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How much to charge How much profit do you make?

Discussion in 'Business Operations' started by tsimmons0615, Aug 17, 2013.

  1. tsimmons0615

    tsimmons0615 LawnSite Member
    Messages: 16

    How Much do you charge for cutting a yard per hr.? Also im trying to break it down to see how much I should charge such as gas labor etc per hr. Im having trouble being competitive and wondering how much profit I should get a hr for the business or profit per yard My labor is 20 hr for two men I hired... How do you figure how much gas we are using? Im guess maybe 15 bucks per hr total? and wear and tear 5 per hr and insurance 4 per hr over head is 44 per hr ? Then I need to figure out how much profit I need to make to stay competitive! What do you think ?
  2. jsslawncare

    jsslawncare LawnSite Bronze Member
    Messages: 1,673

    I'm solo and and at $60 and hr. but I can look at a yard and tell how long it will take me to do everything. I roughly use about $3.00 of gas per hour and when gas is about $3. Per gallon it costs me .28 per mile to drive my truck.
  3. TTS

    TTS LawnSite Senior Member
    Messages: 615

    You have to decide your own profit margins based on your needs and what your market will bear. Do you have taxes and work comp figured into your labor rate? $20 for 2 guys sounds light. For the rest its hard to come up with a real good number off the bat but if you keep meticulous records over time you will get them pretty precise.

    This is a tough business with slim profit margins. Most industries a business wouldn't consider doing anything with less than a 50% margin but based on my research it seems 30-35% is a more realistic goal for most areas of landscaping. The more specialized the service the higher the profit margin

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