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Revenue per employee per season.

Discussion in 'Business Operations' started by JContracting, Apr 28, 2014.

  1. JContracting

    JContracting LawnSite Bronze Member
    Posts: 1,878

    This is mainly focused towards the companies up north & for the lawn & landscape season as snow is an entirely different game in terms of revenue produced from employees.
    What does each employees generate in revenue?
    For maintenance?
    Installs?
    With some rough numbers I've run, a 2 man maintenance crew should generate at least 110k in the 7 month lawn season, so at least 55k for each employee.
    Posted via Mobile Device
     
  2. JCLawn and more

    JCLawn and more LawnSite Fanatic
    from MI
    Posts: 5,204

    I know for me if I send one guy out I have to make 308 a day to turn a profit. If its 2 in one truck its lime $450. If they are working 40 hr weeks they have to average $40 per man hr through the day. I know for me its hard averaging that with 2 people in a truck. One guy per truck its a lot easier. Ya I am hoping for 60kish this summer from my solo employee.
    Posted via Mobile Device
     
  3. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    Not a good question.

    Mowing season will be about 23 weeks for me till gray area of October 1.

    That means if I sent out 2 guys, that's 80 hours of work a week

    At $60 hr that is $110,400. Now the next guy works 28 weeks, another guy 20 weeks. Then who charges $50 hr, and who charges $45 hr.

    Now your numbers indicate nothing because they do not indicate number of weeks, if the early and late weeks are full. If are they producing 80 man hours a week. Hourly billing rate.

    You need to focus on when sending out your two employees they are producing 80 hours of billable labor every week. That means you sell enough work and they do enough work and the income will then be there.
     
  4. snomaha

    snomaha LawnSite Senior Member
    from midwest
    Posts: 858

    General info from a benchmark report a few years back:

    1. Maintenance and install man hours - per man - per season = 1700 - 2000

    2. Maintenance comm and residential rev per man - per season = $40,000 - $65,000

    3. Residential installation(all types) rev per man - per season = $100,000 - $125,000

    4. Commercial installation(all types) rev per man - per season = $90,000 - $110,000


    Full time equivalent (FTE) is 2080 hours for year round employees. For our region, my seasonal guys are looking at 1500 - 1800 hours dependent on what division. We take all hours worked for the year divided by 2080 to get FTE. We then take total revenue per year and divide by FTE to get revenue per employee per year.
     
  5. JContracting

    JContracting LawnSite Bronze Member
    Posts: 1,878

    Looks like we're on the same page.


    That's what I was looking for, thanks. Were those numbers from L&L Mag's benchmark survey?
     
  6. JContracting

    JContracting LawnSite Bronze Member
    Posts: 1,878

    Breaking down the revenue per man hour based on the numbers shown:

    1. Maintenance and install man hours - per man - per season = 1700 - 2000

    2. Maintenance comm and residential rev per man - per season = $40,000 - $65,000 ---- $23.53 - $32.50

    3. Residential installation(all types) rev per man - per season = $100,000 - $125,000 ---- $58.82 - $62.50

    4. Commercial installation(all types) rev per man - per season = $90,000 - $110,000 ---- $52.94 - $55.00


    I know these are general numbers but I must say that $32.50/man hour for maintenance basically breaks even on direct costs with for 1 man on a mower. Granted the guys on trimmers & blowers are being paid a bit less and the operating costs are much less so you're able to recover more overhead on them but margins are tight!
     
  7. PLLandscape

    PLLandscape LawnSite Senior Member
    Posts: 911


    Is this combining maintenance and install?


    Here in NY lets say 7 months is about it for landscaping. So,

    28 weeks
    140 days (based on 5 per week)
    1120 hours (based on 40/wk)

    That's at 100% capacity of hours filled

    At 80% of capacity that's 896hrs



    Kelly's Landscaping can offer some really good insight on this in terms of numbers and what not. He's a northern guy too. We pm'd a few times and he offered some great insight on this type of topic..
     
  8. snomaha

    snomaha LawnSite Senior Member
    from midwest
    Posts: 858

    Installation and maintenance hours were given separate but were the same.

    The data is from one of Jim Huston's publications.
     
  9. JContracting

    JContracting LawnSite Bronze Member
    Posts: 1,878

    I'd assume the hours were separate from each other as Snomaha stated. Being as the employees are a part of different crews.
     
  10. PLLandscape

    PLLandscape LawnSite Senior Member
    Posts: 911

    I read the same article and saw the stats, just wanted to be clean on it. Based on my northerner schedule of normal days/hours worked and using the maintenance $$ per man at $40-65,000/man or $80-130,000 per 2 man crew you would need to be at

    $571 - $928 per day at 100% capacity

    or

    $714 - $1160 per day at 80% capacity
     

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