Profit Margins

Discussion in 'Lawn Mowing' started by JML, Feb 19, 2000.

  1. JML

    JML LawnSite Senior Member
    Posts: 415

    What is your profit margin when mowing lawns.
     
  2. Kent Lawns

    Kent Lawns LawnSite Senior Member
    from Midwest
    Posts: 870

    I'd love to tell you, but according to lawrence stone, nobody on this forum knows how to calculate profit margin.
     
  3. jrblawncare

    jrblawncare LawnSite Senior Member
    Posts: 445

    Don't get'em going,He has been good as of late.
     
  4. mattingly

    mattingly LawnSite Member
    Posts: 136

    I have recently started and the way my figures come out I can apply a 35% profit margin on my mowing accounts and be competitive with other companies. Now I haven't put this in to effect yet but this is the margin I am looking at applying.<p>----------<br>Integrated Landscape Solutions<br>Lexington, KY
     
  5. Doug406

    Doug406 LawnSite Member
    Posts: 134

    Boy I hope your talking about realized (NET)profit and not gross sales profit. This is even low eather way in my standards. Because if your only wanting 35% it would look something as follows<p>$30 for a typical lawn<br>2 lawns per hour if you are fast<br>10 hour day (no family time 0)<br>5 days per week (rain & weekends)<p>30x2x10x5x.35=$1,050 for a week<p>x 26 or so weeks= $27,300 to spread out for the entire year
     
  6. mattingly

    mattingly LawnSite Member
    Posts: 136

    Doug,<br>This is a more typical rate for bidding large contracts were you have to be competitive. The profit margin will vary from property to property. The profit will be set such that it is competitive with other bidders. On a small site obiviously the markup will be close to 100% to make it worth it. And yes this is net profit what I take home and it doesn't include labor. So with your figures above, you aren't including my labor per hour which is about 10.64. The beauty of my 35% is that it is fairly competitive with other bidders in town and this is what I can clear without setting foot on the property(aka..an employee is doing the work for me).<p>----------<br>Integrated Landscape Solutions<br>Lexington, KY
     
  7. thelawnguy

    thelawnguy LawnSite Silver Member
    Posts: 2,412

    I think its important to have a MINIMUM profit margin, not one thats cast in stone. <p>Every area has a going rate for mowing, as long as you can get the bid at or near the going rate and keep your profit margin at or above your minimum its a go. No sense in bidding at the market rate if it will leave your margin below your minimum.<p>I can underbid lawns in my area if need be and still be over my own m9inimum margin because either my own overhead is low, or the other operators in my area have a higher overhead which is usually the case, unless Im up against a lawn scrub, where it doesnt matter in a month or so Ill be able to re-bid.<p>Bill
     
  8. Toroguy

    Toroguy LawnSite Bronze Member
    Posts: 1,075

    I searched for the origin of "SCRUB". This is the thread I belive started it. On Feb 21, 2000 Bill "thelawnguy" used it for the first time? Thus creating a buzz word for the ages to enjoy and abuse.

    I dont know if "thelawnguy" would like to add a few comments, suggestions, on revolutionizing terminology in the green industry...

    It is possible another thread contains "scrub" on an earlier date and was brought back up thus throwing off my histories mysteries:)
     
  9. geogunn

    geogunn LawnSite Gold Member
    from TN
    Posts: 3,010

    toroguy--you might be right about the origin of "scrub" here on the forum.

    I do recall about a year and a half ago, however, that there was a song by jennifer lopez or christina aguilara (or somebody) that discussed the desirability of being with a "scrub". pretty funny, actually. "...hangin' out the side of his best friends ride..."

    dude shoudda rode up on a new ZTR! yeah! that's the ticket!

    GEO
     
  10. grassyfras

    grassyfras LawnSite Bronze Member
    Posts: 1,473

    The song was called "TLC- scrubs" It doesn't have anything to do with lawn mowing. But this is very intresting
     

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