The financial challenges behind the work
- Unprofitable recurring contractsA contract renewed at last year’s price can slip into a loss as labor and fuel costs rise.
- Inefficient routesDrive time between properties is paid labor and fuel that no customer pays for directly.
- Seasonal revenue fluctuationsRevenue drops between seasons while equipment payments and key staff continue.
- Equipment maintenanceMowers, trucks and plows wear hard; repairs and replacements land at inconvenient times.
- Underestimated laborProperties that take longer than priced quietly lower the margin on every visit.
- Unpredictable snow service requirementsA heavy winter can push service costs on fixed-price contracts far past what they were priced for.
The numbers that matter
These are the measures that tell landscaping and snow removal owners the most about how the business is really doing.
Gross margin by customer or contract
What it measures: What each contract earns after direct labor, fuel, equipment and materials.
Why it matters: Shows which contracts to keep, reprice or let go.
Labor hours per property
What it measures: Crew time spent at each property.
Why it matters: Reveals properties that take longer than they’re priced for.
Revenue per crew hour
What it measures: Revenue generated for each hour a crew works.
Why it matters: Measures productivity and whether pricing keeps up with wages.
Route profitability
What it measures: Revenue and direct costs for a full route, including drive time.
Why it matters: Helps you redesign routes and price outlying properties.
Equipment costs
What it measures: Fuel, repairs, payments and insurance for equipment.
Why it matters: Informs repair-or-replace decisions and pricing.
Seasonal cash flow
What it measures: Expected collections compared with payroll and fixed costs across the year.
Why it matters: Tells you how much to set aside in peak months.
A contract that looks better than it performs.
Hypothetical illustration—not a client result and not a guarantee of results.
| As planned | With extra visits | |
|---|---|---|
| Monthly contract price | $1,000 | $1,000 |
| Direct labor | $450 | $450 |
| Fuel and equipment-related direct costs | $150 | $150 |
| Other direct service costs | $100 | $100 |
| Added cost of extra service visits | $0 | $200 |
| Monthly gross profit | $300 | $100 |
| Gross margin | 30% | 10% |
Extra service visits added $200 of direct costs, cutting gross profit from $300 to $100 a month.
All figures are hypothetical. Gross profit is before company overhead.
The business lesson
A contract can stay busy and keep generating the same revenue while delivering a third of the profit it was priced for. Tracking labor and visits by contract shows which agreements need repricing at renewal.
How AM Financial helps
Understanding crew costs, contract profitability, and seasonal cash requirements helps you evaluate pricing and prepare for slower periods.
- Cash flow planning: Plan payroll, equipment payments and fixed costs across the year with a monthly cash outlook.
- Bookkeeping for contractors: Monthly financial reporting with landscaping and snow removal kept as separate lines of business.
- Job-profitability reporting: See margins by contract, service, route or crew, depending on how your team tracks time.
- CFO services: Work through contract pricing, crew size and equipment decisions with a budget and forecast.
Monthly bookkeeping is included in every package. Job-profitability reporting and a monthly cash outlook are part of Profit & Cash Flow and above. Budgeting, forecasting and decision analysis are part of Strategic CFO Partnership. Cleanup, initial job-costing setup and financial operations support (such as payroll, invoicing or advanced construction reporting) are scoped separately. Your written proposal spells out exactly what’s included.
What working together looks like
What we review
To build an accurate picture of the business, we typically review:
- Contract and per-event billing by customer
- Crew hours by property, route or crew
- Fuel, equipment and materials costs
- Seasonal payroll and fixed costs
We work from your accounting software, bank and credit card activity, and the records your team already produces. Documents are shared through our secure client portal or a shared folder, and you don’t have to change field or estimating software to get started.
Reporting you may receive
Depending on your package and agreed scope, reporting for your business can include:
- Landscaping and snow removal reported as separate lines of business
- Seasonal contract revenue compared with per-event billing
- Crew payroll and equipment costs planned across the year
How it supports your decisions
Together, these reports help you price contracts to cover real crew and equipment costs, decide which contracts to renew or reprice, and carry enough cash through the off-season. We walk through the numbers with you in plain English at your agreed review meetings.
Questions landscaping and snow removal owners ask
How do I know which landscaping contracts are profitable?
Track the labor hours, materials and equipment each contract uses and compare them with its revenue. Gross margin by contract shows which ones carry the business and which need repricing.
How should I price recurring maintenance contracts?
Start from the actual crew time per visit at a fully burdened labor rate, add materials, fuel and equipment, then overhead and profit. Revisit pricing at renewal using what the property actually took last season.
How do I manage seasonal cash flow?
A monthly cash outlook shows how much peak months need to set aside for payroll, equipment payments and fixed costs later in the year. Our cash runway calculator gives a quick estimate.
How can I evaluate route profitability?
Add up revenue for every property on a route and compare it with crew time, including drive time between stops, plus fuel and equipment. Outlying properties often look fine alone but drag down the route.
How should snow removal contracts account for unpredictable weather?
Seasonal contracts and per-push or per-event billing behave very differently in a light or heavy winter. Tracking them separately, with the labor, fuel and equipment each uses, shows which arrangement and price work for your business.