Gross $9000 Net $0, Is this Right?

Discussion in 'Starting a Lawn Care Business' started by echeandia, Jun 16, 2007.

  1. echeandia

    echeandia LawnSite Bronze Member
    Posts: 1,131

    Just started this year and so far I have billed just shy of $9000. However, I have netted almost nothing. The cost of fuel, advertising, licensing, taxes, professional fees, supplies, equipment, insurance, and everything else has left me with a net profit of $0. Is this typical of first year operations?
     
  2. cpel2004

    cpel2004 LawnSite Bronze Member
    Posts: 1,415

    I would say you are above the curve as long as you arent losing anything you are fine. Check your prices make sure they are at fair market value. Slowly you will begin to add to your net as your customers increase, depending on your equipment situation.
     
  3. echeandia

    echeandia LawnSite Bronze Member
    Posts: 1,131

    My prices are on the high side. I know because I always follow-up with people and have been told that many times that they received a lower price from another person.
     
  4. Uranus

    Uranus LawnSite Bronze Member
    from Mass
    Posts: 1,624

    There are 2 markets. Professional market and the scrub market. Make sure your compairing your prices to a professional company.

    We can tell you right now if your high or not.

    1/2 acre flat lot, trimming only around house, driveway, and a few small trees.

    1 acre flat lot, same trimming. In and out service. give us your estimated prices.
     
  5. jsf343

    jsf343 LawnSite Bronze Member
    Posts: 1,767

    Sounds a lot like my first year as well. Just like the above poster said, Just make sure when you bid a property you are adding up EVERY cost it takes to do the job, then add what ever you are wanting to make as long as it is competitive. You will figure out ways to fine tune, or do things faster or a little cheaper. I shoot for minimum of 2 lawns an hour, at a minimum of $30.00 but often if I can get them to go full service it is considerably more. If I can run really tight routes and advertise around the areas where accounts already existed then I push for 3 an hour. This is something that works well for us. Maybe you can try the same, it would help you to net a bit more.

    shoot me a pm if you have any questions, maybe I can help.

    Later,

    Jeff
     
  6. echeandia

    echeandia LawnSite Bronze Member
    Posts: 1,131

    Here are the prices I would quote for the two properties:

    • 1/2 acre - $50
    • 1 acre - $70
     
  7. Bigray

    Bigray LawnSite Member
    Posts: 140

    yeah the first year is always a struggle, be determined and you will succeed...

    i have been full time 9 years now and i run appox. 50% expenses ... to gross
     
  8. Stillwater

    Stillwater LawnSite Platinum Member
    Posts: 4,838

    professional fees? what is that?
    0$ net.... make sure you are only buying what you need and not what you want.
     
  9. Sandgropher

    Sandgropher LawnSite Senior Member
    Posts: 909

    Its not something thats unusual, lots of folks are $1000's in debt after the first year, hopefully by the end of the season you will be in front.
     
  10. echeandia

    echeandia LawnSite Bronze Member
    Posts: 1,131

    Professional fees are for things like attorneys and accountants. Don't tell me you don't have an accountant or an attorney?
     

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