How to Estimate a Landscaping Job Correctly

Learning how to estimate a landscaping job the right way determines whether your business makes money or loses money on a project. Most landscaping companies fail not because they consistently underprice their services, even if they do a good job. Because they don't understand their true costs, they lose out.

The reality is that most companies guess at their estimates instead of building them from real numbers. They look at a job, think about what sounds reasonable, add some padding, and hope for the best. Then they wonder why they're always scrambling to pay bills despite staying busy all season.

What Goes Into a Landscaping Project

Getting Your Landscaping Project Plan Right

A well-detailed project plan can serve as the foundation for an accurate estimate. But most companies go wrong when they create plans based on perfect conditions instead of what really happens in the field.

A project's scope includes size, complexity, and required materials, sure. But it also includes factors like site access, existing vegetation that needs removal, average weather conditions, and soil conditions that photos can't show you. Break down every landscaping project into specific phases: site preparation, material delivery, installation, and cleanup. Then estimate each phase separately.

Why Job Site Visits Matter

While you can likely quote services like lawn fertilization remotely, it's best to visit a job site in person before providing a quote for landscaping installations. During your site visit, look for problems that will slow you down:

• Narrow gates requiring hand-carrying materials

• Slopes making equipment positioning difficult

• Utilities not marked on plans

• Neighbors who might complain about noise.

Pay attention to soil conditions during your visit. Soggy areas requiring drainage work, compacted soil taking longer to amend, or rocky conditions that will dull equipment faster all affect your material costs and labor requirements. Document everything with photos and measurements.

Getting Labor Costs Right the First Time

What Does Labor Truly Cost?

Labor costs include the wages paid to employees and subcontractors, but that's just the starting point. Most companies focus on the hourly wage they pay crews and forget about everything else that adds to their real labor costs.

Here's what catches most landscapers off guard:

• Payroll taxes

• Workers' compensation premiums that fluctuate based on your safety record

• Benefits (if you provide them)

• The difference between hours worked and productive hours - your crew might be on site for eight hours, but how much of that time is spent on billable work?

To get a more accurate look at your labor costs:

Track what happens during a work day. Setup time while crews organize tools and materials. Cleanup time at the end of each job. Travel time between different areas of the same property. Breaks and interruptions when clients want to discuss changes. Crews with properly organized trucks and dedicated tool storage spend more time on billable work instead of searching for missing equipment or making trips back to the shop for forgotten tools.

Seasonal factors affect productivity too. Summer heat slows everyone down. Spring mud makes everything take longer. Fall cleanup drags when leaves are wet and heavy. Build buffer time into your estimates for the problems that always happen: equipment that won't start on the first pull, materials delivered to the wrong address, or clients who remember additional requests while work is in progress.

Read our blog: Bookkeeping for Landscaping Businesses: What Actually Works? 

Material Costs That Reflect Reality

Getting Complete Material Lists and Managing Waste

Every landscaper has learned this lesson the hard way: the small stuff you forget to include in estimates adds up fast. Most companies remember to price plants, soil, and major materials, but then get surprised by the cost of stakes, plant ties, soil amendments, fertilizer, and all the consumables that clients never see in the finished project.

Know Your Real Supplier Pricing

Using a landscaping pricing guide can help determine accurate material costs, but here's the catch - those guides reflect average pricing, not what your suppliers charge. Call your suppliers before finalizing estimates, especially during busy seasons when prices fluctuate and availability gets tight. Companies like LandscapeHub and SiteOne offer online resources that you can double check pricing quickly and easily. 

Account for Material Waste and Damage

Every landscaper deals with material waste, but few account for it properly. Pavers crack when delivery trucks hit potholes. Soil compacts more than expected, especially in areas with heavy clay or poor drainage. Plants arrive damaged or die during installation. Prepare for these issues with a built-in contingency. Strong relationships with your suppliers usually can help you avoid delays from these damages by allowing for quick replacements. 

Build Strong Supplier Relationships

Build relationships with suppliers who understand your business and provide consistent quality. Last-minute material shortages create schedule delays that affect other jobs, disappoint clients, and cost money in ways that don't show up on material invoices. Understand how seasonal demand affects pricing - plant material costs swing throughout the growing season, and hardscape materials often carry spring surcharges when everyone's busy.

Check inventory for the plants and materials you need when you're creating your proposal, and suggest alternatives for items that are backordered. Substitutions can keep the timeline intact as long as they're communicated with the client. 

