How Do Landscapers Track Materials Cost?

Q: How do landscapers track materials cost?

Landscapers track materials cost using job costing software that records supplier prices, applies markup automatically, and includes materials in profit calculations. The three main methods are spreadsheets, general business software like Jobber, or dedicated job costing tools like GreenMargins.

Q: Should I track materials separately from labor?

Yes. Tracking materials separately from labor helps you identify which jobs are profitable and which materials eat into margins. It also helps with reordering and supplier negotiations when you can see total spend by material type.

3 Ways Landscapers Track Materials

There's no single "right" way to track materials—it depends on your business size and how often you use materials. Here's how the three main approaches compare:

Method	Best For	Pros	Cons
Spreadsheets	Solo operators, simple jobs	Free, fully customizable	Manual entry every time, no automatic markup
Jobber-style Software	Service businesses, scheduling focus	Good scheduling, invoicing included	Limited material tracking, basic markup
Dedicated Job Costing	Material-heavy jobs, design-build	Automatic markup, profit visibility per job	Monthly cost, learning curve

Worked Example: Tracking Mulch on a Landscape Job

Here's exactly how materials tracking works in practice. Let's say you're quoting a bed renovation that needs mulch:

Example: 10-Yard Mulch Job

Mulch cost (10 yards × $32/yard) $320.00

Delivery fee from supplier $45.00

Total material cost $365.00

Your markup (20%) $73.00

Price to customer $438.00

Note: Material prices vary by region and supplier. Always use your actual costs.

What Markup Should You Charge?

Markup percentages vary by material type and your handling costs. Here are typical ranges (US):

Bulk materials (mulch, stone, soil): 15-25% markup
Plants and nursery stock: 25-50% markup
Hardscape materials (pavers, wall block): 15-30% markup
Specialty items: 25-40% markup

Note: Markup rates vary significantly by location, supplier relationships, and volume. These are general guidelines for the US market.

Why Materials Tracking Matters for Profit

Many landscapers lose money on materials because they:

Guess material costs instead of checking current prices
Forget to include delivery fees and pickup time
Use outdated pricing from last season
Don't track waste and leftover materials

Proper tracking shows exactly which jobs made money and which lost money on materials—so you can adjust pricing or suppliers accordingly.

Frequently Asked Questions

What markup should landscapers charge on materials?

Most landscapers charge 15-30% markup on materials. The exact percentage depends on whether you handle delivery, storage costs, and how much time you spend sourcing materials. Commodities like mulch typically get lower markup (15-20%) while specialty items like plants or custom stone get higher markup (25-35%). Your markup should cover your time, fuel for pickup trips, and the risk of waste or damage.

Should I track materials separately from labor?

Yes, absolutely. Tracking materials separately from labor helps you identify which jobs are profitable and which materials eat into margins. It also helps with reordering and supplier negotiations when you can see total spend by material type. If you bundle everything together, you can't tell if you lost money on materials or labor—and you can't fix what you can't measure.

How do I handle materials price changes mid-season?

Update your material costs in your tracking system as soon as prices change. For active quotes that haven't been accepted yet, decide whether to honor the original price or requote based on the price change magnitude. For recurring jobs or long-term contracts, consider including a clause that allows price adjustments if material costs increase more than 10% from the original quote date.

Do I need software to track materials?

You don't need software, but it saves significant time. Spreadsheets work fine for basic tracking, but they require manual entry for every job and don't automatically calculate markup or show profit impact. Dedicated software automates markup calculations and shows how materials affect job profit instantly. For landscapers doing more than 5-10 jobs per month with materials, the time savings usually justify the cost.

How do I track materials I already have in inventory?

Use your actual purchase cost for inventory items, not replacement cost. When you add materials from inventory to a job, enter the cost you originally paid. This gives accurate job profitability. Some landscapers create a "yard stock" material at an average cost for commonly used items like leftover mulch or soil. Just make sure to update that average cost when you restock.