Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum

» Welcome to the Gopher Lawn Care Business Forum
GopherHaul Landscaping & Lawn Care Business Marketing Forum

GopherHaul Landscaping & Lawn Care Business Marketing Forum (http://www.gopherforum.com/forum-index.php)
-   General Talk (http://www.gopherforum.com/forumdisplay.php?f=21)
-   -   What is your profit margin? (http://www.gopherforum.com/showthread.php?t=4699)

FourSeasons 12-11-2007 09:40 PM

Just starting out we ask what should we be charging? And the only way to know how much to charge is to figure out what your costs are first.
Then determine your profit margin from there. That should be right.

Well no one ever says what kind of profit they are making per hour after expenses. Shouldn't there be a general range we should all be in? Of course different parts of the country are going to be different but we should all be in the same range.
Do you agree?

Can some of you guys that have this down tell us what kind of profit margin newer LCOs should be shooting for.
I have found what works good for me for now.

Hopefully this makes sense.

Steve 12-11-2007 11:17 PM

Quote:

Originally Posted by [b
Quote[/b] ]Well no one ever says what kind of profit they are making per hour after expenses. Shouldn't there be a general range we should all be in? Of course different parts of the country are going to be different but we should all be in the same range.
Do you agree?

Hi Rob,

You know that is a very good point. We do often talk about shooting for a $60 per hour fee but the profit margin could vary dramatically depending on your expenses.

FourSeasons 12-17-2007 11:18 AM

No replies to this.
Does that mean no one has it figured out?
Or no one wants to share?

I don't have it completely figured it out but i have a general idea.

realhuntin 12-17-2007 02:19 PM

Quote:

Originally Posted by [b
Quote[/b] (FourSeasons @ Dec. 17 2007,11:18)]No replies to this.
Does that mean no one has it figured out?
Or no one wants to share?

I don't have it completely figured it out but i have a general idea.

Hey Rob,

I'm not sure if I understand your question 100% Here are some accounting tips so you may find your PROFIT MARGINS.

Month-to-month these may vary. It depends on the cost of doing business, A/R (accounts receiveable), A/P (accounts payable and/or Expense Accounts along with Purchase Accounts) these all factor into your P&L (Profit & Loss).

Another way is to take all your cutting clients total all income from them, subtract your total cost for them (FUEL), this would be close. You can't use labor/time as a factor for this application. You can do this with each type of job/customer you may have, this will tell you how much you made profit and then find the profit % for each one. There is your Profit margin for each service you provide.


Hope this helps or is what your looking for.

caseyshields 12-17-2007 03:28 PM

I think he is talking about.....if you already know your costs of doing business.....what percentage do you add in to make your profit. How much percentage do YOU add to your total cost of a job to make YOUR profit? I know mine varies from job to job and person to person. I try to make as much as I can on each job. When you tell the person the cost....and they wince....that's what I look for!
Basically, do you add 15% to total cost for profit? More? Less? What is YOUR profit margin?

pmblair 12-17-2007 06:15 PM

Well, it would seem to me that if you know your cost to do business, then you could figure out your "profit margin" by taking your cost of business per month, divide it by the number of jobs you do, then you'll have a rough estimate of how much you're paying to do a job... then just subtract that from what you're getting payed to do the job.

Right? ...or was I WAY off there...?

realhuntin 12-17-2007 07:36 PM

Quote:

Originally Posted by [b
Quote[/b] (caseyshields @ Dec. 17 2007,3:28)]I think he is talking about.....if you already know your costs of doing business.....what percentage do you add in to make your profit. *How much percentage do YOU add to your total cost of a job to make YOUR profit? *I know mine varies from job to job and person to person. *I try to make as much as I can on each job. *When you tell the person the cost....and they wince....that's what I look for!
Basically, do you add 15% to total cost for profit? *More? *Less? *What is YOUR profit margin?

