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How much is enough?

Discussion in 'Lawn Mowing' started by Mike Blevins, Dec 19, 2006.

  1. Mike Blevins

    Mike Blevins LawnSite Bronze Member
    Messages: 1,384

    Looks like after all expenses this year i am going to clear 2/3 of my income. Is this a good number or should i try to increase prices a little? just wondering how much should someone expect to make?
     
  2. ECS

    ECS LawnSite Bronze Member
    Messages: 1,733

    My business may be set up different than others, but my yearly expenses = roughly 30% also.
     
  3. crzymow

    crzymow LawnSite Senior Member
    from Pa
    Messages: 378

    Wish mine did. lol
     
  4. Flex-Deck

    Flex-Deck LawnSite Silver Member
    Messages: 2,845

    My total overhead (depreciation - ins. - maintainance - everything) was at the 30% level last year. We are expanding this year a bit, so I am expecting 25% overhead next year (A lot of the overhead stays constant ie. insurance and depreciation)
     
  5. T.E.

    T.E. LawnSite Senior Member
    Messages: 799

    It is probably my misunderstanding. If you are saying your profit margin is 2/3 of gross revenue, that's not a bad number.
     
  6. JimLewis

    JimLewis LawnSite Fanatic
    Messages: 6,854

    Well, answers can vary wildly on this question. If you are a Solo Op. and only do lawn care, then you're take is going to be a lot higher than someone who has 15 employees and does all phases of landscaping, hardscaping, snow plowing, etc.

    I'd say 2/3 sounds pretty high. If you can keep that much, that's great!

    Anyway, for what it's worth, our total revenues are right at $1mil this year and I'll keep about 1/10 of that before my personal tax write-offs. If there was a way I could keep 2/3 of that money, I'd be writing this from my private beachfront mansion in the Bahamas right now.

    It's not really the percentage that you get to keep that matters too much, anyway. To me, the total dollar figure that you get to keep is more important than what percentage it is. I'd rather keep 5% or 10% of a company that did $2mil in revenues than keep 65% of a company that did $85,000 in revenues.
     

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