Lawn mower depreciation calculator. How Much To Charge For Lawn Mowing

How Much To Charge For Lawn Mowing

Lawn mowing is the main income stream of thousands of experienced contractors across the country. One of the toughest aspects of starting a lawn mowing business is figuring out how much to charge for lawn mowing.

Lawn mowing is the main income stream of thousands of experienced contractors across the country. One of the toughest aspects of starting a lawn mowing business is figuring out how much to charge for lawn mowing.

You need to turn a profit, but you also need to be competitive to secure regular business, especially when you are a small business just starting out. Let’s examine the average price for lawn mowing and a rough breakdown of various lawn care services.

Lawn Care Prices

So, what is the average cost to mow a lawn?

Depending on the neighborhood you operate in and the area of the country, lawn care range from 50 to 250. Naturally, many factors go into determining the final price.

The lawn mowing services cost varies based on the local economy and the size of the lawn. The average also doesn’t take into account any additional lawn maintenance tasks, such as weeding, trimming, and landscaping.

Lawn Mowing Pricing Guide

This lawn mowing price guide offers no more than ballpark figures. Typically, if a customer commits to a regular contract, they’ll expect to get a negotiated rate. The one-off lawn care cost will always be higher than someone who commits to a contract for a year.

Let’s take a look at some basic lawn care services from across the country:

• Full-Service Lawn Care. 40-449
• Gardening. 30-500
• Landscaping and Design. 30-4,500
• Lawn Aeration. 30-420
• Lawn Mowing. 50-250
• Leaf Removal. 30-550
• Weeding – 40-600

As you can see, lawn care services vary drastically. This is why the rule of thumb is that customers should consult several professionals to get an idea of what they will be charged.

Professionals trying to figure out how much to charge for lawn mowing need to find the sweet spot where they can make a profit but not be outdone by the local competition.

Lawn Care Pricing Chart

Most homeowners underestimate how much time and effort it takes to properly maintain a lawn. For most people, cutting the grass alone isn’t enough to make their lawns stand out among their neighbors.

Anyone who’s houseproud needs to consider all the other services that go beyond simple lawn mowing.

Here’s a lawn care pricing chart to give you an idea of what it costs for some of the most popular lawn care services.

• Landscape Edging. 700-1,700
• Lawn Fertilization. 80-380
• Mulching. 45-750
• Outdoor Pest Control. 50-200
• Spring/Fall Yard Cleaning. 100-250
• Sprinkler Repair. 45-300
• Tree Planting. 45-2,000
• Winterization. 80-380
• Watering. 50-400

Professionals may choose to offer deep discounts for purchasing multiple services all at once. It really depends on how much time the job is likely to take and the specifics of the homeowner, especially with major landscaping jobs.

Lawn Care Costs: Things to Consider

Charging the right grass-cutting service price is key for professionals. You’ll need to maximize your earnings per hour, account for your overhead overhead costs, and ensure you’re making a regular profit.

Let’s take a look at some of the business costs contractors need to consider when thinking about lawn care prices.

Overhead

Overhead and operational costs are a huge part of what goes into determining the lawn mowing services cost. Based on your expenses, figure out what the monthly overhead is going to be.

This includes everything from the cost of equipment to monthly expenses like office space, business insurance, and more.

Now you can figure out the overhead per job. Take the average number of jobs you have each month and divide the monthly overhead by this number to get the overhead per job.

Taxes

Independent contractors have a wealth of tax deductions they can take to reduce their tax bills at the end of the business year. Everything from the miles driven to depreciation and equipment purchases is tax-deductible.

Make sure that you keep detailed records as you’ll need to prove your expenses if you get audited.

Weather

Factor in the weather. Contractors living in cold climates know that there’s little to do during the winter months, but their monthly overhead still applies. Lawn care businesses must winterproof themselves so that what they earn during the high season provides them with a living during the low season. Some professionals even offer snow shoveling services so they can keep their business profitable during the low season.

Location

The average cost to mow a lawn is just a snapshot of the true charged. Not only do states differ, but regions also differ. An area with a consistent climate usually results in lower as there’s no need to purchase separate equipment to cover all four seasons.

Labor Costs

Many contractors expand beyond one-person operations to take on bigger projects and more of them. Expanding this type of business is exciting, but lawn care professionals with crews have bigger overheads because of employee salaries.

