make sure that your lawn care estimate calculator is set up to meet the needs of the lawn. This tool can help you figure out how much to charge and how much to keep as profit. You can even keep track of your expenses, so you don't have to worry about not making payments.
Also, make sure you check your prices every three months or once a year to hear what your clients think about them.
7. Additional Services and Packages
After you've figured out how much your service will cost based on the size and condition of the client's property, make sure to include any extra costs you'll have to pay for services or materials that aren't part of your normal business.
In some cases, a client might ask you to use materials that are better for the environment but cost more than traditional materials. Also, they might ask you to pick up leaves, dig a hole, or clear the area of brush and trash.
As you make your estimate for your lawn, think about adding extra services or extra work that could improve the quality of the work.
When you've decided that the job needs more services and materials, the next thing you need to do is:
- You should figure out these costs the same way you did the cost of your project. It is important to figure out how long each task will take, how many people you will need to help you, and how much the materials will cost.
- Take pictures of the parts of the client's property that need more work when you do the inspection. With the pictures, you can show your client why an extra or product is part of the package.
8. Examine your client's property's size and condition
The next thing you need to know before making a lawn care estimate is how big the lawn is and what kind of shape it is in.
This is especially important when working on a job that requires buying new supplies. For example, to estimate a job like fertilizing or getting rid of weeds, you need to know how big the lawn is. This will tell you how much fertilizer and other supplies you need to buy.
There are a few ways to figure out what a client's property is worth:
- Most of the time, Google Maps is used to measure the size of a residential lawn.
- When you talk to your customers on the phone, ask them how their lawn looks and if they have any special needs. You can also ask them to fill out your online booking form with this information, so you have everything you need.
- Make sure you start by using your pricing sheet's prices per square foot as a guide. Once you know everything about the property, you can change the price to reflect that.
Conclusion
You can make more money in your lawn care business if you keep a pricing chart and keep up with pricing trends.
This is an ongoing process, and there is no one way to choose the best prices for lawn care services. Instead, you will have to try different prices until you find the right ones.
