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As the year winds down, it’s time to get serious about preparing for the next lawn and landscape season. Using an outdated budget to price your 2025 jobs isn’t just risky—it’s a recipe for lost profits. The costs of materials, fuel, labor, and equipment change every year, and if your pricing doesn’t reflect those changes, you’re working harder for less. Here’s why updating your budget is crucial and how you can build a strong foundation for a successful 2025 season.

 

Importance of Annual Budget Review

Your budget isn’t just a tool to track expenses; it’s the framework for achieving the lifestyle and goals you want for your business. Are you planning to grow by adding new crew members, investing in equipment, or expanding services? Every change impacts your costs, and if your prices don’t reflect those changes, your profit margins will suffer.

The busy season will be here before you know it—planting often starts in late February or early March. If you don’t revise your pricing now, you could already be behind by the time the season kicks off. Let’s break down the key areas to focus on when updating your budget and pricing for the year ahead.

 

Update Vendor Pricing

Material costs can fluctuate significantly, and it’s essential to ensure your estimates account for current prices. Items like plants, stone, mulch, lighting, tree-staking kits, weed barriers, gravel, and more often see price increases annually or even quarterly. Waiting until the season starts to update your pricing could mean absorbing those higher costs instead of passing them on to your clients. Stay ahead by requesting updated price lists from your vendors and revisiting them regularly.

 

Pro Tip: Develop a relationship with your vendors where they tell you when a price increase is about to happen. By developing that kind of relationship you can keep your figures updated through the year.

 

Plan for Bulk Purchases

Take advantage of the off-season to stock up on bulk materials at lower prices. Buying items like mulch, gravel, stone or fertilizer in advance can save money and help you lock in pricing before any increases hit.

 

Factor in Fuel Costs

Fuel is a major expense in the lawn care and landscaping industry, and its price fluctuates constantly. Be sure to incorporate projected fuel costs into your estimates so you’re not caught off guard.

 

Hot Tip: Efficient dispatching is critical to saving time and reducing fuel costs. Review your crew routes regularly to ensure they are logical and cost-effective. Group jobs geographically to minimize travel time and fuel consumption. The more work your crews can complete in a single area, the more productive and profitable each day becomes.

 

 

Account for Raises and Reviews

Winter is often when employee reviews and raises are conducted, and this directly impacts your labor costs. Whether it’s your crew in the field or your office staff, factor in these raises now so your estimates cover the increased payroll.

 

Include Equipment Costs

Are you planning to purchase new equipment in 2025? Whether it’s a mower, a skid steer, or other essential machinery, equipment is a fluid expense that needs to be included in your budget. Even if it’s not a recurring cost, it still contributes to your overhead and needs to be considered when pricing jobs.

Insider Tip: Plan ahead by factoring in the cost of a new piece of equipment when quoting jobs. If you know you are going to purchase a piece of equipment to make a landscape more efficient, factor in the price of that new piece of equipment as you quote new jobs. This way you are paying more cash toward that purchase when the time comes.

Don’t Overlook Insurance and Taxes

Review your insurance premiums to see if they’ve increased. These costs can eat into your profits if you don’t adjust for them. Also, consider whether your business made more money than anticipated this year—if you’re in a higher tax bracket, that’s another expense to plan for.

 

The Cost of Inaction & How to Build The Business You Want

Failing to update your budget and pricing puts your business at a disadvantage. You may underprice jobs, cut into your profits, or struggle to reinvest in your business. A well-thought-out budget isn’t just about covering costs; it’s about setting your business up to thrive.

“Your budget is a living breathing thing and should be adjusted throughout the year according to the lifestyle that you want your company to live.” -Sahra Linnemann

It’s not just about numbers—it’s about creating a business that supports your goals and growth. Don’t just set it for the year and forget it. Take the time now to rebuild your budget, update your pricing, and enter 2025 with confidence. Then review it a few times a year and update accordingly.

Need help building your budget or reviewing your financial strategy? The Green Executive is hosting a “Build a Better Budget” Workshop in January 2025. Click here for more details.

Want 1:1 support in the new year? Stop trying to grow your business alone. Learn how consulting with The Green Executive can help sale your business. Clicking here.

With the right plan (and team), you can ensure your lawn and landscape business is prepared to grow and thrive next season.