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profit range

Discussion in 'Business Operations' started by jsf343, Feb 22, 2007.

  1. jsf343

    jsf343 LawnSite Bronze Member
    Posts: 1,767

    come on experienced ones sound off!! In general when you give a bid or even on properties you already have I am curious what you shoot for your profit range. 10%? 20%? 30%?
    meaning after your costs are paid on a property what is the profit range you are looking to try and get and still be competitive? hopefully this question makes sense.
  2. ACutAbovesiny

    ACutAbovesiny LawnSite Senior Member
    Posts: 590

    Its not easy to give a clear cut answer to this. You always have to consider your market. If for example you get a call for a job that will take your crew 1 day (8 hours) and your expenses will be $1000.00 (only an example) but you know that other companies in your area have higher expenses therefore would cost them $2000.00, Should you charge $1000.00 plus 10%, 20%, or 30% even though the market asks for $2000.00? You really need to know your market first then go from there.

    I hope this makes sense.
  3. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    15 - 25% range, nothing less
  4. jsf343

    jsf343 LawnSite Bronze Member
    Posts: 1,767

    Rod, when you say that range are you talking that kind of profit after each mow, each month, or the full year? I am curious more for commercial properties then anything, but it does apply to all. By the way I had a hydro seal go bad on my groundsmaster, those puppies are not cheap to fix are they? :cry: you still have yours?

    thanks again,
  5. Tim Wright

    Tim Wright LawnSite Bronze Member
    Posts: 1,034

    I shoot for 30% after I get paid.

  6. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Jeff, it really doesn't matter...it can be for a month or for the full year...again remember, that is after ALL expenses are paid out in full. All salaries, utilities, depreciation, payroll taxes, truck payments, interest expense on a credit line, whatever.

    We still have our 3 big Groundsmasters. One is dedicated for fert and pulling an aerator while the other two mowing. I remember losing 2 hydros on those bad boys in the same week. Talk about losing your azz lol!

    Good to hear from ya.

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