How Much Money Can Landscaping Services Make?

The landscaping industry has experienced notable growth, driven by rising demand for outdoor spaces that enhance aesthetic and functional value. Landscaping services can range from simple lawn care to elaborate garden designs and hardscaping projects. 

Statista said the U.S. landscaping market generated over $154 billion in revenue in 2023. With more than 641,000 businesses operating nationwide, landscaping has proven to be lucrative. Additionally, sustainable landscaping and eco-friendly gardening have opened new revenue streams for new and existing businesses​.

Beyond just maintaining lawns, landscaping services have expanded into other areas such as irrigation, garden lighting, and even snow removal, which adds to their earning potential. As more homeowners and commercial property owners recognize the value of well-maintained outdoor spaces, the industry is expected to continue its upward trend, with a projected compound annual growth rate (CAGR) of 5.1% until 2027​.

Factors Influencing Landscaping Earnings

Several factors influence how much a landscaping business can earn:

Types of Services Offered

Landscaping services range from basic lawn care to high-end landscape design and installation. The more specialized and high-end the service, the higher the potential earnings. Common services include:

• Lawn mowing and maintenance are foundational services in landscaping. Due to their competitive nature, they typically offer a lower profit margin. However, they provide steady, recurring revenue.
• Landscape design and installation: This involves planning and creating custom landscapes, which is a higher-margin service compared to basic lawn care. These projects can be more lucrative, especially when working with high-end clients who are willing to invest in aesthetic improvements.
• Irrigation systems installation: Installing and maintaining sprinkler systems is another profitable service, as it requires specialized knowledge and equipment.
• Tree care: Services such as tree pruning, trimming, and removal can also bring in higher revenue due to the skill and equipment needed.
• Hardscaping: This involves the design and installation of non-plant elements, such as patios, walkways, retaining walls, and outdoor kitchens. Hardscaping projects can be highly profitable, especially when working on more extensive residential or commercial properties.

Specialized services like landscape lighting, water features (e.g., fountains, ponds), and snow removal during winter can create additional revenue streams and help maintain steady income throughout the year.

Geographic Location: 

Demand for landscaping services varies greatly depending on location. Warmer regions like California and Florida have a more extended landscaping season, allowing year-round operations​. In contrast, colder areas might see a seasonal dip, but businesses in these regions can supplement their income with services like snow removal during the winter​. Key considerations include:

• Climate: Businesses in warm climates with longer growing seasons, like Florida or California, can operate year-round and generate more consistent revenue. Landscaping firms in colder regions may face seasonal slowdowns but can offset this with services like snow removal.
• Affluent Areas: Landscaping businesses in wealthier, urban, or suburban areas can command higher rates for premium services. These areas often have larger properties and homeowners who are willing to pay for regular lawn maintenance and specialized landscaping work.
• Local Competition: The level of competition in your area also affects pricing. Highly competitive markets may drive prices down, while underserved markets may allow you to charge premium rates.

Client Base: Residential vs. Commercial

Another key determinant of income is your client base. Landscaping businesses can serve both residential and commercial clients, and each comes with its pros and cons.

• Residential clients: These typically require regular maintenance services such as lawn care, gardening, and tree pruning. While residential clients often pay less than commercial clients, they can offer stable, recurring work that helps maintain cash flow.
• Commercial clients: Businesses, property managers, and government contracts often require more extensive services, including landscape design, large-scale maintenance, and irrigation installation. These contracts tend to be more lucrative, as they often involve long-term agreements with higher budgets. However, they also come with higher expectations, larger crews, and more equipment.

Business Structure and Size

The size and structure of your business will influence how much revenue you can generate. Key factors include:

• Number of Employees: Larger crews allow you to take on more clients and projects simultaneously, increasing overall revenue. However, labor costs are one of the biggest expenses for landscaping businesses.
• Equipment and Resources: Having specialized equipment, such as ride-on mowers, trucks, trailers, and excavation equipment, allows you to complete larger projects more efficiently, but it also requires a significant upfront investment.
• Service Area: Expanding your service area or opening multiple locations can increase income, but it also increases operational complexity and overhead costs.

Average Earnings of Landscaping Businesses

The average revenue of landscaping companies varies depending on their size, the services offered, and their geographic location. In general, small landscaping businesses earn between $250,000 and $500,000 annually, while larger businesses that cater to commercial clients may earn over $1 million per year​.

