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How much income should a two man employee only crew bring in in a day mowing?

Discussion in 'Business Operations' started by jasonnau, Jun 5, 2010.

  1. jasonnau

    jasonnau LawnSite Senior Member
    Posts: 454

    Alright, here's the low down. For the last 6 years it's always been myself and one employee mowing lawns. It's always been profitable for me doing this, but the work load keeps increasing every year, and I can't keep up with everything else in a timely manner with me being a part of the mowing crew This year I've got it to where I have two employees handling the entire mowing route so that I can handle everything else (mulching, meeting customers, pruning, etc.etc.. After breaking down the gross income for a weeks mowing (about 62 residential lawns). Minus income plus 15% for social security, workers comp, and unemployement, minus about $5 per hour for fuel in mowers and trucks, my employees are generating about $325-350 per day additional gross income. Is this good, or should it be better? Granted, it's been wet, and it's been spring cuts, and there time should improve, but I'm just curious what some of the other lcos are shooting for out of their crews. I by myself am generating at least as much, if not twice as much on my own doing everything else. I know that's not bad, but as for the employees, are they generating a realistic revenue. Now, I know I'm not counting the hidden expenses such as truck payments, insurance, etc.
     
  2. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    Depends who you talk to, according to one source $100 per man hour is a bit on the low side,
    according to others 30 is all you can get, then everything in between and take your pick.
     
  3. jasonnau

    jasonnau LawnSite Senior Member
    Posts: 454

    It takes them about 36-38 hrs to complete the route. As an hourly income, they are each generating about $19 per hour. So, together, they are generating about $38/hr. This will improve with summer cuts. They are both relatively newbies as well.
     
  4. nepatsfan

    nepatsfan LawnSite Gold Member
    Posts: 3,142

    i generally like to gross between $750-$850 out of a 2 man crew and its usually more like 9-9.5 hour days.
     
  5. nepatsfan

    nepatsfan LawnSite Gold Member
    Posts: 3,142

    That is very low and I would think you would have a hard time covering your operating costs.
     
  6. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    Gentlemen, start your engines.
    And we're off, currently in first is nepatsfan followed closely by the pack,
    jasonnau bringing up the rear he does seem a bit slow today, now rounding
    the first turn...

    We are hoping for a clean race today, lets keep the rubbing to a minimum.
     
  7. jasonnau

    jasonnau LawnSite Senior Member
    Posts: 454

    Is that after expenses? Or before? If it's before, they do generate about 650-700 per day. Mind you, this is based on spring cuts, it's been wet and tall so far. This is the first week things have started into single cuts and not double or triple. It will improve. Not that I'm defending anything, I'm just trying to see if this is realistic or not.
     
  8. Lbilawncare

    Lbilawncare LawnSite Bronze Member
    Posts: 1,116

    $38 an hour for two guys is way too low. Either they need to be more efficient or you need to raise prices.
     
  9. nepatsfan

    nepatsfan LawnSite Gold Member
    Posts: 3,142

    That is gross. If your employees are generating that much then they arent making 19 per hour. They are making more like 50 per hour for you. Your net profit might only be 350 per day but they are still generating 50 per hour.
     
  10. jasonnau

    jasonnau LawnSite Senior Member
    Posts: 454

    I know they need to be more efficient. As for prices, yeah, some are a little low, but most are realistic. If not a little above.
     

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