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View Full Version : LCO's Making 25k to 30k month, what's your net??


Five Diamond Lawns
10-16-2004, 10:39 AM
After achieving this level consistently for couple seasons what can you expect to net.

MMLawn
10-16-2004, 01:07 PM
I don't know what his Net is but have a friend here that is in the business also that is mainly Commerical Only and his trucks and crews are all over town and I know for a fact, no doubt, no 2nd hand info, but for a fact that he is grossing $125K a month 12 months a year. I also know how he lives so he is Netting pretty good.

LwnmwrMan22
10-16-2004, 02:51 PM
I do about 20k / month, net 4k. Mostly this year and last I've paid off over $100,000 in equipment. I had a bank loan of $5k / month that's done this month. Plus a couple more at $2k / month.

Next year I figure my net will be more up around $10-12k. Granted, it'll just be more going to Uncle Sam, so I'll probably end up just buying more stuff.

bobbygedd
10-16-2004, 03:18 PM
i guy i know just went out of business after 20 years. he said he was grossing 1.3 million a year, and netting.......less than me

syzer
10-16-2004, 04:29 PM
i guy i know just went out of business after 20 years. he said he was grossing 1.3 million a year, and netting.......less than me

How is it possible to make that kind of money and not net much? I mean I know what ppl are going to say, but with write offs/good accountant etc, you have to be making some money?

mcclureandson
10-16-2004, 07:02 PM
i guy i know just went out of business after 20 years. he said he was grossing 1.3 million a year, and netting.......less than me

If he was grossing 1.3 milllion and netting what?...even 80 or 100 grand I would call that sad. I net that by myself...

bobbygedd
10-16-2004, 07:05 PM
less than me, that's what. $300,000 a year in payroll alone, $55,000 a year in insurence. it all added up

LwnmwrMan22
10-16-2004, 07:25 PM
If he was grossing 1.3 milllion and netting what?...even 80 or 100 grand I would call that sad. I net that by myself...


All depends. If he's on a cell phone in Jamaica, taking calls and doing business, or on a fishing trip in Alaska, or hunting Elk in Idaho, or making the NASCAR races, or doing ANYTHING other than actual work, putting that in his pocket just because he's the boss, then it isn't ALL bad.

KenH
10-16-2004, 07:25 PM
less than me, that's what. $300,000 a year in payroll alone, $55,000 a year in insurence. it all added up


I would love to see his books. After probably his 2 biggest expenses, he still has over 900K left.................

bobbygedd
10-16-2004, 07:41 PM
look, i'm just telling you what the guy told me. i know he had a big operation, now he packed it all in except a crew of 2, and one truck. he now works full time for someone else

olderthandirt
10-16-2004, 07:57 PM
I believe it Bob after expenses we quilify for food stamps the bell ringers at christmas are just trying to help us eat that day, poor kids would starve if it was not for the free lunches they get.

Mac

biglawndog
10-16-2004, 09:04 PM
I would love to see his books. After probably his 2 biggest expenses, he still has over 900K left.................

No way dude. If your making that kind of money you've got some serious expenses. Payroll alone can be 40%, then theres insurance, fuel, supplies etc.
If it was that good the big boys would have their hand in it.

Kelly's Landscaping
10-16-2004, 09:07 PM
We net 10-15 k a month we seem to make around 40-55% profit so our numbers come out pretty good. Our taste for new equipment eats into those numbers big time but if we were happy where were at then those would be the numbers. I can't see making a million a year with a pathetic 10-12% profit when we get there I expect at least 30-40% other wise it really is not worth the employee aggravation factor. Why kill your self-doing 500 accounts if you can make the same amount solo doing 75 accounts. Certain expenses go up as you take on more work payroll and gas being the 2 biggest but other expenses stay the same so your overall percentage of them actually goes down, as you get larger. Advertising, phones, phone books, P.O. Box and bank fees, accounting fees, legal fees, pay roll services, credit card machines. I could name dozens more but you get the idea if you have fixed expenses and increase sales then they have become cheaper thus you can off set the cost of more employees. Your profit rate will drop but it need not go down to 10%.

I happen to be very hands on in my company and that has a lot to do with the margins some guys do not like to work and obviously if you are not a producer for your company then the bottom line would show that.

rodfather
10-16-2004, 09:48 PM
I don't know what his Net is but have a friend here that is in the business also that is mainly Commerical Only and his trucks and crews are all over town and I know for a fact, no doubt, no 2nd hand info, but for a fact that he is grossing $125K a month 12 months a year. I also know how he lives so he is Netting pretty good.

125K each month in one NCtown/city???

Explain to me what he does to generate that type of revenue if you would please in the great state of North Carolina 12 months of the year. Perhaps I need to move closer to my dad who is in Myrtle Beach SC where all the money is like right now.

olderthandirt
10-16-2004, 09:56 PM
125K each month in one NCtown/city???