Calculating Overhead Costs (The Part Most Companies Get Wrong)

What It Really Costs to Stay in Business

Here's where most landscaping companies get blindsided: overhead costs are essential expenses required to keep a landscaping business running, and they're higher than most people think. A landscaping contractor's total sales typically allocate at least 20% to overhead costs, but companies that track their numbers carefully often find the real percentage is higher. This is all essential to think about when budgeting your landscaping business. 

To calculate a job's total overhead cost, divide the total annual or monthly overhead by the number of jobs completed. This ensures every project carries its fair share of the fixed costs that exist whether you're working or not.

• Office rent

• Insurance premiums

• Equipment that sits idle in winter

• Truck organization systems

• Spare equipment inventory

• Administrative time spent on estimates that don't convert to jobs

Here's something most landscapers don't consider: that mower you bought represents ongoing costs beyond the purchase price.

• Equipment costs must be considered when pricing landscaping jobs

• Depreciation

• Maintenance schedules

• Fuel consumption

• Insurance coverage

• Truck storage racks and organization systems

• Eventual replacement costs all eat into profits if you don't factor them into job pricing

Don't forget the cost of maintaining spare equipment inventory so crews aren't left stranded when tools break during the busy season.

If you're using an industry-specific software like LMN or Aspire, you can be more detailed in how you track overhead: allocating equipment expenses to the type of work that equipment is needed for. This gives a clearer picture of profitability of jobs like mowing versus hardscaping installs, as the equipment needed for a patio installation is typically more expensive than mowers. 

Track your overhead expenses throughout the year to identify costs that don't show up on monthly statements but still affect profitability. Equipment repairs that come in waves during busy season. Legal fees when contract disputes arise. Insurance deductibles after accidents. These irregular expenses still need to be covered by your job pricing, even though they're unpredictable.

Developing Pricing Strategies

Profit Margins That Make Sense for Your Business

Most residential landscaping jobs run profit margins somewhere between 15-20%, but copying what everyone else does might not work for your situation. Maybe you're still making equipment payments that eat into cash flow. Maybe you're in a market where good crew leaders are hard to find and expensive to keep. Your profit margin needs to cover these realities, not some industry average that doesn't reflect your costs. What works for a company with paid-off equipment and established processes might not work for a growing business with equipment payments and expansion plans.

Every company eventually faces rising landscaping costs that force price increases. The key is communicating these increases before clients get sticker shock on new proposals. When material costs spike or you need to raise wages to keep good employees, explain the reasoning to existing clients rather than hoping they won't notice higher prices.

Most clients understand that costs rise across all industries, especially when you explain the specific factors affecting your business. Rising fuel costs that affect equipment operation and material delivery or increased wages needed to attract and keep skilled workers in a competitive labor market. Present these increases with confidence rather than apologizing for market conditions beyond your control.

Researching Competition Without Losing Your Mind

Researching the local market is important for making sure your pricing stays competitive, but you should try not to obsess over matching every competitor's price. Market trends can significantly affect the pricing of landscaping services, so stay informed about local economic conditions, housing market activity, and seasonal demand patterns.

Changes in economic conditions can result in fluctuating demand for landscaping services, affecting both what clients are willing to spend and what level of service they expect. Understand these cycles instead of fighting them.

Creating Landscaping Estimates That Get Accepted

Building Professional Proposals

Clients care more about understanding what they're getting than seeing fancy graphics and perfect formatting. Break down your estimate so someone who's never hired a landscaper can follow your reasoning. Separate labor costs, material costs, and any subcontractor costs into line items that make sense.

Most clients appreciate contractors who explain their thinking rather than just throwing numbers at them.

For example:

When you recommend premium materials, explain how they'll perform better over time. When certain installation methods cost more upfront, help clients see why the extra investment prevents problems later.

This approach works better than hoping clients will trust your expertise without understanding your reasoning.

Using Estimating Software to Stay Organized

Landscaping business management software can streamline your estimating process and reduce errors that cost money. Systems like Aspire help you track material costs, calculate labor hours based on historical data, and create professional proposals that look consistent across all your estimates.

The real value comes from tracking actual job costs against your estimates. When you can see that patio installations consistently take longer than estimated, or that certain suppliers always deliver late, you can adjust future estimates accordingly. Software also helps you avoid the embarrassing mistakes that happen when you're estimating by hand. You might forget to include sales tax or miscalculate material quantities.

