• PPP The Second Time Around
    The Emergency Coronavirus Relief Act of 2020 passed in December contained $284 billion for the renewed Paycheck Protection Program (PPP). Click here to read the article.

Is 25% a good number for cost of goods for the year

fert40

LawnSite Member
Location
goshen, in
I am in my 7th year of fertilizer business. Still trying to get a good assessment of what is a decent % to be spending on cost of goods. We are at apprx. 25%. Thanks for any help!
 

Landscape25

LawnSite Member
Location
Florida
I have a fert. est., it will be roughly 25%. I haven't finalized it yet. The labor is what costs for fert.. I am thinking of charging 4 hundred and some for 4 palm apps and 3 bed apps per year. The fert will cost roughly 105.00. I should ask you do you think that sounds right.
I don't do much fert. but I don't think that number is happening for plants, unfortunately.
 

grassguy_

LawnSite Senior Member
Location
Ohio
your margins on COG being near 25 % isnt too bad, it really comes down to the type of products your buying. I've seems some guys operating on a 15% margin for COG while even others at or near 40%. It comes down to the quality of program you want to deliver and what your other variable costs are (labor, gas, etc). adjust accordingly in your pricing structure to maintain the COG margin you feel you are comfortable with.
 

Green Dreams

LawnSite Senior Member
Location
Texas
I agree...if it says "1 to 5 ounces per K" rest assured I am going at the 5 while the megalawncos are doing it at 1.

Proofs in the pudding folks.
 

ThreeWide

LawnSite Bronze Member
Location
Georgia Z7
Sounds in line with my numbers.

Just counting the actual planned fert and pre-emergent products for the year, I'm around 20%. That does not include the materials needed for spot sprays and unplanned weed control apps. Adding that in that bumps it up to 25%.

If I were over 30%, it would be a problem.
 

TurfProSTL

LawnSite Senior Member
Location
The 19th hole
25% is where I try to be for residential.

Sometimes, for larger commercial jobs, 35 or even 40% might be do-able if you have the equipment to decrease your labor expenses.....
 
Top