Profit Margin?!?

Discussion in 'Business Operations' started by haybaler, Mar 6, 2007.

  1. haybaler

    haybaler LawnSite Senior Member
    from ma
    Posts: 511

    ok, I did a search on this and found some great threads, but nothing to answer this question. What is a good realistic number to shoot for in terms of Profit Margin. I've heard that a very well run restuarant in a good location can make 20% profit. I only made 5% last year, but I invested heavily in equipment. I want to set a goal this year, but what is realistic?? 10,15%? I want to be able to look at a job and figure the cost and then ad and certain % profit. what's the magic no.? please help me.
     
  2. Tim Wright

    Tim Wright LawnSite Bronze Member
    Posts: 1,034

    30%

    Tim
     
  3. haybaler

    haybaler LawnSite Senior Member
    from ma
    Posts: 511

    wow, that sound high, But this is why I asked the question, I'd love to hear other people's thoughts.
     
  4. haybaler

    haybaler LawnSite Senior Member
    from ma
    Posts: 511

    Ok, so I was just reading through the "how much do you want to take home in a day" thread. sorta what I had in mind, but people are going all over the place talking about how many hours in a day and saying "as much as possible" or just picking numbers out of a hat. I want some cold hard figures here. this isn't rocket science and it's not chance either. we need to know what were making and what we should be making.
     
  5. ECS

    ECS LawnSite Bronze Member
    Posts: 1,732

    Last year was roughly 16.5% of my gross after taxes.
    That is lawns, Snow, Caretaking and some other services I do for my customers.
     
  6. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    I agree 30% is a good target number. Franchise businesses wont even consider an operation that is not at least 20% You can survive at the lower numbers but to have the freedom to grow the business you need to be higher.
     
  7. Flow Control

    Flow Control LawnSite Bronze Member
    Posts: 1,267

    Are you maint. or install?
     
  8. supercuts

    supercuts LawnSite Silver Member
    Posts: 2,784

    for my year end figures we were about 30% too.
     
  9. haybaler

    haybaler LawnSite Senior Member
    from ma
    Posts: 511

    both. I assume hardscape construction is higher profit than lawn mowing, but I want to hear numbers from everyone.
     
  10. Flow Control

    Flow Control LawnSite Bronze Member
    Posts: 1,267

    take us through your bid thought process when bidding a new install, say 20K sq ft lawn and (25 yards of topsoil 10 yards of mulch for beds) and 3k in bushes, regular shaped lot, no grade issues.

    How much did you have in new equipment last year $$ ??
     

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