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  #1  
Old 02-28-2009, 06:53 PM
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PORTER 05 PORTER 05 is offline
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net / gross tax income question

Hey guys i was wondering what the average % of net income is about right for a landscape company. We are doing weekly lawn mowing, spring/fall clean-ups, tree work, ect , also snow plowing in the winter. I am looking for the # that "me" the owner would be seeing after i pay all employees, all exspenses, all purcheses and all taxes, and was wondering after all that what % is about right compared to how much you gross in the landscape biz.

After doing taxes all week long im thinking that im around 36% after paying everything , paying all my taxes and buying a new dumptruck, this is what ill take home 36% of the total gross income i brought in in 2008.

Sorry if this is a little confusing , just looking to see if this is about right , really high or really low, i want to make sure to make changes if it is to low.

Thanks alot!
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  #2  
Old 02-28-2009, 08:37 PM
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CLARK LAWN CLARK LAWN is offline
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im about 30% so id say you are doing pretty good
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Old 02-28-2009, 08:42 PM
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Sounds pretty good, I am right around there as well...
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Old 02-28-2009, 08:54 PM
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What you're talking about is referred to as gross profit margin,..commonly known as gpm. If you guys are doing 30 and 36%, you guys are doing real well.
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Old 03-01-2009, 12:27 AM
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so say if you gross 100k you would net 36k after all expenses, is this correct, = 36%

then I guess I am doing very well also, kinda gives an idea what other parts of the country is doing.
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  #6  
Old 03-01-2009, 02:41 AM
topsites topsites is offline
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Yes, I am a firm believer in the rule of thirds, if this is something you understand then
I might mention the 33% bit can also apply to cost though it's in a bit of a rough way,
as well as taxes, so that: 1/3'rd cost, 1/3'rd tax, 1/3'rd profit...
And it doesn't always work out that way but it tends to hold true over time.

So roughly speaking, but yes.
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  #7  
Old 03-01-2009, 10:13 AM
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FYS777 , are you doing 36% after or before taxes are paid?
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class 9ft dump body - 9 FT Fisher MM2
00 FORD F-350 XLT 7.3 L PSD - 8 FT Fisher MM
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Morbark 12" Wood Chipper 110hp Cummins Diesel
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07 52"/19 kawi-Wright Stander
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  #8  
Old 03-01-2009, 10:54 AM
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FYS777 FYS777 is offline
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Quote:
Originally Posted by PORTER 05 View Post
FYS777 , are you doing 36% after or before taxes are paid?
Those are examles but after taxes, for the last 2 years have been running 12% higher then said above, I do nothing but full maint, no installs. some bark jobs, up to 7 cu yards, all within 9 month season.
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  #9  
Old 03-01-2009, 11:11 AM
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just wont to add to though its different in different parts of the country,
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  #10  
Old 03-01-2009, 11:27 AM
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Another add, I do all my own repair and manit,work on all my equip. I dont no if that makes the difference.
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