$ grossed, $ made

Discussion in 'Lawn Mowing' started by meets1, May 16, 2004.

  1. meets1

    meets1 LawnSite Gold Member
    Posts: 3,781

    I have a read a number of threads here on what people are charging. There has also been a number of threads on what people need to make to break even or show a profit. And I keep reading that there is enough work to go around but could you handle more....

    So my question to you all is:

    At what number of accounts are you happy with?
    IN conjunction to that question - how many people working for you?

    At what $ amount are you profitable for the day? (gas exp, insurance, advertsing, equipment depre. etc)

    How many accounts can you really handle? Are you pushing hard now to mow everything in 1 day, 3 days, 6 days?


    At what point to do add another mower, trimmer, worker or entire crew to the operation?

    If your equipment is sitting idle for a day or 3 days, would you persue more accounts?

    in a given mowing day, what hours or how many hours are you runnen?

    Sorry about all the questions, but I think this should narrow done alot of peoples questions. I think some need to do there homework b/f starting a company. Not coming here on this sight asking how much to charge. At what % are we in the black or red. What to buy vs not to buy. I think if we can honestly answer some of these questions - maybe someone will think twice about rates, services offered and running a business?
     
  2. rvsuper

    rvsuper Senior Member
    Posts: 930

    AMEN!!!!!!!!!!!!!!!!!!!!
     
  3. paponte

    paponte LawnSite Silver Member
    Posts: 2,366

    1. At what number of accounts are you happy with?

    As many as it takes to hit my million mark.

    2. At what $ amount are you profitable for the day?

    Each crew should be able to gross $300.00 minimum, per man to be profitable for the day.

    3. How many accounts can you really handle?

    As many as I can get.

    4. At what point to do add another mower, trimmer, worker or entire crew to the operation?

    When you see your losing time/money in either one specific area, or all around. This is where a good business man really comes into play.

    5. If your equipment is sitting idle for a day or 3 days, would you pursue more accounts?

    A sitting machine does not make money.

    6. in a given mowing day, what hours or how many hours are you runnen?

    typically 8-10hrs.
     
  4. T Edwards

    T Edwards LawnSite Member
    Posts: 230

    I've been reading this board for over a year now and it seems there is not one good answer for everyone. Some of the younger, hungrier guys go for 12-15 jobs/day and some part-timers do 5 a week. My partner and I are both 50 and we choose not to work past 2 pm, so we rarely schedule more than 5 jobs per day. Our profit margin is around 80% of gross revenue so a $250 day nets us $100 each. I imagine that if we were both 25 and willing to bust ass we could easily double these figures, but as you grow older you place a greater value on your time and quality of life. Our customers (who are mostly our age or older) seem to enjoy our slower, leisurely pace also because we always hang out and visit with them for a few minutes. I've seen other guys out that are always in a hurry and cutting corners to make it to the next job quicker but I think they are racing to their grave. Maybe if they had quoted that job at $60 instead of $35.......??
     
  5. meets1

    meets1 LawnSite Gold Member
    Posts: 3,781

    As read these statements - I like what I am seeing. I am wondering where all those "others" are that ask these questions. I would like to see a responce from them. Do they know there numbers, there equipment needs, etc. As PAPONTE states, " As many as I can get" - I agree but then are we as pro's being greedy? Are we the ones that are saying there is plenty of work to go around but yet we secretly want more? That is human nature I think to a point - are you & I satisified where our operation is at being Pro LCO's in this business?

    I like the reply so far so lets keep thinken!!
     
  6. GrassBustersLawn

    GrassBustersLawn LawnSite Senior Member
    Posts: 983

    T EDWARDS

    IF your PROFIT is 80%, then 1 of 2 things are likely:

    1) You don't have ALL YOUR EXPENSES FIGURED IN....(and/or
    cutting corners such as No Insurance, etc.)

    2) I'm moving to Columbia, SC.

    I run a lean, tight, LEGAL, TOTALLY ABOVE BOARD business. Last year I netted 46%. Extremely hard for me to imagine someone NETTING 80%!!!!!!!!!!!

    Mike
     
  7. T Edwards

    T Edwards LawnSite Member
    Posts: 230

    GrassBusters

    Our insurance runs a little over a hundred /month, which breaks down to about $1 per job. If we add all our monthly expenses and divide by the number of jobs, a $50 job nets us $40 profit. That's where the 80% comes in.

    Mike......are you a Ginger Baker fan?
     
  8. Up North

    Up North LawnSite Bronze Member
    from MN
    Posts: 1,063

    Meets1, I wonder if most people that are asking that question are more interested in what the going rates are in different parts of the country, or world for that matter. (Some guys on this site being from "Down Under", New Zealand, UK, Canada, etc.). Some of the newer guys, like myself, may be wanting to make sure that we're in the ballpark with our rates.

    In some cases no matter what one's expenses are, we have to make sure we're competive with other LCO's in our area. I think it's important to maintain a certain market price. Since costs can vary from one LCO to the next, for example, I'm a solo operation, my equipment is paid for not financed, I have insurance, registered company name, etc.. I could possibly do more for less, but I don't because I know that "what goes round comes round", so would rather get the business based on quality work at a fair price and not because I'm the cheapest in town.

    In no way do I disagree with what you have state. I totally agree with it as everyday operational expenses need to be a big factor in what your rates are. But I have to add that the going rate in your particular area has to be a part of that equation also.

    As for getting as many customers as you can, hey that's great. You just better make sure you can service them all professionally and keep them happy campers. I wouldn't call that greedy, but if you're losing customers due to lack of reponse time, or shoddy work, then I would call that greedy.

    That's just my "new guy on the block" perspective.
     
  9. NCSULandscaper

    NCSULandscaper Banned
    Posts: 1,557

    Almost sounds like you are not charging enough to properly cover all your expenses. I do not do much mowing, but i net 60-70% of my gross landscaping, sometimes more than that because i charge accordingly.
     
  10. mexiking

    mexiking LawnSite Senior Member
    from NJ
    Posts: 564

    At what number of accounts are you happy with? 60 - 80 every season
    IN conjunction to that question - how many people working for you? 4 including me

    At what $ amount are you profitable for the day? (gas exp, insurance, advertsing, equipment depre. etc) $950+ a day

    How many accounts can you really handle? Are you pushing hard now to mow everything in 1 day, 3 days, 6 days? I mow everything in 3 days and use the other days for landscaping jobs


    At what point to do add another mower, trimmer, worker or entire crew to the operation? When you are getting overwhelmed with work every week

    If your equipment is sitting idle for a day or 3 days, would you persue more accounts? Of course

    in a given mowing day, what hours or how many hours are you runnen? 6-10 ... depends how fast were going, how big a job is
     

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