% average profit on commercial work???

Discussion in 'Lawn Mowing' started by Hermanator, Jan 11, 2006.

  1. Hermanator

    Hermanator LawnSite Member
    Posts: 223

    Hey guys come on..... I really need some help here..... I just want an idea for what can be expected in profit on commercial work on average, if any one has an idea, even close would help. I'm thinking about a 30% profit or there abouts. Would really like your inputs please. :blob1:
     
  2. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    What type of work will it be?
     
  3. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    By 30%, do you mean AFTER all expenses (yes labor too) ?

    If so, that seems a bit high, commercial or otherwise. I would say after I am all done paying for everything, there might be up to a 5 or 10 percent surplus... So, if I have a few thousand more in the bank a year later than what I started with, I'm happy.

    Let me put that bit aside...

    I could be wrong, but I assume commercial profit to be lower than residential, if for no other reason than 'lowest bidder.' It is one of the main reasons I don't even waste my time drawing up contracts, but to each their own, some folks like the stability it provides and that is one of the things usually ends the argument :)
     
  4. OnMyOwn

    OnMyOwn LawnSite Senior Member
    Posts: 372

    I'm not sure there is a good reply. I have always felt commercial to be a lower GP due to competition, but have been proven wrong over the past few years. I have landed some outstanding commercial accounts which pay extraordinary rates. I believe your main factors are geographic area, saturation of market and personal performance.

    Professional lawn maintenance is not just "mowing". There is a big difference between quality care and "Joe Bob's Stop & Chop". Make sure your client is aware of your professional orientation including, insurance, quality of equipment, and desire to succeed through customer satisfaction. Remind your client's that you may not be one of the cheapest price, nor are you the cheapest performance. When you go bargain basement shopping, don't expect to come home with anything other than second-hand items.
     
  5. Hermanator

    Hermanator LawnSite Member
    Posts: 223

    Work will cover the whole gambit. Mow, trim, clean a few beds. It will vari of course, but I'm not looking for the extreme averages, just... when you bid a job, you figure up what the actual cost is, ie labor, equipment, fuel, taxes insurance, etc.... then you say I want to make 20% on top of that or 15% on top of that ot 30% on top of that. Is there a figure that most of you guys use to add to your bids after you have figured all your costs or do you just wing it? Thanx.....
     

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