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View Full Version : 75,000 for 2 guys


LawnsRUsInc.
02-16-2004, 02:20 PM
Does this make sense to you because i think this seems kind of $hity. If you have a 2 man crew that does lawn care at a gross income of $75 per hour for the pair x 8 hours a day x5 days a week x 25 cuttings a year = $75,000 total gross. Am i missing somthing here, I was just going over #'s here trying to budget.


Jason?????

dkeisala
02-16-2004, 02:26 PM
What about hours worked that don't actually produce income? Downtime, drive time, etc.? Your method is simple and assumes you will be making $75/hr 8 hours/day 5 days/wk for 25 weeks. If it were that simple, I'd be making a lot more money!

turf9
02-16-2004, 02:32 PM
seems like you should be makin more with all that stuff ?

LawnsRUsInc.
02-16-2004, 02:34 PM
thats my point dke, how the he!! can people on here and near by companys say oh well i make all this money when the total posibility is 75k a year off of lawns for 2 guys and that is at 100% productivity. So dke
75000-20000 payroll-gas-equip.-storage-depeciation-repairs-insurance-taxs-etc... where is the money in the end?? not here? LOL

65hoss
02-16-2004, 02:39 PM
One thing you are missing is other things beside cutting grass.

Now, I'm not real sure what your question or concern is. Kinda hard to interpret your thoughts.

LawnsRUsInc.
02-16-2004, 02:40 PM
yea turf this is tru put i was just thinking about it closer and i was like crap. Last year we had alot of add on services and landscapes that helped out, But until you have a bunch of crews how can one live off of the profite from on lawn care crew?
Me also being 21 I dont know how else to think but from past yearly sales.

Jason

dkeisala
02-16-2004, 02:46 PM
I did just under $75K last year with me and one employee working. 40 year round maintenance clients, many more if you take into consideration seasonal and part-time clients, with various other jobs thrown into the mix to keep us busy and making money. We are all above board and pay all related expenses and taxes and I still managed to turn a profit and make my house payment, personal expenses, etc.

Phishook
02-16-2004, 02:57 PM
Originally posted by LawnsRUsInc.
thats my point dke, how the he!! can people on here and near by companys say oh well i make all this money when the total posibility is 75k a year off of lawns for 2 guys and that is at 100% productivity. So dke
75000-20000 payroll-gas-equip.-storage-depeciation-repairs-insurance-taxs-etc... where is the money in the end?? not here? LOL

Your posts don't add up, with your equipment list. You have 3 plow trucks that should be pushing 10k in a year. Then the 3 dump trucks could be doing mulch and side jobs the other 3-4 months.

Plus, where else in WI are you going to make 55k in 25 weeks? Or $440 a day, or even $55/hr at age 21?

J Hisch
02-16-2004, 02:59 PM
You wonder how people are making the money? Simple, large maintenance contracts....... where you might only be able to mow thre to 4 per day but you are turning 1000plus a day. But two men on residental you might have to work more hrs. 75 plus hr is not bad but some jobs have higher profitability than others.

Richard Martin
02-16-2004, 03:00 PM
I said it before and I'll say it again. If a lot of people actually knew what they were really making they wouldn't be in this business. They're getting by and paying their bills so they're not worried about it.

Mdirrigation
02-16-2004, 03:11 PM
In every type of business you can either create a job for yourself
or create a business. There is a big difference. And only you can decide which is right for you. If i were grossing $75,000 a year with 1 employee and all the related expenses , I personally would go and get a regular job with benifits and have weekends off.

A basic rule of thumb an employee has to generate a minimum of 3 times his gross salary to be profitable.

LawnsRUsInc.
02-16-2004, 03:12 PM
no phishook we do more services than that and more than 10k on plowing at least this year not the past few, But i wont be 21 for ever nor do i want to make just a little more money. Its really just my ambition for what i do/work the point of really is 75k gross per crew must only be profitable if you have more crews. I dont cut lawns myself i have 2 guys that do that. Me iam doing landscaping part time with the other guys and the other part of the time is doing biding yea the add on services from lawn care is the only place ia can say justify lawn care. No dont think i dislike lawn care i love cutting grass with a passion.

dkeisala
02-16-2004, 03:12 PM
Originally posted by Richard Martin
I said it before and I'll say it again. If a lot of people actually knew what they were really making they wouldn't be in this business. They're getting by and paying their bills so they're not worried about it.
This is so true!!! This business is so expensive, overhead so high that you truely have to invest in the right tools to constantly monitor the strength of the business financials. Landscaping and maintenance are merely activities that are fairly easy to manage, it's the numbers crunching that can be difficult and complex.

turf9
02-16-2004, 03:14 PM
chat room any one

Danimal
02-16-2004, 03:15 PM
I agree with phishhook you only plan on working 25 weeks and only 40hours a week what are you gripeing about? Try more like 50hours a week and 45 weeks a year if you ask thats alot more like what most lcos I know work.

homerescue
02-16-2004, 03:19 PM
seems like alot of equipment for 75000 a r=year with two guys, hope everything is paid for and hope nothing els breaks. Have guys around here mowing 1-11/2 acres for 25.00, and don't forget there trimming and blowing off sidewalks to.

