Skills books › Garden Services as a Side Hustle

How to price a garden service

Know what an hour and a visit cost you, including wear on your machines and your own pay, before you set a price. A garden service that charges what "feels right" often finds that the mower has worn out and there is no money to replace it.

Add up your costs

Running costs rise with the work you do:

• fuel for machines and transport;
• trimmer line, bags, oil and gloves;
• refuse fees;
• helpers' wages.

Wear and replacement. Every visit wears your mower, brushcutter and tools. Put money aside from each visit for blades, repairs and, one day, a new machine. A simple method is to divide a machine's price by the number of visits it will last.

Fixed costs are paid whatever happens:

• phone and data;
• vehicle licence, insurance and finance;
• bank fees.

Your own pay. Your time is a cost. If the price does not pay you a fair wage for your hours, the business is not working, even if money comes in.

Work out an hourly rate

Add up what you need each month and divide it by the hours you actually work. Include travel and loading time. Clients do not see those hours, but you still spend them.

That rate tells you the lowest price you can accept.

With a team, cost the day

With helpers and a vehicle, work out the cost of a whole day, then divide it by the number of visits you can fit into that day. Know how many visits a day you need to make a profit.

Setting prices

• Start from your costs, then compare with what others charge in the area.
• If your cost is above the going price, look for savings before you cut your own pay. Clients close together mean less travel.
• Keep a simple price list: standard visits by garden size, hedges per metre or per job, refuse per load, and extras such as planting and clean-ups per hour.
• Review prices once a year, and give clients a month's written notice of an increase.
• Do not drop your price to win a client whom you cannot serve at a profit. It costs you twice.

Invoice every job

An invoice shows:

• your business name and contact details;
• the client's name and address;
• an invoice number and date;
• the work done and the dates of the visits;
• the amount and when it is due;
• how to pay.

Getting paid

• Agree the payment terms at the start: on the day, or within seven days of the monthly invoice.
• Send invoices on time, every time.
• Follow up politely the day after payment is due, and again a week later.
• Give a receipt for cash.
• If a client stops paying, stop work after a written warning. Do not keep working for free.

Keep a cash book

Write down every amount in and out: the date, what it was for, who paid or was paid, and how. Keep the receipts for fuel and tools. Total it each month to see your income, your costs and what is left.

Tax, in general terms

Income from a garden service is taxable, whether it is your main work or a side hustle. Register with SARS and declare it. The thresholds for turnover tax and VAT change, and most one-person garden services are far below them. Ask SARS or a registered tax practitioner, and keep your records for five years.

This guide is based on Chapter 10 of Garden Services as a Side Hustle, which works through the cost of a visit for one person and for a team.