Mulch sales margins.

[SwihartServices]

I am looking at buying a mulch yard. I am still waiting to see their financials from last year.

So, trying to outline a business plan and before knowing the exact numbers, what should I expect as far as margins go.
Just the per yard$. Don't worry about fuel, marketing, lease ect.

I want to know retail and whole sale margins and whats an average delivery charge. I don't know anything at this point, even where they get their mulch from.
However, last year their mulch was trash (Literally it had trash in it) so I will be for sure getting a new supplier.

Probably will market as "The best mulch in town." So, figures on some good triple shed would be awesome.

And if you have any good ideas on marketing mulch, or think I'm an idiot for thinking about selling it, let us know. I need some criticisms.

Thanks

[bj1bmx]

i buy mine directly from the county MUA who sells to all of the garden centers in the area. if you buy 650+ yards (which you easily will as a supply yard) the price is like $10.50 per yard. 80-650 yds (my rate) is $13.50. and 1-80 yards is $20/yd. so basically, the cheapest you would want to sell a yard for is $20 to your customers. in my area (New Jersey), the garden centers sell mulch between $20 and $30 per yard and typically charge $35-45 for local delivery (w/in 5-10 miles). as the driving radius expands, the rate increases to $61 and then $87 unless it is a huge load in which case it is much more.

just make sure you are getting a high quality mulch that customers will be happy with or this endeavor will be more of a hassle than a payoff. also sell topsoil, chips, stone, firewood, etc. to increase sales.

good luck!

[SwihartServices]

bj1bmx, Thanks a lot for your reply I really appreciate it. Lots of good info.

One question, What is an MUA.

[cutbetterthanyou]

I have a question too, what are you talking about when you say
"sell chips"

[Nicdv1]

I have a question too, what are you talking about when you say
"sell chips"

salsa and chips!!!
pine chips maybe?

[CNYScapes]

I will be opening my garden center this coming spring and will be charging the following


mulch cost $16.50 yard

wholesale price will be $21.50 yard

Retail price will be $ 26.50 yard


so that will be a $5.00 markup on wholesale and a $10.00 markup on retail

[ponyboy]

i buy double hammer for 18 a yard w free delivery and root is 12 a yard the guy makes its himself its cool to see a millon dollar machine make mulch, helps he owns one of the biggest tree companies around see a little high at 16.50 a yard to buy. offer item 4, top soil, colored stones, river rounds gravel, sand just my thoughts good luck