The total cost of a job needs to take this into account. Delivering estimates with employees means you need to factor in the hours needed, the employees’ salaries, and how many employees are needed for that job.

When providing written estimates, make sure the cost of the employees is itemized so that customers have a transparent breakdown of what they’re paying for.

Your Questions About Lawn Care Pricing Answered

Figuring out roughly how much to charge for lawn mowing is one thing, but a lot goes into determining the final price. It’s a balancing act that professionals need to master if they’re going to succeed in this business.

Here are some of the most common questions people have about lawn care prices.

What is the average price for lawn mowing?

The average price of mowing a lawn ranges from 50 to 250. This doesn’t take into account the size of the lawn or any additional services. It’s for cutting the grass only.

Additional costs may apply if a lawn has been neglected for an extended period.

What’s included in the price of lawn mowing services?

Lawn care companies like to provide discounts on one-off services by bundling common lawn care services into a single package. These mowing packages often include mowing, edging, weeding, and leaf removal services.

Depending on what a lawn needs, it’s easy for homeowners to add on other services, such as watering and fertilization.

Remember that it’s common to provide discounts for committing to a long-term lawn care contract. Loyalty rewards are always appreciated in this hotly contested business.

What are the benefits of using a professional lawn mowing service for your customers?

Both customers and businesses need to know why anyone would hire a professional lawn mowing service when it’s a job that homeowners can do themselves.

Lawn mowing is hard work, takes a lot of time, and the equipment can be expensive. If someone works a busy schedule or doesn’t have the equipment, a professional like you can keep their yard as green as a leprechaun. Plus, if a person lives in a part of the country with an inconsistent climate, managing the seasonal needs of a lawn is something that should be left to the professionals. This is how a growing lawn care business or a large established lawn company can be a better fit for a homeowner.

What kind of business model does the lawn mowing service have?

Another factor that will determine how much it costs to mow the lawn is the type of business model the company operates.

Less formalized independent contractors will typically charge less than their more established counterparts. If a lawn care company has a company truck, uniforms, and more systemized business practices, they need to charge more to cover their overheads.

Do gas mowers play a part in the cost of mowing a lawn?

One aspect that often goes overlooked by professionals and customers alike is the cost of running a gas mower. Many companies are moving away from gas mowers to avoid fluctuations in their service pricing.

Since these mowers run on gas, international gas will impact the cost. It might only be by a few dollars, but if the markets spike or drop, customers will see it in their pricing.

Conclusion

Fair pricing is the cornerstone of any type of professional lawn mowing company. Knowing how much to charge for lawn mowing could make or break your business.

Get help with growing, expanding, and making the most of your business with FieldRoutes. We’re an all-in-one lawn care business software that keeps it simple.

To learn about how it all works, get your free demo by getting in touch with us today.

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Tips for quoting lawn mowing jobs

How to Charge for Lawn Mowing: Pricing Tips and Pricing Chart for Lawn Care Pros

Pricing lawn mowing fairly and competitively comes down to knowing how much lawn care professionals are charging in your area. And you won’t want to price all jobs the same, or you’ll risk losing money.

It can take a bit of time to figure out how much to charge to mow a lawn in a balanced way that perfectly serves all parties involved, but we’ve got expert insight to help take away some of the guesswork. Take a look at a few factors that determine the average cost of lawn care and how you should figure out pricing for your services.

How Much to Charge for Lawn Care Services

On average, professionals charge between 50 and 250 for lawn mowing. When it comes to more specialized landscape maintenance costs, like weed control, trimming, aeration, fertilization, and pesticide treatment, most pros charge between 125 and 450.

When customers book complete lawn jobs, they understand they’re paying for both time and expertise. As a lawn professional, your experience can turn lawns into park-like settings using the right equipment, blades, and edging techniques, making your work valuable.

The pricing chart and lawn mowing pricing models further below can help you get a better idea of what’s a reasonable price to charge for your services.

You don’t have to work too yard for the perfect lawn

Lawn Mowing Pricing Chart

Providing a pricing chart is one way to break down your costs for potential customers. That way, they can look at the chart and consider their lawn care needs and budget. Convenience is the name of the game here.

The lawn care pricing chart below is an example of how you might want to break down lawn mowing costs by lawn size and typical mowing time.

