Key Takeaways
- 01Only 3 out of 5 landscaping jobs are profitable - accurate bidding is essential for success
- 02Calculate all costs including labor, materials, subcontractors, and often-overlooked overhead expenses
- 03Add appropriate markup: 15-20% for residential landscaping, 10-15% for commercial projects
- 04Consult clients thoroughly and measure properties yourself to create accurate estimates
- 05Use professional estimation software to streamline the bidding process and reduce errors
Usually, three out of five jobs are profitable for contractors, as per statistics shared by Total Landscape Care. So what about the other two?
Well, one turns out to be a loss-making deal whereas the other one barely breaks even, the same data shows.
Thus, learning how to bid on landscaping jobs accurately is essential to making a profit on each job you complete.
However, to ease the process of estimating prices for landscaping projects, getting professional estimation software can be a huge relief.
The Cost of Poor Bidding
Without accurate bidding, you risk losing money on jobs you've already won. Many landscapers fail to account for all costs, resulting in projects that barely break even or become outright losses.
What are Landscaping Jobs?
The landscaper's job is to design, construct, maintain, and beautify the landscapes of gardens, parks, property buildings, outdoor exhibitions, and other outdoor areas. They ensure:
- Plants are growing
- Outdoors are kept clean
- Overgrown hedges are pruned
Moreover, landscapers supervise maintenance repairs, generators, outdoor furniture, and landscape structures, among other things.
A Guide to Bid For Landscaping Jobs in 4 Simple Ways
1. Consult the Client
To start with the landscaping job bidding process, the first thing to be done is to talk with the client and understand their needs. Ask lots of questions before you begin your estimate.
Measure the property yourself when you visit it. Identify the materials, subcontractors, and extra labor needed for the job and develop a plan to complete it.
2. Calculate the Cost of the Project
To properly estimate your landscaping job, you need to consider several different costs. Small businesses often underestimate the costs they incur for overhead, materials, and other expenses associated with running their businesses.
According to Total Landscape Care, if you don't do this, it is likely that you will not be making a profit even after you add a markup to your invoices.
To make a good estimate, you must conduct thorough research and consider all vital aspects before coming up with a quote.
3. Add Your Markup
First, you have to add to the total cost of the job you will do, and the markup needs to be added on top. In this way, you will always be able to make a profit from your landscaping business.
Residential landscaping jobs should be marked up by 15 to 20% and commercial landscaping jobs by 10 to 15%, according to Lawn & Landscape.
Landscape maintenance work can be charged at a markup of 10% - 12% both for residential and commercial properties.
4. Calculate the Total Price
To determine your landscaping quote for a customer, add up all the costs listed above plus your markup.
If your state requires sales tax, add it to the estimate.
Key Factors to Consider When Consulting Clients
Essential Client Consultation Questions
- The client's design style or style preference (Japanese, for example)
- Required features, such as stone pathways or patios
- Plant types and materials needed
- Location and soil quality assessment
- Whether to remove or add soil
- Seeding vs. sod requirements
- Land regrading or slope adjustments needed
- Current yard condition and existing plants or features to remove
Breaking Down Project Costs
Cost Categories Breakdown
| Cost Type | What to Include | Pro Tips |
|---|---|---|
| Labor Cost | Multiply hourly rate × workers × daily hours | National average is $13.73/hour, but research your local area rates |
| Material Cost | List all requirements based on site measurements | Always include buffer for sudden price changes |
| Subcontractor Cost | Get quotes from trusted contractors for specialty work | Contact them immediately after receiving project details |
| Overhead Cost | Advertising, office rent, equipment maintenance, insurance, vehicles, gas | Often overlooked by newcomers but critical for profitability |
Don't Forget Overhead
The overhead costs may be one of those expenses that newcomers tend to overlook. Advertisement, office rent, equipment repairs and maintenance, accountants and insurance, vehicles, and gas are all overhead costs. To recoup lawn care business expenses, you need to include your overhead costs in your estimate.
Tips to Choose the Right Landscaping Jobs for Your Company
If you have a serious need for lawn care leads yet don't have a lot of time on your hands, there are ways to increase the flow of new lawn care prospects quickly. To jump-start your lead generation process, you can do a few things to get things going.
1. Off-season is the best time to promote your landscaping services
Most landscapers start to promote in the spring. However, it is too late for that. Early advertising to potential customers can give you an advantage over your competition. Launch your marketing campaigns during the cold season, when the trees are bare.
Take advantage of winter trade shows, and home shows to promote your business. Having your name in the minds of potential customers will make calling easier when the time comes.
2. Give free consultations
Provide prospective clients with free consultations. It would be great if you could schedule a time when you can go through their yard with them. Then provide your expertise depending on what you think would be best to do with it.
As a result, you gain a significant competitive advantage. Trust is ultimately what makes a customer choose a company. After meeting you in person and walking through their property, they are more likely to trust you.
3. Make use of customers' yards
The best way to advertise your company is through current customers who have their yards beautified by you. Provide your company's contact information and a logo on large and bold signs that tell people you did the landscaping work.
In other words, rather than just promising a yard, show that you have already done it for your previous clients.
4. Reward referrals
As in any business, referrals are an integral part of the success of your business, but when you're in a field like landscaping, they're essential.
After completing a job, you can politely ask your customer if they would be willing to refer you to someone. Most of the time, they are happy to help you.
To boost referrals, even more, you might also want to reward them. For example, if a customer brings you another customer, you could provide him with extra services, such as an extra free visit for lawn maintenance.
Effective Referral Program
Consider offering a tiered reward system: free lawn maintenance visit for one referral, 10% discount for two referrals, or a free seasonal service for three referrals. This creates an incentive for customers to actively promote your business.
5. Incentivize reviews
Offer rewards not only for referrals, but you may also want to offer rewards for reviews as well. People seeking affordable landscaping services online can expect good reviews about your business.
Landscape businesses with poor ratings will likely raise a red flag with customers. Instead, they'll move on to the next lawn care service.
Once in a while, if a customer leaves a positive review, you can arbitrarily offer him an extra service (although do not offer a reward for every review, as this violates the terms of service of review sites).
Conclusion
The most challenging part of your landscaping job is understanding the duration of a project and continually improving your bidding process.
The more you continuously work on improving your landscaping bids, the more you can enjoy high profits and happy clients.
Win More Landscaping Jobs With Accurate Estimates
Creating and sending accurate estimates was never easier before. InvoiceOwl helps you streamline your bidding process, track costs, and win more clients with professional estimates.
Start Your FREE TrialFrequently Asked Questions
To estimate the cost of landscaping, follow these steps:
- Research the site that requires landscaping services
- Create a blueprint
- Calculate the timeline of the project
- Determine the several costs involved, including material and overhead costs
- Calculate the total amount
You may be required to provide a bid for your lawn services. Consider it as an application for a job. If your bid looks unprofessional, you may lose your job. Keeping it neat, clean, professional, and efficient reflects the kind of business you run. So:
- Design a landscaping invoice sample
- Describe yourself in detail
- Provide a list of your services
- Verify your pricing
- Offer upsells
- Provide testimonials and references
Markup percentages vary by project type. For residential landscaping jobs, use 15-20% markup. For commercial landscaping projects, apply 10-15% markup. Landscape maintenance work for both residential and commercial properties should have a 10-12% markup. These industry standards help ensure profitability while remaining competitive.
According to industry statistics, only 3 out of 5 landscaping jobs are profitable. The main reasons are underestimating costs (especially overhead), failing to include all material expenses, not accounting for labor variations, and inadequate markup. Using professional estimation software and thoroughly calculating all costs can dramatically improve profitability.
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