Good estimating software integrates with your other business systems so information flows smoothly from estimate to schedule to final billing. This reduces the administrative time spent re-entering data and helps ensure nothing falls through the cracks during busy seasons.

Communication and Handling Price Objections

Every landscaping company deals with price objections, regardless of how well you've qualified prospects or explained your value. The difference between successful companies and struggling ones is having a systematic approach instead of panicking when clients push back on estimates.

Acknowledging Concerns Without Getting Defensive

Start by acknowledging their concern rather than getting defensive. Most clients appreciate contractors who listen to their budget constraints and work collaboratively toward solutions. Then figure out whether you're dealing with sticker shock from someone who genuinely wants the work done, or competitive pressure from someone shopping for the lowest possible price.

Comparing Proposals Fairly

When clients have received lower bids from competitors, ask to review both proposals together. Many pricing differences disappear when clients understand they're not comparing equivalent services, material quality, or project timelines. Some competitors cut corners that aren't obvious until problems appear later.

Three Options That Preserve Your Margins

When facing legitimate budget concerns, you have three realistic options that don't involve cutting your profit margins.

First, adjust the project scope to meet their budget without compromising quality standards - smaller plants that will grow over time, different material selections that achieve the same function, or removing optional elements that enhance the project but aren't essential.

Second, clearly explain the added value in your proposal that justifies higher pricing. Focus on long-term benefits rather than technical specifications - how your installation methods prevent future problems, why your material choices will look better and last longer, or how your crew's experience ensures the project gets done right the first time.

Third, create project phases that spread costs across multiple seasons. Many clients can afford the full project but prefer smaller investments spread over time rather than one large expenditure that strains the client's budget.

Managing Risks That Kill Profitability

Planning for Problems and Learning From Every Job

Incorporating a contingency fund of 5-15% can help cover unexpected costs in landscaping projects. Weather delays affect every outdoor project, but most companies don't build adequate time and cost buffers into their estimates.

Monitoring past job costs can help improve future estimating accuracy. Compare estimated costs to actual costs on completed projects to identify patterns in your estimating errors. Companies that consistently underestimate costs end up working for free, while those that overestimate consistently lose bids to competitors who understand their costs better.

Putting It All Together

Successful landscaping estimation requires combining technical knowledge with business reality. Understanding your true costs, building adequate profit margins, and communicating value effectively separates profitable companies from those that stay busy but never build wealth.

Most landscaping companies fail at estimation because they focus on winning bids instead of building sustainable businesses. The goal isn't to provide the lowest price - it's to provide fair pricing that reflects the value delivered while ensuring adequate profit margins for business growth.

About The Grow Group

We help landscaping business owners clarify their platform, grow their people, build their processes, and realize profits. Led by Marty Grunder, our team is still actively involved in the day-to-day operations of Grunder Landscaping, and we've helped hundreds of landscape professionals across the country build successful businesses.

We don't just share theories and ideas. We share tactics we used at our own landscaping company this week that we know still work. Grunder Landscaping Co. serves as our "living laboratory" - every system we recommend gets tested there first.

Our programs include ACE Peer Groups for accountability-focused business owners, GLC Field Trips where you can see our systems in action, and the GROW! Annual Conference for ambitious landscape professionals. Whether you're trying to grow your landscaping business or get better control over it, we'll get you where you want to go.

Frequently Asked Questions

How to properly quote a landscaping job?

To properly quote a landscaping job, visit the job site to assess the work needed, then calculate your costs for labor, materials, and overhead expenses. Add your desired profit margin and present the quote with clear pricing breakdowns.

How do you calculate landscaping?

Calculate landscaping by adding together labor costs, material expenses, and overhead costs, then including your profit margin. Visit the site to accurately assess the project scope and identify factors that affect pricing.

What does a landscape estimate look like?

A professional landscape estimate includes a detailed scope of work description, separate line items for labor costs and material costs, project timeline, and clear payment terms. The estimate should also specify any conditions that might affect pricing, such as weather delays or site access limitations.

How do I know how much to charge for landscaping?

Calculate your true costs by adding labor expenses, material costs with waste allowance, and overhead expenses, then add a profit margin. Research local market rates to ensure your pricing remains competitive while covering total costs and generating adequate profit.