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.
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!
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.
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.
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%.