Lawn SizeEstimated TimeCost

1/4 acre	15 min. – 30 min.	25 – 60
1/2 acre	30 min. – 1 hr.	50 – 75
1 acre	1 – 2 hrs.	150 – 200
2 acre	2 – 4 hrs.	250 – 350
3 acre	3 – 6 hrs.	350 – 500
5 acre	5 – 10 hrs.	450 – 650
1 acre	10 – 100 hrs.	500 – 750

Different Lawn Mowing Service Pricing Models

You’ll need to price each lawn care job based on its individual factors. For example, it’s perfectly acceptable to charge a premium for larger, complex, or time-consuming jobs. Just make sure you’re transparent about your pricing model when you provide an estimate.

The first step to deciding how to charge clients is determining how much you need to make per hour across all jobs. That doesn’t mean you’re actually charging by the hour. It just means that you have an idea of the hourly breakdown that makes a job worthwhile.

You’ll need to know how much each job will bring in per hour while factoring in your overhead costs, even if you charge a flat or project-based rate.

Per Hour

An hourly rate is the most straightforward option when you’re charging someone to mow their lawn. This model means you’re charging a set rate for each hour it takes you to complete a job.

Lawn mowing per hour for most pros sit between 25 and 60, and much of this variation depends on experience and specialized offerings.

Let’s say you charge 50 per hour. The average lawn in the United States is somewhere around 10,000 square feet. If it takes you two hours to mow the entire lawn, you’re looking at 100 (50 multiplied by 2).

The benefit here is that you’re compensated for your time if some lawns take longer due to complicated terrains. You also don’t have to try to work out how long prep and cleanup times will take ahead of time like you would with a package price. Instead, you’ll be charging for all the time you spend at the property.

The type of lawn mower you use to mow the lawn can play a major role in the total mowing time, so also factor in your lawn mower type. A push mower will take more than twice as long to get through an acre than a riding mower. Larger yards could take many hours to mow with a small push mower.

Charging by the hour can be a Smart move for new lawn professionals. This is because it’s hard to estimate how long it will take you to complete a job at first. If you rush into flat rates or project rates, you risk losing money on clients by underestimating how long projects will take.

Per Square Foot

Some lawn care professionals prefer to charge by square footage. They may use aerial footage of properties when creating estimates to get a feel for how complex the job will be. The complexity of a project is important because it’s very easy to lose money by charging the same rate per square foot for each customer when terrain can vary wildly.

Make sure you get your desired hourly rate when creating estimates based on square footage.

Let’s say you want to make 50 per hour and a customer with a lawn that’s 10,000 square feet contacts you. You’ll need to have a really good idea of how many hours it would take you to get that much square footage mowed.

Now let’s say you know it takes exactly two hours to mow 10,000 square feet. You should charge 0.50 per square foot to reach your goal of making 50 per hour.

The perk here is that customers love this no-nonsense approach to lawn mowing pricing. Plus, you’ll like that you can enjoy predictable revenue.

However, the problem with charging by square footage is that it doesn’t account for special circumstances. For example, you could run into a situation where a specific 10,000-square-foot lawn takes you an extra 30 minutes due to hilly terrain. Unfortunately, you’ll have to eat that extra 25 in labor if you didn’t take a look at the property first to increase your price per square foot.

That 25 loss may not seem like a big deal; however, you can lose hundreds per week if you miscalculate several times.

Flat Fee

A flat fee allows you to charge a single price for a complete project. Charging with a flat fee can work in a few different ways.

First, flat fees are great for recurring lawn mowing jobs. Customers will appreciate the consistency of paying a flat monthly or weekly rate for regular mowing. This also allows you to set up auto payments for recurring customers.

Additionally, you might want to provide flat fees for larger projects to make it easier for customers to budget for the job.

Again, being successful with this comes down to knowing how much you need to earn per hour to make a job profitable. If you’re looking for 50 per hour, you need to know two things: how much work you can do in each hour and how many hours the job will take.

• Mowing time: 55 minutes
• Trimming: 15 minutes
• Edging: 10 minutes
• Blowing: 10 minutes

Say this is a 90-minute job. If you need to make 50 per hour to be profitable, you’ll have to charge at least 75 for the entire project.

The downside to the flat fee is similar to the downside of charging per square footage. You may lose money if you’re not totally on the ball with your estimate. What’s more, you could be losing money day after day if you’ve charged a flat rate that’s too low for a big project.

