Approximate % profit for commercial work

[Hermanator]

Hey guys, I need some help. What would you say is the average or a reasonable figure for % profit on commercial lawns. I know it will differ from area to area, but on average. This is minus all the equipment, labor, taxes and insurances of course. Our residential profit is about 45% and haven't done very much commercial, but need to have an idea for pricing.

 

[Mr Budget]

look at your signature for you answer

 

[Hermanator]

I am figuring no salary/labor cost for the owners. Just the labor for every one else. Thanx

 

[Flex-Deck]

I do mostly very large commercials (22 acre, 23 acre, 7 acre are three of them) My wife runs a 495 JD with a specialized deck, and I run a 595 with a specialized set up, and we basically gross $140-180 per hr. depending on the property. I figure $10 per hr per machine = $20 per hr. for depreciation, repairs, and fuel. Therefore we are in answer to your question doing $120-160per hr. to cover all the rest of the stuff involved. There is a lot of other stuff when you figure truck, trailer, insurance etc, but on the other hand there is a lot of hrs. in a week, and more in a month, and at the end of the year, there is a lot of money in the bank.

 

[Hermanator]

look at your signature for you answer

I am looking for the long term profits. When all equipment needs to be repurchased etc... We did so few commercials this year and it was our very first year in the business, it is hard to figure.