Labor Percentage of Sales?

[jwilkers2vt]

I am working on my end of the year analysis and budget. I have been watching my labor numbers all year, wishing they were lower and studying how to lower them. Mainly being more efficient. With direct labor costs, taxes, and workers comp ins. I am paying roughly 28% of my revenue to labor costs. Is this inline with what others are paying?

Thanks

Joe Wilkerson

[TheCuttingHedge]

"In Line" with who? What is the majority of your business sales? Lawn care, landscaping, or something else?

[snomaha]

Originally Posted by jwilkers2vt

I am working on my end of the year analysis and budget. I have been watching my labor numbers all year, wishing they were lower and studying how to lower them. Mainly being more efficient. With direct labor costs, taxes, and workers comp ins. I am paying roughly 28% of my revenue to labor costs. Is this inline with what others are paying?

Thanks

Joe Wilkerson

Are you talking direct labor or all labor including admin and owners salary?

[jwilkers2vt]

I am referring to direct labor costs. I include management (myself) as Overhead to company.

thanks

Joe

[jwilkers2vt]

We are full service landscape, so maintenance and installs. Hardscapes about 35%, Landscape 35% and Maintenance 30%

[snomaha]

Direct labor 18% of total sales