Question 1

What profit margin should a commercial landscaping company target?

Accepted Answer

Commercial landscaping maintenance typically targets 25–45% profit margins. Mowing-only contracts run 25–35%. Full-service contracts with beds, hedges, and add-ons can achieve 35–50%+ because add-on services have higher margins than base mowing. Your target should be at least 30% to cover unexpected costs and equipment breakdowns.

Question 2

How do I calculate what to charge for commercial lawn care?

Accepted Answer

Add up all costs per visit: labor (crew × hours × hourly rate), equipment (fuel + depreciation), materials, vehicle/trailer cost, drive time, and overhead. Then divide total cost by (1 minus your target margin). Example: $200 cost ÷ (1 - 0.35) = $307 charge for a 35% margin.

Question 3

Is flat monthly billing better than per-visit billing for landscaping?

Accepted Answer

Flat monthly billing (annual total ÷ 12) is generally better for cash flow. You get paid even in winter months when you're doing little or no work. Clients prefer the predictability of a fixed monthly invoice. The total annual revenue is identical — you're just smoothing when you collect it.

Question 4

How much revenue can a commercial landscaping crew generate per year?

Accepted Answer

A single 2–3 person commercial landscaping crew typically generates $150,000–$250,000 in annual revenue. Revenue per crew increases with efficient routing, full-service contracts (higher margins), and year-round service areas. Top-performing crews in warm climates can exceed $300,000/year.

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