What To Charge Your Landscape Clients In 2023

Do inflation and other economic challenges have you wondering what to charge your landscape clients in 2023?

Wonder no more: LandOpt, which helps independent landscape contractors nationwide increase their revenue, cash flow and profitability, has released its annual recommendations on contractor rates for the coming year.

Every fall LandOpt analyzes a number of economic and industry factors and develops pricing recommendations for its members. For the first time, it is sharing them publicly as a service to the green industry.

“As with this year, 2023 will be laced with a variety of economic challenges, including labor and materials inflation that top the list,” said Jim Westover, LandOpt president. “Those will be compounded by higher interest rates and the threat of a recession.”

LandOpt advises contractors to consider:

A minimum 4.4% rate increase to offset higher operating costs
An 8.8% hike to return margins to pre-inflationary levels
A 10% or greater boost when possible as a hedge against unpredictable cost increases

Westover, who leads LandOpt’s financial planning services, noted that overall inflation is running above 8%, raw materials are up 10% and labor, using the annual Social Security increase as a guide, will cost close to 9% more next year.

“Raising prices in a competitive industry like ours is challenging, but the best contractors focus on their profit margins rather than simply sales volume,” he said. “Underestimating costs is devastating to the bottom line, as it is very difficult to raise prices later in the year.”

LandOpt recently presented its recommendations to members at its annual financial planning conference. During the three- day event, contractors worked with LandOpt’s leadership team and coaches to develop individual financial plans for 2023.

“We have a proprietary system that is used to create plans and, just as important, track performance,” Westover explained. “Given next year’s uncertainties, monitoring progress will be especially important so adjustments can be made to protect margins.”

“Raising prices in a competitive industry like ours is challenging, but the best contractors focus on their profit margins rather than simply sales volume.”

—Jim Westover, President, LandOpt

Managing inflation will be among the topics covered at LandOpt’s annual Principals Meeting and Sales Rep Boot Camp February 21-23 in Phoenix, AZ. For the first time, non-members are being invited to attend portions of the conference.

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