Too many people have given bad advice on what Australian lawn and garden businesses should be charging. If you have watch the video above you can download the spreadsheet used in the video below for free.
Running a lawn and garden maintenance business in Australia requires proper pricing to ensure profitability. However, searching for pricing information online can be misleading. Many websites claiming to offer accurate pricing information provide rates that are significantly lower than what most experienced gardeners charge.
For instance, a Yellow Pages article claims that the cost of hiring a gardener in 2023 is between $40 and $60 per hour, which is a gross underestimation of the real cost. A similar article suggests an average hourly rate of $45 for gardeners, but this is far from the reality. Even services like Service Seeking and Hi Pages have widely varying rates ranging from $30 to $220 per hour.
The Problem With These Numbers
Most of these websites are lead generation sites that are services usually used by less experienced gardeners, they then use these information from these businesses to provide pricing information. These rates are often much lower than what most established and experienced businesses charge, and following such pricing can lead to minimal profitability or even losses.
As such, it’s important to note that the pricing information available on most online sites is inaccurate and not reflective of the real world. Business owners must carry out proper research and analysis to arrive at an appropriate hourly rate that covers all their costs and enables them to make a reasonable profit. By charging a fair rate, businesses can provide quality services, maintain their profitability, and ensure the longevity of their operations.
What Do Australian Gardening Businesses Really Charge?
In January 2023, a survey was conducted among 650 Australian lawn mowing contractors to find out what they charged for a one hour job. While the survey wasn’t conducted using scientific methods, the results provide a good average that’s more representative of a wider range of businesses across the country compared to those found on service seeking pages.
The results of the survey indicate that most lawn mowing contractors charge between $70 and $90 per hour. There’s also a smaller group of contractors who charge around $100 per hour, comprising 15% of respondents.
Here’s a graph that shows the distribution of responses for what these businesses charged for one our of work:
From the graph, it’s clear that the responses are divided into two main groups, with the larger group of contractors charging around $80 per hour, and a smaller group charging around $100 per hour. While there are outliers at the lower and higher ends of the scale, these numbers are very different to what is mainly reported online.
It’s worth noting that the results of this survey should be taken with a grain of salt. However, it does provide a good indication of the average rates charged by lawn mowing contractors in Australia and in my opinion is a much more accurate representation of what gardening businesses truly charge.
How to calculate exactly what you should be charging in your business
If you’re a small gardening and lawn care business owner in Australia, it can be tricky to figure out exactly what you should be charging for your services. However, there are a few factors you can consider to help you determine a fair and competitive rate:
- Research your local market: Look into what other lawn care businesses in your area are charging for similar services. You can check out local online directories, social media pages, or even call up your competitors to get an idea of their pricing.
- Consider your expenses: Think about the costs involved in running your business, such as equipment, transportation, insurance, and any other overheads. These costs should be factored into your pricing to ensure you’re covering your expenses and making a profit.
- Determine your desired income: Calculate how much income you want to make per year, then divide that figure by the number of hours you plan to work. This will give you an idea of the minimum hourly rate you should be charging to meet your financial goals.
- Evaluate your skills and experience: If you have specialized skills or certifications, you may be able to charge a higher rate for your services. Similarly, if you have many years of experience in the industry, you may be able to justify a higher rate based on your expertise.
Once you have a better understanding of these factors, you can use the data from the survey mentioned earlier to help determine a fair hourly rate for your lawn care services. Keep in mind that your pricing may need to be adjusted over time as your expenses, income goals, and market conditions change.