View Full Version : Whats a "normal" % profit? kind of a rant.
05-25-2007, 11:53 AM
I gave a quote for preping (rockhounding) and hydroseeding a 21k sqft lawn, front only. My price.....$2300.00. I get it ok'd and the next thing you know he's calling me back cancelling and going with another company that came in at $1500.00 AND adding top soil AND going around the sides and back of the house w/ rockhound and hydroseed adding another 5k sqft.;) ;) This guy is going to have 700+ bucks just in materials, plus the rockhound for at least 6-8hrs then manual labor. At that rate this guy cant even work for peanuts just the shells. But whats a normal profit mark-up on a job. I thought I was ok at around 25-30%.
05-25-2007, 02:21 PM
When I figure out a job, I calculate my materials and employess labor then usually double it. I recently had a job where we rented a sod cutter, removed a bunch of sod and carted it off...to a friends house to be reused. The rental was 73.00 and it took two of my guys about 4 hours. Total cost about 200.00 I doubled it to 400.00 and thought it was very fair for the amount of work and time it took. I likely should have charged a little more. Unless I calculate wrong, that is 100% profit over cost.
I hate to say do what you think is fair but it has gotten me along pretty well when a question like this pops up. You can't help being lowballed like that. You simply can't do the job for what the other guy did.
Tn Lawn Man
05-25-2007, 07:19 PM
There are two ways I calculate a job.
1. If there are alot of materials such as shrubs, sod etc... to install I will usually multiply the retail price of the items by 2 to 2 1/2 times.
2. If it is all labor then I estimate my labor rate per man hour.
In the end I want to always make at least my labor rate per man hour for all work involved and that includes bidding, purchasing, transporting too.
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