Pricing for Profit, Not Just Coverage

Most new operators price by what the next guy charges. That works until fuel, labor, or material moves — and then the spread between revenue and cost quietly disappears while the schedule stays full. The fix is to price from your numbers up, so every job carries its real cost plus the margin you actually need to run the business.

The Four Costs Every Price Must Cover

Before you think about what to charge, know what a stop costs you. Four buckets cover nearly everything:

A Worked Example

Say a fertilizer-and-weed-control stop on a 6,000 sq ft lawn costs you $9 in material, $14 in labor (loaded), $4 in drive time, and $5 in allocated overhead — $32 all in. At a 60% target gross margin on the direct costs, you'd price around $58–$62. Charge $45 because that's what a competitor's flyer says, and you're keeping the lights on with almost nothing left to grow on.

Target Margins

On chemical applications, healthy operators target 60–70% gross margin after material and direct labor. On mowing, targets are tighter — 35–50% — because labor is the dominant input and there's little material to mark up. Knowing the spread per service tells you which work to chase and which to price up or walk away from.

Raising Prices Without Losing the Route

Costs rise every year, so prices have to as well. Small annual increases (3–6%) announced in writing before the season are absorbed far better than a surprise jump every three years. Lead with the value the customer sees — a healthier lawn, reliable scheduling, clean records — not with an apology. The customers you lose to a modest increase are usually the least profitable ones anyway.

If your pricing sheet doesn't include drive time, you're working for free between every stop.