Green Finger
02-16-2004, 03:21 PM
LawnsRus,

You have a lot of equipment. Is it paid off? How much are you MAKING daily vs spending out. You have to go back and audit your spending because something isn't adding up.

OR you might need you let that other guy go and pocket somemore duckets$$ for yourself or make him part-time. How much are you paying him?

If you got a ZTR, and you are doing res. why do you have an extra man?

OR if you have commercials that require another man. Do the math. the time it takes you guys to do that one property, How many res. could you have knock off alone? Commercials LOOK good but they require capital.

Trust me I've been there and done that before. After you pay your expenses you need to get paid as the owner. Cut cost or add on more services you got to make it happen. JMO

dkeisala
02-16-2004, 03:24 PM
Originally posted by Mdirrigation
In every type of business you can either create a job for yourself
or create a business. There is a big difference. And only you can decide which is right for you. If i were grossing $75,000 a year with 1 employee and all the related expenses , I personally would go and get a regular job with benifits and have weekends off.

A basic rule of thumb an employee has to generate a minimum of 3 times his gross salary to be profitable.
Yeah, but then you would have to work for sombody else and that wouldn't be any fun, for me anyway. Not to mention that income is all relative and related to individual situations. $75k may not seem like a whole lot of money to you but considering my income grows by 20% consistently every year, I'm comfortable with it. Plus, since I thoroughly enjoy my line of work, it's more of a game than a job. Lastly, much of my life now becomes a tax write-off giving me financial incentives unavailable to those working for and helping someone else make money.

Tbarchaser
02-16-2004, 03:26 PM
2 man crew..120k MOWING/MAINTINENCE ONLY! NO OVERTIME
based on 42 cuts a year, off season 10 weeks here, they can produce 40k on extras for a total of 160k

There are a few things your not taking into account.
MAN HRS not a crew grossing 75 hr. Also when I bid I take into acount that we are much faster the Joe Blow we have a VERY tight route (28 one stop for example)

You need to figure more like 95 to 110 per 2 man crew.
At least for my area....$15 a cut florida:D

turf9
02-16-2004, 03:30 PM
Originally posted by LawnsRUsInc.
yea turf this is tru put i was just thinking about it closer and i was like crap. Last year we had alot of add on services and landscapes that helped out, But until you have a bunch of crews how can one live off of the profite from on lawn care crew?
Me also being 21 I dont know how else to think but from past yearly sales.

Jason
ok are thing going better each year?
I am a one man show and it seems to go up every year $10000or so. Mybe you have to trim some fat? I know this is free and easy to say,just thinking out loud I have a walker as my second man trailer, half ton Varios small engine stuff and get home to take care of the kids a 3 at the latest. pulled 50ish last year not bragging (from what I here I have nothing to brag about with those #) But my point is don't get dicouraged as long as the years get a little better each time around. Your catch is you have shorter season is that correct?

lawnworker
02-16-2004, 03:31 PM
Lawnsrus, You need to balance it out with what your skills used working for the man would bring in for you. as for the post-- 75000--2 people--one is an employee---making 25000--very high estimate-----50000---left-18000 expenses= 32000 and no cubicle to stay holed up in.Might not be so bad, but not so great either, depends on where you live .

lawnworker
02-16-2004, 03:40 PM
Re reading your post, I see you are talking about managing two people and not working yourself. thats tough. that why there are so many owner/helper(s) outfits out there. It is easy to moniter production when you are right there. Big contracts with great management practices might work. It would be a lot of work. Anything good takes a lot of work.

Lawn docter does it; lots of workers there.

turf9
02-16-2004, 03:44 PM
Originally posted by lawnworker
Re reading your post, I see you are talking about managing two people and not working yourself. thats tough. that why there are so many owner/helper(s) outfits out there. It is easy to moniter production when you are right there. Big contracts with great management practices might work. It would be a lot of work. Anything good takes a lot of work.

Lawn docter does it; lots of workers there.