When doing profit %'s on large jobs such as Hardscapes and Landscapes you would have to figure what your area can take

For ex. most landscape companies buy wholesale prices and use retails pricing for the estimate for plants total cost to customers and use a multiplier of 2 for the TOTAL COST of said job, this will in return give you approx 25-30% profit but after you figure your labor cost into it your profit margin would be realisticly about 15% total profit. This is a common practice around here.

For Hardscape jobs I do it a little different. I total the cost of all materials, labor and equipment rentals (basicly all expenses) find the total add 15% for profit and 8% to that for overhead (my run time, permits, fees, office paperwork, etc).

Remember to do this PART, this is VERY IMPORTANT: If you own your equipment,(mini-skidsteer, compactor, quick-cut saw etc.) you need to add the going rate from local rental company for each day that equipment is on the job to the bid.

realhuntin 12-17-2007 07:47 PM

Quote:

Originally Posted by [b
Quote[/b] (pmblair @ Dec. 17 2007,6:15)]Well, it would seem to me that if you know your cost to do business, then you could figure out your "profit margin" by taking your cost of business per month, divide it by the number of jobs you do, then you'll have a rough estimate of how much you're paying to do a job... then just subtract that from what you're getting payed to do the job.

Right? *...or was I WAY off there...?

Yes Pat you are some what correct. The way you explained it would get you close, it would at the very least tell you if you should stay in business or not or at least tell you if you need to increase your pricing. As I have tried to explain a GOOD accounting system is crucial in any business, TRACT ALL expenses. this way you can accually see where you lost money and where you made money, wheater you have a solid P & L or not. A solid business continues to be solid by making appropiate changes as needed and this begins with solid accounting reports.

FourSeasons 12-18-2007 12:43 AM

This is great info for people that aren't sure how to find what their profit is or needs to be.
But I wanted to see what you guy's average profit margin is.
If you dont mind sharing.

Actually this is probably not just a easy one number/word answer.




realhuntin 12-18-2007 12:46 AM

Quote:

Originally Posted by [b
Quote[/b] (FourSeasons @ Dec. 18 2007,12:43)]This is great info for people that aren't sure how to find what their profit is or needs to be.
But I wanted to see what you guy's average profit margin is.
If you dont mind sharing.

]Actually this probably is just a one number/word answer.

15-20 % depends on the job


All times are GMT -5. The time now is 10:52 PM.

Powered by vBulletin® Version 3.7.1
Copyright ©2000 - 2015, Jelsoft Enterprises Ltd.
(C) 2011 Riggs Publications - Terms of use & Privacy Policy

