2 million + sales

Discussion in 'Business Operations' started by snomaha, Mar 26, 2008.

  1. snomaha

    snomaha LawnSite Senior Member
    from midwest
    Posts: 908

    What is your payroll expense as a percentage of total income?
     
  2. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Posts: 1,847

    total income is technically what is commonly referred to as profit. Im fairly sure your questions is actually about labor as a percentage of sales... its a far more relevant questions which should return answers somewhere around 45-50%.
     
  3. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    34.39% for payroll expense and taxes
     
  4. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,538

    33% here. That includes a $800 paycheck per week for me.
     
  5. Ravenwood Landscaping

    Ravenwood Landscaping LawnSite Member
    Posts: 117

    I'm glad to see I'm not too far off, but I'm aiming for around 33% this year. It's only our second year, so I don't have the firm numbers, but this will be what we go for.
     
  6. snomaha

    snomaha LawnSite Senior Member
    from midwest
    Posts: 908

    No. My question is still related to total income.

    Thanks for the answers. 33.9%
     
  7. GELAWNS

    GELAWNS LawnSite Member
    Posts: 66

    We were at payroll expenses of about 48% of income (sales collected). That includes all taxes and QB payroll services. We would like to be around 35% this year as one of our goals. We have some new employees (from last year) that we expect to be more efficient and productive this summer. That should reduce overtime and allow us to fit in some more projects to increase revenue.
     
  8. snomaha

    snomaha LawnSite Senior Member
    from midwest
    Posts: 908

    Total income, total revenue, total sales are all the same thing. All monies collected less discounts. Also might be on your P&L as net income instead of total income.

    Just thought I would clarify my question.
     
  9. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Posts: 1,847

    so the next question is this: those of you in the 30's, is it because your labor is such a small portion of your sales or is it because your company is so top heavy. Those really are the only two options. How about posting an avg loaded labor rate for comparison.
     
  10. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Posts: 1,847

    again, technical answer is that revenue/sales are your top line, income is your bottom line.
     

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