how was my profit

Discussion in 'Turf Renovation' started by BMFD92, Apr 26, 2005.

  1. BMFD92

    BMFD92 LawnSite Senior Member
    Posts: 698

    I recently renovated a day camp field. it was about a 1/2 an acre used for various activities. It was 1,100 for the 40 yards of topsoil, 500 for seed and hay, 200 for skid steer rental, and 2,000 for labor cost.

    Total: 3,800

    I profited 1,600. Is this a good profit margin and if not what do I need to do to get a better profit?
     
  2. greywynd

    greywynd LawnSite Member
    Posts: 132

    The labour costs, does that include paying yourself? I'm guessing that you were one of the 'laborers'?
     
  3. LawnScapers of Dayton

    LawnScapers of Dayton LawnSite Silver Member
    Male, from Dayton, OH
    Posts: 2,574

    how long did it take?
     
  4. BMFD92

    BMFD92 LawnSite Senior Member
    Posts: 698

    the labor includes me and three other guys but I pay them 15 an hour and get 10 extra from the 25 per guy and hour. It took me 18 hours and then an extra 200 for travel costs is included in the labor cost
     
  5. YardPro

    YardPro LawnSite Gold Member
    Posts: 3,563

    so you only pay yourself the $10.00/hr generated from the other guys??? if so that is a very Bad deal...

    You should have a labor charge for yourself and whatever additional is brought in from you and your workers is the BUSINESSES profit.....

    you should have a salary and not base our income on the extra made off the workers.. that goes to workmans comp, insurance, fuel, shop fees, repairs, taxes, etc....

    sounds like you don't really know how to calculate overhead recovery..

    if you pay your guys $15.00/hr. they actually cost you more than that. i would guess it is really more like $18.00-$20.00/hr when you divide ALL youe expenses by your total yearly billed hours.
     
  6. Freshcut Lawn Care

    Freshcut Lawn Care LawnSite Senior Member
    Posts: 393

    I thought you did okay!

    I would be happy to make $1600 profit after 18 hours of work, plus pulling in a wage!

    Am I missing something here? :dizzy:
     
  7. SodKing

    SodKing LawnSite Bronze Member
    Posts: 1,648

    How much did the insurance cost for the time you did the job? How much in taxes (Fica,futa,suta) did you pay on their labor? How much was rent as a cost factor? How much workmans comp did you pay on their labor (should have been around $136.00)? Vehicle insurance? Warehouse supplies, heat, electricty? Permiting? training? Vehicle/equipment fuel?

    Or is this under the table?
     
  8. YardPro

    YardPro LawnSite Gold Member
    Posts: 3,563

    the things sod king and i mentioned are all the things people have to pay, but forget when they price jobs or figure profit...

    so whay you are thinking is a $1600.00 profit is in actuallity much less.

    Give this a try....

    take $20.00/hr per employee and $30.00/hr for your time.... Add at 10% to the cost of materials ( accounting expense). and see where your actual job cost is.
     
  9. BMFD92

    BMFD92 LawnSite Senior Member
    Posts: 698

    it took four guys including me
    25 an hour per guy. I pay my guys 15 an hour which includes their compensation. So I get my 25 an hour plus 30 and hour from each guy. That is 55 an hour for me.
     
  10. SodKing

    SodKing LawnSite Bronze Member
    Posts: 1,648

    AND HOW MUCH DID THEY COST.

    Lets start easy:

    What is your rate for workers compensation per hundred?
     

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