How much profit?

Discussion in 'Business Operations' started by FrankenScagMachines, Mar 6, 2001.

  1. FrankenScagMachines

    FrankenScagMachines LawnSite Platinum Member
    from IN
    Posts: 4,739

    Take all costs into account, and you have your price, less the profit... so how much profit do you charge? In percentage of all total costs? How does it vary from different types of work? I am talking about residentials, by the way... say i spend $3 on gas on a lawn, including bagging with a blower engine, and also counting trimming mowers and all that... or if i set a price that would be an average for it, since it'd be too difficult to measure out the gas and all.. and how much percent of all that should i recieve for profit? it's going to be a 1 man operation, pretty small, but in a community not too big and modest homes. Just trying to get ideas... thanks,
  2. HC

    HC LawnSite Member
    Posts: 55

    Eric charge as much as the customer will pay, and give them the best service possible. For you I would decide on what I want to earn per hour, estimate how long the job will take,then add your expenses and little extra margin for incidentals (such as equipment damage etc.)
    It would be hard to give you how much profit we charge as each job is unique. We are stictly a winter operation so we need to ensure a large profit margin. I would definately not run under 40% profit.
  3. 65hoss

    65hoss LawnSite Fanatic
    Posts: 6,360

    Your fuel cost should be alot lower than that per lawn, depending on size of course. I know my minimum I want per each hour. I take into consideration the amount of time the job will take, location, trimming, and obstacles to decide on my price. I know what my TRUE competitions price would be, mainly because mine is usually very close (not lowball price either).

  4. joshua

    joshua LawnSite Bronze Member
    Posts: 1,226

    figure out how much you have to pay for gas, insurance, and the equipment for the job then how much profit..

    example you pay
    $3 in gas
    $5 for insurance every yard
    $10 for equipment
    the total is $18 just for your costs
    if the yard takes you 25 minutes how much do you want to put in your pocket???
    (these figures are just a example but you have to figure out what your over head is)
    good luck
  5. Kirby

    Kirby LawnSite Member
    from iowa
    Posts: 8

    You may be a one man operation today, but what about tommorow? Assume you will grow and add employees. Set price with this in mind. For my company that is $12.00/hr with insurance and tax. Looking at it from this angle will put a system in place for profitable future growth.
  6. FrankenScagMachines

    FrankenScagMachines LawnSite Platinum Member
    from IN
    Posts: 4,739

    Thanks guys, that helped.. still, how much per hour is good? As i said, these definetly aren't upper class homes where i want to start. And you brought another question to mind: how do i do the insurance thing? how does that work for a bizness?
  7. joshua

    joshua LawnSite Bronze Member
    Posts: 1,226

    bush hog, i try to make about a dollar a minute because of the over head i have, i have $30,000 in equipment and the price of insurence , gas, pay my people, and taxes i have to make close to that to make any knid of money.
  8. joshua

    joshua LawnSite Bronze Member
    Posts: 1,226

    last year my insurance was around $400 for the year, granted i only has about 40 properties. talk to someone who deals with insurance and they could give you a price. i shouldn't cost you more than $200 or so (i think)make the call, you wouldn't want to put a rock through a window and have to pay out of your pocket
  9. Southern Lawns

    Southern Lawns LawnSite Senior Member
    Posts: 259

    The rule of thumb I try to stick to is: $35.00 an hour without equipment (hand pruning, labor, odd jobs that require NO gas powered equipment). $45.00 an hour if I use gas powered equipment. Sooo if I look at a property that I believe will take an hour I'll price it at $45.00. As we all know the more you do the lawn the more proficient we are and that is where I can save 15 minutes here and there. Just because you do it faster doesn't mean you are skimping on quality. You're just more familure with the turns etc... So again when I bid I use the time I think it will take me on the first cut and price it accordingly.
  10. bilchak

    bilchak LawnSite Member
    Posts: 89

    We have have a 2 man crew, and we try to get around 75 dollars an hour for mowinig. That included edging, weedeating, and blowing. Mulch, Leaves and Shrubs are extras and we gauge them on a job by job basis.

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