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  #1  
Old 05-26-2006, 05:44 PM
littlenic littlenic is offline
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Average % of Gross thatís labor?

Any idea what % of Gross thatís labor? Iím running around 30-32%

I have a benchmark of 25% set. I came up with that based on other industries. I also have it setup that if the crew performs the task under the 25% mark, the get the difference up to the 25% as bonus. Minus any callbacks. This helps get it done quickly and done right the first time.

Thanks, littlenic
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  #2  
Old 05-26-2006, 05:58 PM
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rodfather rodfather is offline
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20.77 for payroll expenses and 6.61 for payroll taxes for 2005 says QB's.
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Old 05-26-2006, 06:22 PM
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MMLawn MMLawn is offline
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I think in the "real LCO world" if you have a lot of accts and quite a few employees that it will be hard to keep it under 30%.
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Old 05-26-2006, 06:33 PM
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Fantasy Lawns Fantasy Lawns is offline
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Last year was about 41% of total gross .... BUT that is everything which follows my labor ..... all taxes, WC, holiday pay & bonus's ..... just hourly pay alone was just over 30%
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Old 05-26-2006, 06:38 PM
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rodfather rodfather is offline
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Analyze your pricing structure as well...a $40 lawn that increases to $45 or $50 (multiplied by the number of accounts you have) does wonders to your labor and payroll taxes expenses.

So does competition. Highly competitive markets will have a higher labor percentage due to lower rates per se.
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  #6  
Old 05-26-2006, 07:26 PM
grassmanvt grassmanvt is offline
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I usually figure on about 1/3rd and hope to get real numbers at 30% or a little under.
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  #7  
Old 05-27-2006, 12:10 PM
GlennZ GlennZ is offline
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I think the highest it should be is about 40%, but this includes all costs. Taxes, workers comp, unemployment, vacation, sick and anything else that you would not have to pay if the employee did not work for you. Plus as you grow you get foremans and managers, so that has a big impact on the number.
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  #8  
Old 05-27-2006, 05:00 PM
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T.E. T.E. is offline
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20.12% for the year 2005.

Later, Tony
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Old 05-27-2006, 07:02 PM
Precision Precision is offline
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Quote:
Originally Posted by Fantasy Lawns
Last year was about 41% of total gross .... BUT that is everything which follows my labor ..... all taxes, WC, holiday pay & bonus's ..... just hourly pay alone was just over 30%

me too about 40-45% but hoping to lower that this season with some volume increase to offset the pay going to my bookkeeper.
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Old 05-30-2006, 02:43 AM
drmiller100 drmiller100 is offline
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65 percent, assuming i include my time.
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