• Revenue Breakdown by Service Type: Residential landscaping services such as lawn care and maintenance tend to provide consistent income streams. For example, U.S. homeowners spend an average of $45-$75 per hour for landscaping services​. Meanwhile, hardscaping services, which involve installing patios, walkways, and retaining walls, often generate higher revenue​. Design and construction services can generate significant income, with some large projects reaching over $100,000.
• Small vs. Large Landscaping Companies: Smaller businesses, especially those catering to residential customers, often have lower overhead costs but may lack the capacity to take on large-scale projects. Larger landscaping businesses that work with commercial properties or public spaces tend to secure higher-paying contracts, enabling them to scale and expand their services​.

Potential Profit Margins in Landscaping

Profit margins in the landscaping industry can range from 10% to 20%, depending on the efficiency of operations and the type of services offered. For example, companies specializing in landscape design or hardscaping may see margins as high as 17%, while those offering only essential lawn maintenance may see lower profit margins​.

• Cost Management: The cost of materials and labor is a significant factor affecting profit margins. Effective resource management—such as reducing material waste or hiring skilled labor—can improve overall profitability. Businesses that invest in employee training or adopt new technologies, such as software for project management, tend to have higher margins​.
• Maximizing Profit Margins: One strategy to increase profitability is to offer bundled services, such as pairing lawn care with garden design or upselling seasonal services like holiday decoration​. Additionally, long-term maintenance contracts provide a steady stream of income and can help landscaping businesses smooth out seasonal fluctuations​.

Strategies to Maximize Profitability in Landscaping

To ensure your landscaping business is as profitable as possible, consider implementing these strategies:

1. Offer a Diverse Range of Services

By offering a variety of services, you can cater to different client needs and increase revenue. For example:

• Add seasonal services like snow removal or leaf collection to your year-round offerings.
• Offer premium services like organic lawn care, custom garden designs, or landscape lighting.
• Consider expanding into irrigation system installation and maintenance, which can command higher prices.

2. Upsell and Cross-Sell to Existing Clients

Leverage your existing client relationships by offering additional services. For instance:

• Upsell high-end services like landscape design, pest control, or organic treatments to existing lawn care customers.
• Cross-sell other services like tree trimming or irrigation system checks during routine maintenance visits.

3. Invest in Efficient Equipment

High-quality, efficient equipment can reduce the time and labor required to complete jobs. Investing in advanced tools or machinery may increase your upfront costs but can pay off in the long run through improved efficiency and the ability to take on more clients.

4. Streamline Operations

Using landscaping business management software for scheduling, invoicing, and customer relationship management can significantly streamline your operations. This reduces administrative time, allowing you to focus more on growing your business.

5. Build Long-Term Client Relationships

Repeat business is one of the best ways to ensure a steady income. Strategies to build long-term relationships include:

• Offering annual service contracts for lawn maintenance, tree care, or irrigation systems.
• Providing discounts for repeat services or multi-season agreements.
• Creating a customer loyalty program to reward clients for continued business.

SHEETS.MARKET Landscaping Services Financial Model

Are you looking to build a robust financial model for your landscaping business? Understanding your potential revenue, profit margins, and key costs is crucial to attracting investors and securing loans. With SHEETS.MARKET’s Landscaping Services Financial Model, you can accurately project your financials, plan for growth, and streamline operations to maximize profitability. Explore the financial model today and take the next step in scaling your landscaping business!

Challenges Facing Landscaping Services

While the landscaping industry presents significant opportunities, it also faces several challenges:

• Labor Shortages: Finding and retaining qualified employees is one of the biggest challenges for landscaping businesses. Labor shortages can limit a company’s ability to take on new projects or expand​.
• Weather Conditions: Weather plays a significant role in determining how much work landscaping businesses can complete. Unpredictable weather patterns can disrupt operations, especially in regions prone to harsh winters​.
• Increasing Competition: With over 641,000 landscaping businesses in the U.S. alone, competition is fierce. To thrive in the market, new companies need to differentiate themselves by offering unique services or focusing on customer service​.

Conclusion

The landscaping industry offers ample financial potential for both new and established businesses. Businesses can increase their profitability by diversifying services, managing costs effectively, and staying attuned to market trends such as sustainable landscaping. The industry is expected to grow at a steady pace, reaching over $359 billion globally by 2029​.

If you’re considering starting a landscaping business or expanding your current operations, now is an excellent time to tap into this growing market. You can maximize your earning potential by focusing on delivering high-quality services, diversifying your offerings, and exploring new trends.