% for material, labor

Discussion in 'Pesticide & Herbicide Application' started by turf hokie, Sep 8, 2007.

  1. turf hokie

    turf hokie LawnSite Silver Member
    Posts: 2,744

    What % do you guys try to run for your total material and labor cost for the season? Including yourself as an employee taking a weekly pay check or not?
    My material seems to usually run 25-27% but my payroll seems to be in the 30-33% range including myself on weekly payroll.

    Just looking to see if these are about normal.
     
  2. americanlawn

    americanlawn LawnSite Fanatic
    from midwest
    Posts: 5,861

    I think you are in the ball park.
     
  3. J Hisch

    J Hisch LawnSite Senior Member
    Posts: 952

    product 15-20%
    Labor 22%
    overhead burden 15%
    incidentals 7%
     
  4. turf hokie

    turf hokie LawnSite Silver Member
    Posts: 2,744

    Do you include your office staff in your overhead or labor? right now I have included mine in the labor even though I know it should be in overhead. It will be an adjustment I make next season.

    Thanks for the input. I just dont want to be in the ball park hoping A-Rod hits one there :weightlifter: when I could be in the good seats wathcing the whole game. Just want to see how I may need to adjust prices next season.

    I think I found what the market will bear as I have not gotten some large accounts b/c I would not move on my prices. Which I dont think is a bad thing.
     
  5. RigglePLC

    RigglePLC LawnSite Fanatic
    Posts: 12,338

    I try to keep chemicals under 20 percent. Gas about 3 percent.
     
  6. GREENITUP

    GREENITUP LawnSite Member
    Posts: 245

    Those material costs seem low to me....though it looks great on paper..... if you can get away with it. Mine are about 28-30%. Even though I price shop, I like to use some of the best products available to me (Lesco fert, Dimension, Speedzone, Manage, Drive 75, Armada...). I think it shows on the lawn if all is timed properly. Good luck.
     
  7. americanlawn

    americanlawn LawnSite Fanatic
    from midwest
    Posts: 5,861

    Lawn chemical expense is typically higher than tree/shrub. Depends what you're doing. In the original ChemLawn days, lawn chems ran just over 25% and tree/shrub ran just under 20%. That's about where we're at too.

    Salary expense ran between 33 & 35%.........that's about where we're at also.

    Advertising = 7%? truck/equipment expenses = ? etc, etc. Depends how you run the business.
     
  8. turf hokie

    turf hokie LawnSite Silver Member
    Posts: 2,744

    Thanks for the responses. Just wanted to make sure that as my company grows we werent losing track of where we should be on some of these margins.
     
  9. J Hisch

    J Hisch LawnSite Senior Member
    Posts: 952

    all employee's are in the labor percentage, excluding me.
     

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