How to Price Landscaping Services for Maximum Profit

Pricing Will Make Or Break Your Business

If you’re struggling with how to price landscaping services effectively, you’re not alone.

Get the pricing wrong, and you might end up either losing potential clients or undercharging and cutting into your profits. Knowing how to price landscaping services is essential to stay competitive and keep your business in the black. Whether you are at the stage of “How to start a landscaping business” or are a seasoned landscaper.

This guide will help you confidently estimate labor, materials, and overhead, and create clear contracts that protect you and your clients.

Let’s explore the process, so you can price landscaping services accurately and grow your business.

Pricing isn’t just about throwing numbers on a page. To succeed, you need a systematic approach that accounts for every part of the job.

Let’s break down the steps to make sure you’re covering your bases.

1. Conduct a Thorough Site Assessment

Every time you need to price landscaping services, you must starts with an assessment of the property. This step is crucial for identifying the scope of work and potential challenges. During the assessment, make sure to:

• Measure the Property: Get precise measurements of the area to estimate labor and materials accurately.
• Identify Obstacles: Check for large trees, slopes, fencing, or drainage issues that could affect your time and materials.
• Discuss the Client’s Goals: Understand the desired outcome (e.g., lawn installation vs. custom hardscaping) and any deadlines.

These details will help you determine how labor-intensive the job will be, what equipment you’ll need, and how long the project will take. The more detailed your assessment, the more accurate your estimate.

2. Estimate Labor Costs

Labor is often one of the biggest expenses that affects the price of landscaping services. Calculating your labor costs involves more than just setting an hourly rate. You need to account for all the hours your crew will spend on the job—including prep work, installation, and cleanup.

Here’s how you calculate labor costs:

• Determine Hourly Rates: Depending on your region, labor rates can vary widely. In general, the hourly rate for landscaping work is between $50 and $100 per hour. For specialized services like landscape design or consultation, rates can reach $150 per hour or more.
• Estimate Hours: Break the project down into tasks and estimate how many hours each task will take. Don’t forget to include travel time, setup, and potential delays due to weather or supply issues.
• Multiply the Hours by the Crew Size: If you’re running a crew, calculate the total man-hours required by multiplying your hourly rate by the number of crew members on-site.

For example, if a yard clean-up and mulching job is expected to take 5 hours with a 3-person crew at $60/hour, the labor cost would be:

5 hours x 3 workers = 15 total labor hours
15 hours x $60/hour = $900 total labor cost


3. Calculate Material Costs

Material costs can vary significantly based on the job and the client’s preferences. From plants and mulch to hardscape materials like stone and pavers, you need to ensure you’re accounting for everything in your estimate when you price landscaping services.

• Use Retail Rates, Not Contractor Discounts: When estimating, always use retail prices even if you get contractor discounts. This ensures you have a buffer for unexpected expenses or if you need more materials than planned.
• Itemize Materials: Make a detailed list of the materials you’ll need—sod, trees, shrubs, mulch, rocks, etc. You can charge by square footage for larger installations (e.g., lawn installation) or by the number of plants and trees.
• Markup Materials for Profit: Once you’ve calculated the total cost, add a markup of 10%–20%. This accounts for the time and effort of sourcing materials and protects your margins if prices fluctuate.

For example, if the materials for a garden renovation cost $2,000, and you apply a 15% markup, the final cost you charge the client would be:

$2,000 x 1.15 = $2,300


4. Don’t Forget Overhead Costs

Overhead costs are the often-overlooked expenses that can eat into your profit if you’re not careful. These are costs associated with running your landscaping business—whether or not you’re actively working on a job.

Common overhead expenses include:

• Equipment Costs: Include depreciation for mowers, trimmers, trucks, and other equipment.
• Fuel and Vehicle Maintenance: Factor in fuel for your work vehicles and equipment, as well as regular maintenance.
• Insurance and Licensing: You’ll need general liability insurance to protect yourself from lawsuits, along with any necessary business licenses.
• Marketing Costs: Don’t forget to factor in expenses like website upkeep, business cards, and social media advertising.

