PDA

View Full Version : Net Profit per day


terracare
03-16-2004, 10:25 AM
Hello everyone, I was just wondering what a good net profit per employee per day would be? We are going to be looking to net about 600 per day. How many employees should be out there to reach this?

Todd

Steady Mowing
03-16-2004, 07:22 PM
You should try to get $50-$60 an hour for each employee
Josh

Barkleymut
03-16-2004, 08:46 PM
That would be 150K per year based on a 250day work year. It is best to start small and work your way up towards this goal.

terracare
03-17-2004, 10:52 PM
Our working year will be approximately 168 days (28 weeks x 6 days/week), not including rain-outs. 600 net per day can be achieved with higher productivity (more employees). I would just like to know about how much net (gross - expenses - taxes) profit I should be making per day per employee. 600 is just our goal.

Thanks for the input!

Todd

Flipperneck
03-18-2004, 12:39 AM
If you want to make that off one employee per day you better invest in a 50,000 dollar piece of equipment for that employee. Unless you charge 120 an hour for labor out there in the midwest.

terracare
03-18-2004, 12:42 AM
Oh I got everyone confused... forget the 600 net per day for a minute.. I would just like to know how much net I should be making per day per employee. 600 net per day is not a per employee goal.

Todd

monkey9197
03-18-2004, 01:22 AM
so u want 600 in your pocket profit u are saying? per day?

terracare
03-18-2004, 01:24 AM
That is the goal we want to accomplish eventually... How many employees is it going to take to make it happen per day?

Todd

monkey9197
03-18-2004, 01:41 PM
i dont get why the number of employees effects that?i would goal to have less employees that are more effiecient. less people u need to pay more goes into your pocket

Meadowbrook
03-18-2004, 09:09 PM
Way back when I FIRST started out I charged 8 bucks an hour. I have since added brand new trucks, an arsenal of mowers, and a bunch of landscape equip. I can't give out my exact rates, but I have since increased my rates substancially, and I'm still nailing jobs left and right (knock on wood)

Chris

Randy Scott
03-18-2004, 09:26 PM
Are you sure you know the difference between net and gross numbers?

landscapingpoolguy
03-20-2004, 11:14 AM
umm well I charge $30.00 per man per hour......cost me around $12/hr with WC.

Chuck

kris
03-20-2004, 01:59 PM
You're not going to get those kinds of numbers out of people. Even talking about gross is pretty much useless but here goes.
Since this is in the landscaping I will presume thats what your talking about....construction

We do a mixture of hardscape and softscape... I don't have the exact numbers here... but say its about 50-50 mix on each job.

A crew of three will gross about 50k a month. I could break it down further for you and give you VL and Material costs of that but I'm not even sure you know what your asking for .

dougaustreim
03-20-2004, 05:02 PM
Our net has increased as the number of employees has been reduced. The number of employees is only relevant to the superivsion, direction and support that you can give them. More employees requires more equipment etc.


Doug
Austreim Landscaping

Kelly's Landscaping
03-20-2004, 06:55 PM
Depending on the hours and the job we make about 250-300 a day per employee so when I run a 5 man clean up crew the numbers are 1200-1500 a day provided nothing goes wrong. We pay 9-15 an hour so they make like 100-120 a day each. So if my goal is 600 a day I would need 2 men plus myself.

kris
03-21-2004, 08:25 AM
Doug I wonder if you could explain a little further ... are you saying you became more efficient using less employees and better equipment? Same amount of gross? Or are you saying that that % rate of net has increased when you downsized.

terracare
03-21-2004, 09:03 AM
I do know the difference between net (money in my company's pocket after expenses and taxes) and gross (amount billed). I was under the impression that productivity would rise as number of employees did. Does that not make sense?

My question was just this: Including markups on materials and everything, how much money are you netting per employee per day on average?

Sorry for the confusion

Todd

dougaustreim
03-21-2004, 09:16 AM
Actually gross even climbed a little as we cut back on employees and net went up even faster. As I tried to say before simply adding employees is not an answer in and of itself. One must have the various systems, equipment, capital etc avaialble to support more employees, or you cannot use them efficiently.

If one wants to increase profits, first improve the existing operation until it reaches maximum effeciency. This usually means improving systems and procedures, upgrading equipment, reevaluating job mix etc. When max efficiency is reached, then one can add employees if the systems, equipment etc is able to support more. In most situations adding empoyees will lower overall efficiency, and if effeciency is already weak, the extra employees will only make it weaken at a faster rate.


Doug
Austreim Landscaping

terracare
03-21-2004, 09:30 AM
This is a ground zero operation for us tho. We have been in the maintenance part of the industry for a 5-6 years now and are really looking into design/build work. Maybe what I'm asking can't really be answered the way I want it to.

I totally agree on systems. We have a knack for finding the most efficient way to get things done and it has worked very well for us in the maintenance part of the industry. Thanks for the replies

Todd

kris
03-21-2004, 09:41 AM
I couldn't agree with you more Doug ... Thanks for clearing that up.
Normally we're running construction crews consisting of a foreman and 2 laborers . When a large job comes up we may put 2 crews together.
We have lots of systems etc in place and run a pretty tight ship but I believe we have to find a way to do more work with the equipment we have. Perhaps we need to be running different size crews .. Large crews tend to get me a bit uptight though...when things go bad on a jobsite they really go bad. You also almost need a different breed of foreman running the site. I myself have no problem running a site of 6 or more but not many of the foremen we have could...efficiently.

PLI1
03-21-2004, 07:42 PM
The amount of net profit per employees depends on the quality and knowledge of the employee, your ability to manage them efficiently, how you have priced your work, how close jobs are from each other, whether they are doing mowing, installs, mulch work ect., weather ect.. In 2003, if I divide my net income, "after expenses," by my number of employees I profited $23K off each one. But that is average. My top employee lined my pockets much more than my least efficient employee. Hope this info helps, but I think it is a very rough guideline. Even though we are all in the same profession, our situations and methods may be very different.