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Total Guide to Christmas Light Pricing for Your Business

Published on October 7, 2021

No matter if you’re a new or established business, Christmas light pricing is one of the most challenging aspects that determines success.

Stop guessing whether or not your Christmas light pricing is right, and use this simple guide to take out the guesswork, get your prices right the first time, and maximize profits.

While Christmas light pricing might seem complex, this guide gives you everything needed to simplify the process and find the right prices with ease.

Use this complete Christmas light pricing guide to maximize profits based on:

  • Profit goals
  • Break-even point
  • Local market insight
  • Customer feedback
  • The right pricing method
  • Financial advisor advice

Use this complete Christmas light pricing guide to properly price services the first time with minimal stress and maximum profits.

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1. Tap into Local Market Insight

Tapping into local market insight is one of the best ways to increase selling effectiveness.

To start, think about your ideal or favorite client and answer questions like:

  • What’s their age?
  • Are they married or single?
  • What’s their education level?
  • What’s their household income?
  • Do they have kids? If so, how many?
  • What are some of their challenges or pain points?
  • What do they do for a living? Do they have any spare time?

Remember, the more detailed you are with your answers, the more insight you’ll have into your ideal client, which better increases selling effectiveness.

Next, think about what your ideal clients want. Send a survey to your favorite clients asking questions like:

  • What about our Christmas light business do you love the most?
  • Why did you choose our Christmas light business over our competitors?
  • What do you care most about when choosing a Christmas light installation business?

Use the information gathered from these surveys to find commonalities and trends. For example, are there specific installation packages that sell better?

Plus, you can use these answers to pinpoint the exact days of your top selling season.

Leverage these local market insights to stand apart from the competition and increase conversions.

Once you’ve tapped into local market insights, you can use this information to sell more effectively in your marketing efforts:

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2. Decide How You’ll Tackle Christmas Lights

Before you can get started on anything else, you must first decide how you’ll tackle Christmas lights.

For example, you can:

  • Buy professional lights yourself and rent it out every year
  • Sell new light strands every year
  • Use the client’s existing lights

These are just a few of the many ways many Christmas light businesses choose to tackle Christmas lights. However, most businesses choose between one of these top methods.

Let’s talk about why these methods are the most-used and how you can decide which one is the best choice for you.

Buy Professional Lights and Rent It Out Every Year

By far, renting out professional Christmas lights every year is one of the most common, standard practices.

When you choose this option, you can choose the professional Christmas lights you want to install, and then charge clients a fee for renting the lights for the season.

Then, when the lights are uninstalled, you can store and keep them for next year to rent out again and make your money back.

Though, keep in mind, in order to make profits your first year, it’s important to get bulk deals on professional Christmas lights.

Also, consider joining an organization, like CLIPA (Christmas Light Installation Pros Association), to gain access to better prices.

Additionally, you’ll need to find a reputable Christmas lights supplier. A great vendor will provide you with sample kits to show clients. Plus, they’ll help you order the right amount of lights.

Pro Tip! DO NOT get incandescent bulbs. These bulbs are notorious for spiking energy bills and shattering when you store them.

Sell New Light Strands

Some new Christmas light businesses don’t have the storage space to properly store Christmas lights.

For this reason, some businesses choose to sell new light strands. Then, at the end of the season they’ll either throw away the lights or give it to the client for the following year.

In the following season, they’ll sometimes reuse the same lights they sold the clients in the previous year.

Sometimes, business owners choosing this distribution method will opt for cheaper, more cost-efficient lights that aren’t necessarily professional lights. After all, they only need to last until the end of the season.

If given the choice, I don’t recommend using this method. However, if you’re in a pinch, it’s more reliable than using the client’s lights.

Here are a few cons to consider before choosing this option:

  • Clients may not want to store the lights until the following season
  • You can’t charge as much because the client is in charge of storing it
  • Lights that are tossed aren’t eco-friendly (which is also harder to sell to clients)
  • Clients will be disappointed if they can’t reuse the same lights due to their improper storage
  • The lights might not look as great (if it’s lower quality or the client doesn’t properly store it)

Use the Client’s Existing Lights

Many new Christmas light installation businesses use the clients’ existing Christmas lights.

While many clients will likely appreciate this more cost-efficient option, I don’t recommend it.

Using the client’s lights is one of the least reliable choices because:

  • The lights might not work
  • Clients can falsely accuse you of damaging lights
  • The lights won’t look as great as professional lights
  • You can’t charge as much for using the client’s lights
  • Clients will likely be upset if you’re unable to use their lights as promised

Even though it might be tempting to forgo the upfront expense of purchasing professional Christmas lights, renting the lights year after year more than pays for itself.

Simply increase Christmas light pricing to accommodate for the additional cost, and explain to clients why this is the best option for them.

Plus, even if you don’t have an office building, you can easily find an affordable storage facility to properly stow away the lights for the following year.

3. Find the Break-Even Point

Calculate the break-even point to discover the minimum you need to charge to accept a Chrismtas light installation job.

Do this by adding up all of your monthly overhead costs:

Add up ALL costs associated with running the business to find the total monthly overhead costs.

Next, multiply these numbers to find the total estimated labor costs:

  • Number of employees in the crew
  • Average hourly pay
  • Hours worked

Then, incorporate the previous calculations into this formula to calculate the required total monthly revenue (i.e. break-even point):

Total Monthly Business Overhead Expenses + Total Estimated Labor Costs = Total Monthly Revenue Required

As always, verify your CPA (Certified Public Accountant) of your estimated break-even point.