To calculate your overhead, figure out your total annual overhead costs, then divide that by the number of billable hours per year. For example, if your annual overhead is $40,000 and you bill for 2,000 hours per year:

$40,000 ÷ 2,000 hours = $20/hour overhead cost


You would add this to your hourly labor rate to ensure your business stays profitable.

Once you’ve gathered all the necessary information—labor, material costs, and overhead—you’re ready to put together a professional quote. For landscapers looking to streamline the quoting process, Jobber offers an easy-to-use quoting tool that can save time and ensure accuracy.

How to Write a Landscaping Contract

A well-crafted landscaping service contract is essential to protect your business, avoid disputes, and clearly communicate the price of landscaping services. Not only does it set clear expectations, but it also ensures both you and your client are legally covered. Here’s what every contract should include:

Key Elements of a Landscaping Contract:

• Scope of Work: A detailed breakdown of all tasks to be completed, from installation to clean-up.
• Payment Terms: Be clear about payment milestones, deposits, and when the final balance is due.
• Timeline: Specify start and completion dates, along with contingencies for delays (like weather).
• Warranties and Liabilities: Outline what guarantees you provide (e.g., plant survival warranties) and what you’re not responsible for (e.g., damage from extreme weather).
• Cancellation Terms: Clearly state your policy for cancellations or project changes.

Once your contract is ready, have the client review and sign it before any work begins. This helps ensure both parties are on the same page and minimizes potential disputes.

Hourly Rate for Landscaping Work

One of the most common ways to price landscaping services is by hourly rate. This works especially well for smaller projects like lawn maintenance, trimming, or mulching. However, there are factors to consider when setting your hourly rate:

• Labor Costs: How much do you pay your crew? Wages, insurance, and benefits should all be factored into your rate.
• Location: Pricing can vary based on the local market. Urban areas tend to have higher rates than rural regions.
• Specialized Services: Certain jobs, like landscape design or irrigation system installation, command higher rates because they require specialized skills or equipment.

In general, a landscaper might charge between $50 and $100 per hour for general tasks, while designers or architects can charge $150 or more per hour for custom design work.

Residential Landscaping Cost Examples

When it comes to residential landscaping, costs can vary greatly depending on the size of the project, the materials used, and the complexity of the design. As a landscaper, offering accurate pricing examples helps set client expectations and builds trust. Below are some common project types and their estimated costs, which you can adjust based on your local market.

• Simple Lawn Installation: A straightforward sod installation on a small front lawn can cost anywhere between $2,000 and $4,000, depending on the quality of the sod and the prep work needed (like grading or soil treatment).
• Backyard Landscaping with Plant Beds: If a client wants a backyard makeover with garden beds, trees, and shrubs, expect the cost to range from $5,000 to $10,000. This includes plant selection, soil amendment, and mulching.
• Complete Landscape Overhaul: A full yard renovation with hardscaping (paver patios, pathways, retaining walls), lighting, and irrigation can cost upwards of $15,000 to $30,000. Complex jobs that involve outdoor structures or water features can push costs even higher.

When presenting these examples to your clients, it’s important to remind them that every property and project is unique. Encourage them to view these numbers as starting points and emphasize that a thorough site assessment is needed for a detailed estimate.

Commercial Landscaping Cost Examples

Commercial landscaping projects often involve more complex designs, larger areas, and specialized maintenance needs compared to residential jobs. These factors, combined with the added costs of heavy machinery and long-term contracts, make accurate pricing essential for profitability. Here’s a breakdown of typical commercial landscaping projects and their cost ranges:

• Routine Lawn and Garden Maintenance: For basic services like mowing, trimming, and seasonal clean-ups on commercial properties, costs can range from $500 to $2,000 per month depending on the size and complexity of the site.
• Hardscaping and Installation: Large-scale projects such as installing walkways, retaining walls, or outdoor seating areas in a commercial setting can range from $10,000 to $50,000 or more. These jobs often involve significant labor and material costs, including pavers, concrete, and professional-grade equipment.
• Landscape Design and Full Renovation: When a business wants to completely overhaul its property, including irrigation, lighting, and a mix of softscape (plants) and hardscape (stone, pathways), the costs can escalate to $50,000 to $100,000 or more depending on the property size and complexity.
• Ongoing Landscape Management Contracts: For commercial properties with ongoing landscaping needs, such as corporate campuses, hospitals, or retail centers, multi-year contracts often range from $20,000 to $100,000 annually. These contracts typically include regular maintenance, seasonal planting, and periodic upgrades.

