The short answer: 50-65% gross on mowing subscriptions, 25-40% gross on design-install, 60-75% gross on snow plowing. Net margin after CAC and overhead typically lands at 15-30% — high for home services because subscription LTV (3-year average tenure × 24-30 visits per year) amortizes acquisition cost over multiple seasons.
Gross margin by service line
| Service line | Gross margin range | Notes |
|---|---|---|
| Mowing subscriptions (route-dense) | 60-65% | 5+ adjacent stops per block-hour |
| Mowing subscriptions (scattered) | 40-50% | Drive time eats margin |
| Fertilizer program | 55-70% | High-margin add-on to mowing book |
| Spring + fall cleanup | 50-60% | Per-event work; labor-intensive |
| Mulch install | 35-50% | Material cost is a meaningful share |
| Design-install projects | 25-40% | Hardscape + plant material dominates cost |
| Snow plowing | 60-75% | Low material; equipment amortizes |
Route density is the killer variable
A truck visiting 5 adjacent homes per block-hour earns dramatically more per hour than the same truck driving 30 minutes between solo stops. Route-density math:
- Scattered route: 8 stops/day at 30 min drive between = 4 productive hours / 4 drive hours. Effective per-stop margin gets crushed.
- Dense route: 12 stops/day at 5 min drive between = 7 productive hours / 1 drive hour. Effective per-stop margin lifts dramatically.
This is why Landscape Launch's prospecting workflow prioritizes route-adjacent neighborhoods — the marginal cost of the 5th subscription on a block approaches zero while the price doesn't change.
Net margin after CAC
| Acquisition channel | Effective CAC | Year-1 net margin | LTV-adjusted net |
|---|---|---|---|
| Mailed quotes (route-adjacent) | $25-$50 | 25-30% net | 30-38% net (3-yr LTV) |
| Mailed quotes (steady) | $80-$180 | 20-25% net | 25-32% net |
| Warm-follow door-hangers | $80-$150 | 20-25% net | 26-32% net |
| Cold door-hangers | $120-$300 | 15-20% net | 22-28% net |
| Lawn Love / Yard Champions aggregator | $80-$250 | 10-15% net | 14-20% net (high churn) |
Note the LTV-adjusted column: subscription-based businesses recover acquisition cost over multiple seasons, so 3-year net margin is the meaningful metric for landscape.
What drives the upper end
- Route density above 4 stops/block-hour. The single biggest mowing margin lever.
- Add-on attach rate. Mowing-only subscribers run 50% gross; mowing+fertilizer+cleanup subscribers run 55-60% blended because additional services share fixed drive cost.
- Snow plowing in the off-season. Uses idle trucks + crew in winter at 60-75% gross. Lifts annual blended margin meaningfully.
- Annual contracts over per-visit. Reduces churn 30-50%; LTV-adjusted net margin lifts 4-7 points.
- Direct acquisition over aggregator leads. Aggregator-acquired customers churn 2-3× faster than mailed-quote customers.
Target net margin by year
- Year 1 (aggregator + scattered route): 5-12% net.
- Year 2-3 (adding mailed quotes + route concentration): 12-20% net.
- Year 4+ (route-density-first + addon discipline + snow plowing): 20-32% net.
The fastest lift to net margin is route-density-first prospecting.
Free account, free rendering, $1 per mailed landscape quote. Mailed campaigns near existing routes return $45-$60 per $1 spent.
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