Additional Mowing Services to Consider

Lawn care companies that offer premium services can charge more both hourly and per job. Consider adding value to your service by bundling even more useful services into your packages.

Here are a few service-based strategies to set yourself apart from the competition:

• Use eco-friendly materials.
• Offer waste removal, weeding, and fertilizing services.
• Install landscape lighting.
• Upsell with insect, disease, and pest control.
• Offer snow and ice removal in the winter.

One of the most important strategies to keep in mind is treating returning customers very well. You shouldn’t forget about rewarding loyalty, as most of your revenue will come from a small fraction of repeat customers.

• Offer incentives for clients who book regular mowing, such as 5 off per week.
• Provide discounts to repeat customers, like free weed pulling after 20 mows.
• Give small gifts (like a flower bulb) to customers once they’ve reached a certain milestone.

Rewarding loyal customers with lower helps keep the competition from swooping in with a deal. Loyal customers are also easier to upsell, which can be more profitable than always pursuing fresh leads.

Give your grass the full salon treatment

What to Consider When Charging for Lawn Services

When you decide on the price per hour needed to be profitable, make sure you’re accounting for all necessary costs, from lawn size to overhead.

Here are some crucial lawn mowing business costs to consider:

Overhead

When you run a lawn business, you must factor overhead and operational costs into your price per hour. Start by actually determining what your monthly overhead adds up to based on your expenses. Your overhead includes everything from equipment costs to monthly premiums for business insurance.

Next, determine how much of that total cost for overhead you need to factor into each job. You can do this by essentially dividing the overhead amount by the average number of jobs you book per month.

Taxes

Equipment purchases and rentals, miles driven, depreciation, wages to employees, and payments to independent contractors are all tax-deductible. In fact, almost every business expense is tax-deductible, including phone and internet bills if you’re using them for your business. Be sure to keep detailed records so you can get the most deductions come tax time.

Weather

If you live in a colder climate, you already know that landscaping notoriously has a low season in the winter. Unfortunately, many of your overhead costs related to maintaining vehicles, owning equipment, and keeping insurance will still apply when the calls aren’t coming in. You may need to bake costs related to the slow season into your rates during peak seasons.

Try to winterproof your lawn care business by providing services that go beyond mowing.

Here are some services that can keep you afloat when mowing demand slows:

• Draining sprinklers
• Dethatching lawns
• Wrapping trees in burlap
• Planting bulbs
• Seeding
• Mulching/pine straw
• Pressure washing

Many landscapers also offer plowing and sidewalk shoveling. Clients who don’t mow their own lawns often prefer not to shovel their driveways. It’s possible to turn summer regulars into winter regulars every time it snows.

Location

of goods and services vary by state. That means you have to price your services by the regional average instead of the national average. If you work in an area with a consistent climate, you can charge less because you don’t need to buy equipment that’s compatible with all four seasons.

However, the flip side is that mowers and trimmers are likely to get worn out faster in places where mowing is necessary for most of the year.

Labor

If you have a crew, a big portion of your overhead is wages. You’re looking at the total cost based on the number of hours needed times the number of people needed when providing estimates.

When you deliver estimates, make sure you include the number of workers in your itemized list to justify what you charge.

Find the pros who can pamper your lawn and make the neighbors jealous

How to Calculate Lawn Care Pricing

Lawn care pricing can be complex to calculate, but once you choose the calculations that work best for your business, you’ll have rates that accurately reflect your work. Here’s how you can calculate your lawn care prices:

Choose a Method

Again, there are three main pricing methods for lawn care services: by the hour, by square footage, and by flat rates.

By the Hour

Charging by the hour ensures that you’re covered in the case of unforeseen circumstances, like difficult terrain. Hourly rates can increase your profits, but they can also price you out of the market if you use a low-quality lawn mower to tackle a large property.

For land greater than an acre, you might want to invest in a rear-engine riding mower or a tractor riding mower.

By Square Footage

If you’re confident in your mowing time, you can also choose to charge by square footage. Doing so is a straightforward process that makes it easy for customers to budget for the total cost, but it can result in a loss of income if you miscalculate the lawn’s complexity.

By Flat Rate

Lastly, choosing a flat rate can be perfect for capturing recurring customers who like the consistency of a simple package. Similarly to charging by the square foot, flat rates can underestimate the time it takes to mow a lawn.

