Whats a "normal" % profit? kind of a rant.

Discussion in 'General Industry Discussions' started by nobagger, May 25, 2007.

  1. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    I gave a quote for preping (rockhounding) and hydroseeding a 21k sqft lawn, front only. My price.....$2300.00. I get it ok'd and the next thing you know he's calling me back cancelling and going with another company that came in at $1500.00 AND adding top soil AND going around the sides and back of the house w/ rockhound and hydroseed adding another 5k sqft.;) ;) This guy is going to have 700+ bucks just in materials, plus the rockhound for at least 6-8hrs then manual labor. At that rate this guy cant even work for peanuts just the shells. But whats a normal profit mark-up on a job. I thought I was ok at around 25-30%.
     
  2. Grass Kickin

    Grass Kickin LawnSite Member
    Posts: 167

    When I figure out a job, I calculate my materials and employess labor then usually double it. I recently had a job where we rented a sod cutter, removed a bunch of sod and carted it off...to a friends house to be reused. The rental was 73.00 and it took two of my guys about 4 hours. Total cost about 200.00 I doubled it to 400.00 and thought it was very fair for the amount of work and time it took. I likely should have charged a little more. Unless I calculate wrong, that is 100% profit over cost.

    I hate to say do what you think is fair but it has gotten me along pretty well when a question like this pops up. You can't help being lowballed like that. You simply can't do the job for what the other guy did.
     
  3. Tn Lawn Man

    Tn Lawn Man LawnSite Senior Member
    Posts: 479

    There are two ways I calculate a job.

    1. If there are alot of materials such as shrubs, sod etc... to install I will usually multiply the retail price of the items by 2 to 2 1/2 times.

    2. If it is all labor then I estimate my labor rate per man hour.

    In the end I want to always make at least my labor rate per man hour for all work involved and that includes bidding, purchasing, transporting too.
     

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