Question
Hey Sean.  Im in Lawrenceville, GA and am starting a new landscape business in
the area.  Can you give me some good tips on pricing a job correctly.  Are there
some good resources that I can go to when pricing out a new job?
Thanks

Answer
Stephen:

Wow, first off, can I ask a personal question...why are you starting a landscape business now? This is the worst economy every for landscape industry in Metro area in 20 years. Between the drought and the economy there are very few people looking to have landscaping done. Traditionally, the wealthy always spent money on landscaping in Atlanta, but this time it is different. Those with excess cash are hoarding it not buying landscaping that they can not water. Plus lately many the high end builders are starting to fold just like the low end spec builders did a year ago. Add to that the high number of landscapers and general contractors that have been laid off or let go who all started their own side businesses and you have tons of cheap competition. Everyone with a truck, trailer and a bobcat in town is competing for this work now. I have many friends in this business and most if not all have laid off staff or closed up shop. Many good well known companies are down to 50% of their previous size from last year. The only ones doing ok have lots of maintenance contracts.

If after reading this you still want info on pricing I have several suggestions.
1. Means Construction Pricing catalogs http://www.rsmeans.com/
2. Try to obtain bids from other competitors, pretend to be in the market for a new landscape for your house, create a plan and plant list and ask three companies whom you view as direct competitors to bid the job.
3. Take a day to go to a site with ten plants of each size you typically plant. Practice plantings, and record how long it takes on average to plant each size. With this exercise you know your labor costs.
4. Most small companies will use a std. multiplier of 2 to 3 times the wholesale cost of the plant. For example. If a 3 gallon ligustrum sells for $6.50 the installed cost is between $18 and $21.00 each. The larger the job, and hungrier you are for work the lower the multiplier. On a real small job you might charge significantly more just for the hassle. On the other hand when you get really expensive varieties your labor is the same so you may charge less. Example, a native azalea in 3 gallon might cost $28 vs. a 3 gallon helleri holly might be $5.75. but the labor to plant is the same.

So lastly let me tell you one more observation, I have been an expert on this site for several years. Traditionally, I have been getting landscape questions all year long about one to two per day every day...however, for about the last four or five months I have been getting only one question every three to five days. That to me means people are worried and not thinking about landscaping. My advice to you would be to be very careful about getting in this business at this time.
But if you do, good luck...I'm praying for rain for you.
Sean J Murphy, RLA, ISA