Anyone grossing over a $500,000 ?

Discussion in 'Lawn Mowing' started by Landscraper1, Apr 2, 2010.

  1. Landscraper1

    Landscraper1 LawnSite Senior Member
    Male, from Southeastern Ma.
    Posts: 755

    I am curious. I have not been a member here for very long. In these few month's I have noticed that most members have very small companies, if they are a company at all. Most seem to be one man operations. Are there any landscapers out there making over $500,000? If so can you post some info about yourself and your company? Such as:

    When and how you started the business?
    What you gross in a year?
    How many employees?
    What trucks and equipment you use?
    How's your profit margin in these tough times?

    You don't have to put down your business name. I am just curious to see the response as, I am sure you would be as well. Thanks:)
     
  2. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Posts: 7,053

    Making that much is certainly not out of the question. I personally wouldn't want to be in that tax bracket.
     
  3. Landscraper1

    Landscraper1 LawnSite Senior Member
    Male, from Southeastern Ma.
    Posts: 755

    I'm not talking about personal income, it's gross. Other than the usual taxes a business incurs, you will pay more on your profit.
     
  4. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Posts: 7,053

    Grossing that much is irrelevant. You can gross 5 mil and may only profit 100k.
     
  5. WestGaPineStraw

    WestGaPineStraw LawnSite Senior Member
    Posts: 763

    We grossed $680,000 in 2009...
    But we sale and install pine straw, we deal with larger numbers and a lot of volume
     
  6. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    I did $300k last year gross.

    Me, 2 full time guys, my wife (2 days / week) and my 76 year old father (1.5 days / week).

    3 trucks, (2 2006 Dodge 2500, 1 2007 Dodge 3500).

    This included lawn work, minimal landscaping, irrigation, snowplowing and firewood sales.

    The firewood sales was about $35k, snowplowing was about $55k, irrigation was about $5k (just maintenance, no system installs) and the rest in lawn maintenance.

    Been in business for 21 years this year and have moved out of residential mowing into small to mid sized commercial mowing and larger institutional mowing (schools, cities, parks systems).

    The margins are not that great, but if you're set up for it, you can do somewhat okay.

    Personally, I'd rather go back to working solo, doing 25-30 small commercial accounts that allow me to do all of the work.

    This was where my profit margin was by far the largest. This year it'll be in the 10% range, mostly because I have a heavy heavy debt load I'm trying to work out from underneath.
     
  7. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Posts: 8,870

    mowerman22 - that is some great wisdom there. I have heard more than once on here that when you are at the point of maxing out your work vs. your time available as a solo, you are making your best margins right there. That is where I want to be within a couple years, and may not progress beyond that point for the reasons you stated.
     
  8. Landscraper1

    Landscraper1 LawnSite Senior Member
    Male, from Southeastern Ma.
    Posts: 755

    Did you understand the question that was asked???:confused:
     
  9. Landscraper1

    Landscraper1 LawnSite Senior Member
    Male, from Southeastern Ma.
    Posts: 755

    I see that someone understood the questions, thanks.

    I understand what you mean by the margins being better. When I was a smaller company, the margins were better also. But, with more gross you can still make more money with less margin.

    Example:
    Landscaper #1 Grosses $100K a year. Makes a 20% profit. That's $20K.
    Landscaper #2 Grosses $500K a year. Makes a 10% profit. That's $50K.

    If you can control your debt, I would say 10% is pretty good in this economy.:)
     
  10. slamjamrockinman

    slamjamrockinman LawnSite Senior Member
    Posts: 715

    I certainly don't cuz I am 17 and part time. But I know a few guys who probably do. One guy I know has one mowing crew and probably does. He holds some really big snow contracts and has like 8 F350's and 2 dump trucks, 2 skids, a toolcat, and a bunch of sidewalk crews. I'm hoping to grow to a similar size when I go full time. Lawnmower man has a great point. I think the money is in small to mid size commercials. I want to specialize in these accts and look for ones with bigger lots. That way I can have only one mowing crew but run like 5-7 trucks for plowing. I would so much rather gross like 250k and keep half then gross 500k. I believe the common rule is the higher the gross, the lower the margins. Gross profit is insignificant for a lot of companies in my opinion. If you gross 300k in installs, I'm guessing you net more than someone who grosses 500k in just maintenance. Just some of my observations. Again, I don't know a whole lot just my opinions.
     

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