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View Full Version : Gross $9000 Net $0, Is this Right?


echeandia
06-16-2007, 05:38 PM
Just started this year and so far I have billed just shy of $9000. However, I have netted almost nothing. The cost of fuel, advertising, licensing, taxes, professional fees, supplies, equipment, insurance, and everything else has left me with a net profit of $0. Is this typical of first year operations?

cpel2004
06-16-2007, 06:00 PM
I would say you are above the curve as long as you arent losing anything you are fine. Check your prices make sure they are at fair market value. Slowly you will begin to add to your net as your customers increase, depending on your equipment situation.

echeandia
06-16-2007, 06:07 PM
Check your prices make sure they are at fair market value.

My prices are on the high side. I know because I always follow-up with people and have been told that many times that they received a lower price from another person.

Uranus
06-16-2007, 06:15 PM
My prices are on the high side. I know because I always follow-up with people and have been told that many times that they received a lower price from another person.

There are 2 markets. Professional market and the scrub market. Make sure your compairing your prices to a professional company.

We can tell you right now if your high or not.

1/2 acre flat lot, trimming only around house, driveway, and a few small trees.

1 acre flat lot, same trimming. In and out service. give us your estimated prices.

jsf343
06-16-2007, 06:17 PM
Sounds a lot like my first year as well. Just like the above poster said, Just make sure when you bid a property you are adding up EVERY cost it takes to do the job, then add what ever you are wanting to make as long as it is competitive. You will figure out ways to fine tune, or do things faster or a little cheaper. I shoot for minimum of 2 lawns an hour, at a minimum of $30.00 but often if I can get them to go full service it is considerably more. If I can run really tight routes and advertise around the areas where accounts already existed then I push for 3 an hour. This is something that works well for us. Maybe you can try the same, it would help you to net a bit more.

shoot me a pm if you have any questions, maybe I can help.

Later,

Jeff

echeandia
06-16-2007, 07:18 PM
1/2 acre flat lot, trimming only around house, driveway, and a few small trees.

1 acre flat lot, same trimming. In and out service. give us your estimated prices.

Here are the prices I would quote for the two properties:


1/2 acre - $50
1 acre - $70

Bigray
06-16-2007, 08:14 PM
yeah the first year is always a struggle, be determined and you will succeed...

i have been full time 9 years now and i run appox. 50% expenses ... to gross

Stillwater
06-16-2007, 10:03 PM
professional fees? what is that?
0$ net.... make sure you are only buying what you need and not what you want.

Sandgropher
06-16-2007, 10:07 PM
Just started this year and so far I have billed just shy of $9000. However, I have netted almost nothing. The cost of fuel, advertising, licensing, taxes, professional fees, supplies, equipment, insurance, and everything else has left me with a net profit of $0. Is this typical of first year operations?

Its not something thats unusual, lots of folks are $1000's in debt after the first year, hopefully by the end of the season you will be in front.

echeandia
06-16-2007, 10:09 PM
professional fees? what is that?
0$ net.... make sure you are only buying what you need and not what you want.


Professional fees are for things like attorneys and accountants. Don't tell me you don't have an accountant or an attorney?

kooba
06-17-2007, 12:02 AM
No attorney for me. What do you need one of them for? kooba.

mattfromNY
06-17-2007, 12:14 AM
I wish I was a little taller, or my ears were mounted higher!, so I could get out of debt. I'm in up to my ears... second full year, grossed over $60k so far since Jan. 1, still no net, but catching up quick, getting the insurances, some of the equipment and other biggies paid up in full, then hope to start showing a net profit soon. Dont be in a hurry to show net profit, thats what you'll pay income tax on. Pocket your cash. Run as close to the break-even mark as possible for the first few years, or as long as you can!

Vikings
06-17-2007, 04:49 AM
There are 2 markets. Professional market and the scrub market. Make sure your compairing your prices to a professional company.

Very nice post. I read it a couple hours ago and it kept creeping into my thoughts as I have some questionable lawns.

Stillwater
06-17-2007, 04:53 AM
Very nice post. I read it a couple hours ago and it kept creeping into my thoughts as I have some questionable lawns.

I been doing this for as long as dirt is old and I have some questionable lawns aswell, it just happends

Sandgropher
06-17-2007, 05:43 AM
Professional fees are for things like attorneys and accountants. Don't tell me you don't have an accountant or an attorney?

I know i dont ,i have better things to do with my money than give it to them :) Mind you i have not ruled out an accountant for some time in the future.

Stillwater
06-17-2007, 06:16 AM
I have no attorney on a retainer either and I only hire a book keeper 1 time a year when I self audit. I have excellent software that has paid for itself and is far more accurate than any book keeper. I only use a lawyer when checking my liability with contracts or for what if questions. or buying realstate

Runner
06-17-2007, 10:37 AM
About the attorney thing,...we certainly can't say that it was a bad thing - as in bad decision. Personally, I have never hired one for business.As far as te accountant goes,...that is not bad, either - especially considering a startup. As far as your other expenses, it is hard to say, because there is no telling on what and how you spent all your money on. I CAN tell you this.....You are miles ahead of many others just by your knowledge in recognizing and knowing the difference and where your expenses are. You would be amazed how many people would come on here saying they made something. Some would be telling us they made 9 grand!

Ravenwood Landscaping
06-17-2007, 10:54 AM
Just started this year and so far I have billed just shy of $9000. However, I have netted almost nothing. The cost of fuel, advertising, licensing, taxes, professional fees, supplies, equipment, insurance, and everything else has left me with a net profit of $0. Is this typical of first year operations?

We're in our first and about exactly where you are. We're doing this part time this year and expect to run full time next year. I think we have about $200 in our account after making about $10K because we've been paying all of the same fees you have and buying equipment as we go. As long as you're not in debt and you have what you need with licenses and equipment, you're doing better than probably most who start in this business. The real test will come in another year or so, that's when profit should start rolling in for you. If not, then somethings wrong. But right now, thumbs up!

Stillwater
06-17-2007, 02:12 PM
We're in our first and about exactly where you are. We're doing this part time this year and expect to run full time next year. I think we have about $200 in our account after making about $10K because we've been paying all of the same fees you have and buying equipment as we go. As long as you're not in debt and you have what you need with licenses and equipment, you're doing better than probably most who start in this business. The real test will come in another year or so, that's when profit should start rolling in for you. If not, then somethings wrong. But right now, thumbs up!

Hey Dood, I like the name you gave your biz.

BeautifulBlooms
06-17-2007, 02:20 PM
Sre you at least paying yourself included in your gross profit?

M&SLawnCare
06-17-2007, 04:02 PM
Its normal. The first year is always rough. Next year and the following years will get easier. Equipment will be paid off so you'll net what your currently paying there. You'll already have a customer base so you can spend less on advertising. Gain more customers which will increase both gross and net and so on. Thats why everyone says plan plan plan when you want to go into busness, and either have another job to support your cost of living bills, or have enough money saved up to support yourself for atleast a yeasr.

lifetree
06-17-2007, 04:18 PM
Here are the prices I would quote for the two properties:


1/2 acre - $50
1 acre - $70


You're prices are high compared to where I am ... for 1/2 acre I would charge about $ 35-40, for 1 acre about $ 55-60.

lifetree
06-17-2007, 04:21 PM
... You are miles ahead of many others just by your knowledge in recognizing and knowing the difference and where your expenses are. You would be amazed how many people would come on here saying they made something. Some would be telling us they made 9 grand!

Excellent post -- I agree 100 %.

echeandia
06-17-2007, 04:27 PM
You're prices are high compared to where I am ...

I told you my prices are high.