What each engagement has to cover
A price that only matches what others charge can still lose money. Start from your own costs. For a landscaping and garden design business, each engagement carries:
- Plants, soil and mulch not billed separately
- Stone and hardscape materials
- Crew pay per project
- Equipment rental per project
- Disposal fees
- Card and payment fees, as a share of the price
Then a share of the costs you pay every month, however much you sell:
- Insurance (liability and commercial auto)
- Vehicle (business share)
- Phone and internet
- Scheduling, invoicing and payment software
- Ongoing marketing
- Bookkeeping and tax preparation
- Equipment maintenance
And two things most first prices leave out: your own pay, and money set aside for income and self-employment tax on the profit.
Three prices worth knowing
- The price that covers costs. Monthly costs shared across your expected engagements, plus the cost of each engagement, grossed up for card fees. Below it, every month loses money.
- The price that pays you. The same, with your pay before tax added to the monthly costs. This is the real minimum if the business is your income.
- A recommended price. The price that pays you plus a profit cushion for slow months, repairs and growth.
The quick check above works out all three from your numbers. The pricing calculator shows each step of the formula.
Check your price against your area
Prices vary a lot by town, so we don’t publish averages. Collect real ones instead: ask three or more local businesses for a quote the way a customer would, and note what each includes. Then answer these:
- What do local competitors charge? Ask for quotes the way a customer would.
- How long does each engagement take you, including travel and preparation?
- How many engagements can you deliver in a week at a quality you’re proud of?
If the price that pays you is above everyone you found, that’s worth knowing before you start. Lower a cost, sell more each month, or offer something customers will pay more for.
Busy and slow seasons. A price that works in the busy months can fall short across the whole year. The full check spreads your sales over the seasons and shows the slow months.
Pricing mistakes to avoid
- Hardscaping, irrigation and tree work may need separate licenses in your state.
- Quoting every engagement the same when some take far longer. Price by size or difficulty, and set a minimum.
- Not counting travel and preparation time in the hours for each engagement.
Next steps
- Starting a landscaping and garden design business: the work, customers, licenses and how to test demand.
- Test a full landscaping and garden design plan: startup cash, the ramp-up, a stress test and a decision report.
- How to calculate your break-even point
- Considering a landscaping and garden design franchise? Compare the fees and long-term earnings with going independent.
General information, not financial, tax or legal advice. See our disclaimer.
