Author: James Menzies | Last Updated: 28 Jul 2020
If you are considering opening a lawn mowing business but wondering how profitable it can be, you came to the right place. Today we will see how much you can gain from this business and understand the factors that can influence it.
One of the essential determinants in calculating business profitability is how much it charges for its products or services. In Australia, lawn mowing businesses charge, on average, around $45 per hour. However, prices vary from $35 higher up to $55 AUD per hour depending on multiple factors. That already suggests possible high profits.
However, to draw the final calculation, we will have to determine the costs and other essential factors. The first one is how busy you are during the warm seasons when you can work. Other than the number of clients and working hours, your overhead costs will play a significant role in how much money you will be able to earn.
The crucial factor in profitability is, of course – the price. So let’s see what are the most critical determinants in forming the price for lawn mowing services.
Climate. The speed of the growing grass depends mostly on the climate. Therefore, if it grows faster, the demand for lawn mowing services will be bigger, which will eventually make the prices higher.
The size of the lawn. A small front lawn will cost significantly less than a larger one. The reason is apparent – it will take less effort and expenses.
The grass height and density. Taller and thicker grass requires much more time and energy than the shorter and thinner one, especially if it requires a line trimmer beforehand.
Lawn obstacles and terrain. Clearly, a curvy terrain with many obstacles demands much more time to be mowed than a simple, flat lawn. That’s why mowers always take that into consideration when deciding on a price.
State. Different states will have different rates, so this is an essential factor in calculating business profitability. Tasmania, for example, has the lowest average lawn mowing rate at that is $39 per hour. In the ACT, prices a bit lower at around $45 per hour. The highest price you can get is in New South Wales, with an average cost of about $55 per hour. All the other parts are somewhere between those two prices.
Brand. Another price difference is within the companies that offer the service. Those companies that are reputable, experienced, and insured are naturally charging more than new ones in the business.
Time of year. During the peak season, it’s much harder to get a good lawn mowing service because all the good ones are busy, and therefore, they are inclined to charge more.
Your car, mower, and trailer will be your biggest investment at the beginning. And like every business, its profitability widely depends on lowering down the costs. The good news is whoever can have low costs and enough jobs, their profit is estimated to be over $100,000