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The Business Behind the Green: How to Price Your Services For Profit

By Kristina Kelly

When it comes to running a turfgrass business, your work is rooted in results. Healthy lawns, properly installed sod, and satisfied customers are the visible signs of success. And behind every vibrant blade of grass is a business owner making daily decisions that impact their bottom line. One of the most important? Pricing.

Setting the right price for your services can feel like trying to hit a moving target. Charge too little, and you’re leaving money on the table or risking your ability to sustain operations. Charge too much, and you might struggle to stay competitive in your market. Whether you’re a seasoned professional or new to the industry, understanding how to price your services for profit is key to longterm stability and growth.

Know Your True Costs

Before setting any price, you need to understand what it actually costs to deliver your services. That means looking beyond just materials and labor. Your total cost should include direct and indirect expenses, such as:

• Labor wages, including payroll taxes and workers’ compensation

• Equipment maintenance, fuel, and depreciation

• Material costs, like sod, seed, fertilizer, and irrigation supplies

• Insurance, licenses, and permits

• Office overhead, marketing, and administrative costs

If you’re only calculating based on materials and hourly labor, you may be unintentionally operating at a loss. Developing a simple spreadsheet or using job-costing software can help you track these figures and understand your cost per service. This step lays the foundation for profitable pricing.

Factor in Your Desired Profit Margin

Once you know your costs, it’s time to add your profit margin. This isn’t greedy. It’s necessary. Profit allows you to reinvest in your business, build a financial cushion, and pay yourself a fair wage as the owner. A healthy net profit margin in service industries typically ranges from 10 to 20 percent, though it may vary based on your service mix and market.

For example, if it costs you $2,000 to complete a sod installation job, and you want a 20 percent profit margin, your price should be at least $2,500. Many business owners make the mistake of only charging enough to cover costs, which can lead to financial stress or burnout down the road.

Understand the Market (But Don’t Let It Dictate Your Value)

Knowing what competitors charge is important, but it shouldn’t be your only reference point. Pricing strictly to match or undercut the competition can turn into a race to the bottom. Instead, use market research to understand the range of prices in your area, and then position yourself based on the value you provide.

If your work is high quality, your team is reliable, and you offer responsive customer service, you don’t need to be the cheapest option. Instead, you can charge what you’re worth and attract customers who recognize and value professionalism. That might mean saying no to some price-sensitive clients, but it will help you build a stronger, more sustainable client base in the long run.

Avoid the Temptation of Flat-Rate Guesswork

It can be tempting to offer flat-rate pricing to simplify your quotes, but this approach can backfire if it’s not backed by data. Every job is different, and variables like square footage, site conditions, soil prep, and access points can dramatically affect your costs. If you rely on gut instinct or round numbers to quote jobs, you may end up underbidding without realizing it.

Instead, develop a pricing model based on per-square-foot or per-hour rates that can be customized to each job. This approach also helps you educate your clients and show transparency in your pricing.

Build in a Buffer for Risk and Rework

Not every job goes according to plan. Weather delays, equipment breakdowns, and last-minute client changes can eat into your profitability. When calculating your price, include a small buffer to account for the unexpected. This might be an extra percentage added to your labor costs or a built-in contingency fee.

Additionally, consider how you’ll handle rework or warranty issues. If you offer a guarantee on sod establishment or turf health, make sure that’s reflected in your pricing structure. It’s better to plan for these scenarios than to absorb the cost later.

Review and Adjust Regularly

Your pricing shouldn’t be static. Costs increase over time, and so should your rates. Review your pricing annually (or more frequently if you experience major changes in labor or material costs).

Communicate price increases clearly and professionally with clients and reinforce the value they receive. Most customers understand that inflation and industry dynamics affect pricing, especially if they trust the quality of your work.

Regular reviews can also help you identify services that may no longer be profitable, or spot opportunities to package offerings in a way that increases revenue.

Package and Upsell Strategically

One way to boost profitability is by offering bundled services or strategic upsells. For example, if you’re installing sod, you could offer irrigation system checks, soil testing, or seasonal fertilization packages. These added services not only increase the overall value of a job, but they also help position your business as a comprehensive turf solution provider.

Clients often appreciate a “one-stop shop” approach, especially when it simplifies their to-do list and increases the success of their lawn or landscape investment.

Know When to Walk Away

Finally, remember that not every job is the right fit. If a prospective client pressures you to lower your price or match a competitor’s rate without understanding the difference in service quality, it may be best to politely walk away. Saying no to low-margin work frees up your time and resources for jobs that are actually profitable.

It takes confidence and discipline, but walking away from the wrong clients is just as important to your bottom line as securing the right ones.

Pricing Done Right

Pricing is one of the most important decisions you make as a turfgrass professional and business owner. It requires a clear understanding of your costs, an honest evaluation of your value, and the willingness to protect your profit margins. When done right, pricing becomes more than a number on a quote—it becomes a reflection of your professionalism and the foundation of a thriving business.

By taking a thoughtful, data-driven approach to pricing, you’ll not only ensure the health of your business but also earn the trust and loyalty of clients who see the value in what you do.

This article was originally published in North Carolina Turfgrass, May/June 2025 and is reprinted with permission.