Contract profitability
Measure landscaping contract profitability before renewal
Revenue alone cannot show whether a maintenance contract is healthy. Review the labor, materials, equipment, travel, and overhead the account actually consumes.
Find your priority financial gapBuild the contract-level view
- Revenue actually attributable to the contract
- Loaded field labor based on actual production time
- Materials, disposal, subcontractors, and job-specific supplies
- Vehicle, equipment, travel, supervision, and rework
- A documented, consistent share of company overhead
Contract margin = contract profit ÷ revenue
Simplified monthly example
Contract revenue: $12,000
Labor: $6,200 · Materials: $1,500 · Vehicles/equipment: $900 · Allocated overhead: $1,400
Total cost: $10,000 · Contract profit: $2,000
Contract margin: $2,000 ÷ $12,000 = 16.7%
Investigate the gap before changing price
A weak margin may come from missed scope, excessive drive time, poor route density, unplanned visits, inaccurate crew hours, material leakage, rework, or an outdated price. Verify the cause before choosing an action.
Use renewal as a control point
Recalculate with current wages, service frequency, travel, equipment, materials, and scope. Record any price or scope decision and review the account again after the change. The example is educational and does not set a universal target margin.
Your next step
Turn the calculation into a 7-day priority plan
The free RUTA 90 assessment asks 30 operating questions, identifies your three highest-priority gaps, and produces a practical seven-day action plan. No financial result is guaranteed.
Find your priority financial gap