To secure more commercial clients and scale your business, it’s crucial to not only understand how to price these jobs correctly but also to know how to win commercial landscaping contracts.

Landscape Architect Fee: What to Expect

When a project requires a more intricate design, clients may need the services of a landscape architect. As a landscaper, understanding how to integrate an architect’s fees into your overall estimate is critical, especially for high-end or complex jobs that involve detailed planning.

Here’s what you need to know about architect fees:

• Hourly Rates: A landscape architect typically charges between $100 and $250 per hour, depending on the project’s complexity and the location. For simple designs, clients may only need a few hours of consultation, but more complex plans will drive up the total cost.
• Flat Fees: For larger projects, landscape architects often charge flat fees, which can range from $5,000 to $20,000 or more. This typically includes site visits, planning, and design revisions, which can significantly enhance the overall project but also require additional budget allocation.

Including these fees upfront when estimating large-scale projects ensures you’re covering all aspects of the job and giving your clients a clear picture of the total cost.

How to Craft a Landscaping Service Contract

No matter the size of the project, every landscaping job should have a clearly written contract. A landscaping service contract protects both you and your client by setting clear expectations, outlining payment terms, and minimizing the potential for disputes.

Here’s what every contract should include:

• Project Scope: Detail exactly what services are included, from planting and mulching to installing hardscapes or irrigation systems. Be specific about what’s not included to avoid misunderstandings.
• Payment Terms: State when deposits are required, and set clear milestones for payments (e.g., one-third upfront, one-third midway, final payment upon completion). Ensure there’s a clause for late payments or additional fees if unforeseen work arises.
• Timeline and Deadlines: Include start and finish dates, while also outlining any contingencies for delays (weather, material availability, etc.).
• Liability and Warranties: Specify what warranties you offer (e.g., plant survival guarantees) and the limits of your liability, particularly for unexpected damage like severe weather.
• Cancellation Policy: Make sure the contract covers what happens if the client cancels or postpones the job. This ensures you’re compensated for any preparatory work or material purchases.

5 Hidden Costs in Landscaping Services

One of the biggest challenges in pricing landscaping services is accounting for hidden costs that can erode your profit margins if they’re not factored into your estimates. By anticipating these potential expenses, you can adjust your quotes to ensure every job is as profitable as possible.

Common hidden costs include:

• Permit Fees: Depending on your local regulations, certain projects (like building retaining walls or adding water features) may require permits. Always check with the local authorities and include these fees in your quote.
• Waste Disposal: Don’t forget the cost of removing debris, old plant material, or hardscape remnants. Whether you’re hauling it yourself or hiring a disposal service, this cost can add up quickly.
• Fuel and Travel: If the job site is far from your base of operations, factor in the cost of fuel and travel time for your crew. This can be significant, especially for large properties or remote locations.
• Equipment Wear and Tear: Every job takes a toll on your equipment. Be sure to budget for routine maintenance and potential repairs, especially if you’re using heavy machinery like excavators or stump grinders.
• Unforeseen Site Issues: Sometimes, you’ll run into problems like poor soil quality, tree roots, or underground utilities. These can lead to extra labor and materials that weren’t part of your initial estimate, so it’s wise to build a buffer into your pricing.

By identifying and including these hidden costs from the start, you protect your bottom line and avoid surprises for both you and your clients.

Conclusion

Pricing your landscaping services accurately is about more than just crunching numbers—it’s about building trust with your clients, protecting your business, knowing your market and staying competitive. From understanding labor and material costs to drafting ironclad contracts and watching for hidden expenses, mastering the art of pricing will set you apart as a professional in your field.