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 08:40 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 10:17 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 10:18 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 01:19 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 02:28 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 05:15 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 06:36 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 06:47 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 12-17-2007 11:43 PM

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 12-17-2007 11:46 PM

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 05:44 PM.

Powered by vBulletin® Version 3.7.1
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
(C) 2011 Riggs Publications - Terms of use & Privacy Policy

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Will summer ever come
ExtremeLawncareServices
Today 08:27 AM
Today 05:20 PM
by Sprinkler Buddy
4 38
Building credit
Matther777
07-27-2014 05:20 PM
Today 05:18 PM
by Matther777
8 138
Single tree, mow customer
WesleySnips
06-27-2014 10:12 AM
Today 04:23 PM
by stevef1201
16 656
Formulas Used
BaileynSamsMum
Today 06:40 AM
Today 02:52 PM
by BaileynSamsMum
2 46
From Concord NC
SouthernRootsLawnCare
07-26-2014 02:34 PM
Today 02:28 PM
by Steve
3 77
Have you ever had to...
SouthernRootsLawnCare
07-26-2014 02:41 PM
Today 02:28 PM
by Steve
4 136
Echo Edger 'Neutral'
WesleySnips
07-25-2014 05:28 PM
Today 02:25 PM
by Steve
4 128
Need input on a bid
phlawncare
Yesterday 08:51 PM
Today 02:17 PM
by Steve
1 56
Spreading Weeds?
WesleySnips
07-27-2014 09:46 PM
Today 02:11 PM
by Steve
4 108
New from Texas
Livingston Lawn Care
07-25-2014 11:17 AM
Yesterday 01:29 PM
by Steve
3 138
Left handed edging with...
SGL1
07-23-2014 08:59 PM
Yesterday 07:39 AM
by SGL1
15 335
Echo PE 266 edger
stevef1201
07-01-2014 01:28 PM
07-27-2014 10:14 PM
by WesleySnips
5 345
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
07-27-2014 01:21 PM
by ExtremeLawncareServices
80 4,664
Texas lawn care company...
Livingston Lawn Care
07-25-2014 11:29 AM
07-27-2014 08:16 AM
by Just for Cuts
7 192
need some help geting...
dalvan0
07-13-2014 09:28 PM
07-26-2014 04:39 PM
by BLC7
7 333
new trailer help
mattthelawnguy
07-11-2014 08:21 PM
07-25-2014 06:31 PM
by mattthelawnguy
13 510
You know it;s gonna be a...
stevef1201
07-25-2014 08:50 AM
07-25-2014 01:34 PM
by Steve
1 100
Customer letters
kslawn
07-23-2014 06:17 AM
07-25-2014 01:20 PM
by Steve
5 216
Got my first lawn job...
SGL1
06-11-2014 09:19 PM
07-24-2014 07:09 PM
by SGL1
29 1,290
Need help determining...
Jbss861
07-20-2014 02:33 PM
07-24-2014 01:11 PM
by Steve
13 399
Should I ?
googus
07-22-2014 04:06 PM
07-24-2014 12:10 PM
by Steve
4 231
My First Apartment...
SSLCtn
05-26-2014 10:17 PM
07-24-2014 06:46 AM
by kslawn
15 925
Crop Rotation Techniques...
eastsidelandcare
07-17-2014 03:47 PM
07-24-2014 06:38 AM
by kslawn
3 228
Selling lawns like...
eastsidelandcare
07-17-2014 03:51 PM
07-24-2014 06:28 AM
by kslawn
3 280
Scag new "Eliminator"......
ExtremeLawncareServices
07-20-2014 10:45 AM
07-23-2014 05:37 PM
by Just for Cuts
9 322
need professional advice...
Fiddlers_green
07-20-2014 07:21 PM
07-23-2014 12:42 PM
by Steve
3 223
new to me box truck
jrayb39667
03-06-2014 10:20 PM
07-23-2014 12:40 PM
by Steve
15 1,437
Lawn Service back in...
LawnCareMan280
07-18-2014 09:00 PM
07-23-2014 11:48 AM
by Steve
4 256
Overspray?
stevef1201
07-21-2014 04:20 PM
07-23-2014 11:39 AM
by Steve
3 166
Hello Everyone! Newbie...
SLKlawn
07-17-2014 06:22 PM
07-22-2014 01:53 PM
by Steve
6 301
Proper height for lawn
rob lederhilger
05-26-2014 08:01 AM
07-21-2014 02:53 PM
by LawnDoctor
9 680
Blade sharpener
Just for Cuts
07-04-2014 12:31 PM
07-21-2014 01:48 PM
by Steve
9 534
What's my business worth?
Chaz
07-16-2014 01:35 PM
07-21-2014 01:45 PM
by Steve
4 314
1.5 Acre Jungle
WesleySnips
07-15-2014 05:57 PM
07-20-2014 11:31 AM
by ExtremeLawncareServices
21 643
Gopher schedule software
Ray
07-18-2014 04:13 PM
07-18-2014 04:13 PM
by Ray
0 208
2006 Chevy fuel pump...
KevinsLawns
07-17-2014 08:39 PM
07-18-2014 11:51 AM
by Steve
1 197
Halfway point of year!
Steve
07-01-2014 12:08 PM
07-18-2014 11:38 AM
by Steve
14 763
I got told to leave and...
gwilson98
06-16-2014 02:07 PM
07-17-2014 11:43 AM
by Steve
16 1,077
Hey guys this is the...
prmenter@gmail.com
07-07-2014 08:23 PM
07-16-2014 08:10 PM
by ExtremeLawncareServices
28 807
Mowing the hills
prmenter@gmail.com
07-08-2014 12:22 PM
07-16-2014 05:00 PM
by Just for Cuts
18 731
Say Hello !!!
Steve
03-19-2007 11:18 AM
07-15-2014 05:38 PM
by icon2000
1,184 320,886
Classified Ad Template...
bcfb
06-05-2013 02:40 AM
07-15-2014 11:16 AM
by Steve
15 3,758
Husqvarna pz 60
CDLAWNCARE
07-06-2014 06:50 PM
07-15-2014 08:53 AM
by kslawn
10 478
Lowballers
Chaz
07-11-2014 03:55 PM
07-14-2014 12:27 PM
by Steve
5 388
My new side job
Sprinkler Buddy
05-10-2014 05:23 AM
07-14-2014 12:15 PM
by Steve
10 848
Illegal spraying
GoGreenerKS
07-04-2014 09:11 AM
07-13-2014 10:36 PM
by GoGreenerKS
10 585
New Mower and Trailer
Chaz
06-25-2014 12:04 PM
07-13-2014 06:25 PM
by SGL1
7 598
What Fertilizer to Use?
acrajchel
04-07-2014 01:56 PM
07-12-2014 07:36 PM
by SGL1
21 1,930
Fuel and fuel additives
SGL1
07-06-2014 10:23 AM
07-11-2014 07:53 PM
by SGL1
15 588
Questions for a patchy...
jumcgee
07-09-2014 08:42 AM
07-11-2014 12:34 PM
by Steve
1 241
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 05:44 PM.


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

All times are GMT -5. The time now is 05:44 PM.

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