Thread: What Percent
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Old 01-25-2013, 01:10 PM
32vld 32vld is offline
LawnSite Gold Member
Join Date: Feb 2011
Location: Long Island, NY
Posts: 3,965
Originally Posted by southerlawn View Post
What percent do you put back into to the company? Equipment?
There is no magic percentage.

The 20 yo living at his parents house just starting out needs to spend more then the solo person that is maxed out and does not want to grow bigger. Then their incomes will be different. And even if the incomes were the same their need to spend would still be different thus their % will still be different.

The LCO that wants to add the 2nd truck will need a different % then the LCO that wants to add his 11th truck.

Instead of worrying about %'s better to deal with purchase costs and replacement costs.

New truck $40,000 has to be replaced 10 years so $4,000 a year has to be set a side.

$5,000 Mower has to be replaced 5 years so $1,000 a year has to be set a side.

$300 Hand held replaced 3 years so $100 set a side per year.

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