You may want to choose a combination of methods to calculate your prices. Charging a flat rate for different property sizes may help customers feel like they’re getting the best rates for their lawn sizes.

Consider All Expenses

Once you’ve chosen a method for calculating your prices, you’ll also need to consider any additional costs that might pop up. This will help cover any surprises like tall grass, sloped land, rocky terrain, and more. It’s also important to include the costs of common add-ons for lawn care services, including:

• Fertilization costs: 75–400
• Aeration costs: 0.10–0.35 per square foot
• Yard cleanup costs: 190–1,000
• Tree trimming costs: 200–750 per tree
• Reseeding costs: 0.10–0.20 per square foot

Create a Pricing Package

With all of your cost factors and your charging method in place, you can finally stop watching the grass grow and start creating the perfect package for your lawn care business.

Customers like options, so consider the numbers you came up with and create different packages that fit within your price range to give your customers a choice. It’s also a good idea to compare your calculations to other lawn care services in your area to make sure your are competitive.

Keep your lawn lush and green

Charge the Right Price for Lawn Care to Grow Your Business

As a lawn care professional, charging the right price is essential to making a profit and growing your business. Use these tips to determine how much to charge, when to upsell customers, and how to stay busy year-round.

Sign up for Angi Ads today to get leads actively looking for lawn care services in your local area. From helping you manage leads to accepting payments, Angi is a lawn care professional’s secret weapon.

Frequently Asked Questions

Is it profitable to start a mowing business?

Starting a mowing business can be profitable if you manage your business wisely, calculate costs accurately, and invest in time-efficient, high-quality equipment. With good customer service, you can lock in loyal customers who invest in weekly lawn care services that turn your business into a successful one.

Lawn care businesses can earn anywhere from 40,000 to over 100,000 per year depending on how you operate, but you’ll need to factor in the cost of equipment to determine your actual profit margins.

How many miles per hour can you mow?

Depending on your lawn mower type, you can mow anywhere from 2.5 to 13 miles per hour (mph). A simple push lawn mower will take the longest to mow at 2.5 mph, which is just under the average walking pace. Riding mowers can go significantly faster. Rear engines come in at around 5 mph, tractors come in at just shy of 8 mph, and zero-turn mowers come in at the fastest speed of 13 mph.

How to Value and Sell a Landscaping Business

If you’re the proud owner of a landscaping company, you’re in luck. landscaping is one of the most desirable industries on the market. If you’re thinking about selling your business or have received an offer, this is a great time to educate yourself on the process.

BEFORE YOU BUY A BATTERY POWERED LAWN MOWER, WATCH THIS!

How to Value a Landscaping Business

The most reliable method of valuing a landscaping company is with the multiple of earnings method.

2 to 4 times SDE. or. 5 to 7 times EBITDA

Sellers Discretionary Earnings (SDE): SDE represents the total financial benefit one owner operator can expect to receive from their business. Expenses such as officer’s salary, benefits, depreciation, and other situational items (rent, utilities, one-time expenses) are added back into your net profit before taxes to show the total financial benefit your company can provide an owner-operator. You can learn how to calculate your SDE here.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): EBITDA is very similar to SDE, but it’s typically used to value larger businesses (over 3,000,000 in revenue). The major difference between EBITDA and SDE is that EBITDA assumes that the buyer is not going to be an owner-operator. Instead, EBITDA factors in a market-value officer’s salary. Businesses priced on EBITDA often pull a higher multiple because they are not owner-operated.

Want to see what landscaping companies are selling for?

How NOT to Value a Landscaping Business

40% to 60% of sales inventory or 1 to 1.5 times revenue

Over the years many business owners have been told that their companies are worth some percentage or multiple of sales/revenue. This is not a reliable valuation method.

According to the 40% revenue inventory method above, a company doing 2 million in revenue with 200,000 in inventory is worth 1 million.

What if the owner underpriced their work and the same company was losing 25,000 per year? Would you pay 1,000,000 to lose money?

While your revenue number demonstrates the size of your business it is not a sensible method of valuation by itself.

How to Increase Your Multiple

Many factors influence the multiple your business will achieve. Most businesses will fall between the (2 – 4 x SDE) or (5. 7x EBITDA) range.

If you want to be near the top of that range, there are some things you can do.

Note: There are no perfect businesses. The advice below will make your business more valuable, but you don’t need to check all the boxes.

