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Bobby Barnhart

How to Lower Expenses and Increase Profit Margins for your Landscaping Business

Contributing Author: Allison Smith

Landscaping in the summer: it’s hard enough without the piles of administrative busy-work at the end of a long, hot work day. To cut down on that extra admin time, I’ve put together a couple easy ways to simplify your life and your business while cutting down on admin time, saving money and streamlining business efforts.

  • Take precise measurements of the job site.
    • If you do not currently use a system to create your estimates, it is essential to becoming a master estimator yourself. An effective estimate will account for all costs, including materials (plants, mulch, soil, gasoline), labor, equipment (if owned factor in depreciation), and any additional business overhead costs associated with the job. By creating a precise estimate you are able to cut down excess expenses and wasted labor cost, as well as protecting yourself from any unforeseen costs.
  • Price the job correctly
    • In order to create effective estimates, you must first set an exact pricing model. The best way to create a profitable pricing model is to determine the total cost of the job and attach your desired profit margin. Setting accurate profit margins ensures that you will receive the necessary compensation for all services rendered.
  • Make it easy to accept payments
    • Now that you have mastered your estimates and set your pricing model, it is imperative to keep a close watch on your cash flow. Cash flow is the lifeblood of any business. The best way to ensure that your business never has cash flow issues is to set up a methodical payment system. By setting up a simple and easy to use system, you can cut down late payments, labor costs association with collections and any additional negative impacts to the business relating to holes in the payment cycle.

At Payscape, we have seen our landscaping clients reduce overhead in accounts receivable, increase client satisfaction and cut down on admin hours by using our BillingOrchard platform. BillingOrchard allows you to create digital invoices with payment links embedded directly into the email. Additionally, you will be able to create precise estimates, automate payments, account for taxes, log labor hours and track expenses. Essentially, BillingOrchard acts as a full-time admin assistant! Be sure to check out how BillingOrchard can help you streamline the way you do business and bring your landscaping business the the next level by clicking here.

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