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Snowboss
09-27-2006, 08:48 PM
What would be considered a reasonable profit margin for a maintenance crew
3 or 4 man crew, located in Massachusetts

YardPro
09-27-2006, 10:34 PM
all depends on your company.

crew size is not very important as the number you are talking about is a %.

25% is a good reasonable number. A lot of companies actually operate closer to 10%, but i don't like having margins that thin... shoot for 25%, but try not go go below 15%

rodfather
09-28-2006, 06:25 PM
For the first 6 months of the year, our net profit was 26.4%...I firmly believe that number will be higher at year's end.

mrusk
09-28-2006, 06:56 PM
For the first 6 months of the year, our net profit was 26.4%...I firmly believe that number will be higher at year's end.


Your salary must not be high enough!!

rodfather
09-28-2006, 09:50 PM
Your salary must not be high enough!!

actually in 05 it was 86K...I stand to take over 100K this year. :)

Josh.S
09-28-2006, 10:15 PM
actually in 05 it was 86K...I stand to take over 100K this year. :)

So like your salary is what you paid yourself? and you paid yourself 86k and then your business still had a net of 25%.. holy crap i would just like to see a gross of 86k...

rodfather
09-28-2006, 10:39 PM
So like your salary is what you paid yourself? and you paid yourself 86k and then your business still had a net of 25%.. holy crap i would just like to see a gross of 86k...

no no no, my 86K is part of the 25%...do the math.

TJLANDS
10-02-2006, 08:42 PM
25% is very good in our business. I am in NJ also and I am just under 20%.
Wasn't Bobbygedd at like 75%...lol.
Anyway I believe 10-15% is the national average according to Turf or one of those mags.

TJLANDS
10-02-2006, 08:54 PM
Rod,
Question about QB.
I use gopher because me and QB do not get along, anyway
Does it keep track of Company Credit cards, finance charges etc and if not all paid in full each month it would be hard to figure a true profit margin.
For me at least.

Josh.S
10-02-2006, 11:28 PM
no no no, my 86K is part of the 25%...do the math.

out of curiosity, what is the percentage of profit after you take your salary out?

rodfather
10-03-2006, 06:57 AM
out of curiosity, what is the percentage of profit after you take your salary out?

sorry my mistake, the salary I pull is from gross profit and not net...my apology for any confusion.

lawnworker
11-29-2006, 05:08 PM
I don't make any profit margin. It all goes to my salary. I think a lot of us solo people struggle like that.

rodfather
11-29-2006, 05:19 PM
I don't make any profit margin. It all goes to my salary. I think a lot of us solo people struggle like that.

not to critisize ya, but then you are doing something wrong

TJLANDS
11-29-2006, 06:33 PM
I don't make any profit margin. It all goes to my salary. I think a lot of us solo people struggle like that.

Ok, maybe you didnt pay attention in class. Or maybe I didnt:dizzy:

topsites
11-29-2006, 06:34 PM
Back in the old days, it wasn't much over 10%...

I don't make any profit margin. It all goes to my salary. I think a lot of us solo people struggle like that.

I have a similar problem, nothing to do with profit margins per se, but everything to do with the IRS and running solo....

If I pay myself a salary as I did in years past, the IRS eats me alive with paperwork...
Every single quarter, it's form after form after form, and one form leads to another and it never ends!!!
For those of you with employees, I'm sure the secretary finds this no problem, but I used to waste HOURS of time (like 20+) every quarter with this crap, and still my taxes were never right.
So everything beyond expenses goes to profit, and while taxes are paid on the entire profit, I pay myself out of that...

As for what's left and percentages?
Forget it, it all needs to get spent some kind of legitimate way before the IRS sees it.
Because any one out of thousands of salaried IRS employees sees a few thousand+ sitting in some bank account, I get a bill for something I (supposedly) forgot to pay, for real...
I don't understand where they get their ideas from someone grossing in the 30's / year, but $150 / week goes to taxes, it's got so bad I wish I could operate on a negative bank account balance.

About to just start sticking it in my pocket, but what good is it when it's not earning interest?
Sux

TJLANDS
11-29-2006, 06:41 PM
Topsites,
you lost me, What paper work are you talking about?

Payroll?
I have many employees and no secretary. What forms are you talking about?

rodfather
11-29-2006, 06:44 PM
Topsites,
you lost me, What paper work are you talking about?

Payroll?
I have many employees and no secretary. What forms are you talking about?

I'm lost as well TJ

prostriper
11-29-2006, 07:51 PM
actually in 05 it was 86K...I stand to take over 100K this year. :)


Holy crap you really are a millionare. Hows the workout plan going? :)

in mu opinion15% is the least you want to pull for a profit margin. If you are making less than that sell everything off and invest it in mutual funds. You would make out better sitting on the couch doing nothing.

prostriper
11-29-2006, 08:00 PM
actually in 05 it was 86K...I stand to take over 100K this year. :)


Holy crap you really are a millionare. Hows the workout plan going? :)

In my opinion 15% is the least you want to pull for a profit margin. If you are making less than that sell everything off and invest it in mutual funds. You would make out better sitting on the couch doing nothing.

Elite Cuttz
11-29-2006, 09:29 PM
Topsite...get an accountant/bookkeeper to take care of all of those forms... And focus your time on building revenue...20hrs x 45 (min.)= $900/qtr (min.) which in turn equals increased revenue. Just some advice from a beginner LCO...But owner of two other companies.

Tim Wright
11-30-2006, 11:15 AM
What about just using everything for business, writing it off as business expense and if you need money, do a owners draw, but no salary. Your house is owned by your company, and its your perk as the president to take up residence in it and to take care of it?

This way, you do not get hammered for personal income tax.

Tim

Josh.S
11-30-2006, 11:23 AM
What about just using everything for business, writing it off as business expense and if you need money, do a owners draw, but no salary. Your house is owned by your company, and its your perk as the president to take up residence in it and to take care of it?

This way, you do not get hammered for personal income tax.

Tim

First of all that is illegal

Although the business can pay for a lot of your personal expenses, I still don't think its the right way to do it....

Also if something happens to your business, say an empoyee hit's somebody in the face with a rock, and insurance doesn't cover everything... then you will lose the business assets, which for you would be all of your personal and business assets if you claim them under the business..

my $.03

Tim Wright
11-30-2006, 11:28 AM
And then if you hit somebody in the face with a rock, you lose everything...

True, good point, if your insurance does not cover cost or law suites.

Scratch that idea.

Tim