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 > Lawn Care, Landscaping, and Property Management Forums > General Talk

General Talk If it doesn't fit anywhere else, post it here.

What is your profit margin?


General Talk

If it doesn't fit anywhere else, post it here.
Reply
 
Thread Tools Search this Thread
  #1  
Old 12-11-2007, 08:40 PM
FourSeasons FourSeasons is offline
Members
 
Join Date: Sep 2007
Age: 32
Posts: 558
Rep Power: 7
FourSeasons
Default

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.
__________________
Rob
Green Image Lawn & Landscape

\"If you don't feel the same way about Friday nights as you do Sunday nights, then you are not doing the right thing.\"
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 12-11-2007, 10:17 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,187
Rep Power: 10
Steve has disabled reputation
Default

Lawn care business tipsLawn Care Business Book
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.
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #3  
Old 12-17-2007, 10:18 AM
FourSeasons FourSeasons is offline
Members
 
Join Date: Sep 2007
Age: 32
Posts: 558
Rep Power: 7
FourSeasons
Default

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.
__________________
Rob
Green Image Lawn & Landscape

\"If you don't feel the same way about Friday nights as you do Sunday nights, then you are not doing the right thing.\"
Reply With Quote
  #4  
Old 12-17-2007, 01:19 PM
realhuntin
Guest
 
Posts: n/a
Default

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.
Reply With Quote
  #5  
Old 12-17-2007, 02:28 PM
caseyshields
Guest
 
Posts: n/a
Default

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?
Reply With Quote
  #6  
Old 12-17-2007, 05:15 PM
pmblair
Guest
 
Posts: n/a
Default

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...?
Reply With Quote
  #7  
Old 12-17-2007, 06:36 PM
realhuntin
Guest
 
Posts: n/a
Default

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.
Reply With Quote
  #8  
Old 12-17-2007, 06:47 PM
realhuntin
Guest
 
Posts: n/a
Default

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.
Reply With Quote
  #9  
Old 12-17-2007, 11:43 PM
FourSeasons FourSeasons is offline
Members
 
Join Date: Sep 2007
Age: 32
Posts: 558
Rep Power: 7
FourSeasons
Default

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.



__________________
Rob
Green Image Lawn & Landscape

\"If you don't feel the same way about Friday nights as you do Sunday nights, then you are not doing the right thing.\"
Reply With Quote
  #10  
Old 12-17-2007, 11:46 PM
realhuntin
Guest
 
