Is 25% a good number for cost of goods for the year

Discussion in 'Pesticide & Herbicide Application' started by fert40, Dec 27, 2005.

  1. fert40

    fert40 LawnSite Member
    Posts: 27

    I am in my 7th year of fertilizer business. Still trying to get a good assessment of what is a decent % to be spending on cost of goods. We are at apprx. 25%. Thanks for any help!
     
  2. Landscape25

    Landscape25 LawnSite Member
    from Florida
    Posts: 199

    I have a fert. est., it will be roughly 25%. I haven't finalized it yet. The labor is what costs for fert.. I am thinking of charging 4 hundred and some for 4 palm apps and 3 bed apps per year. The fert will cost roughly 105.00. I should ask you do you think that sounds right.
    I don't do much fert. but I don't think that number is happening for plants, unfortunately.
     
  3. grassguy_

    grassguy_ LawnSite Senior Member
    from Ohio
    Posts: 633

    your margins on COG being near 25 % isnt too bad, it really comes down to the type of products your buying. I've seems some guys operating on a 15% margin for COG while even others at or near 40%. It comes down to the quality of program you want to deliver and what your other variable costs are (labor, gas, etc). adjust accordingly in your pricing structure to maintain the COG margin you feel you are comfortable with.
     
  4. Green Dreams

    Green Dreams LawnSite Senior Member
    from Texas
    Posts: 593

    I agree...if it says "1 to 5 ounces per K" rest assured I am going at the 5 while the megalawncos are doing it at 1.

    Proofs in the pudding folks.
     
  5. ThreeWide

    ThreeWide LawnSite Bronze Member
    Posts: 1,116

    Sounds in line with my numbers.

    Just counting the actual planned fert and pre-emergent products for the year, I'm around 20%. That does not include the materials needed for spot sprays and unplanned weed control apps. Adding that in that bumps it up to 25%.

    If I were over 30%, it would be a problem.
     
  6. TurfProSTL

    TurfProSTL LawnSite Senior Member
    Posts: 693

    25% is where I try to be for residential.

    Sometimes, for larger commercial jobs, 35 or even 40% might be do-able if you have the equipment to decrease your labor expenses.....
     
  7. masterpiece1

    masterpiece1 LawnSite Member
    Posts: 24

    thanks for your replys, I feel a little better about my margins now. Hope you all make a lot of money in 2006!
     
  8. The Ranger

    The Ranger LawnSite Member
    from NE Ohio
    Posts: 208

    Our percentage is 15-20
     

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