What % is profit?

Discussion in 'Lawn Mowing' started by K.Carothers, Nov 28, 2004.

  1. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124

    I'm doing my projections for the 05' season and was looking for some input on net profit. After ALL expenses, is it safe to say that around 50% is net profit?
    Am I high/low? What are the seasoned LCO's %.
    Thanks :help:
     
  2. lawnkid

    lawnkid LawnSite Senior Member
    Posts: 935

    I try to get between 40-50-% profit after all expenses and taxes.
     
  3. TURF DOCTOR

    TURF DOCTOR LawnSite Silver Member
    Posts: 2,138

    probaly close 40 to 60 percent profitt,if no brake downs and a taste for new equipment.
     
  4. Mueller Landscape Inc

    Mueller Landscape Inc LawnSite Senior Member
    Posts: 489

    Are you taking into account your pay/salary?
     
  5. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    some people say 20 to 30%, while others say higher. Last year I was 26.18%, and this year I am at 69.89% right now.

    Although it is nice at almost 70%, its horrible for taxes. I would like to get it down to at least 65% before the end of the year
     
  6. Mueller Landscape Inc

    Mueller Landscape Inc LawnSite Senior Member
    Posts: 489

    You guys need to take into account what it would cost you to pay someone else for the actual work that you perform.
     
  7. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124

    50% net would be my net salary. Am I looking at this the wrong way?
    Thanks
     
  8. Mueller Landscape Inc

    Mueller Landscape Inc LawnSite Senior Member
    Posts: 489

    Yes, Profit is what is left over after all expenses including labor expenses. Your true profit would be what is left over after you paid someone else (in this case you) what the 'going rate" for labor and all associated expenses in your area is, as well as, all other expenses. I am over simplifying but I hope this makes sense.
     
  9. oldturf

    oldturf LawnSite Member
    Posts: 221

    Profits? That is what is left after all expenses and Uncle Sam.
    It is easy to say that you can make 50% when you work solo and do $40,000 a year gross for a net of $20,000 but that is probably doubtful.
    As you grow and your gross goes up and your need for emoloyees expands. Then you cope with paying for insurance
    "Health" holidays and vacation. You also have to have good crew leaders and foremen that you pay good wages to in order to keep them. You also have to work them the year around , If you are running a full blown business and can maintain around 25% then you are doing well. My personal desire is to hit a $1,000,000.00 gross
    with 20 employees within the next 10 years and hopefully net $250,000.00. Thats a measly 25% but then I can retire and turn it over to my kids.
     
  10. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    well, I just took out my taxes so far that I am going to have to pay in, and it will be 51.94% for me after taxes. And yes a solo operation
     

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