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Old 02-19-2009, 03:24 PM
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coolluv coolluv is online now
LawnSite Gold Member
Join Date: Aug 2006
Location: Atlanta
Posts: 3,350
That is when I realized that the average profit off of a $30 lawn was about $3 if everything went right.

That was gross profit. Meaning profit after just the direct costs to do the job, not including overhead.

So obviously if you looked at that, you can see once I figured in my enormous overhead, I was dead.

It was hard because my houses were so close. i had the perfect route.

Once I calculated the numbers, I would have almost had to double prices in order to cover the expenses, and have a reasonable profit.

Assuming a crew of 2 can cut a $30 lawn in 15 min, your overhead per hour was over $120. Wow! I know that is kind of a simple way to look at it, but I'm just trying to understand how your overhead was so high. If you needed to nearly double your prices to make a profit, then your overhead was somewhere around $230 an hour. Again, Wow.

Can you explain?

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