The numbers every landscaping owner should track

Tracking Key Metrics for Landscaping Business Profitability

Tracking the right numbers helps landscaping business owners make informed decisions and improve profitability. Focus on metrics that reveal revenue contributions from jobs, labor and material efficiency, and sales performance. These metrics are applicable across the US and Canada, though owners should account for local sales tax in the US and GST/HST in Canada when recording revenue figures.

Revenue Per Job

Calculate revenue per job by dividing total revenue earned from completed work by the total number of jobs finished in the same period. Include only revenue directly tied to those jobs and exclude add-ons billed separately.

• Residential operations often see revenue from a few hundred to a couple of thousand dollars per job, depending on property size and service mix.
• Commercial contracts usually yield higher per-job revenue due to larger sites and recurring schedules.
• Track this monthly and compare it against the prior year to identify shifts in job mix or pricing.

Gross Margin

Gross margin is calculated by subtracting the direct costs of materials, subcontractor payments, and field labor from total revenue, then dividing the result by total revenue and multiplying by 100 to express it as a percentage. Direct costs exclude office overhead and marketing.

• A common target range for established businesses is between 35% and 50%, though margins may thin during high material cost seasons or when fuel prices rise.
• In the US, exclude state sales tax collected from revenue for this calculation. Canadian owners must separate GST/HST from the revenue line before computing margin.
• Review gross margin by job type each quarter to identify services that consistently fall below the business average.

Close or Booking Rate

Close or booking rate equals the number of jobs sold divided by the number of written estimates or proposals delivered, expressed as a percentage. Count only estimates with clear yes or no responses.

• Healthy operations often achieve rates between 40% and 70%, with higher rates typical for businesses that qualify leads before sending proposals.
• Lower rates may indicate pricing issues or unclear scope descriptions in estimates.
• Record the outcome of each estimate within a week to reflect current market conditions in both US and Canadian regions.

Labor Efficiency

Labor efficiency compares billable or productive hours logged on client jobs against total paid labor hours, including travel, maintenance, and shop time. Divide productive hours by total hours and multiply by 100.

• Many owners target 60% to 75% utilization during peak season, with lower figures acceptable in winter months due to equipment repairs.
• In Canada, include statutory holiday pay and vacation accrual in total paid hours for a comprehensive calculation.
• Pair this metric with revenue per labor hour to ensure efficient crews also generate adequate income.

Callback Rate

Callback rate is the percentage of completed jobs requiring an unplanned return visit to correct an issue. Divide the number of callback jobs by total jobs completed and multiply by 100.

• Successful operations keep this figure under 5% by checking irrigation settings, mulch depth, and plant health before leaving the site.
• Track callbacks by crew and service category for targeted training and issue resolution.
• US and Canadian owners benefit from logging the reason for each callback to reduce future costs.

Average Ticket

Average ticket is calculated by dividing total revenue by the number of invoices issued over the same period. It represents the typical sale size across all customer types.

• Residential maintenance routes often have average tickets of several hundred dollars per visit, while one-time installation projects yield larger tickets.
• Compare average ticket against revenue per job to identify whether single invoice jobs or multi-visit accounts drive overall results.
• Adjust service packages or add-ons if the average ticket trends downward for two or more consecutive months.

Review these metrics on a simple dashboard updated weekly. When a metric moves outside its usual range, examine related figures to locate the cause and adjust scheduling, pricing, or quality checks accordingly.

General information for landscaping business owners, not legal or financial advice.