Is it worth it? I NEED HELP! LONG THREAD...SERIOUS READERS ONLY

Discussion in 'Lawn Mowing' started by Trevors Lawn Care, Jul 26, 2004.

  1. Trevors Lawn Care

    Trevors Lawn Care LawnSite Bronze Member
    Posts: 1,180

    DONT EVEN READ IF YOU DONT WANT TO SPEND A LOT OF TIME THINKING....

    Going over some numbers for this coming year. Is mowing really worth it? This year is mostly paying off equipment and a little cash in pocket when it is all said and done...NOTHING MAJOR...See thread "i work for free" and i am in the same boat.

    Here are some numbers i was toying with: Please help me correct them if they are wrong:

    Next year:

    100 mowing accounts at AVG:$25 = 2500*27 weeks=$67500
    50 Fertilizing accts (5 step) AVG price = $200 50*200=$10000
    Spring/Fall Clean-ups, mulch installs= $8000

    Did i miss anything? I do some light shrub work..Not enough to count anything.

    The above totals to $85500. Now...Take Uncle Sams quarter
    85500*.25=$21375 LEFT OVER: $64125

    NOW: I take my .5 $64125*.5=$32062
    Partner takes his .3% and business takes .2%
    partner=$19237 Business=$12825

    Based upon what i have now equipment wise i can do 44 jobs in 16 hours. I plan on upgrading equipment next year to increase productivity, but will still use this years numbers:

    Based on this years numbers 100 lawns would take us 37.5 hours per week. 37.5 hours*27 weeks=1012.5hours in a work year MOWING ALONE Now take the total of $32062 % 1012.5=31$/hr BASED ON MOWING ALONE... That doesnt even take into consideration that i have figured in the money made from mulch, hedges, fertilizing, and spring/fall clean-ups. figure those in and i am probably closer to 20 dollars per hour.

    Is it even worth it. I love being outside but i can make that much in sales at radio shack
     
  2. dvmcmrhp52

    dvmcmrhp52 LawnSite Platinum Member
    from Pa.
    Posts: 4,205

    1) You won't make the same hourly rate mowing alone.
    2)25% to uncle sam? Get an accountant.
     
  3. Trevors Lawn Care

    Trevors Lawn Care LawnSite Bronze Member
    Posts: 1,180

    it is my first year...Be gentle. I am still trying to figure everything out.. More or less to uncle sam.. My guess is more.

    trevor
     
  4. dvmcmrhp52

    dvmcmrhp52 LawnSite Platinum Member
    from Pa.
    Posts: 4,205

    OK,gentle it'll be.
    Now go find an accountant!
     
  5. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Posts: 2,810

    You should be able to do more than that with a partner/helper.. Those numbers would be my goal as a solo operator.
     
  6. Trevors Lawn Care

    Trevors Lawn Care LawnSite Bronze Member
    Posts: 1,180

    Those jobs will put us at 40 hours a week.

    Will taxes be more or less?
    Trevor
     
  7. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Posts: 2,810

    Well... then you are either not charging enough or you are not productive enough.


    Or a combination of both..
     
  8. Trevors Lawn Care

    Trevors Lawn Care LawnSite Bronze Member
    Posts: 1,180

    right now we are doing 44 jobs weekly, and with drive time included it is averaging us 22 minutes per lawn.

    trevor
     
  9. fixer67

    fixer67 LawnSite Silver Member
    Posts: 2,098

    Get an accountant and stay away from H&R Block. They work for the IRS and I thank they get a kick back from the IRS as well. And if any of you work for H&R Block there is no need to even try to tell me different. You should be able to write off equipment and repairs on equipment. Gas for equipment and truck. Even your clothes and works shoes. You will not get it all back but every bit helps. And I would 10-99 your partner so you are not paying taxes on his half.
     
  10. soonerlawns

    soonerlawns LawnSite Member
    Posts: 9

    I also have about 100 accounts....however my average is closer to $35 per mowing (I have some commercial accts and a couple of 2 or 3 acre fields). However at 100 smaller accounts a two man crew sounds right. You may want to try to target some larger accounts to get your average up.

    You should try to cross sell your accounts some landscaping services....I don't do anything very fancy but by creating some flower beds or just planting annuals for some of my customers I will do about $10,000 of annual sales making on average $35 per man hour for this work.

    On taxes remember it is on your net profit after all expenses....taxes for me run at about 25% of my net profit not my gross sales.

    Also how much do you want to make per year....if you want to make $50,000 in a year you are going to have to have to run more than 1 crew....I am hoping to get big enough eventually to have 3 crews running...but this will be slow process that takes 3 to 5 years to get to.
     

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