Posts: n/a
Default

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
Reply With Quote
Reply

Bookmarks

Tags
operating expense, profit margin

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Left handed edging with...
SGL1
Yesterday 08:59 PM
Today 01:14 PM
by Steve
3 67
Need help determining...
Jbss861
07-20-2014 02:33 PM
Today 01:11 PM
by Steve
13 277
Got my first lawn job...
SGL1
06-11-2014 09:19 PM
Today 12:23 PM
by Steve
28 1,140
Customer letters
kslawn
Yesterday 06:17 AM
Today 12:19 PM
by Steve
3 82
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
Today 12:14 PM
by Steve
76 4,314
Should I ?
googus
07-22-2014 04:06 PM
Today 12:10 PM
by Steve
4 130
My First Apartment...
SSLCtn
05-26-2014 10:17 PM
Today 06:46 AM
by kslawn
15 846
Crop Rotation Techniques...
eastsidelandcare
07-17-2014 03:47 PM
Today 06:38 AM
by kslawn
3 150
Selling lawns like...
eastsidelandcare
07-17-2014 03:51 PM
Today 06:28 AM
by kslawn
3 189
Scag new "Eliminator"......
ExtremeLawncareServices
07-20-2014 10:45 AM
Yesterday 05:37 PM
by Just for Cuts
9 223
need professional advice...
Fiddlers_green
07-20-2014 07:21 PM
Yesterday 12:42 PM
by Steve
3 148
new to me box truck
jrayb39667
03-06-2014 10:20 PM
Yesterday 12:40 PM
by Steve
15 1,325
Lawn Service back in...
LawnCareMan280
07-18-2014 09:00 PM
Yesterday 11:48 AM
by Steve
4 187
Overspray?
stevef1201
07-21-2014 04:20 PM
Yesterday 11:39 AM
by Steve
3 93
Hello Everyone! Newbie...
SLKlawn
07-17-2014 06:22 PM
07-22-2014 01:53 PM
by Steve
6 217
Proper height for lawn
rob lederhilger
05-26-2014 08:01 AM
07-21-2014 02:53 PM
by LawnDoctor
9 616
Blade sharpener
Just for Cuts
07-04-2014 12:31 PM
07-21-2014 01:48 PM
by Steve
9 454
What's my business worth?
Chaz
07-16-2014 01:35 PM
07-21-2014 01:45 PM
by Steve
4 231
Single tree, mow customer
WesleySnips
06-27-2014 10:12 AM
07-21-2014 01:04 PM
by Steve
12 506
1.5 Acre Jungle
WesleySnips
07-15-2014 05:57 PM
07-20-2014 11:31 AM
by ExtremeLawncareServices
21 531
Gopher schedule software
Ray
07-18-2014 04:13 PM
07-18-2014 04:13 PM
by Ray
0 121
2006 Chevy fuel pump...
KevinsLawns
07-17-2014 08:39 PM
07-18-2014 11:51 AM
by Steve
1 122
Halfway point of year!
Steve
07-01-2014 12:08 PM
07-18-2014 11:38 AM
by Steve
14 666
I got told to leave and...
gwilson98
06-16-2014 02:07 PM
07-17-2014 11:43 AM
by Steve
16 987
Hey guys this is the...
prmenter@gmail.com
07-07-2014 08:23 PM
07-16-2014 08:10 PM
by ExtremeLawncareServices
28 718
Mowing the hills
prmenter@gmail.com
07-08-2014 12:22 PM
07-16-2014 05:00 PM
by Just for Cuts
18 653
Say Hello !!!
Steve
03-19-2007 11:18 AM
07-15-2014 05:38 PM
by icon2000
1,184 318,697
need some help geting...
dalvan0
07-13-2014 09:28 PM
07-15-2014 11:56 AM
by Steve
5 224
new trailer help
mattthelawnguy
07-11-2014 08:21 PM
07-15-2014 11:42 AM
by Steve
9 329
Classified Ad Template...
bcfb
06-05-2013 02:40 AM
07-15-2014 11:16 AM
by Steve
15 3,664
Husqvarna pz 60
CDLAWNCARE
07-06-2014 06:50 PM
07-15-2014 08:53 AM
by kslawn
10 404
Lowballers
Chaz
07-11-2014 03:55 PM
07-14-2014 12:27 PM
by Steve
5 331
My new side job
Sprinkler Buddy
05-10-2014 05:23 AM
07-14-2014 12:15 PM
by Steve
10 792
Illegal spraying
GoGreenerKS
07-04-2014 09:11 AM
07-13-2014 10:36 PM
by GoGreenerKS
10 514
New Mower and Trailer
Chaz
06-25-2014 12:04 PM
07-13-2014 06:25 PM
by SGL1
7 524
What Fertilizer to Use?
acrajchel
04-07-2014 01:56 PM
07-12-2014 07:36 PM
by SGL1
21 1,840
Fuel and fuel additives
SGL1
07-06-2014 10:23 AM
07-11-2014 07:53 PM
by SGL1
15 514
Questions for a patchy...
jumcgee
07-09-2014 08:42 AM
07-11-2014 12:34 PM
by Steve
1 183
toro proline blades wont...
boog
06-25-2014 06:26 PM
07-11-2014 05:28 AM
by kslawn
18 614
Contents of Marketing to...
prmenter@gmail.com
07-09-2014 05:25 PM
07-10-2014 03:23 PM
by Steve
3 272
Shindaiwa
CLB454
05-13-2014 09:04 PM
07-10-2014 03:04 PM
by Steve
14 750
Starting New in FL
mmcuttrim
08-06-2010 09:22 AM
07-10-2014 02:44 PM
by Steve
48 11,216
Bid help 45 on acre...
Priggan
06-26-2014 12:56 PM
07-09-2014 08:38 AM
by kslawn
7 495
need help bidding fence...
veteranslawncaresystems
07-03-2014 10:33 AM
07-08-2014 12:00 PM
by Steve
5 357
Trimmer or Knife?
gwilson98
07-04-2014 09:56 PM
07-07-2014 02:41 PM
by Steve
6 318
Started a New Solar Lawn...
Solar Lawn Care
06-08-2013 01:40 AM
07-07-2014 01:55 PM
by Steve
37 7,391
New Canadian Member
coppervalley
07-04-2014 02:15 PM
07-07-2014 01:12 PM
by Steve
1 220
Happy Independance...
stevef1201
07-04-2014 07:05 AM
07-07-2014 01:01 PM
by Steve
2 219
Echo PE 266 edger
stevef1201
07-01-2014 01:28 PM
07-07-2014 12:47 PM
by Steve
4 299
30 Inch Push Mowers Pros...
Billy Goat
06-27-2013 08:07 PM
07-06-2014 01:50 PM
by SGL1
21 5,208
» Popular Tags
4wd advertisement article marketing bid charge christmas lighting christmas light service courtesy call credit card processing customers decorating escrow estimate exmark ferris fundraiser gopherhaul grass gravely gravely 34" zero turn hills holiday holiday decorating holiday lighting honda how much to charge introduction kawasaki lawn lawn care business lawn care business book lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website leaf leaf removal lighting managing a lawn care business marketing native plants new buisness new mower office management online classifieds outdoor environments payment podcast push versus ride redmax reo scag scripts search engine optimization seo snow sprayer starting a business starting a lawn care business steve stihl subcontractor theft toro tractor auger turfgrass consulting walker wright stander rh zero turn
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 04:21 PM.


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

All times are GMT -5. The time now is 04:21 PM.

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