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View Full Version : Profit margin percentage on larger jobs


silentbob
03-30-2008, 10:33 PM
Just wondering what everyone tries to calculate for a typical profit percentage on a large job. Say something like a $20,000 install including mulch, plants, labor, etc. If the total charge to the customer was $20k, what type of percentage would you/should you expect to make?

From what I've heard from other LCO's, typically 25% or so is the norm. So, on a $20k job, you would profit around $5k.

Does that sound right?

silentbob
03-31-2008, 11:33 AM
:confused:Are you kidding me? 40 views and not one person has a response?

I'm not asking for hard numbers, just what everyone thinks is about average (percentage-wise) to try to make on a med-large job...

h400exinfl
03-31-2008, 06:15 PM
I'm only doing small jobs (under 3k) but it seems the margins are more like 40 - 60 percent. Yes I have a license and insurance.

EagleLandscape
03-31-2008, 06:41 PM
Yah, I typically shoot for 40% - 60% depending on numerous factors. But i have a real control on my costs and overhead, and we work extremely efficient.

AGLA
03-31-2008, 07:40 PM
In that case, you are all making $60k per year when you gross $100k. I'm not buying that.

EagleLandscape
03-31-2008, 08:10 PM
You talking to me?

h400exinfl
03-31-2008, 08:17 PM
We do a lot of maintenance and those margins are much skinnier so it's hard to tell. I'd bet that if I had the business to do one 2 grand job a week all year long, I could stuff away 40 - 60 percent. Maybe I'm way out of wack, but it doesn't seem so crazy to me.

ferdinand711
03-31-2008, 08:22 PM
Just wondering what everyone tries to calculate for a typical profit percentage on a large job. Say something like a $20,000 install including mulch, plants, labor, etc. If the total charge to the customer was $20k, what type of percentage would you/should you expect to make?

From what I've heard from other LCO's, typically 25% or so is the norm. So, on a $20k job, you would profit around $5k.

Does that sound right?

I'm hitting around 25%-35% in my Landscaping projects.

Superior L & L
03-31-2008, 08:50 PM
i hope we are not talking net profit---if you are ive been pricing way to low for the past 12 years

NC Greenscaper
03-31-2008, 08:59 PM
Silent,

I calculate my material cost and mark up a minimum of 30%. However, I try to mark up plant material at least 50% for replacement, etc. I estimate my labor cost and mark up 30% also. However, these are currently under review and may be increased soon.

silentbob
03-31-2008, 11:16 PM
Ok, so it seems the general consensus is around 25-35% or so. That's about what I have been hearing. Obviously it's tough to make that on maintenance or smaller jobs, but it seems only fair that you would have to make that (yes, net :drinkup: ) on larger jobs since they can be few and far between in some cases.

I would think that it is fair to make $5k (net, in your pocket) on a $20k project. If you don't, I would think all of the overhead that you pay on the regular day-to-day maintenance type stuff will drive you out of business fairly soon. With the economy the way it is, I think you need to hit a home run if you're thrown a slow pitch...

payup

PerfectEarth
03-31-2008, 11:21 PM
After materials, indirect costs, salary, taxes, blah, blah, blah... I try to hit around 30ish% for the business.

I just underbid a job though..... hehehehe.

EagleLandscape
04-01-2008, 12:08 AM
Let me clarify something. After hard material costs are paid on a job, there about a 60% margin. Out of that 60 comes my pay, laborers, and overhead. Hopefully that clears up any misunderstandings.

AGLA
04-01-2008, 07:51 AM
Profit is what you have after everything (including your salary, truck payments, rent, wages to employees, materials, insurance, other investments in the company, ....) divided by all of the money that came in. If your annual billing was $500k, 10% profit would be $50k - 50% would be $250k.