Expected net on $32k property

Discussion in 'Lawn Mowing' started by absolutelawnman, Jul 6, 2006.

  1. absolutelawnman

    absolutelawnman LawnSite Member
    Posts: 83

    Interested in knowing what your opionion is on a net return on a $32k property payed over 12 months. Preferably from some guys close to our cost of living and similiar areas. I am doing a mid season checkup on some of my properties.
     
  2. hoskm01

    hoskm01 LawnSite Fanatic
    Posts: 5,690

    $32k Is Your Charge Or Value Of The Property, A Little Vague On Info.
     
  3. absolutelawnman

    absolutelawnman LawnSite Member
    Posts: 83

    The contract for the entire year is $32k this includes 29 mowings, weekly bed maintenance, fert and weed, and fall cleanup with misc other. They pay $2700 per month
     
  4. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    There is NO WAY that anybody on here other than YOU can even begin to answer your question. Nobody on here knows what your cost of doing business per hour is other than you and that will be the direct result of what you "net" on this acct. Hell, you should have known the answer to this question WHEN YOU BID THE ACCT. Otherwise how did/do you know you were even making any money at all on it. And even from guys in "Preferably from some guys close to our cost of living and similiar areas" as you ask is not revelent. Some other LCO right beside you may have a COB of $20 an hour and yours may be $50.
     
  5. absolutelawnman

    absolutelawnman LawnSite Member
    Posts: 83

    MM Lawn,
    I do know what the cost of doing my business is, I do know what my price per man hour is, I am just interested if you have a $32k property what you might expect to net after it is all said and done with, what would you want to take home to momma. 10%, 40% what is realistic.
     
  6. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    That's what I am saying though. Your COB and mine or the guy right next door to you will be different, so it really doesn't matter what others are doing. BUT in the "real world" (I least in my book, for what it is worth) you need to be around 30% profit at least, if you want to run a truely successful business. And 40% is even better, but is not really as likely if you are bidding and pricing agreessively.
     
  7. bullethead

    bullethead LawnSite Senior Member
    from Texas
    Posts: 273

    I assume you are talking "Gross Profit" margins in that range, not net profit margins?
     
  8. absolutelawnman

    absolutelawnman LawnSite Member
    Posts: 83

    mmlawn,

    so you are saying that on the $32k after I pay for everything (=net) that I should put $9600-$12800 in the bank?
     
  9. jpa375

    jpa375 LawnSite Member
    Posts: 48

  10. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569


    Yes, but they "really" are the same thing anyway, unless you are a sole prop and taking the "profit" as your salary.


    Net profit
    Definition

    Often referred to as the bottom line, net profit is calculated by subtracting a company's total expenses from total revenue, thus showing what the company has earned (or lost) in a given period of time (usually one year). also called net income or net earnings.


    Related Terms

    profit, profit margin



    Gross profit
    Definition

    Calculated as sales minus all costs directly related to those sales. These costs can include manufacturing expenses, raw materials, labor, selling, marketing and other expenses.


    Related Terms

    gross profit margin
     

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