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How Profitable Is the Christmas Light Business?

Published on October 26, 2023

If you’re wondering, “How profitable is the Christmas light business,” then it’s important to understand the latest industry trends.

In this article, you’ll discover the answer to, “How profitable is the Christmas light business,” based on:

  • How much the industry is worth
  • The profit margins to set goals towards
  • Average revenue you can aim to achieve
  • How to maximize profits with optimal prices
  • Top marketing strategies for selling your services

Start taking advantage of these services, generate year-round revenue, and explore, “how profitable is the Christmas light business,” using these expert insights!

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The Worth of the Industry

In order to answer the question, “How profitable is the Christmas light business,” it’s important to first understand the full scope and worth of the industry itself.

As of 2021, the global market of Christmas lights and decorations was estimated to be $6.8 billion. However, this value is predicted to rise to over $9 billion by 2026.

Which means, no matter where your business is located, the holiday lighting industry is highly lucrative with a large market you can tap into.

What Profit Margins to Expect

Did you know, existing services businesses that add Christmas light services can stand to earn profit margins between 25%-45%?

Keep in mind, most service businesses operate between 10-15% in profit margin—meaning holiday lighting can potentially earn higher profit margins than your main lawn and landscape services.

As a result, if you know how to take advantage of holiday lighting, your business stands to gain substantial profits from these services.

Average Revenue for Your Business

In order to discover, “How profitable is the Christmas light business,” you’ll need to know what type of revenue you can expect.

The level of commitment you make to your new Christmas light services will determine how much revenue your business stands to earn.

For example, if you’re doing holiday lights as a part-time side hustle, then you can earn between $10,000-$15,000 per season in revenue.

However, if you turn holiday lighting into a full-time enterprise, then you can earn well over $100,000+ per season in revenue.

Remember, your level of commitment to your Christmas light services will largely determine how much revenue you can earn every season.

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How to Set Your Prices for Maximum Profitability

One of the best ways to discover, “How profitable is the Christmas light business,” is by setting your prices up for maximum profitability.

Take a look at a few key concepts in order to properly setting your prices for the most profit:

  • Choose how you’ll distribute lights
    • E.g. rent out your own professional lights every year (the most profitable choice), sell new light strands every year, use the client’s existing lights, etc.
  • Decide how to charge
    • E.g. most businesses charge by the foot (while still taking things like square footage into account)
  • Consider your profit goals

As always, consult with a trusted CPA (i.e. Certified Public Accountant) before finalizing any financial or pricing decisions.

Plus, did you know, you can use Service Autopilot to set prices based on your most profitable jobs?

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The Best Way to Sell Your Services

By far, automations are one of the best ways to sell your holiday lighting services.

Automate your everyday marketing and communications to easily sell your new Christmas light services to existing lawn care clients.

Take a look at a few of the endless communications you can automate:

  • Surveys
  • Service reminders
  • Estimate follow-ups
  • Paste due reminders
  • Cross-sell and upsell emails

Plus, use Service Autopilot to streamline your daily operations so you can begin scaling faster and maximizing profits in no time!

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Now You Know: How Profitable Is the Christmas Light Business?

At last, you know the answer to the question, “How profitable is the Christmas light business?”

Use these top expert insights to:

The answer to, “How profitable is the Christmas light business,” lies within your ability to leverage your resources and existing lawn care clients. Follow these key steps to successfully sell Christmas light services today!

Related: How to Make Money With Christmas Light Installation

Originally published Oct 26, 2023 5:58 PM CT

Alyssa Sanders

Alyssa is the Team Lead of Content Marketing at Xplor Field Services. When she's not writing or creating content, you can find her watching a new sci-fi series or shoving her nose into a book.

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