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Mulch sales margins.

Discussion in 'Nurseries and Growers' started by SwihartServices, Oct 8, 2007.

  1. SwihartServices

    SwihartServices LawnSite Member
    Messages: 154

    I am looking at buying a mulch yard. I am still waiting to see their financials from last year.

    So, trying to outline a business plan and before knowing the exact numbers, what should I expect as far as margins go.
    Just the per yard$. Don't worry about fuel, marketing, lease ect.

    I want to know retail and whole sale margins and whats an average delivery charge. I don't know anything at this point, even where they get their mulch from.
    However, last year their mulch was trash (Literally it had trash in it) so I will be for sure getting a new supplier.

    Probably will market as "The best mulch in town." So, figures on some good triple shed would be awesome.

    And if you have any good ideas on marketing mulch, or think I'm an idiot for thinking about selling it, let us know. I need some criticisms.

  2. bj1bmx

    bj1bmx LawnSite Member
    from NJ
    Messages: 76

    i buy mine directly from the county MUA who sells to all of the garden centers in the area. if you buy 650+ yards (which you easily will as a supply yard) the price is like $10.50 per yard. 80-650 yds (my rate) is $13.50. and 1-80 yards is $20/yd. so basically, the cheapest you would want to sell a yard for is $20 to your customers. in my area (New Jersey), the garden centers sell mulch between $20 and $30 per yard and typically charge $35-45 for local delivery (w/in 5-10 miles). as the driving radius expands, the rate increases to $61 and then $87 unless it is a huge load in which case it is much more.

    just make sure you are getting a high quality mulch that customers will be happy with or this endeavor will be more of a hassle than a payoff. also sell topsoil, chips, stone, firewood, etc. to increase sales.

    good luck!
  3. SwihartServices

    SwihartServices LawnSite Member
    Messages: 154

    bj1bmx, Thanks a lot for your reply I really appreciate it. Lots of good info.

    One question, What is an MUA.
  4. cutbetterthanyou

    cutbetterthanyou LawnSite Bronze Member
    Messages: 1,178

    I have a question too, what are you talking about when you say
    "sell chips"
  5. Nicdv1

    Nicdv1 LawnSite Member
    Messages: 61

    salsa and chips!!!
    pine chips maybe?
  6. CNYScapes

    CNYScapes LawnSite Senior Member
    Messages: 916

    I will be opening my garden center this coming spring and will be charging the following

    mulch cost $16.50 yard

    wholesale price will be $21.50 yard

    Retail price will be $ 26.50 yard

    so that will be a $5.00 markup on wholesale and a $10.00 markup on retail
  7. ponyboy

    ponyboy LawnSite Bronze Member
    from ny
    Messages: 1,582

    i buy double hammer for 18 a yard w free delivery and root is 12 a yard the guy makes its himself its cool to see a millon dollar machine make mulch, helps he owns one of the biggest tree companies around see a little high at 16.50 a yard to buy. offer item 4, top soil, colored stones, river rounds gravel, sand just my thoughts good luck

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