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: 8
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: 36,511
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: 8
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: 8
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
Cheapskate Landlord...
Mr. Mow
10-20-2014 06:33 AM
Today 11:00 AM
by stevef1201
12 326
raking leaves ?
robert8509
Yesterday 09:19 PM
Today 09:23 AM
by robert8509
4 104
hey everyone
robert8509
Yesterday 08:16 PM
Today 09:10 AM
by robert8509
2 75
12 Years in Business!
Chilehead
Today 08:07 AM
Today 08:07 AM
by Chilehead
0 20
Dealing With Gas Can...
Mr. Mow
10-21-2014 01:41 PM
Today 08:01 AM
by Chilehead
7 232
Workmans compensation...
CDLAWNCARE
10-15-2014 08:05 AM
Today 06:26 AM
by CDLAWNCARE
4 466
Pda
stevef1201
10-18-2014 02:05 PM
Today 06:12 AM
by ringahding1
4 308
Leaf Box & Loader Set...
ringahding1
10-21-2014 06:20 AM
Today 05:13 AM
by ringahding1
5 209
Pressure Washing Like a...
TNTurf
08-01-2014 11:47 PM
Yesterday 01:33 PM
by Steve
9 768
Hello, from TEXAS
sanchez5
10-17-2014 09:56 PM
Yesterday 01:27 PM
by Steve
6 388
Organic Lawn Care...
NHray
10-17-2014 06:05 PM
Yesterday 01:23 PM
by Steve
3 361
Hi Steve From West...
Mr. Mow
10-21-2014 01:59 PM
Yesterday 01:19 PM
by Steve
1 137
Help a brother...
tbtigers03
09-28-2014 11:41 AM
Yesterday 08:51 AM
by ringahding1
12 1,500
first year update
cmdlawncare
08-12-2014 05:41 PM
Yesterday 07:47 AM
by ringahding1
4 1,316
What parts do you carry...
Just for Cuts
10-17-2014 09:08 AM
10-21-2014 01:36 PM
by Mr. Mow
16 643
Jungle to Beautiful
stevef1201
10-17-2014 09:54 AM
10-21-2014 01:26 PM
by stevef1201
11 489
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
10-21-2014 01:19 PM
by ExtremeLawncareServices
158 11,361
Sunny Beach Tennis...
SGL1
10-19-2014 11:24 PM
10-21-2014 01:04 PM
by SGL1
4 246
Have you ever had to...
SouthernRootsLawnCare
07-26-2014 02:41 PM
10-20-2014 08:34 PM
by biglee
10 1,795
Look out Bob Villa -...
Mr Dave
09-30-2014 10:06 AM
10-20-2014 05:42 PM
by SGL1
7 1,304
how to fi d commercial...
mchampion319
10-19-2014 09:50 PM
10-20-2014 04:41 PM
by Steve
1 216
Hello From Tennessee
mrmann901
10-17-2014 10:02 PM
10-20-2014 04:24 PM
by Steve
1 287
questions on order to...
jack2048
10-13-2014 11:15 AM
10-20-2014 03:27 PM
by Mr. Mow
15 730
This sucks...
Matther777
09-18-2014 04:56 PM
10-20-2014 02:14 PM
by Steve
14 2,185
Cement mixer
KevinsLawns
10-15-2014 08:03 PM
10-20-2014 02:11 PM
by Steve
7 469
Hello ! New guy Rob here
RWorthley1
10-17-2014 04:05 PM
10-20-2014 02:09 PM
by Steve
1 312
Snow Blowing
gwilson98
10-12-2014 02:21 PM
10-17-2014 02:51 PM
by Steve
6 651
Spreading Weeds?
WesleySnips
07-27-2014 09:46 PM
10-17-2014 07:49 AM
by SGL1
6 952
Grasswhoopins.com Anyone...
GRASS WHOOPINS
06-21-2011 11:38 PM
10-16-2014 01:30 PM
by ExtremeLawncareServices
42 9,314
I Want to buy old...
ExtremeLawncareServices
10-10-2014 10:04 PM
10-15-2014 09:12 PM
by ExtremeLawncareServices
6 681
Say Hello !!!
Steve
03-19-2007 11:18 AM
10-15-2014 06:43 PM
by NHray
1,190 340,186
Do you find weed eating...
chuck2s
10-15-2014 02:10 PM
10-15-2014 02:10 PM
by chuck2s
0 398
Incorporating &...
WesleySnips
10-01-2014 09:39 PM
10-15-2014 01:37 PM
by kslawn
20 1,497
Falling into business
stellarmowing
09-28-2014 04:35 PM
10-15-2014 05:57 AM
by ringahding1
8 1,510
Apartment Complex and...
lxarth
06-22-2011 01:10 PM
10-14-2014 06:25 PM
by jrs.landscaping
42 9,594
I LOVE hedge trimming
stevef1201
10-13-2014 09:05 AM
10-14-2014 01:06 PM
by Steve
5 539
Help with seeder...
ExtremeLawncareServices
10-09-2014 07:39 AM
10-13-2014 08:09 PM
by ExtremeLawncareServices
5 697
The Market watch
WesleySnips
10-12-2014 08:47 PM
10-13-2014 05:40 PM
by SGL1
3 535
Help pricing a large...
Bradcook21
10-07-2014 06:49 AM
10-13-2014 02:00 PM
by Steve
7 883
leaf removal
Double J LLC
10-03-2014 04:24 PM
10-13-2014 06:46 AM
by Billy Goat
19 1,520
Acerage Rake
acrajchel
04-23-2014 07:23 PM
10-12-2014 10:53 PM
by SGL1
2 844
John Deere z235 Deck
WesleySnips
09-29-2014 06:02 PM
10-12-2014 06:20 PM
by kslawn
25 1,657
Credit card contract
SGL1
10-06-2014 05:31 PM
10-12-2014 03:40 PM
by SGL1
18 1,072
Truck craft dump bed...
ExtremeLawncareServices
10-04-2014 08:41 PM
10-10-2014 11:35 AM
by Steve
7 976
First Time River Rock...
berryjam
10-09-2014 06:09 PM
10-10-2014 11:08 AM
by Steve
2 620
West cost lawn prices
SGlawncare
10-09-2014 09:51 PM
10-10-2014 11:03 AM
by Steve
1 607
Question?what should I...
dalvan0
09-24-2014 11:10 PM
10-09-2014 05:58 PM
by kslawn
28 2,149
Mowing the hills
EyeCatchersNow
07-08-2014 12:22 PM
10-09-2014 04:19 PM
by Just for Cuts
25 3,023
snowplowing
jshak40
09-01-2014 07:20 AM
10-09-2014 02:21 PM
by Steve
25 3,664
Changing Scag Freedom Z...
maggiedavidson
10-06-2014 12:24 PM
10-08-2014 06:34 PM
by ExtremeLawncareServices
7 862
» Popular Tags
2wd 4x4 aerocore apartment bid auger billy goat brushcutter bush care charge deliquentaccounts equipment rental exmark ferris foreman four wheel drive fundraiser gopherhaul grass gravely hills holiday how much to charge how to bid husqvarna john deere quik trac kawasaki labor cost landscape services lawn lawn care lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website lighting lighting brass outdoor lights marketing mowing mr dave mulch mulch estimate new buisness ordinance podcast property management company pto push versus ride redmax scag scripts seo shreaded small engine repair sprayer starting a business starting a lawn care business stihl sulky theft top dresser toro toro grand stand trailer trimmer rack turfgrass consulting walk behind walker wood
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 11:12 AM.


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

All times are GMT -5. The time now is 11:12 AM.

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