Profit Margin

Discussion in 'Business Operations' started by Snowboss, Sep 27, 2006.

  1. Snowboss

    Snowboss LawnSite Member
    Posts: 1

    What would be considered a reasonable profit margin for a maintenance crew
    3 or 4 man crew, located in Massachusetts
     
  2. YardPro

    YardPro LawnSite Gold Member
    Posts: 3,563

    all depends on your company.

    crew size is not very important as the number you are talking about is a %.

    25% is a good reasonable number. A lot of companies actually operate closer to 10%, but i don't like having margins that thin... shoot for 25%, but try not go go below 15%
     
  3. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    For the first 6 months of the year, our net profit was 26.4%...I firmly believe that number will be higher at year's end.
     
  4. mrusk

    mrusk LawnSite Gold Member
    Posts: 3,260


    Your salary must not be high enough!!
     
  5. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    actually in 05 it was 86K...I stand to take over 100K this year. :)
     
  6. Josh.S

    Josh.S LawnSite Bronze Member
    Posts: 1,085

    So like your salary is what you paid yourself? and you paid yourself 86k and then your business still had a net of 25%.. holy crap i would just like to see a gross of 86k...
     
  7. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    no no no, my 86K is part of the 25%...do the math.
     
  8. TJLANDS

    TJLANDS LawnSite Bronze Member
    Posts: 1,669

    25% is very good in our business. I am in NJ also and I am just under 20%.
    Wasn't Bobbygedd at like 75%...lol.
    Anyway I believe 10-15% is the national average according to Turf or one of those mags.
     
  9. TJLANDS

    TJLANDS LawnSite Bronze Member
    Posts: 1,669

    Rod,
    Question about QB.
    I use gopher because me and QB do not get along, anyway
    Does it keep track of Company Credit cards, finance charges etc and if not all paid in full each month it would be hard to figure a true profit margin.
    For me at least.
     
  10. Josh.S

    Josh.S LawnSite Bronze Member
    Posts: 1,085

    out of curiosity, what is the percentage of profit after you take your salary out?
     

Share This Page