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labor cost %

Discussion in 'Business Operations' started by cwjordan, Feb 14, 2004.

  1. cwjordan

    cwjordan LawnSite Member
    Messages: 22

    whats you labor cost %?
    and how long does it take per yard?(average time)

    my labor is out of wack and i would like to know what to shoot for. i have some ideas and would like to know what the rest of the industry is doing.

    i thought that 85 or 90 man mins. per residential yard for and average is what i should be doing

    i also thought maybe to have a labor cost of about 30-40% wouldnt be bad either

    let me know

  2. kels

    kels LawnSite Senior Member
    Messages: 280

    how many laborers?
  3. cwjordan

    cwjordan LawnSite Member
    Messages: 22

    7 laborers and 2 crew leaders

    i have a crew of 6 do to the mowing and a crew of 3 to do side jobs
  4. SodKing

    SodKing LawnSite Bronze Member
    Messages: 1,641

    What size yard, equipment, etc..more info..
  5. cwjordan

    cwjordan LawnSite Member
    Messages: 22

    i just looking for an avg we have 200 yards that are just typical residential yards....
  6. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Messages: 4,687

    Crew size could be your problem I don’t think there is any one size that works in all environments. I have run 2 men 3 men and 4 men crews never a 6 other then when I am doing fall or spring clean ups or some other landscaping project. Why I loved the 3-man set up when I tried it on my own this year it was totally unprofitable and I switched to a 2-man crew for most of the days.

    I can see me doing 3 man crews again this year but I will retain 2 man crews on at least 1 or 2 of the lawn crews when the drive time is low to none or the job is very large like condos the size of the crew can begin to grow and I can see a 6 man crew on something like a condo or large commercial. As you do more res then the crews get smaller 3-4 man crews seem to be ok on them provided they all have something to do we liked 2 men mowing 1 man trimming and blowing off the 4 man crew never was to efficient on res so we didn’t keep it long. When you get drive time or the lawns get smaller the 2 man crew became the way to go for us 2 of us can do 600 dollars in day where 3 on that same list struggled to see 700-750 so it barely covered the 3rd guy.

    So you need to tailor the crew size to the lawn size and location and you may need to break that up to 2 or 3 crews and the over all production may go up the next issue you have to weigh is the added truck cost with insurance but if you already own the trucks then that is mute since you already pay for the insurance and gas is not an issue since you would hardly use more gas at all since you had to drive to them all any way what difference does it make which truck burns the gas.
  7. cwjordan

    cwjordan LawnSite Member
    Messages: 22

    these six guys are pulling in 1200 a day avg.we cluster our schedule to have 4,5,6 yards at each stop not to many times is all 6 guys on a yard....yes there are those times but not to often we have 197 yards on the list and I cant see 2 or 3 men doing it all...but maybe we would have to split the crew up but that means another truck with more costs........ i just know where the balance is.
  8. Soupy

    Soupy LawnSite Gold Member
    Messages: 3,125

    I think starting another crew and go with 2 men would be your best bet. At least with another truck etc, you will have assets to show for the money. Once you spend money on labor, it is gone.

    Our average lots are around 7000 turf. 2 man can get it done in 15 minutes.
  9. cwjordan

    cwjordan LawnSite Member
    Messages: 22

    we'll see what happens im going to do some test runs this spring before the season starts and find the best set up..
  10. Mac V2.0

    Mac V2.0 LawnSite Member
    from Mid OH
    Messages: 92

    you are happy with only making approx $25/ man hour?

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