Explain to me what he does to generate that type of revenue if you would please in the great state of North Carolina 12 months of the year. Perhaps I need to move closer to my dad who is in Myrtle Beach SC where all the money is like right now.

OK you want to know the secret to netting over 100k a month? Its pot , mary jane, marijuana, grass. will get you close but to really expand you need to move into the upper class of narco drugs IE crack, coke always have the customers and thats what make a biz successful biz, repeat Happy customers

Mac

rodfather
10-16-2004, 10:04 PM
We net 10-15 k a month we seem to make around 40-55% profit so our numbers come out pretty good. Our taste for new equipment eats into those numbers big time but if we were happy where were at then those would be the numbers. I can't see making a million a year with a pathetic 10-12% profit when we get there I expect at least 30-40% other wise it really is not worth the employee aggravation factor. Why kill your self-doing 500 accounts if you can make the same amount solo doing 75 accounts. Certain expenses go up as you take on more work payroll and gas being the 2 biggest but other expenses stay the same so your overall percentage of them actually goes down, as you get larger. Advertising, phones, phone books, P.O. Box and bank fees, accounting fees, legal fees, pay roll services, credit card machines. I could name dozens more but you get the idea if you have fixed expenses and increase sales then they have become cheaper thus you can off set the cost of more employees. Your profit rate will drop but it need not go down to 10%.

I happen to be very hands on in my company and that has a lot to do with the margins some guys do not like to work and obviously if you are not a producer for your company then the bottom line would show that.

Well, Kelly and I have bantered back and forth on more that one issue in the past. This time...I am in total agreement with him...not one word in his response I would disagree with. He and I are "hands on"...so I see his point clearly.

bushtrimmer
10-16-2004, 10:16 PM
We gross about double that, we are incorporated, myself, wife, child, etc get paychecks; dinners etc are expensed and we net 20-25% still.

JustMowIt
10-16-2004, 10:27 PM
After achieving this level consistently for couple seasons what can you expect to net.

Five Diamond.. I sent you a private message with a little more details, but we will do 1.4 Million this 36 week season, all mowing, no installs, with a net of around 30% before partners/managers income & personal income tax. This is with a full payroll & all the expenses associated with it.

Net can be from 15% to 45%. It depends on how a business is structured, how tight the routes, cost of help, how legal they are with taxes, etc.
MJ

Mdirrigation
10-16-2004, 11:21 PM
2 seperate companies each grossing 30K a month with a crew of 3 men , 1 could be netting 15k and the other could be netting $ 500.00 . it all depends on how each business is run.

I have talked to many of my customers that own businesses , the most common advice that I have gotten over the years was to stay small and keep the business tight and highly profitable with little debt , or get real big with lots of accounts and employees and large dollar turn over and wish you were small again.

David Haggerty
10-17-2004, 09:18 AM
stay small and keep the business tight and highly profitable with little debt , or get real big with lots of accounts and employees and large dollar turn over and wish you were small again.


I'll second that remark. There gets to be a point where the business you once owned, gets to "owning" you. Sometimes you'll make zero profit, but can't get out without loosing your shirt. So you hang on hoping for better times.

People get trapped at the top.

There was a joke going around in the '80s about the end of the garment industry in the US.

3 old codgers were sitting around a table in a retirement resort in Florida. They were discussing how they'd come to be there.
The first said, "I had a shirt manufacturing shop in the garment district in New York City. One night the place burned to the ground. Instead of rebuilding, my wife and I just took the insurance money and retired here."

The second guy said, "That's remarkable! Something very similar happened to me. We manufactured brassieres in North Carolina. We had a small fire in one of the offices. The fire department put it out, but the water from the sprinkler system and the fire hoses made everything a total loss. We too took the insurance money and retired. It would have been too much of a hassle to rebuild.

The third guy said, "We had water damage too! Our plant was in the Philippines. There was a hurricane that dumped so much rain, that the roof collapsed and destroyed everything! We decided rebuilding would be too difficult too. So we retired here."

The first two men looked at him in suspicious disbelief. Finally one of them asked. "How in the hell did you start a hurricane?"


Dave

economiclawncare
10-18-2004, 09:39 AM
What i would like to do is have a 3 man crew with me on it cutting about 40 8k-12k lawns a day 5 days a week at about $35 a yard ( that is the going rate here) charge the customers cc after each cut then that will put me at 28k a month and then cut for 7 months and pay my other 2 guys $10 an hour working get 40 hours a week ($800 a week) then have wife run office. If i keep it down to that level i dont have to have work comp in VA. Run a v6 ranger and trailer big enough to hold 2 36" and a 21" to keep fuel low. Then have $300,000 insurance for $60 a month. Then i should be making atleast 50%. What do yall think.

Five Diamond Lawns
10-18-2004, 10:59 AM
Sounds like a good plan but, how would you get 40 a day out of a 3 man crew? Routes would have to be so tight you would only move the truck to keep the tires round. :rolleyes:

MMLawn
10-18-2004, 11:59 AM
125K each month in one NCtown/city???

