2023 Industry Benchmarks for Pricing, Expenses and Profits

Prioritize visibility into your business's numbers to make fact-based decisions, especially when faced with economic uncertainty, rather than reacting emotionally.

Ensure your man-hour pricing covers all costs, including overhead and a healthy profit margin; for most hardscape companies, this should be at least $60-70 per man-hour on-site.

Aim for a net profit margin of 15-20% after paying yourself a market-rate salary; anything less than 10% puts your business at high risk.

Avoid over-investing in equipment too early; rent until the cost of renting outweighs the cost of ownership to manage overhead effectively.

Build your budget based on worst-case scenarios for expenses like fuel and materials to protect your profit margins from unexpected increases.

Don't negotiate on price; instead, negotiate on the scope of work to meet client budgets while maintaining your desired profit margins.

Differentiate between tax depreciation and budgeting depreciation for equipment; ensure your pricing accounts for the true wear and tear and replacement cost of assets.