For those running crews…

Discussion in 'Lawn Mowing' started by Likestomow, May 17, 2004.

  1. Likestomow

    Likestomow LawnSite Senior Member
    Posts: 997

    I’d like know what percentage your labor is of your gross.

    Right now I’m working with a helper and he is only costing me 12% - 15% of my daily gross.

    I am on the verge of hiring a second man to take my place and have both of them work together on their own. I know productivity is going to reduce, while the labor cost increases, so I’d like to get an idea of how this is going to affect my income and whether or not it’s going to be worth it long term.

    The reason I want to try this is because of some health problems and to free up some time to get more business. Currently we mow about 60 properties a week.
     
  2. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    last year my labor was 22% of my gross
     
  3. Mdirrigation

    Mdirrigation LawnSite Silver Member
    Posts: 2,762

    For every employee I hire and pay $ 30,000 per year ,I have to gross an additional $ 80,000 to justify his employement. This number covers all the overhead . This is my number , depending on the cost of living this will differ area to area.
     
  4. brucec32

    brucec32 LawnSite Platinum Member
    Posts: 4,403

    Are you talking about maintenance or installs? 12% of gross!??

    That would mean if you spent $150/day in total costs on the guy you'd be grossing $1250/day! Who'd you hire, superman?
     
  5. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Quickbooks says 31.02% for last year.
     
  6. Stephen M.

    Stephen M. LawnSite Member
    Posts: 192

    Mine is 28% of gross
     
  7. Likestomow

    Likestomow LawnSite Senior Member
    Posts: 997

    Thanks for the response. I'd like to know if the guys who gave me their numbers are working with their crews daily or managing.

    I'm looking for percentages from a stand-alone crew, not from one with the owner present.
     
  8. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    I'm not in "the field" ..... QB tells me just over 40% this is gross with bonus, vacation, paid holidays & WC cost
     
  9. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    My numbers are just them and that doesn't include WC or matching Fed taxes either...
     
  10. Elwood #8

    Elwood #8 LawnSite Member
    Posts: 12

    Hire the other guy. You need to spend more time selling and managing your business. Yes, you will take a small "hit" on your net $$$, but you will have more time to be selling more work, thus making more money.

    Train one of them, probly your current helper to be a foreman or supervisor. After you get over this hump, it gets easy. Your next crew will start with you, then you and a part time helper, then two people, etc. Train them how you like as you go and always keep time to sell more work.

    Lawn care crews are easy once you get your methods in place and then just duplicate the process over and over.
     

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