General Factors That Impact Business Value

Owner Involvement

As a rule, the more involved an owner is in the production of revenue, the less valuable the company. than likely, it’s not possible to back yourself out of all day-to-day operations. However, you should strive to minimize how much the business depends on you to carry the load.

Operation manuals are a great start, but also consider your management team. Are the right people in place to keep your business operating smoothly if you stepped away for a month or longer?

2. Keep Clean Books and Records

As the saying goes, “I’ll believe it when I see it.” It’s fairly common for owners to take cash out of their business, but sophisticated buyers will never pay you for earnings you can’t prove.

Consider this: for every 1 you take off the books, you’re subtracting 2 – 3 from your business value. Because businesses are sold on a multiple of earnings, you reduce your sale price exponentially with every dollar you can’t prove you made.

Avoid Customer Concentration Issues

If one or a few customers make up a large percentage of your company’s revenue, buyers will perceive this as high-risk. It won’t necessarily turn them away, but it will impact your value.

Reduce Working Capital Requirement

On average, how long does it take you to get paid? When a buyer steps in, they’ll need to have enough money to pay employees, vendors, and keep the lights on before revenue comes in.

If you’ve been extending credit to customers in excess of 30 days, this will make it difficult for buyers to use the SBA 7(a) program. By cleaning up your accounts receivable over 30 days, you’ll be more attractive to potential buyers.

Company Size

Lenders shy away from businesses with a sale price below 350,000, making it difficult to get anything below that financed through the SBA or other sources. If you’re a small landscaping company, it may be worth growing the company to this level before you sell. Otherwise, you may have to risk seller financing the business.

Factors Impacting The Value of a Landscaping Business

Service Contracts

Buyers love long-term contracts. They protect the business from volatility and allow them to predict revenue and earnings years in advance. From an operations standpoint, they also allow you estimate more effectively and plan denser routes for your crews.

Commercial Clientele

Though many companies tend to FOCUS strictly on residential, commercial service businesses are seen as less volatile. Commercial landscaping companies tend to sell for higher multiples than strictly residential companies.

Reputation

Reputation matters. Make sure you’re asking customers to review your services across Google, Angie’s List, Yelp, and other aggregate review sites. If you have the resources, you may also consider publishing some client testimonial videos on your website.

Digital Marketing

A study conducted by the eCommerce Foundation found that 88% of consumers research products online before they make a buying decision. Your digital presence is more important today than ever before.

Invest in a nice website, improve your search engine optimization (SEO), and search for areas to incorporate your brand into daily business activities (logos on vehicles, shirts, etc.). As younger demographics become homeowners, more of your customers will be searching the web for their landscaping professionals.

Reliable Employees

One of the biggest challenges in the landscaping industry is labor. If your company has an established and trustworthy crew(s), it’s very valuable. At the very least, ensure your business has a steady process for seeking out new employees and hiring as employees inevitably turns over.

What Decreases The Value of a Landscaping Business?

Installations Than Maintenance

As mentioned, service contracts should be your FOCUS. Businesses relying primarily on installations carry a higher risk than those with service contracts. If your primary FOCUS is installation, it’s best to have the design work done by someone other than the owner(s).

Primarily Residential Clientele

Studies have shown that households earning less than 100,000 per year are not likely to spend their money on landscaping services. And even the households earning more than 100,000 become more price-conscious during economic downturns. If your clientele is completely residential, it will hurt the value.

Undocumented Employees

Although finding labor can be difficult, penalties for hiring undocumented immigrant workers range from 375 per employee to 3,000 per employee and even imprisonment. That’s a risk most buyers will not be comfortable taking. As an employer, be sure you are doing your due diligence when hiring.

Selling Your Business to a Competitor

Thinking of selling your business to a competitor? There’s a lot to consider. Especially if you’re thinking of selling to one of the big guys (BrightView, Grounds Guys, Lawn Doctor, etc.).

In almost every case, a competitor is going to pay you less for your business than an individual buyer.

Why? Because your competition doesn’t want many of the assets that make up your company. These include:

The brand and reputation you’ve established (goodwill)2. Redundant members of staff3. Non-conforming equipment, software, or inventory

Selling Your Landscaping Business to an Individual

Selling your business to an individual is usually more profitable than selling to a competitor. This is because an individual buyer needs to purchase every aspect of your company as it is running today.

