Holiday Lighting profit margins

What one-owner holiday lighting businesses report to the IRS, where the money goes on a holiday lighting job, and a calculator to check your own margin.

84.3%Gross margin, IRS sector
21.2%Net margin incl. owner pay
$36,687Average receipts per return
What do you want to work out?
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Leave at 15% if you do not know it yet. The business mode works it out.
Gross margin
35.7%
$1,250 over job costs
55.6%Markup
$725Net profit
20.7%Net margin
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How we got this

  1. Job cost$1,200 materials + $900 labor + $150 other = $2,250
  2. Gross profit$3,500 − $2,250 = $1,250
  3. Gross margin$1,250 ÷ $3,500 price = 35.7%
  4. Markup$1,250 ÷ $2,250 cost = 55.6%
  5. Overhead share15% of $3,500 = $525
  6. Net profit$1,250 − $525 = $725 (20.7%)
MarkupGives a margin of
25%20%
33%24.8%
43%30.1%
50%33.3%
67%40.1%
100%50%

Holiday Lighting profit margin benchmarks

The IRS reports what one-owner businesses filing Schedule C earn, by sector. Holiday Lighting falls under Administrative and support services. For tax year 2023, 3,118,914 returns reported $114.4 billion in receipts, $17.9 billion in cost of sales and $24.2 billion in net income less deficit (the table gives thousands of dollars):

BenchmarkValue
Gross margin84.3%
Net margin, owner pay included21.2%
Average receipts per return$36,687
Average net income per return$7,769

The owner's own draw is not an expense on a Schedule C, so that net margin is mostly the owner's wage, not profit on top of it.

Where the money goes in holiday lighting

Holiday lighting is labor, the lights and storage. The install season is short, so crew time and ladders are the scarce part.

Where holiday lighting margin leaks, and how to win it back

  • Takedown and storage not priced
  • Lights given away at cost
  • Service calls during the season done free
  • Routes spread too far apart
  • No deposit to hold the install date

Ways holiday lighting installers raise margin: price takedown and storage into the season; take a deposit to hold the install date; sell next year's install at takedown; build routes by neighborhood.

Check your holiday lighting prices against the costs

The typical national prices from our sourced calculators are a check on whether your prices leave room for margin:

ServiceTypicalRange
Install with lights supplied$3.75$2.50 to $5.00 a foot
Install with the customer's lights$2.50$1.50 to $3.50 a foot
Smallest full-service job$234$218 to $250 a job
Tree wrap, small$100$75 to $125 a tree
Tree wrap, medium$188$125 to $250 a tree
Outdoor timer$26$11.00 to $40 a timer

Work out the margin on each line of your menu, not just the big jobs. The usual holiday lighting menu: install with lights supplied; install with the customer's lights; smallest full-service job; tree wrap, small; tree wrap, medium; outdoor timer; wreaths and garland; takedown; storage until next season; service call for outages.

Overhead comes out of the margin before profit. In holiday lighting it includes general liability insurance, which Insureon's customers who are contractors as a group pay an average of $83 a month for; commercial auto at $270 a month on the same figures.

Work out your own margin

Put one recent holiday lighting job into the calculator above, or switch it to "My margin for the year" to set your year next to the IRS benchmark. A 50% markup is a 33% margin; the markup calculator shows the rest.

Sources

Last checked October 9, 2026. This page is general information, not legal or tax advice. Rules change and differ by state and city, so confirm with the agency named before you act.

FAQ

What is a good profit margin for a holiday lighting business?

As a benchmark, one-owner businesses in administrative and support services reported a 84.3% gross margin and a 21.2% net margin to the IRS for 2023, with the owner's pay inside that net figure.

How can holiday lighting installers raise their margin?

Price takedown and storage into the season, take a deposit to hold the install date and sell next year's install at takedown.

What are the biggest costs in holiday lighting?

Holiday lighting is labor, the lights and storage. The install season is short, so crew time and ladders are the scarce part.

Where do holiday lighting installers lose margin?

Takedown and storage not priced, lights given away at cost and service calls during the season done free.

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Holiday Lighting Profit Margins: Benchmarks and a Calculator | Koira