A Landscaper’s Costs and Profits

in accounting, solutions, workflow

Some landscapers feel they have a knack for estimating any kind of job. Whether it includes extra bricklaying, trimming shrubs, driveway repairs or simple flower plantings—they usually have a good idea of what it will cost and what the profits will be. In short, they are confident in their industry and how it works. That’s a good thing. It also means, unfortunately, that it can be easy to become more passive or inattentive to job profitability.

There are numerous variables that will eventually decide what a business owner’s future will look like, from 3 months down the road to 1 year and on. Overbidding can lose you good work and underbidding can be worse. Now is the time to take a good hard look at every possible request a client may ask of you. Know what you are willing to do first, then block out some serious time for creating an itemized list (+ taxes) for those costs.

After you’ve created your list of hard costs, you’ll want to check out the topography of a project first. For instance:

  • Make note of previously planted trees/shrubs
  • Consider the dimensions of pre-installed structures
  • Take accurate measurements of areas to be worked
  • Determine any pre-existing labor needed before you begin
  • Take note of extra materials needed

Taking out the guesswork for costs not only streamlines your work and makes it easier, but it will also save you lots of time and frustration in your bookkeeping.

Sometimes, landscapers make the fun part (Profiting) the hardest. It’s up to you to determine what your time and labor is worth, and that can feel a little different for everyone. A “good rule of thumb” is asking yourself what YOU’D pay for the same services. Choosing an hourly rate for yourself and your employees is a common practice in the industry. How you choose varies.

You can:

Research your competition for an average rate, then decide
Choose what your yearly income will be, then decide on monthly income/weekly hours
Research specific jobs, including labor/materials, then divide by hours worked.

A solid frame of reference when it comes to pricing is determining whether or not you’re able to pay all the bills every month while still succeeding at having something left over for your daily living and a few unexpected costs along the way.

If you’re struggling with the fun part of landscaping, making a profit, please contact us!

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