Explain to me what he does to generate that type of revenue if you would please in the great state of North Carolina 12 months of the year. Perhaps I need to move closer to my dad who is in Myrtle Beach SC where all the money is like right now.


Yep he does and as I said I know those numbers for a fact. You have to keep in mind that regardless of not being "NYC" NC is still the 4th fastest growing state in the country with about 10M folks and the largest banking center in the country with Bank of America, Wachovia and BB&T all being based in NC and where I am is one of the largest Metro ares in NC with about 700K-1M people in the Three County Triad area I am in (Greensboro 225K pop in city alone, High Point-100K pop in the city alone, Winston-Salem-190K in the city alone all within 30 mintues of each other) and tons of countless major business (esp the banking industry) and thousands of small businesses and apt complexes and as I said he does Commerical only.

MMLawn
10-18-2004, 12:02 PM
dinners etc are expensed.


Until the IRS aduits you....

Island Lawn
10-18-2004, 01:52 PM
125K each month in one NCtown/city???

Explain to me what he does to generate that type of revenue if you would please in the great state of North Carolina 12 months of the year. Perhaps I need to move closer to my dad who is in Myrtle Beach SC where all the money is like right now.

:cool2:

Hush now!
You know there is no $ in MB...

JustMowIt
10-18-2004, 03:44 PM
What i would like to do is have a 3 man crew with me on it cutting about 40 8k-12k lawns a day 5 days a week at about $35 a yard ( that is the going rate here) charge the customers cc after each cut then that will put me at 28k a month and then cut for 7 months and pay my other 2 guys $10 an hour working get 40 hours a week ($800 a week) then have wife run office. If i keep it down to that level i dont have to have work comp in VA. Run a v6 ranger and trailer big enough to hold 2 36" and a 21" to keep fuel low. Then have $300,000 insurance for $60 a month. Then i should be making atleast 50%. What do yall think.

40 a day sounds workable but not in a 40 hour work week, more like 55-60 hours in 5 days.

bruces
10-18-2004, 05:19 PM
Everything depends on where you want to go and how you want to get there.

A lot of people in this business have just bought themselves a job, working the same hours, although for themselves, at about the same wages, maybe working harder, maybe making more or making less.

Unfortunately, in that scenario, the general concensus seems to be that the "business" is worth very little.

To build a "business" that has some real value, it seems that you have to build the size, and maybe build it to the point to where the success isn't dependent on your working in the field every day. The value of a lot of businesses is measured in terms of gross revenue. The higher the gross, the more you could sell the business for.

Sometimes, to build that gross, you have to go through a period where the gross is going up but the net is growing much slower or even decreasing.

Also, if you aren't a good manager (or able to hire one), it can be easy for things to get out of control once you start to grow quickly.

Mdirrigation
10-18-2004, 05:31 PM
What i would like to do is have a 3 man crew with me on it cutting about 40 8k-12k lawns a day 5 days a week at about $35 a yard ( that is the going rate here) charge the customers cc after each cut then that will put me at 28k a month and then cut for 7 months and pay my other 2 guys $10 an hour working get 40 hours a week ($800 a week) then have wife run office. If i keep it down to that level i dont have to have work comp in VA. Run a v6 ranger and trailer big enough to hold 2 36" and a 21" to keep fuel low. Then have $300,000 insurance for $60 a month. Then i should be making atleast 50%. What do yall think.

That means on a 10 hour day you will be cutting 4 lawns an hour, ( no lunch break) estimates , repairs and rain not even considered. 2 guys making 10 an hour 40 hours a week will cost you closer to 1400 a week with fica and taxes , since you dont think you need workmans comp and a guy gets hurt you will be paying out big time. The insurance seems way cheap , does it include the vehicles? Running a v6 ranger with 3 people ? Sounds a bit crowded who is sitting on whos lap? You may want to re think your numbers a bit

Tony Clifton
10-18-2004, 06:08 PM
Its not hard at all to gross 125,000 month in NC, there are probably at least 10 or 15 different areas where this is very possible, its only 1.5 jmillion a year. Heck, New Garden Landscaping in Greensboro does 15.5 million a year, they are probably the largest in NC but there are several doing over 3 million a year.

Patrick.B
10-18-2004, 06:46 PM
WOW !! You guys sure making the big bucks doing Lawns...This my first year in Lawn business and i'd starter late this year and Only made about 9k .i'd don't think i did bad just for 5 months ,,,,you guys talking 5k to 12k a Month ?....lol wow ....you boys must have two crew or cutting 7 days a week ,,,only thing not pay for is my pm144z gravely and all my weedeater and blower is pay for ...my plan next season to make 5k a month and hope to get my mower paid off ...anyway ..Good luck guys and keep up the good work ....:)))