Originally Posted by nozzy
SRT8, in your experience what is a conservative expectation for profit from a 2 man mowing crew? Also, does that expected profit take into account having to ramp up some to keep them busy? The part that concerns me the most is stepping from having all the work I can handle myself to suddenly having to keep a crew busy, training, new bids, etc. I'm guessing it will be a couple months minimum of taking a significant pay cut personally. Was that your experience too?
What do you do with your guys in the winter??
Any other insights into dealing with the transition would be appreciated!!
Our 2man crews gross $120k plus $20k or so in enhancement work a year.
That $20k in enhancement work is almost all profit, we just pay materials and I have my guys take care of it so I don't have to pay for extra labor. Enhancement work is key to running a successful company.
We don't make millions off a 2man crew but its worth having. I think it will be tough to sit back and hire 2 guys to run your crew. I don't know how much overheard you have or how far apart your accounts are. Every account is different and every account has a different profit margin even if its just by a little. We get lucky on some of our sites and they let us use their dumpsters so we don't have to bring green waste home. I also don't know how much you pay your guys.
Our "profit" is going to be different because of our high overhead. We try to pull about $3k profit per month from a 2man crew.
We also have no truck payments, that can drop your profit by $500 per month per crew.
My advice is to break everything down and see how much it will cost you down to the penny. You will then see if you can do it or not. If your profit margins are low growing your company isn't the answer, getting higher paying accounts would be better.
My guys work 40 hours a week, 52 weeks a year.
I live in California and we don't get snow in our area.
I have my guys on site rain or shine. even if they are not working due to heavy rain they are on site and we still get paid. I convinced all my clients that its better that way in case a tree falls on a building we can take care of it or if a storm drain clogs we can unclog it before it starts flooding. Rain and heavy winds can be scary if you have big trees close to buildings so our clients have no problem paying. It also works out great for my guys, they can all get their 40 hours in.
My construction crews are the ones that take the hit. Landscaping in the mud is no fun and not very productive, but again we don't get that much rain so they only miss less than a week a year.
Hope this helps