Labor Percentage of Sales?

Discussion in 'Business Operations' started by jwilkers2vt, Dec 6, 2012.

  1. jwilkers2vt

    jwilkers2vt LawnSite Member
    Posts: 68

    I am working on my end of the year analysis and budget. I have been watching my labor numbers all year, wishing they were lower and studying how to lower them. Mainly being more efficient. With direct labor costs, taxes, and workers comp ins. I am paying roughly 28% of my revenue to labor costs. Is this inline with what others are paying?

    Thanks

    Joe Wilkerson
     
  2. TheCuttingHedge

    TheCuttingHedge LawnSite Member
    Posts: 22

    "In Line" with who? What is the majority of your business sales? Lawn care, landscaping, or something else?
     
  3. snomaha

    snomaha LawnSite Senior Member
    from midwest
    Posts: 889

    Are you talking direct labor or all labor including admin and owners salary?
     
  4. jwilkers2vt

    jwilkers2vt LawnSite Member
    Posts: 68

    I am referring to direct labor costs. I include management (myself) as Overhead to company.

    thanks

    Joe
     
  5. jwilkers2vt

    jwilkers2vt LawnSite Member
    Posts: 68

    We are full service landscape, so maintenance and installs. Hardscapes about 35%, Landscape 35% and Maintenance 30%
     
  6. snomaha

    snomaha LawnSite Senior Member
    from midwest
    Posts: 889

    Direct labor 18% of total sales
     

Share This Page