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A Complete Guide to Lawn Care Business Profits

This guide will provide useful information about earning profits with your lawn care business. Knowing your profit margins is important for determining how well your business is doing financially, and how you can continue to grow each year. Profit margins show how much money is left over after expenses have been subtracted from income or revenue. 

We’ll explain how you can easily calculate your own company’s profit margins. This regular evaluation will help you understand trends in your income and expenses.

Can You Make Money with a Lawn Care Business?

With proper management of expenses and pricing of services, most lawn care companies can achieve profit margins of 15-45% according to industry experts. The key is tracking costs closely and charging rates that will cover these expenses while still providing value to customers. Location, type of services offered, and client base all factor into overall profitability as well. 

With advances in equipment, technology, and marketing tactics, there are more opportunities than ever before to attract customers and earn profits through lawn care and landscaping work. For those willing to start strategically with a clear landscaping business plan, there is a wide market of homeowners and commercial properties needing services. Operating efficiently and continually improving operations leads many dedicated lawn care owners to find financial success year after year.

Checking Your Profits Regularly

It’s important to calculate your profit margins every few months. This lets you see how your business is doing with money over time and will help you make changes if needed. Here are the simple steps:

  1. Add up all the money you made from customers each month. This is on your invoices and receipts.
  2. List all your business costs for that time, like equipment, supplies, employees, insurance, and gas.
  3. To find the profit, take the money made and subtract the costs.
  4. Divide the profit by the total money made. Then multiply by 100 to get the percentage. This is your profit margin.

Checking margins every 3 months shows if your prices cover costs. It also finds places where you may be spending too much. Keeping margins between 15-45% means finances look good. Doing these profit calculations regularly helps your business stay on track with money.

Example Monthly Profit Calculation

Total Income $20,000
Expenses:
– Equipment Loans $2,000
– Supplies $3,000
– Employee Payroll $5,000
– Marketing $1,500
– Insurance $1,000
– Gas $500
Total Expenses $13,000
Profit (Income – Expenses) $7,000
Profit Margin (Profit/Revenue x 100) 35%

 

5 Ways to Make More Money with Lawn Care and Landscaping

Landscaping companies use some good ways to boost profits without losing work or customers. Here are five things that you can try in your business:

1. Raise Prices a Little Each Year

Small price increases each year are smart to keep up with cost changes. Raising prices by 2-3% each time makes more money without too much extra work. Look at what others charge locally for different jobs. Send notices a few months before new rates start, so it’s not a surprise.

2. Make Operations Run Smoothly

Look closely at bills for insurance, phones, payments, and more. Often, you can save money by going with different companies. Switching or negotiating lower rates cuts costs a lot over time. Track work hours and keep crews busy doing paid jobs, not downtime.

3. Get New Customers Online

Having a website others can find is key. Make pages describing what you offer. Profiles on Google and social media with before/after pictures help. Ads on Facebook and Nextdoor reach people needing your services.

4. Use Your Crew’s Time Better

It’s important to keep your landscaping workers busy doing jobs that earn money. Make sure they’re not just sitting around when there’s work to do.

  • Give each team specific tasks for the day so no time is wasted. 
  • Have one crew cut lawns while another plants flowers. 
  • Check that tools and trucks are always ready, so no one waits. 
  • Consider tracking hours to see where you can schedule better. 

Making the most of employee time saves money and lets you take on more clients. Proper planning helps your landscaping team work efficiently to help your business bring in more profits.

5. Keep Good Customers Coming Back

Repeat customers mean steady money. Exceed service expectations, fully solve problems, and check back with customers. Thank them regularly with discounts, bonuses for referrals, or seasonal perks. 

Keeping Profits on Track with Lawn Care

Making healthy profits is important for a lawn care business to do well over time. However, quick solutions are needed if profit margins drop. Ideas include cutting money-losing discounts, raising prices if costs rise, or advertising more. Taking fast action when margins fall protects profits for a long time. Staying involved keeps lawn companies earning profits and providing jobs in the community.

What’s Next

Do you want more customers to find your business online? With a Landscape Launchpad website, you get access to a full suite of landscaper exclusive marketing tools to help grow your business. Starting at just $49/mo, we will build your entire online presence so that your ideal customers can find you online. Book a demo today to learn more about how we can help you grow!

Local customers are looking for landscapers – Can they find you?

Ready to take the next step for your business?

Join the hundreds of Lawn Care professionals that are getting more customers every day using Landscape Launchpad.