Originally Posted by Sean Adams
It's always going to be difficult to compare apples to apples. I work with one landscape business owner who is dominating his area because his expenses in general are so low - no facility rent, vehicles and equipment paid for, low labor rates. When we determined what he needed to charge per man per hour to break even, he was in the $24 per hour range.
The area in which he works in general seems to have most companies charging somewhere in the vicinity of $42 per man per hour.
As you can imagine, he can come in with his bids in the $35 per man per hour range, charge a much lower price, and still make a significant profit.
What happens when he needs a new truck or new equipment. Even if your stuff is paid for you have to charge for the next piece of equipment.
I would not put 40K in the bank and not expect a return on my investment?