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
TaskEasy & Plowz & Mowz...
jrwalker333
Today 01:02 PM
Today 01:02 PM
by jrwalker333
0 35
These are the days on...
ExtremeLawncareServices
01-11-2015 11:41 AM
Today 09:34 AM
by ExtremeLawncareServices
9 462
second year advise
cmdlawncare
01-23-2015 06:22 PM
Yesterday 11:42 PM
by jrs.landscaping
3 112
Lawn care truck
Steve
10-10-2009 03:40 AM
Yesterday 10:54 PM
by Chilehead
39 15,787
What happened to Better...
Steve
01-27-2014 04:07 PM
Yesterday 01:13 PM
by WesleySnips
16 2,980
need advise
rawssrob
02-23-2010 02:45 PM
01-23-2015 06:40 PM
by cmdlawncare
7 2,502
please Help with none...
Lawnboyman1170
01-09-2015 09:46 AM
01-23-2015 03:39 PM
by burnell76
7 441
does this sound good or...
Bradcook21
01-22-2015 09:24 AM
01-23-2015 02:02 PM
by Steve
8 220
New to forum
ROB N
01-23-2015 08:35 AM
01-23-2015 01:53 PM
by Steve
1 80
Looking for advice on...
berryjam
01-21-2015 07:37 PM
01-23-2015 01:50 PM
by Steve
9 242
Extending the life of...
rmccutchan
01-17-2015 12:37 AM
01-23-2015 01:43 PM
by Steve
8 305
osceola lawn service
jasa@wildblue.net
01-22-2015 03:23 PM
01-23-2015 01:38 PM
by Steve
1 100
How many contracts...
5StarLawnscaping
01-12-2015 03:51 PM
01-23-2015 08:46 AM
by jrs.landscaping
8 424
Tax Question
Wolf4dk
01-20-2015 01:11 AM
01-22-2015 02:28 PM
by Steve
4 213
Billy Goat Vac
Mr. Mow
01-19-2015 07:42 AM
01-22-2015 02:18 PM
by Steve
6 214
"Part Timers", "Low...
doug1980
06-10-2009 12:55 PM
01-22-2015 02:09 PM
by biglee
39 10,102
Property Pricing
GVL
01-19-2015 02:46 PM
01-21-2015 02:18 PM
by Steve
5 259
Landscapers Source For...
breadcrumb
01-16-2015 02:44 PM
01-21-2015 05:55 AM
by breadcrumb
14 411
Hoa advice
Bradcook21
01-16-2015 09:36 PM
01-20-2015 04:30 PM
by Steve
4 253
My Invention
biglee
01-11-2015 07:51 PM
01-20-2015 10:16 AM
by biglee
16 589
How to beat the pre pay...
stansg1fresh
01-13-2015 04:33 PM
01-19-2015 03:38 PM
by ringahding1
3 323
Hello from Md
homey
12-17-2014 06:55 PM
01-19-2015 01:37 PM
by Steve
12 1,101
Hi from Illinois
burtle
01-02-2015 09:46 PM
01-19-2015 01:22 PM
by Steve
3 488
Hello from SW FL!!
5StarLawnscaping
12-05-2014 02:35 PM
01-19-2015 01:20 PM
by Steve
14 1,416
Lost my @#$ blower
stevef1201
01-11-2015 08:31 AM
01-17-2015 02:21 PM
by lxarth
2 353
Another Illinoisan.....
barhopper
01-11-2015 05:38 PM
01-16-2015 04:29 PM
by Steve
10 400
marketing with pizza...
apmAkron
01-15-2015 09:57 AM
01-15-2015 06:29 PM
by Steve
4 243
CRM and Quickbooks?
5StarLawnscaping
01-15-2015 08:06 AM
01-15-2015 08:06 AM
by 5StarLawnscaping
0 173
New Member, Indiana Iraq...
Timbo
07-14-2011 09:44 AM
01-14-2015 06:14 PM
by Steve
10 3,768
check this box truck out!
BLAZIER-1991
01-07-2015 07:40 PM
01-13-2015 03:06 PM
by biglee
8 606
My community only ad...
googus
01-12-2015 09:55 AM
01-13-2015 02:44 PM
by Steve
5 300
12 Years in Business!
Chilehead
10-23-2014 09:07 AM
01-13-2015 09:37 AM
by Chilehead
18 1,775
use a small business...
BLAZIER-1991
12-25-2014 12:21 AM
01-12-2015 06:32 PM
by BLAZIER-1991
30 1,528
tips on creating a...
BLAZIER-1991
01-08-2015 07:22 PM
01-12-2015 06:19 PM
by BLAZIER-1991
4 447
During Your Down Time
achri12
12-24-2014 03:03 PM
01-12-2015 03:54 PM
by Steve
10 1,063
Leaf cleanup
Bradcook21
01-09-2015 02:21 PM
01-12-2015 12:22 PM
by Jamesw86
4 411
Has Anyone Used Plowz ?
dpld
01-08-2014 12:14 PM
01-11-2015 02:17 PM
by burtle
20 3,331
What to pay help
Bradcook21
01-07-2015 01:32 PM
01-08-2015 07:01 PM
by Steve
1 453
Need a trailer
googus
01-07-2015 09:40 AM
01-08-2015 10:24 AM
by Upscale2
