Gross revenues brought in per man hour cutting grass.

Discussion in 'Lawn Mowing' started by K.Carothers, May 15, 2006.

  1. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124

    I have been keeping track of all times for grass cutting these past couple of weeks.

    Last week my business grossed 28.75 per man hour cutting grass.

    Average pay - $10/hr

    That leaves $18.75 for all other expenses.

    What are you running?


    kc
     
  2. out till dark

    out till dark LawnSite Member
    Posts: 63

    Is travel time included in that figure
    if it is than thats not bad for around here. n-at:)
     
  3. DynaMow

    DynaMow LawnSite Senior Member
    Posts: 570

    what are the cost per hour of all other expenses?


    Real costs: http://www.lawnsite.com/showthread.php?t=146789


    Doesn't sound like $18.75 is enough to me. IMO

    Do not get me wrong, I am not saying it does not work for you or that I am or do better. But this is something I am trying to get a grasp on myself. I feel that is the only way to increase your bottom line, is to know all costs. Harder to know all costs when equipment and service of that equipment is involved.

    Cost of mowing is harder to figure then lets say, cost of installing mulch.
     
  4. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124


    That is total hours form start to finish


    kc
     
  5. JJLandscapes

    JJLandscapes LawnSite Senior Member
    Posts: 682

    who cares bout gross you should be asking about net profit
     
  6. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124

    I'm not trumpeting great success and I am going to retire on some island. I just wanted to dig deep into the grass side of this business with other LCO's.

    I am crunching numbers like crazy this season. Actually I will be posting my grass numbers throughout the season here. My books are open to LS so we all can learn from.


    kc
     
  7. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124


    Relax man. Your response is childish. I am opening up conversation about the grass side of this business with my numbers.

    For your information, you need to know your gross numbers first before you even start to run numbers.


    kc
     
  8. Idealtim

    Idealtim LawnSite Senior Member
    Posts: 939

    18.75 sounds pretty darn good to me.
     
  9. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569


    UNLESS, you have a whole lotta men working for you, IF this is a fullime gig for you then you aren't making enough money per man hour. Because you still have quite a few expenses coming out of that left over $18.75.

    Since you stated you pay an average of $10 an hour then that even, low number means that is not including taxes and WC Ins, which will add $3-$4 more per hour to that rate. Then even if your equipment including trucks are ALL paid for then it is still costing you at least $5 per hour per mower/manhour to run the mowers (gas, oil, belts, blades, other parts). Then you figure another $3 an hour miniuim (again only that low if it is paid for) per truck to run them per hour (gas, oil, parts) AND this is actually a really low figure if your route is spread out more than a total of 20 miles. Then figure $1 an hour for truck, mower, liability ins, and another $1 an hour for odds and ends (ice, gatoraide, etc).

    Now with these figures which are rock bottom and assumes you have NO Payments, that $18.75 becomes $4.75 per hour.

    SO, unless you have 8-10 guys where you can clear $38.00-$44.75 per man hour you are not making any money........IF you have only say 2 guys then that is only $9.50 TOTAL for both their man hours and Mickey D's pays that.

    And again that $4.75 holds true ONLY if you have no payments. If you have some equipment or vehicle payments then you very possibly could be losing money. In any event I think that unless you have at least 10 employees tOR this is not a fulltime job for you, then you really need to get your gross per man hour up......probably twice what it is.
     
  10. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124


    Thanks, MM - great response!

    Now that is what I'm talking about with the numbers. I started this thread so everyone can learn(including me) and give back(including me) in this business.

    I will post my expenses later.


    kc
     

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