By the way, you can instantly track all of these overhead costs (and more) using the best lawn care software.

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4. Choose How to Charge for Christmas Light Pricing

You’ve found the break-even point, and now it’s time to choose how to charge for Christmas light pricing.

There are many ways of charging for Christmas light installation, but most businesses choose to charge by the foot.

Plus, charging by the foot is an easy, effective way to simplify the process and increase profits.

Also, as you’re choosing how much to charge by the foot, don’t forget to take home size and type into consideration:

  • Square footage
  • One-story vs two-story

5. Add Up All Christmas Light Installation Costs for the Job

Now, you know how you want to charge for Christmas light pricing, so it’s time to calculate project costs for the job.

First, add up the following job costs to find the total project material expenses needed:

  • Equipment
  • Decorations
  • Holiday lights

Remember, every job is different and all of these costs are on a job-by-job basis. Also, don’t forget to add ANY and ALL Christmas light installation costs.

You can easily track all of these costs on-the-go using Service Autopilot.

Use this formula to calculate the total project materials cost:

Total Project Material Expenses + (Total Project Material Expenses x Profit Margin) = Total Project Materials Cost

Then, multiply these number to find total labor costs:

  • Hourly rate
  • Estimated number of hours (BOTH installing AND uninstalling)

Next, incorporate the previous calculation into this formula:

Total Project Materials Cost + Total Project Labor Cost = Total Project Cost

6. Set the Right Profit Goals for Business Growth

Now that we know the project costs, it’s important to plan for scalable growth by setting profit goals to incorporate into the Christmas light pricing.

Step 1: Calculate Net Income

Use this formula to set the right profit goals using net income:

Net Income = Total Revenue - Material Costs - Labor Costs - Overhead Costs

Next, incorporate this calculation into the following formula:

Profit Margin = Net Income / Total Revenue

Step 2: Add Profit Margin Goals into the Total Price of the Job

Don’t forget to test different profit goals to discover the best target for your Christmas light business.

Keep in mind, sales goals increase with profit margin goals.

In order to set the right profit goals, keep it achievable, yet ambitious.

Step 3: Compare to the Competition to Keep Pricing Reasonable

The best way to ensure you’re keeping it reasonable is by comparing your Christmas light pricing to the competition. This ensures it’s not too low or high.

Although, don’t copy the competition’s prices. After all, their costs and goals aren't the same.

However, this comparison will give you a general idea of whether you’re within a reasonable price range.

Before comparing your prices to the competition, remember to incorporate your goals into the prices first.

7. Consult With a Trusted Certified Public Accountant

Prior to implementing the new Christmas light pricing, it’s essential to consult with a trusted CPA (Certified Public Accountant) for further verification.

This is a necessary step in catching any factors you forgot to consider. Plus, they can provide a clearer idea of the best pricing for the business.

Never forget, finances are what make or break the foundation of any business. Even though CPAs require a little upfront cost, this is NOT a step you can skip!

8. Take Advantage of the Best All-in-One Software Solution

Other than increasing prices, the key to maximizing profits is to save time and streamline operations by using the best all-in-one software solution.

With Service Autopilot, you’ll have the opportunity to quickly conquer everyday tasks like:

  • Keep lead and client information stored in one simple place
  • Create instant estimates from anywhere using templates
  • Easily track all overhead costs and job costs on-the-go
  • Automatically invoice and charge clients
  • Quickly optimize routes in a few clicks

Service Autopilot gives you and the team the time needed to focus more on important job tasks - allowing you to work ON the business, rather than IN it.

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(and with Less Stress)​

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Better scheduling

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9. Improve the Christmas Light Pricing Process Using Client Feedback

By far, the most effective way to improve the Christmas light pricing process is by using client feedback.

Here are a few great ways to get client feedback:

Remember, first increase Christmas light prices on your least profitable clients. Then, send out a survey to discover if they’re still happy with your services.

Finally, use your client feedback to improve the Christmas light pricing process for more profitable clients.

Automations is the  #1 way to follow up  with clients. If you’re not using it, your business might still be successful - but it won’t grow. 

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In Service Autopilot, our automations send emails and texts to:​

Every lead after an estimate is completed
Clients after their property has been serviced​
Remind leads and clients to send you customer feedback​
Update outdated or declined payment information​
Inform them when a service can’t be completed due to unforeseen circumstances (i.e. weather)​
Remind them of maintenance tips (i.e. putting a cover on the outdoor faucet before the winter)​
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Grow Your Business into a Shining Success With the Right Christmas Light Pricing

Finally, when you use this ultimate Christmas light pricing guide, you’ll be able to grow your business into a shining success by accomplishing goals and maximizing profits.

With this guide, you can ensure you’ve considered all necessary factors going into pricing. Also, the guide helps to properly implement and improve the process of the price increase.

At last, you have everything needed to become a glaring beacon of success with consistent, scalable growth for many years to come!


Related: How to Transition from Lawn Care to a Christmas Light Business


Originally published Oct 7, 2021 7:00 AM

Alyssa Sanders

Alyssa is a Content Marketing Specialist II at Service Autopilot. Her bookworming began after she discovered the Harry Potter series. Her love of books evolved into writing and creating content. When she's not writing, you can find her watching a new sci-fi series or shoving her nose into a book.
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