If your business value is in the 400,000 to 2,000,000 range, an individual buyer is the most likely candidate. However, as the business size and purchase price increase, the pool of individual buyers shrinks.

Once you’ve reached a certain size, the best buyer for your business becomes a strategic buyer or a private equity group.

Selling Your Landscaping Business to a Strategic Buyer

A strategic buyer is a business that operates in an industry related to your business. For landscaping, that could be a property management company, an irrigation stormwater services company, or even another landscaping company outside of your service area.

A common strategic buyer is one who uses your services frequently. Think for a second, do you have any customers whose business could benefit by taking over the function you perform for them?

The main difference between strategics and competitors is that a strategic buyer is not a direct competitor of your business.

Selling Your Landscaping Business to a Private Equity Group

Selling your business to a private equity group (PEG) can be very profitable, but it’s less common for landscaping businesses.

Still, understanding how private equity operates is important. Selling to a private equity group is more like bringing in an equity partner. PEGs love business owners who want to stay in their business, but need help getting to the next level.

The PEG buys a majority stake of your company, while you retain a minority position and continue to operate the business in some capacity. The purpose of this partnership is to increase the value of the business and sell it later down the road, usually to a strategic buyer or larger Private Equity Group.

Selling to a Private Equity Group would enable you to sell a portion of your business at today’s value. to take some chips off the table. You negotiate a fair salary, help grow the company with the financial and operational aid of the PEG, and eventually sell your minority stake when the PEG decides to sell. theoretically at a much higher overall value (which in some cases turns out to be more valuable to you than the original sale).

How Long Will it Take to Sell?

Wondering how long it will take to sell your landscaping business? 51% of business owners think it will take five months. However, research suggests it takes six to eight months on average, depending on a number of factors.

One of the most important factors is size. the larger your business, the smaller pool of qualified buyers you will have, and the more likely a buyer is to request a longer due diligence period.

How Much do Business Brokers Charge?

Wondering how much business brokers charge? Like many things when it comes to selling a business. there’s no simple answer. Nearly every business and every situation is unique. Ultimately the answer boils down to the size of your business and the type of broker you will work with to sell it.

For Main Street businesses (those doing less than 1 million in revenue), the price will most likely be 10% of the sale price.

For lower middle market companies (1. 25 million in revenue), your broker will likely use the Double Lehman pricing model.

For middle market companies, (25 million in revenue), brokerage firms will typically use a flat percentage of the purchase price.

Speak With an Experienced Broker

If you still have questions about selling your landscaping business, we encourage you to give us a call.

We’ve worked with many landscaping companies to help them prepare and execute a successful sale, and we’d love to help you in any way we can. Feel free to reach out anytime.

Tax Deductions for Landscapers. What You Need to Know To Save Money

As someone who gets their income through a business in lawn care, you may also be eligible to get tax deductions for landscapers. After all, you will likely have a lot of expensive gear to buy and business-related expenses to handle.

With that in mind, what are the tax deductions that you are eligible for as a landscaper? What can you do in order to make your tax-keeping easier? Do you get tax money back when you buy business equipment? Well, read on to figure out what tax deductions you may take advantage of.

Note: If you want to maximize your landscaper tax deductions, try Bonsai Tax. Our app scans your bank/credit card receipts to discover potential tax write-offs automatically. Users typically save 5,600 from their tax bill with our software. Claim your 14-day free trial today.

Do I Need to Pay Self-Employment Tax As a Landscaper?

If you work as a landscaper or gardener, offering your service to other people, then the IRS will see you as a self-employed business owner who is subjected to income tax. This means that you will need to report your income and your tax deductions when you file for tax return.

Besides the income tax, a person who has a landscaping business will also have to pay self-employment tax. This will include taxes that will go into your Social Security and Medicare.

A total of 15.3% is going to the self-employment tax. 12.4% of that tax will go to Social Security, whereas the other 2.9% will go into Medicare. Bear in mind that you will have to pay quarterly estimated taxes throughout the tax year, by the due dates set by the IRS.

Try our free tool to calculate how much you’ll owe in self-employment taxes.

Can I Deduct Landscaping On My Taxes?

As long as you meet the qualification, the IRS allows you to put landscaping as a tax-deductible business. Bear in mind that your name needs to figure as the business owner, as well as the owner of the property where the income goes to.

If you are a renter, then you may not be able to deduct the costs of landscaping, no matter if you pay for the lawn care costs or not. This is because the IRS deems it a capital investment.

