2 million + sales

[snomaha]

What is your payroll expense as a percentage of total income?

[MacLawnCo]

total income is technically what is commonly referred to as profit. Im fairly sure your questions is actually about labor as a percentage of sales... its a far more relevant questions which should return answers somewhere around 45-50%.

[rodfather]

34.39% for payroll expense and taxes

[AI Inc]

33% here. That includes a $800 paycheck per week for me.

[Ravenwood Landscaping]

I'm glad to see I'm not too far off, but I'm aiming for around 33% this year. It's only our second year, so I don't have the firm numbers, but this will be what we go for.

[snomaha]

total income is technically what is commonly referred to as profit. Im fairly sure your questions is actually about labor as a percentage of sales... its a far more relevant questions which should return answers somewhere around 45-50%.

No. My question is still related to total income.

Thanks for the answers. 33.9%

[GELAWNS]

We were at payroll expenses of about 48% of income (sales collected). That includes all taxes and QB payroll services. We would like to be around 35% this year as one of our goals. We have some new employees (from last year) that we expect to be more efficient and productive this summer. That should reduce overtime and allow us to fit in some more projects to increase revenue.

[snomaha]

Total income, total revenue, total sales are all the same thing. All monies collected less discounts. Also might be on your P&L as net income instead of total income.

Just thought I would clarify my question.

[MacLawnCo]

so the next question is this: those of you in the 30's, is it because your labor is such a small portion of your sales or is it because your company is so top heavy. Those really are the only two options. How about posting an avg loaded labor rate for comparison.

[MacLawnCo]

Total income, total revenue, total sales are all the same thing. All monies collected less discounts. Also might be on your P&L as net income instead of total income.
again, technical answer is that revenue/sales are your top line, income is your bottom line.

[snomaha]

What do you mean by top heavy?

[snomaha]

again, technical answer is that revenue/sales are your top line, income is your bottom line.

Net profit bottom line total income top line. We are talking about the same thing just getting caught up in semantics. Maybe instead of net profit I should just say "The number I have agreed to pay taxes on".

[jcthorne]

25.42%........

[Doug1966]

Are the people answering this all making $2million in sales? Or are we all just answering?

I'm impressed with how many big companies there are out here. We must be doing something wrong!

[MacLawnCo]

ok, if you look at your total sales as a pie chart, then there really are only three slices. First and most importantly is your profit section. Second, almost as important is your loaded(all burdens included) labor portion. Last slice of the pie is your overhead portion. Being overweight in O/H is what is called top heavy -management, facilities, etc. that are too much for the volume of sales you are doing.

There are two easy ways to lower your labor ratio. Obviously, pay less with the same level of sales. Second, increase your overhead costs while keeping labor the same - this will either increase your sales or eat into your profit.

I just said alot but likely didnt make a point. Its late, im exhausted. Point is this: To really have a fair comparison, you need to compare labor in both absolute and relative terms. We are currently talking relative terms but depending on how your business is structured (read:O/H), you may or may not be in the same ballpark.

[MacLawnCo]

Are the people answering this all making $2million in sales? Or are we all just answering?

I'm impressed with how many big companies there are out here. We must be doing something wrong!

understand for certain, the LM 100 is certainly not an exhaustive list of all co's in that revenue range.

[DuallyVette]

understand for certain, the LM 100 is certainly not an exhaustive list of all co's in that revenue range.


Is english your native language ? I think my dictionary is diffrent from yours. ( I didn't write my own)

[Doug1966]

"Is english your native language ? I think my dictionary is diffrent from yours."

Huh? MacLawnCo makes complete sense. He is grammatically sound, and writes well thought out and insightful posts, backed by education. What are you picking on him for? Bad morning?

[kjslawn]

Are the people answering this all making $2million in sales? Or are we all just answering?

I'm impressed with how many big companies there are out here. We must be doing something wrong!

I say this often I am fighting to keep my 20 or so cust I hear of about first yr guy doing 40-60 accounts making 60k a yr

[snomaha]

If you are a maintenance company with 2 million plus in sales please post your total payroll percentage.

I wasn't looking for a economics lesson just a general number to do some benchmarking.

[qualitylandscaping]

23.68% for regular payroll and taxes
7.21% for overtime and taxes

[MacLawnCo]

23.68% for regular payroll and taxes
7.21% for overtime and taxes

WOW - what are you paying and how are you billing out so much? Thats incredible.

Im sticking with 40%. I dont know for certain, but based on bids I have seen, I would put fair money that Brickman is somewhere close to 40%.

To the original question: http://www.landcarenetwork.org/do/productView?id=1349
very informative information, broken down by company specialty and revenue range with best, avg, and worst performers.

[Az Gardener]

A good friend of mine has a design, install, maint, company that does between 10-12 mil a year. He said he is at 26% We used to get togeather around the first of the year when I was just starting out, the first year I was near 60%. He told me I really needed to get that # down near 30 and then I would begin to see some light.

[BeautifulBlooms]

Lower ratios could be from companies who sell a lot of product. A labor driven maintenance company is going to be a very high percentage.

[bullethead]

Lower ratios could be from companies who sell a lot of product. A labor driven maintenance company is going to be a very high percentage.

Ding ding ding ... we have a winner. Maintenance only companies = labor will be a larger percentage of sales. We do construction and maintenance; our combined labor is 30% of sales.

[ldsland]

Annual sales @1.2 million. Our payroll expenses were @ $325,000 dollars. This does not include workmans comp and general liability insurances which are based off of payroll and some people may classify as burden on labor. Anyway 325,000 is 27% of sales. However we are very heavy on equipment 15% of sales, and g/a overhead 22-25%. We netted @16% last year -- this includes owner salary. Any feed back?

[TJLANDS]

34.7 for 2007 including all taxes and W/C.
I am 90% maintenance.