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  #21  
Old 03-15-2013, 02:50 PM
205mx 205mx is offline
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Originally Posted by jrs.landscaping View Post
Our numbers could have been better but we had close to 20% of our gross in equipment acquisitions for the last year. Not including those we would be close to 36% profit for the year. This year is looking to be the same way due to an expansion on our snow removal side
Sorry for posting several times. I'm planning to start saving now for 2014 to purchase a dedicated landscaping truck. I like that you still have a very decent profit margin even with equipment purchases.
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  #22  
Old 03-15-2013, 03:43 PM
macgyver_GA macgyver_GA is offline
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~37% for 2012
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  #23  
Old 03-15-2013, 04:17 PM
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jrs.landscaping jrs.landscaping is online now
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Originally Posted by 205mx View Post
Sorry for posting several times. I'm planning to start saving now for 2014 to purchase a dedicated landscaping truck. I like that you still have a very decent profit margin even with equipment purchases.
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Making routes tighter and applying labor more effectively has helped keep our margins in check even with higher fuel/labor costs. I wish we would have come up with a more comprehensive plan for unit replacement sooner. Some units were 12 years old before we thought of replacing them. The next 4 years are projected to have similar margins due to growth and unit replacement.
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  #24  
Old 03-15-2013, 06:57 PM
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snomaha snomaha is offline
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Yes. As you should if you're an LLC taxed As a Sole proprietor.
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Even if a sole proprietor you are lying to yourself unless you plug in a fair market wage for yourself.
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  #25  
Old 03-16-2013, 01:29 AM
205mx 205mx is offline
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Originally Posted by jrs.landscaping View Post
Making routes tighter and applying labor more effectively has helped keep our margins in check even with higher fuel/labor costs. I wish we would have come up with a more comprehensive plan for unit replacement sooner. Some units were 12 years old before we thought of replacing them. The next 4 years are projected to have similar margins due to growth and unit replacement.
Tightening the route up will be huge for me this year. Really going to try to map things out and try to stick with it. I like your idea of going ahead and planning for equipment replacement ahead of time. As in Years Ahead of time
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  #26  
Old 03-16-2013, 01:45 AM
DLONGLANDSCAPING DLONGLANDSCAPING is online now
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MOWING ONLY NUMBERS:

2012 profit: 48k
2012 profit margin: 26% on the dot

2013 goals:
Profit: $65k
Margin: 31%

Which means i actually don't have to many more jobs, i just have to be a lot more efficient and operate very lean crews.

Knowing your numbers is the only way a company can succesfully grow. If you are at a 40% profit margin you either have zero bills, live at home, have your parents pay for your gas, dont pay taxes, dont pay insurance, or are cutting 10 lawns with your parents walk behind mower, or ALL OF THE ABOVE!

Take a small business class, take notes, and then bring those notes to your office and find out what your numbers are. I have never taken a business class that hasnt benifited myself or my business in some way. Education is the only true way of knowing how to succesfully operate and run a profitable business and know that you are actually doing it.


My landscaping margins are almost embarrassing how high they are, kind looks like im a crook stealing money from my clients.
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  #27  
Old 03-16-2013, 01:54 AM
205mx 205mx is offline
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Quote:
Originally Posted by DLONGLANDSCAPING View Post
MOWING ONLY NUMBERS:

2012 profit: 48k
2012 profit margin: 26% on the dot

2013 goals:
Profit: $65k
Margin: 31%

Which means i actually don't have to many more jobs, i just have to be a lot more efficient and operate very lean crews.

Knowing your numbers is the only way a company can succesfully grow. If you are at a 40% profit margin you either have zero bills, live at home, have your parents pay for your gas, dont pay taxes, dont pay insurance, or are cutting 10 lawns with your parents walk behind mower, or ALL OF THE ABOVE!

Take a small business class, take notes, and then bring those notes to your office and find out what your numbers are. I have never taken a business class that hasnt benifited myself or my business in some way. Education is the only true way of knowing how to succesfully operate and run a profitable business and know that you are actually doing it.


My landscaping margins are almost embarrassing how high they are, kind looks like im a crook stealing money from my clients.
My posted profit margins aren't just on mowing, dear mr sir ;-) it includes fences, mulching, trimming, and minor masonry work.

And I'm sorry but I don't include my mortgage in with my companies numbers. And yeah I have bachelors degree and have taken several great courses. Some with incredible instructors.. I will say I have taken a few remedial courses and also a few courses that felt very repetitive.

It sounds like you run a pretty tight ship and a heck of a company.
If your goal is31%, you could see where another 9% isn't impossible for a third year business. Now, my first two years I didn't even make any money, just bought equipment. So I started 2011 in the whole. I scored two well paying accounts this past year. (total of 14 acres right next door to each other) so that really boosted my numbers. I don't even live near my family. 300 miles actually. My wife and I own a home in Franklin, TN and live comfortably. The next few years are going to be expensive and I am projecting 2014 to have record LOW profit margins as I plan to expand the business then.

I admire the work you've done and hope to achieve as you have.

"If you are at a 40% profit margin you either have zero bills, dont pay taxes,, "
This really has little to do with profit margins

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Last edited by 205mx; 03-16-2013 at 02:01 AM.
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  #28  
Old 03-16-2013, 07:43 AM
grassmasterswilson grassmasterswilson is online now
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Was hoping this thread would lead to tips on how to increase margins but it seems to be a lot of back and forth.

What are you guys doing in 2013 to try and increase profits?
-tighten routes
-be more efficient with gas and on the clock hours
-price more accurately-are you a growing company trying to build a customer base or an established one with a good base focusing on up sells?
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  #29  
Old 03-16-2013, 10:16 AM
205mx 205mx is offline
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Quote:
Originally Posted by grassmasterswilson View Post
Was hoping this thread would lead to tips on how to increase margins but it seems to be a lot of back and forth.

What are you guys doing in 2013 to try and increase profits?
-tighten routes
-be more efficient with gas and on the clock hours
-price more accurately-are you a growing company trying to build a customer base or an established one with a good base focusing on up sells?
Im going to try to do both. I want to sell more Clients full service, and also would like to try to grow by about 30% in terms of client base
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  #30  
Old 03-16-2013, 01:32 PM
32vld 32vld is offline
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Profit margins are not always of importance.

For large corporations, concerns about stock prices, buyouts, gambling err I investing in stocks people find all kinds of stats important.

To a small local business profit margins can alternate from good to bad every year just based on needing major purchases. $40,000 new truck, $12,000 mower, etc.

Just looking at the profit margin going to almost zero because a new truck was bought does not mean the business is a bad one or that he had a bad year.

For most small businesses it is an overated statistic.

And to compare an antique furniture business is pointless. They buy something low and will sell high but that piece can sit for 1 or 2 years before it sells.
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