Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Reply
 
Thread Tools Display Modes
  #1  
Old 11-02-2002, 02:09 PM
dmk395 dmk395 is offline
LawnSite Senior Member
 
Join Date: Sep 2000
Location: Ma
Posts: 954
Large owner salary

For an owner doing mostly maintenance, how many millions in sales are needed to have a salary of $250,000? I am just curious because a friend of mine who works for a large competitor has been dreaming saying his boss makes at least this much per year? Has 8 employees..i know variables exist but just wanted to throw it out there
Reply With Quote
  #2  
Old 11-02-2002, 02:27 PM
Green Pastures's Avatar
Green Pastures Green Pastures is offline
LawnSite Silver Member
 
Join Date: Aug 2002
Location: Hampton, Virginia
Posts: 2,457
I'm guessing here but I'd say a gross income of at least $3.5 million.
__________________
Scott

Ps 23:1-2
The LORD is my shepherd, I shall not be in want. He makes me lie down in GREEN PASTURES
Reply With Quote
  #3  
Old 11-02-2002, 02:42 PM
Nebraska Nebraska is offline
LawnSite Senior Member
 
Join Date: Jan 2002
Location: Beautiful Great Plains.
Posts: 525
A Gross of $800k could bring that in. It all going to come down to the margins your doing the work at.
Reply With Quote
  #4  
Old 11-02-2002, 03:25 PM
dmk395 dmk395 is offline
LawnSite Senior Member
 
Join Date: Sep 2000
Location: Ma
Posts: 954
Alot would depend too on wages, this guy pays good money, many employees making 15 an hour and up...I was guessing gross sales of at least 1 million, I am sure someone out here can more than speculate.
Reply With Quote
  #5  
Old 11-02-2002, 08:08 PM
Lanelle Lanelle is offline
LawnSite Bronze Member
 
Join Date: Feb 2000
Location: No.VA, zone 7
Posts: 1,361
Another factor is whether the owner is pursuing growth or other goals or is happy with the status quo. Or to put it in another light, some owners take as much money as possible out while others allow more money to stay in the company to accomplish various business objectives.
__________________
Lanelle

Last edited by Lanelle; 11-02-2002 at 08:16 PM.
Reply With Quote
  #6  
Old 11-02-2002, 08:50 PM
John Allin John Allin is offline
LawnSite Bronze Member
 
Join Date: Sep 2000
Location: Erie, PA
Posts: 1,489
Lanelle has it about right.

Some people suck money out of the business just because they can. Others can make that kind of money, but leave it in the business to establish viable retained earnings in order to make the business more financially stable.

The kind of personal earnings you mention are attainable in this industry. I know several who make that kind of salary (and more), but they do so only after the business establish's itself to a point where the retained earnings are such that no-one (or no incident) can take the business away from them.
Reply With Quote
  #7  
Old 11-02-2002, 08:52 PM
John Allin John Allin is offline
LawnSite Bronze Member
 
Join Date: Sep 2000
Location: Erie, PA
Posts: 1,489
Another thing I've noticed. Those that pay good or outstanding wages often have much more profitable business's because sometimes you get what you pay for.
Reply With Quote
  #8  
Old 11-03-2002, 05:27 PM
dmk395 dmk395 is offline
LawnSite Senior Member
 
Join Date: Sep 2000
Location: Ma
Posts: 954
JAA,

Have you seen the reverse, companies that pay too much and suffer by it?
Reply With Quote
  #9  
Old 11-03-2002, 05:40 PM
John Allin John Allin is offline
LawnSite Bronze Member
 
Join Date: Sep 2000
Location: Erie, PA
Posts: 1,489
I can't say as I have... although if they were paying out too much in salaries - it would show up rather quickly.

As for company's having problems from the owner sucking out too much money... oh yeah, I've seen THAT one several times...... not pretty. Not pretty at all.
Reply With Quote
  #10  
Old 11-03-2002, 09:16 PM
Lanelle Lanelle is offline
LawnSite Bronze Member
 
Join Date: Feb 2000
Location: No.VA, zone 7
Posts: 1,361
And its really sad when the employees are busting their chops trying to increase the money coming in only to have even more taken by the owner. I've lived through that one.

I have seen the effects of uncontrolled overtime which pushes payroll too high. Those getting the OT are happy, those on salary or not getting OT are not and the CFO or owner is going nuts because the numbers look lousy.
__________________
Lanelle
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 03:44 PM.

Page generated in 0.08048 seconds with 7 queries