How to Start a Landscape Supply Business

Part 1 - How to start a Landscape Supply business - Background

Starting a landscape supply business can be an exciting and rewarding business venture for entrepreneurs with green fingers who are passionate about helping others improve their outdoor spaces.

Having said that, you should keep in mind that launching a successful landscape supply business requires careful planning, significant investment, and a wide range of skills.

In this comprehensive guide, we’ll walk you through all the essential steps you’ll need to take to start your own landscape supply business, from conducting market research and securing funding to obtaining licenses, setting up operations, and attracting customers.

Our guide is in 3 parts:

• Part 1 - How to start a Landscape Supply business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

Industry Overview

The landscaping supply industry is a thriving segment of the broader U.S. landscaping market, which as of 2024, is valued at $153 billion and supports more than 661,000 businesses. This huge sector continues to experience steady growth, with demand for its products predicted to grow at a rate of 3.5% per year until 2028 at least.

This growing demand for landscaping services is thought to be driven by the booming residential housing market and an increased interest in gardening as a hobby since COVID — both of which are ensuring a consistent need for essential supplies like soil, mulch, stone, and hardscape materials.

With that said, landscaping supply businesses are faced with overcoming the challenges of rising fuel costs and labor shortages. However, even in spite of these hurdles, the demand for landscaping materials remains strong, which bodes well for the ability of new entrants to this industry to thrive.

Startup Costs

If you’re considering whether a landscape supply business is right for you, the first thing you’ll need to know is whether it’s a) affordable, and b) worth the investment. I mean, how much can you actually make running your own landscape supply business?

Well, it depends. The initial investment for a landscape supply business varies widely based on factors such as your business’s size, the type of equipment it needs, and the specialty of the services it offers:

• Land and property acquisition will be one of the largest initial expenses when first starting out. This is because you must obtain a property with multiple acres of space to be able to store bulk materials of soil, mulch, and stone. Depending on the location, land acquisition costs can range from $50,000 to $200,000 — though this cost increases even further if you plan to offer any additional services. For example, if you plan to build a plant nursery or sell other tools, expect to invest another $50,000 to $150,000 on the additional space and construction costs.

• Equipment and vehicles will likely make up the second biggest cost faced by your business. At the very least, you’ll typically need a front-end loader (for moving bulk materials) and a delivery truck, which can cost between $25,000 and $60,000, and $30,000 to $80,000 respectively. A good way to save money on this necessary expense is to rent or purchase used vehicles where possible, though you should be aware that this may increase costs in the longer run.

• Initial inventory stocking is another significant startup cost to bear in mind when launching your landscaping supplies business. Materials such as soil, mulch, pavers, gravel, and plants will all need to be purchased in large quantities before you can open — and can easily cost between $20,000 and $100,000. It’s important to note that the amount you end up spending on your initial inventory will vary greatly depending on the materials you want to offer, how much you want to keep on hand, and the size of your customer base.

In addition to the initial costs outlined above, it’s essential that you budget for the main ongoing costs associated with your landscape supply business to ensure it remains profitable and sustainable over time.

In particular, the main ones to be aware of include inventory replenishment, employee payroll, and the maintenance or repair of your business’s equipment.

Earning Potential

As the owner of a landscape supply business, the primary way in which your company will generate revenue is through the sale of essential landscaping materials like mulch, gravel, pavers, and plants, as well as lawn care tools and equipment.

The prices you can charge for your materials will depend on local market demand and what exactly you’re selling. For example, gravel typically ranges from $45 to $100 per ton, while mulch can cost between $25 and $75 per yard, depending on the type.

While residential customers represent a profitable market — particularly during peak gardening seasons — selling to commercial landscapers is generally ideal as they offer a more steady stream of income. This is because many commercial landscapers sign standing contracts in order to obtain the large quantities of materials they consistently require.

Regardless, a landscape supply business with a well-established customer base can typically expect to generate profits in the range of $50,000 to $75,000 per year — with the potential for much more as the business scales.

Due to the high operating costs of this industry, most landscape supply businesses have a profit margin of between 15% and 20% of all the gross  revenue they generate. However, you can boost your profits by expanding in niche areas and specialty items such as exotic plants, decorative stones, or curated garden packages (e.g., English or Japanese-style gardens).

Ultimately, the earning potential of your landscape supply business will depend on your ability to cater to both commercial and residential markets and maintain competitive pricing. With careful planning and execution, this type of business offers considerable profitability and growth potential.

How to Start a Landscape Supply Business FAQs

Who is the target market?

A landscape supply business typically serves two primary markets: commercial and residential customers.

Commercial landscapers place larger, more frequent orders and are likely to generate the bulk of sales, while residential customers typically place smaller, less frequent orders, but are essential for building a loyal customer base and reputation.

How does a landscape supply business make money?

A landscape supply business earns revenue by selling materials such as mulch, gravel, pavers, and plants. It also generates income from selling lawn and garden tools and offering related services to both commercial landscapers and residential customers.

How much can you charge customers?

Pricing depends on material volume, market rates, and local competition. For example, gravel can range from $45 to $100 per ton, and mulch typically costs $25 to $75 per yard.

To maintain profitability, businesses may charge service fees for deliveries and focus on selling specialty items for additional profit.

How much profit can a landscape supply business make?

Due to the relatively high operating costs of this industry, a landscape supply business will typically earn a profit margin of around 15% to 20%.

For established businesses with regular commercial contracts and residential retail sales, this should equate to a profit in the $50,000 to $75,000 range, with the potential to make much more as your business grows.

Part 2 - Is a Landscape Supply business the right fit for you?

Part 3 - Action plan to launch your Landscape Supply business in 90 days