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Pricing guide

How to price landscaping jobs

To price a landscaping job, add up labour, materials and your share of overhead, then divide by one minus your target profit margin: price = cost ÷ (1 − margin). Jobber suggests aiming for a 15–20% profit margin, so a job that costs you $800 priced for a 20% margin is $800 ÷ 0.8 = $1,000. Measure the property first, so labour and materials come from real square footage rather than a guess.

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The pricing formula, step by step

price = (labour + materials + overhead) ÷ (1 − profit margin)

Jobber's example: an $800 job cost at a 20% margin is $800 ÷ (1 − 0.20) = $1,000.

  1. 1
    Measure the property
    Lawn area, bed area, edging length or lot size. Satellite measuring gets you the numbers before a site visit; confirm on site.
  2. 2
    Estimate labour
    Crew hours for the job × your loaded hourly labour cost (wages plus payroll taxes and insurance).
  3. 3
    Add materials
    Quantities from the measurements (yards of mulch, square feet of sod), plus waste and delivery.
  4. 4
    Add overhead
    Jobber's method: weekly overhead ÷ weekly labour hours = overhead per hour, × the job's hours.
  5. 5
    Apply your margin
    Price = total cost ÷ (1 − margin). Add a minimum charge so small jobs still cover the drive.

Worked example: a mulch job

Illustrative costs for four yards of mulch over two front beds. Swap in your own wages, material prices and overhead.

Pricing a mulch install for a 20% margin
CostHowAmount
Labour2 crew × 3 h × $45/h$270
Mulch4 yd³ × $42$168
Delivery1 load$75
Overhead$1,500/week ÷ 100 h = $15/h × 6 crew-hours$90
Total cost$603
Price at 20% margin$603 ÷ 0.80$753.75

Markup vs margin

Margin is profit as a share of the price; markup is profit as a share of cost. To hit a target margin, divide your cost by (1 − margin).

Target margin and the markup it needs
Target marginDivide cost byEquivalent markup
10%÷ 0.9011.1%
15%÷ 0.8517.6%
20%÷ 0.8025.0%
25%÷ 0.7533.3%
30%÷ 0.7042.9%

How each service is usually priced

Common pricing units by service, with a detailed guide for each
ServiceUsually pricedGuide
Lawn mowingper 1,000 sq ft, per visit, with a per-visit minimumHow to price lawn mowing
Mulch & rock bedsper cubic yard installed (area × depth ÷ 324)How to price mulch installation
Sod & seedingper square foot installed, plus site prepHow to price sod installation
Concrete curbingper linear foot, by styleHow to price curbing
Snow plowingper push by size tier, or per seasonHow to price snow removal

Mistakes that cost money

Confusing markup and margin

A 20% markup on $800 is $960, a 16.7% margin. To earn a 20% margin you need a 25% markup ($1,000).

Leaving out overhead

Insurance, trucks, phones and software are real costs. If they're not in the price, they come out of profit.

Guessing the size

A quote built on a guessed area is a guess. Measure the lawn, beds and edges, then price from the numbers.

No minimum charge

Drive time and setup are the same for a tiny job. A minimum keeps small stops profitable.

Related

Sources

Frequently asked questions

What profit margin should a landscaping business make?

Jobber suggests aiming for a 15% to 20% profit margin on landscaping work. Your costs, region and service mix decide what's realistic, so track actual job costs and adjust.

What is the difference between markup and margin in landscaping?

Markup is profit as a percentage of cost; margin is profit as a percentage of price. A job costing $800 sold for $1,000 has a 25% markup and a 20% margin. Price for a target margin with price = cost ÷ (1 − margin).

Should landscapers charge by the hour or by the job?

Most customers prefer a fixed price per job or per visit, and fixed pricing rewards a fast crew. Use your hourly costs to build the price, then quote it by area, volume or length rather than by the hour.

How do I calculate overhead per hour for a landscaping business?

Divide your weekly overhead costs by the labour hours your crews work in a week. For example, $1,500 of weekly overhead over 100 labour hours is $15 per hour, which you add to every job for each crew-hour it takes.

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