How Profitable is You Business?

Discussion in 'Business Operations' started by OPLawns, May 25, 2008.

  1. OPLawns

    OPLawns LawnSite Member
    Posts: 15

    Does anyone make a good margin on just MOWING alone in the Midwest? I mean how much would you have to gross to get 100K NET INCOME?
     
  2. syzer

    syzer LawnSite Bronze Member
    Posts: 1,266

    Dont ask this question, a lot of ppl on here wil tell you they get a 50% profit margin heh.
     
  3. OPLawns

    OPLawns LawnSite Member
    Posts: 15

    Let me clarify...for a small business who is:
    1) Insured
    2) Has active marketing/management
    3) Efficient staff/labor and ample equipment

    I would guess the margin is somewhere between 10%-35%?
     
  4. grasshopperslawn

    grasshopperslawn LawnSite Senior Member
    Posts: 293

    If projected right I will gross 150k this year And I might end up with 45% net if I am lucky
     
  5. grasshopperslawn

    grasshopperslawn LawnSite Senior Member
    Posts: 293

    If projected right I will gross 150k this year And I might end up with 45% net if I am lucky
     
  6. kandklandscape

    kandklandscape LawnSite Senior Member
    from PA
    Posts: 341

    45% net profit???? Where are you buying your fuel?
     
  7. F3Nelson

    F3Nelson LawnSite Member
    Posts: 119

    I have relatives working at some of the big boys (if you are in KS you have heard of them) and they get about 30%

    Hey I need some help with a HOA property, its in Olathe takes me 3 hours to do alone, I think with 2 guys we can get it to an hour, hour and a half, let me know if you are interested
     
  8. OPLawns

    OPLawns LawnSite Member
    Posts: 15

    Hey F3...I bet that's about right. 30% is a really good margin all things considered. Do the big guys (Epic/Suburban/etc) make a much larger margin on landscaping? I have a feeling that is where the real markup/profit is at.
     
  9. retrodog

    retrodog LawnSite Silver Member
    Posts: 2,420

    Our best profit is in flower bed clean outs and re mulching. There is almost no material, just manual labor. Me and my brother-in-law line up atleast one $1000 day just on flower bed clean out a week. One 8 hour day, and we pocket $62.5 an hour each on those days, would rather mow or sell, but its alot better money...lol. Sometimes I send one of the guys in my place, and still pocket about $400 for 5 minutes of explaining where they are....lol (I have been doing more of that here lately, to busy selling and delivering mowers...lol).
     
  10. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    I have a business I don't work in the field ever. I draw a decent salary and I can tell you until I put that third crew on the road we make zilch-zero-nada on cutting lawns. Last year after my salary we made about 6-K net profit, our gross was just under 500-K

    My numbers tell me that until I have 3 crews of 3 guys producing at about 80-85% I will actually loose money on mow only accounts. If you are working in the field that will be different I make what I do on flowers, plant additions and replacements, light bulbs, fertilizer etc.

    Needless to say we are pushing hard for that 3rd crew. I am legal, pay my guys above avg. and provide health insurance and paid vacations and numerous other benefits.

    "Do the right thing even when you can't afford to" That's my motto.
     

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