7 552
Do you guys charge buy...
burtle
01-02-2015 09:58 PM
01-07-2015 08:37 PM
by Shark1611
14 906
Organic Lawn Care...
NHray
10-17-2014 07:05 PM
01-07-2015 07:05 PM
by greyhound
18 2,143
Need advice please
CHenricks
01-06-2015 01:17 AM
01-07-2015 03:34 PM
by Steve
4 523
Mowing 2 acres
Bradcook21
01-05-2015 03:13 PM
01-07-2015 03:32 PM
by Steve
9 656
Ideas on a large bid
Knaubone
12-21-2014 11:57 AM
01-06-2015 03:55 PM
by Steve
5 973
Trailer with 4ft sides...
mayala030292
01-02-2015 09:01 PM
01-06-2015 03:33 PM
by Steve
5 601
A tip to get good...
biglee
01-04-2015 12:07 AM
01-06-2015 03:30 PM
by Steve
4 585
Work Shoes!
rsanchez1203
02-19-2013 12:07 PM
01-05-2015 09:18 PM
by Havanese2
13 7,436
EDDM post cards
hemiman
02-13-2014 06:36 PM
01-05-2015 04:22 PM
by Steve
14 2,395
Cleaning your Mower and...
MNK
01-03-2015 01:22 AM
01-05-2015 09:17 AM
by rmccutchan
10 744
where to find more...
BLAZIER-1991
01-02-2015 12:17 AM
01-04-2015 12:51 PM
by BLAZIER-1991
6 628
Read more about these lawn care business marketing categories.
General Business:
GopherHaul, Podcast
How to Estimate - Services To Offer:
Aeration, Apartment / Condo, bed edging, Color Change Plantings, Dethatching, Edging, Fall Leaf Cleanups, Foreclosed Homes, Gutter Cleaning, Hardscaping, Hedge Trimming, Home Safety Inspection, Irrigation, Landscape Project, Lawn Mower Repair, Mowing, Mulch Jobs, Outdoor decoration, Parking Lot Cleanups, Pet Waste Removal, Pressure Washing, Property Management, Snow plowing, Stump Grinding, Tree Removal
How to Estimate Jobs:
Lawn Care Business:
Barter, Bikini Lawn Care, Business Failure, Business loan, Business Plan, Debt, Debt Collection, Estimate or Proposal Form, Franchise, Fuel surcharge, How to sell, Insurance, Job Tracking, Lawn Care Contract, Lawn Care Customer Survey, Lawn Care Uniform, Lawn Care Videos, Operational Costs, Overhead Costs, Prepay, Pricing, Start up, Tiger Time Lawn Care,
Lawn Care Business Books:
Lawn Care Customers:
Buying customers, Commercial Customers, Customer Retention, How to get, Residential Customers
Lawn Care Employees:
1 Man Lawn Crew, Bonus Pay, training, Your First Employee
lawn care equipment:
bed edger, Lawn Care Truck, Leaf Sweeper, Mower, New Arrival, Trailer, UltraVac
Lawn Care Marketing:
Billboard, Brochure, Business Card, Community Projects To Promote Your Business, Coupons, Cross Promotion / Synergy, Direct Mail, Door hanger, door to door, Free Giveaway Contest, Free Lawn Care Flyer Template, Gift or Discount Cards, home show, Internet, Lawn Care Business Sales Letter, Lawn Care Logo, Lawn Care Marketing, Lawn Care Truck & Trailer Signs, Lawn Care Website, Lawn Signs, Magazine Ad, Magnets, Mailing list, Marketing on Craigslist.com, Newspaper Ads, Parade, Postcards, publicity stunt, Referrals, Review My Lawn Care Marketing Material, t-shirt, Welcoming Kit, Word Of Mouth
Seasonal Promotion Ideas:
4th of July, Armed Forces Day, Christmas, Election Day, Fall, Halloween, Memorial Day, Spring, Summer, Valentine's Day, Veteran's Day, Winter:
Software:
Estimation Software, Landscaper Software, Landscaping Business Software, Landscaping Estimate Software, Landscaping Software, Lawn Care Business Software, Lawn Care Estimating Software, Lawn Care Software, Mowing Software
Uncategorized:
Video:
Website:
Search Engine Optimization
» Lawn Care Business Discussion Categories
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 10:52 PM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 10:52 PM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy