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Anyone grossing over a $500,000 ?

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Landscraper1

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Discussion starter · #1 ·
I am curious. I have not been a member here for very long. In these few month's I have noticed that most members have very small companies, if they are a company at all. Most seem to be one man operations. Are there any landscapers out there making over $500,000? If so can you post some info about yourself and your company? Such as:

When and how you started the business?
What you gross in a year?
How many employees?
What trucks and equipment you use?
How's your profit margin in these tough times?

You don't have to put down your business name. I am just curious to see the response as, I am sure you would be as well. Thanks:)
 
#2 ·
Landscraper1 said:
I am curious. I have not been a member here for very long. In these few month's I have noticed that most members have very small companies, if they are a company at all. Most seem to be one man operations. Are there any landscapers out there making over $500,000? If so can you post some info about yourself and your company? Such as:

When and how you started the business?
What you gross in a year?
How many employees?
What trucks and equipment you use?
How's your profit margin in these tough times?

You don't have to put down your business name. I am just curious to see the response as, I am sure you would be as well. Thanks:)
Click to expand...
Making that much is certainly not out of the question. I personally wouldn't want to be in that tax bracket.
 
#6 ·
I did $300k last year gross.

Me, 2 full time guys, my wife (2 days / week) and my 76 year old father (1.5 days / week).

3 trucks, (2 2006 Dodge 2500, 1 2007 Dodge 3500).

This included lawn work, minimal landscaping, irrigation, snowplowing and firewood sales.

The firewood sales was about $35k, snowplowing was about $55k, irrigation was about $5k (just maintenance, no system installs) and the rest in lawn maintenance.

Been in business for 21 years this year and have moved out of residential mowing into small to mid sized commercial mowing and larger institutional mowing (schools, cities, parks systems).

The margins are not that great, but if you're set up for it, you can do somewhat okay.

Personally, I'd rather go back to working solo, doing 25-30 small commercial accounts that allow me to do all of the work.

This was where my profit margin was by far the largest. This year it'll be in the 10% range, mostly because I have a heavy heavy debt load I'm trying to work out from underneath.
 
#7 ·
mowerman22 - that is some great wisdom there. I have heard more than once on here that when you are at the point of maxing out your work vs. your time available as a solo, you are making your best margins right there. That is where I want to be within a couple years, and may not progress beyond that point for the reasons you stated.
 
Discussion starter · #9 ·
LwnmwrMan22 said:
I did $300k last year gross.

Me, 2 full time guys, my wife (2 days / week) and my 76 year old father (1.5 days / week).

3 trucks, (2 2006 Dodge 2500, 1 2007 Dodge 3500).

This included lawn work, minimal landscaping, irrigation, snowplowing and firewood sales.

The firewood sales was about $35k, snowplowing was about $55k, irrigation was about $5k (just maintenance, no system installs) and the rest in lawn maintenance.

Been in business for 21 years this year and have moved out of residential mowing into small to mid sized commercial mowing and larger institutional mowing (schools, cities, parks systems).

The margins are not that great, but if you're set up for it, you can do somewhat okay.

Personally, I'd rather go back to working solo, doing 25-30 small commercial accounts that allow me to do all of the work.

This was where my profit margin was by far the largest. This year it'll be in the 10% range, mostly because I have a heavy heavy debt load I'm trying to work out from underneath.
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I see that someone understood the questions, thanks.

I understand what you mean by the margins being better. When I was a smaller company, the margins were better also. But, with more gross you can still make more money with less margin.

Example:
Landscaper #1 Grosses $100K a year. Makes a 20% profit. That's $20K.
Landscaper #2 Grosses $500K a year. Makes a 10% profit. That's $50K.

If you can control your debt, I would say 10% is pretty good in this economy.:)
 
#10 ·
I certainly don't cuz I am 17 and part time. But I know a few guys who probably do. One guy I know has one mowing crew and probably does. He holds some really big snow contracts and has like 8 F350's and 2 dump trucks, 2 skids, a toolcat, and a bunch of sidewalk crews. I'm hoping to grow to a similar size when I go full time. Lawnmower man has a great point. I think the money is in small to mid size commercials. I want to specialize in these accts and look for ones with bigger lots. That way I can have only one mowing crew but run like 5-7 trucks for plowing. I would so much rather gross like 250k and keep half then gross 500k. I believe the common rule is the higher the gross, the lower the margins. Gross profit is insignificant for a lot of companies in my opinion. If you gross 300k in installs, I'm guessing you net more than someone who grosses 500k in just maintenance. Just some of my observations. Again, I don't know a whole lot just my opinions.
 
Discussion starter · #12 · (Edited)
Landscraper1 said:
I am curious. I have not been a member here for very long. In these few month's I have noticed that most members have very small companies, if they are a company at all. Most seem to be one man operations. Are there any landscapers out there making over $500,000? If so can you post some info about yourself and your company? Such as:

When and how you started the business?
What you gross in a year?
How many employees?
What trucks and equipment you use?
How's your profit margin in these tough times?

You don't have to put down your business name. I am just curious to see the response as, I am sure you would be as well. Thanks:)
Click to expand...
Just trying to get the ball rolling.
1- Started cutting lawns with my dad at the age of 10. Part-time business became a full time for my dad. Out of high school I had a share of the business and ran a crew. Soon after, I was running most of the construction and all the laborers. I now have owned the business myself for many years.
2- 1st year on my own I grossed $700K. In 2009 I grossed $1.3 Million.
3- Currently have 19 employees
4- Currently have-13 trucks(1 Toyota and 12 GM's) various sizes
- 9 trailers: various sizes
- A Finn Mulch Blower and a Finn Hydro seeder
- A Bobcat S185 and Bobcat 328 Mini-ex
- A 12" Vermeer Chipper
- A Coyote Backhoe
- A John Deere 1050 with backhoe
- Powerhouse Prodigy with many attachments
- 7 Hustlers Z's, 7 Wright Standers, 11 Encore Walkbehinds(all with Kaw's)
- 22 Shindaiwa Backpack Blowers
- 18 Shindaiwa grass trimmers
- 8 Husqvarna chainsaws
- 13 hedge trimmers, some Shindaiwa, most Tanaka
- Too many others to list
5- Profit margin for 2009 was about 15%, which was great. Do not expect that for this year. More competitive market and not such a great winter for plowing.:cry:

I am hoping that I am not the only one in this bracket.
 
#13 ·
I can't see myself grossing $500K in lawn care unless I went all out and got into hardscaping, fertilizers and such. Lawncare can only pay so much these days. Everyone's getting involved. I got a flyer in the mail last weekend, he had lawn aerating for $45, lawn cutting for $25 and some other services at rather reasonable prices, but he's not insured. I know, I phoned him. I couldn't rent an aerator and do my lawn for $45 here, so that in itself seemed like a good deal, but if that aerator manages to go out of control and buggers up my house foundation or something, who's to pay? I am, for going cheap.

Anyway, I gross 15K in a good year, and take about about 8-10K depending on my labour costs. I have a couple part time students that help out in the summer and I don't mind paying them for a half days work each, when it would take me 12hours to do on my own. It makes it more relaxing and enjoyable. Most of my equipment burns less than 1L of fuel an hour, and my most powerful is 6.5hp. So, expenses are low. Largest expenses are insurance ($1050/yr), WSIB ($200/yr), and taxes (18-22%), with vehicle fuel & maintenance in there as well. I keep track of mileage to keep things as separate from personal use as possible, this makes calculating fuel use easy, if I combine things into a half-a-buck a mile maintenance cost. My trailer costs me $100/yr (averaged out over the last ten years), between tires (on it's third set - always bought used!) and bearings (just replaced last fall).

I'm not in it at the moment to go all out full time, but I plan to pick up a bit more this year only so I don't have to turn down any potential clients this year.

Running full time year round (with plow) solo, you could push for $80K net profit after all expenses, but you'll WORK for it. Gross would be in the $150K range, plow truck maintenance can be a killer. A friend of mine had a hydraulic line blow out on him at a client at 2am, since he couldn't lift the plow he phoned for service and they charged him not only an after hours fee of $150/hr (min 1 hour), but $82 and change to fix the hose on the spot. With taxes he had nearly a $300 bill, just for that. His plow system was in its third operating season and he paid $7200 for it installed. Us Ontarioians get raped even at the worst of times.
 
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#14 ·
Landscraper1 said:
Just trying to get the ball rolling.
1- Started cutting lawns with my dad at the age of 10. Part-time business became a full time for my dad. Out of high school I had a share of the business and ran a crew. Soon after, I was running most of the construction and all the laborers. I now have owned the business myself for many years.
2- 1st year on my own I grossed $700K. In 2009 I grossed $1.3 Million.
3- Currently have 19 employees
4- Currently have-13 trucks(1 Toyota and 12 GM's) various sizes
- 9 trailers: various sizes
- A Finn Mulch Blower and a Finn Hydro seeder
- A Bobcat S185 and Bobcat 328 Mini-ex
- A 12" Vermeer Chipper
- A Coyote Backhoe
- A John Deere 1050 with backhoe
- Powerhouse Prodigy with many attachments
- 7 Hustlers Z's, 7 Wright Standers, 11 Encore Walkbehinds(all with Kaw's)
- 22 Shindaiwa Backpack Blowers
- 18 Shindaiwa grass trimmers
- 8 Husqvarna chainsaws
- 13 hedge trimmers, some Shindaiwa, most Tanaka
- Too many others to list
5- Profit margin for 2009 was about 15%, which was great. Do not expect that for this year. More competitive market and not such a great winter for plowing.:cry:

I am hoping that I am not the only one in this bracket.
Click to expand...
so you carry 2 shindy backpacks on most of the vehicles then right? 13 trucks 22 blowers. 19 employees means everyone can use a bp blower at once and have 3 as back ups. Wow!
 
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Discussion starter · #15 ·
BJWLAWNCARE said:
so you carry 2 shindy backpacks on most of the vehicles then right? 13 trucks 22 blowers. 19 employees means everyone can use a bp blower at once and have 3 as back ups. Wow!
Click to expand...
I have 4 cutting crews, each carries at least 3 blowers and 3 trimmers on the trailer. Have a pruning crew that carries 2 backpacks on an enclosed trailer. 1 on the construction trailer. and 7 stay in shop until needed or to replace one waiting to be repaired. Also have 2 hand blowers.
 
#16 ·
Landscraper1 said:
I have 4 cutting crews, each carries at least 3 blowers and 3 trimmers on the trailer. Have a pruning crew that carries 2 backpacks on an enclosed trailer. 1 on the construction trailer. and 7 stay in shop until needed or to replace one waiting to be repaired. Also have 2 hand blowers.
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Gotta love redundancy! I'd be the same way.
 
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#17 ·
Yes..........but not as an LCO. The key is profitability, not gross revenue. :)
 
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#18 ·
Landscraper1 said:
Do not expect that for this year. More competitive market and not such a great winter for plowing.:cry:
Click to expand...
If I had a plow truck, I'd charge monthly, no if ands or buts. If I had contracts this year, I would've made a killing as there was hardly any snow. The Mar15-Apr15 would be the best, as chances of snow are slim during this period. Apr15th lawn care starts, well in most areas. Grass is getting green already! Going to be a busy year for lawncare.
 
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#19 ·
Last year's gross was $28k. That includes 1 deck, 1 custom privacy fence @ 225 lin. ft, 1 small sod job and 15 lawns (15 each week from roughly 20 customers).

The difference is that I do it all myself.

I operate an OLD mower and purchase other tools a jobs demand and finance allows. I run NO CREDIT WITH ANYONE. Although I almost purchased a zero turn last month, after going over the books the demand was not high enough to justify the expense.

I operate at a 95% profit margin. Including insurance and material, it doesn't get much better than that. I encourage all the solo's to work the same way. That way, when foru customers on the same block go the the lowballer, you won't be worried about how the payments on the mower, much less the mortgage will get made!!!
 
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#20 ·
Hell on Blades said:
Last year's gross was $28k. That includes 1 deck, 1 custom privacy fence @ 225 lin. ft, 1 small sod job and 15 lawns (15 each week from roughly 20 customers).

The difference is that I do it all myself.

I operate an OLD mower and purchase other tools a jobs demand and finance allows. I run NO CREDIT WITH ANYONE. Although I almost purchased a zero turn last month, after going over the books the demand was not high enough to justify the expense.

I operate at a 95% profit margin. Including insurance and material, it doesn't get much better than that. I encourage all the solo's to work the same way. That way, when foru customers on the same block go the the lowballer, you won't be worried about how the payments on the mower, much less the mortgage will get made!!!
Click to expand...
Listen. Gas and insurance alone is more than 5%. You're saying you had no more than $1,400 in expenses last YEAR?

I have that in a week. I have PARTS that are more than that. Shoot, my employees both made more than that as a wage.

Plus, I don't think many here want to STRIVE to live at poverty level or below.
 
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