I missed that all together too.Sorry

LawnsRUsInc.
02-16-2004, 04:11 PM
thanks to all i like the comments but i have more than just lawn care as a service and i have 4 full time guys besides me. I make more than 75k a year. Also everything is paid for in full except the dodge ram. I ALSO am not the only one that works i have 4 full time employees and iam not sure if you have spanish employees but if they work less than 40 hrs a week they wont work for you. They work 7-7 6 days a week. The comments i made above are just theroreticale

Soupy
02-16-2004, 04:32 PM
So your question is, How is the guys that only cut grass making it? Simple, I don't know anyone that makes more then $75000 a year working for the man.$75000 gross is good money for part time work, at least in my kneck of the woods. $50000 a year is concidered a bragging income around here.

coonman
02-16-2004, 05:05 PM
Ditto what Soupy posted. Also I keep hearing about all the costs and overhead associated with this business. I got into this business because of its low investment and overhead. We have three Toro proline 21's, two redmax blowers, two redmax trimmers, one echo stick edger, 1 stihl hedge trimmer and a cheap Poulan chain saw. This equipment list costs less than the price of one z but it makes the two of us a decent living with minimal costs and overhead.

BOTURF
02-16-2004, 05:19 PM
Aot of good points in all posts . i work solo like someone else said and i grossed 50 ish but that is for working max 30 weeks a year here , sometimes i think its not good money but if you plan and save for off season it isnt bad money at all , i would rather do this than work for the man plus if its raining one day its a day off for you . I mow 50 accounts every week some mow and blow and some full service it all depends on what they want and only mow about 4 days a week . i am telling you it beats the heck out of working in a factory for 50 weeks a year for less . Just watch your numbers and save some every month to replace euiptment when needed and what ever else you need to buy for the business

turf9
02-16-2004, 06:06 PM
winter is a bit of a bummer to much time to think,the show is almost here.this time I'm going to try and put some away YEH RIGHT.

ollie212@tds.net
02-16-2004, 07:21 PM
Heres a question for making money mowing. How much are u paying your employees to cut a lawn.. This is a very low skilled job. Im not saying any tome dick or harry can run a mower it does take some skill to mow keeping your lines straight and so on. I used to pay guys in the range of 10-12 per hour to mow for us . Thats crazy our lead forman for the lawn crews makes 10.00 an hour everyone else 8 -9 an hour . My landscaping crews make a higher wage because that divison generates larger dollars. and u have to have higher skill to put in hardscapes and read prints and so on. so what im trying to say is pay your employees accordingly and maybe your profits will be higher .. Also you sharpen the baldes gas up the equipment small things like that can save you alot in payroll. I know u feel like you are going in 10 diffrent directions but if you want to succed in this business or any business you have got to keep that payroll down.. that is any compines largest expence. good luck.

Straight Line Mowing Inc.

Rook00
02-16-2004, 07:55 PM
How successful you are in the lawn business is such a relative statistic. Most of the numbers that are being given here are GROSS PROFIT figures. If I make $999,999 in one year, but have $999,900 in expenses, I've only made $99. I apologize for the sarcasm, but I hope the point is made: the priority should not be in the Gross figures, but the Net figures. Obviously you must consider the gross profit and expenses seperately, and those numbers ARE important, but the Net profit must not be ignored. So are you truly successful? Large gross numbers don't say much. Look at the $$$$ you are actually bringing in and decide if it is worth your time. For me, I am paying my way through Bible college. I consider myself to be successful thus far, though my profit is significantly less than most of yours. :)

dkeisala
02-16-2004, 08:09 PM
Both of these last two posts are very good points - even the biggest can fall if enough dollars aren't flowing through to the bottom line.

hoyboy
02-16-2004, 08:56 PM
Net is the most important....true. But a company grossing $50,000 a year will never profit $100,000. (duh). A company grossing $2,000,000 a year may have a bad year, or a bad manager and actually lose money. But tweak that company with a few good management decisions, profit sharing, training programs, etc...and that company could easily net $200,000.

Net is important, but so is gross.

GarPA
02-17-2004, 06:06 AM
perhaps a better way to compare numbers would be:

total revenue (sales) minus operating expenses, minus % set aside to replace equipment, minus employer part of social security, leaves the income of the one man operation.(this is simplifed but it works for discussion purposes)

We pay taxes whether we work for ourselves or for the corporate world so listing taxes as a "business expense" before you arrive at your gross income, is overstating the expense side of running the business

Royalslover
02-17-2004, 10:11 AM
Actually Rook, I think you mean gross revenue. Where are you going to college?