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Northern Pricing????

Discussion in 'Lawn Mowing' started by lawnman_scott, Oct 16, 2003.

  1. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    This is just out of curiousity. Here is my example. You work from March 15 to Nov 15th. Doing cleanups, lawns, whatever you do at whatever time of year. No snow work at all. You and 2 workers work 40 hours a week
    So you have 3 workers, working 40 hours per week for 36 weeks.
    we have a total of 4,320 man hours X $60 (a dollar a minute that we hear of so frequently)= $259,200.
    Payroll 42,000 this is at about $15 per hour
    gas 5,000
    insurance 5000
    equip maintenace & repair 15,000
    advertizing 5000
    office supplies 5000
    other supplies 5000
    total expences 82,000 (im sure i missed something)
    income 259,000 - expences 82,000 = 177,200
    so your net profit before taxes is $123 per hour???
    Yes im sure things were missed, but i just dont get it.
  2. Likestomow

    Likestomow LawnSite Senior Member
    Posts: 997

    What's your question?
  3. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    its the sentence with the ???? at the end. Do net profits before taxes average more than $120 per hour for a lawn man/landscaper?
  4. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    $177,200 divide by 4,320 is $41.02 per hour

    unless I messed something? Maybe I did
  5. crawdad

    crawdad LawnSite Bronze Member
    Posts: 1,939

    You missed windshield time.
  6. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    Absolutly correct, if your looking for net profit per man hour, what i am wondering about is YOUR PER HOUR RATE. So you work 1440 hours a year and net 177,200, YOU are making roughly $123 per hour. It just seems a little dreamy to me.
  7. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I see where I think that you have gone wrong with figuring this out...first of all $60 per hour during the day for the crew, not $60 per crew member ($180 per hour).

    If someone charges $60 per crew member, have them come up here and help me out.

    When you took the numbers you took the total hours of 3 crew members and times it by $60, when it should have been 1440 times 60 (for the $1 a minute for the crew) Unless there are people out there making that much
  8. dvmcmrhp52

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

    I think you've got it tiedeman,If your making a buck eighty an hour off of 3 workers every hour they are employed all i can say is YOU THE MAN!
    A dollar a minute while being productive at certain tasks yes,But a dollar a minute 40 hours a week won't happen too often.JMO.
  9. TLS

    TLS LawnSite Fanatic
    Posts: 7,940

    I'd knock about $10K off right away for advertising and office expenses. Way too high in my book. THere's way more work up here than people wanting to do it.

    And the $15K in equipt. repair and maintenance.... :eek:

    What kind of Insurance are your figuring? Health ins. for you and your workers? Or just Liability. Either way its way off.

    And the $60/hr is a little optomistic, but maybe figure $45-$50 to be more realistic.

    As for windsheild time....I measure my hourly rate garage to garage. Not time at a lawn.

    I'd figure $150K after labor.

    And then minus out all the expenses.
  10. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    I see, i just hear a dollar a min all the time, and it doesnt add up, as you can see. I went back and looked, and for the past 3 years, i have been makeing from about $28-32 per person, thats before expences. So I guess i am doing ok. It is just that i have heard otherwise in different posts, and i beleive next to nothing i hear on the internet. Way too easy to streach the truth just a bit.

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