Profitability

Make Your Mulch Make Money

It’s a seemingly straight-forward business. Your profitability depends on your revenues exceeding your expenses. The trick, though, is accurately determining and monitoring your cost.

Amerimulch® prides itself on educating its customers before and after they enter the color-enhanced mulch business. We want you to realistically understand the opportunities and challenges in the mulch marketplace. Our goal is to ensure that you produce high-quality colored mulch and accurately know your cost. Mulch is in demand with retail customers and landscapers — continual growth of our mature markets are a testament to this fact.

Color-enhanced mulch products are sold to wholesale landscapers who will install or deliver the mulch. The average price for a cubic yard of bulk color-enriched mulch nationally is $15 wholesale and $32 retail. Prices do vary by region, depending on the competition in that market. Some of the variables include conventional bark mulch prices, coloring quality, wood fiber consistency and availability.

There are two mulch markets: retail and wholesale. Generally, retailers sell much less volume than wholesalers but at a higher mark-up. Average historical volumes in this market annually have been between 2,000 and 5,000 yards, depending on the local market size. Wholesalers, who work at a higher volume but with less profit per unit, move between 10,000 and 120,000 yards yearly.

The business tables to the left detail the revenue that mulch producers can realize at various volumes. The numbers given are based on observations by Amerimulch personnel and national averages. Numbers in your market might be different. You should adjust your calculations accordingly.

If you’re looking into becoming a mulch producer, we can tell you without hesitation (and with national research) that there is no shortage of demand, and the production process can be highly predictable, ensuring your profitability. Mulch production is a great business to be in, and we encourage you to consider joining our family.