Small business owners working from home but meeting the clients at their houses may be eligible for tax returns. They may deduct a portion of the total costs, depending on how much of their property is used as a business.

In other words, even if you have a lawn care business that takes you into the gardens of other people, you must have at least a room in your house you can call your home office. That home office may contain everything from your paperwork to your landscaping gear.

What Can I Write Off As a Landscaper?

Like every small business that a self-employed person may have, a landscaping business will also give you the opportunity for tax deductions. If you are into lawn care, here are the tax deductions that you may write off when tax time comes strolling

• Lawn mowers and the gas needed for it
• Business license fees
• Legal and professional services (as well as other start up fees)
• Lawn equipment that might be needed for your small business
• Safety gear necessary for your landscaping business
• Internet, phone, and any potential data plans needed to keep your small business running
• Mileage driven by the business owner for business-related purposes (try our free mileage template)
• Vehicle maintenance or expenses needed for repairs
• Services and electronics that your truck may need, along with the cost to repair them
• Items for vehicle maintenance, such as paper towels, window cleaners, etc.
• Home office supplies, such as paper, pens, and envelopes (use our worksheet for home office expenses)
• Postage fees for invoices
• Marketing expenses that the small business owners need to go through in order to advertise their lawn care company
• Insurance expenses connected to your lawn care business
• Miscellaneous items that can help you do your job as a lawn care business owner

Landscaping tax affects everyone differently, which is why you may want to collaborate closely with the IRS and your tax advisor. Whatever tax deduction you may have to write off, they can help you with your tax return.

Note: If you want an app to track and record all your receipts for you, try Bonsai Tax. There’s a reason why freelancers call us the best receipt scanner. We’ll track and maximize all of your deductions for you. Freelancers who use our software save 5,600 on average. Try a 14-day free trial today.

Can You Write Off the Lawn Mower On Your Taxes?

The lawn mower is tax-deductible, so yes, you can get tax deductions on it. To put it simply, everything that small business owners use for the purpose of the company may be written off. You just have to prove that you are using the lawn mower for your landscaping business, and you should be able to write off the purchase price taxes.

It is mandatory to keep the records of every purchase that you make for your business. It’s very easy to lose track of expenses, even the ones necessary to keep the lawn mower running. i.e., the gas. In the event of an audit, you must have a way to prove your expenses.

The lawn mower in itself is considered a capital expense for your business. As a result, the tax deductions that you will receive may be spread over the total years in which you expect the lawn mower to last.

To make a simple example, the average 5,000 lawn mower lasts somewhere around 5 years, if used continuously for the business. Multiplying 5,000 by 20%, you get 1,000. and that’s exactly how much you can claim every year for the next five years.

Tax Tips for Landscapers

Tax deductions for landscapers may be given to anyone owning a landscaping business. All you need to do is keep a record of your expenses when you file for tax return.

The tax law is set. and as long as you meet the requirements, you can get your deductions. With that in mind, here are some tips that you’ll want to keep in mind if you want to get the most out of your tax return.

Depreciate Your Costs

It might be tempting for you to claim one-time tax deductions for business equipment. However, if you want to save on your taxes, you might want to try the depreciation method instead.

Take an essential piece of equipment, and depreciate its cost over the past couple of years. You might receive more out of that depreciation when you get your tax return.

Check With Your State Laws

Depending on the state that you live in, you may or may not be subjected to sales taxes when offering your services.

Check with your state laws and make sure that you are handling your expenses and taxes correctly. The last thing you want is to have the IRS at your doorstep.

Calculate Vehicle Travel Expenses Correctly

When you are deducting the travel expenses for your truck, you may want to be careful of the calculations. specifically, the cents per mile rate. The IRS mileage rate for businesses is 56 cents per mile. You may also use the truck expenses options provided by the IRS. Read our article on claiming the Standard mileage deduction versus actual expenses.

Know What You Can’t Deduct

As a landscaper, there are certain expenses you may not get a deduction for at the end of the tax year. For example, while you may be able to deduct equipment, you may not be able to deduct an expense that was already reimbursed to you by the person who hired you.

The Bottom Line

Owning a lawn care business is a good way to generate income if you like gardening. However, just like the rest of the self-employed people that get their money through offering services, you’ll also need to pay taxes. Hopefully, this guide gave you some ideas on how to handle your tax return.