Not Another Blind "how Much" Question!!!

Discussion in 'Landscape Architecture and Design' started by SOUTHERNGREENSCAPES, Mar 19, 2006.


    SOUTHERNGREENSCAPES LawnSite Senior Member
    Messages: 763

    Hey Guys. I Promise To Make This Worth The Discussion.

    I Am A Newbie In The Landscape Installation Arena. I Currently Mow And Blow A Few Lawns To Keep Money Coming In, But Put Most Of My Concentration On Landscaping.

    I Know That Everyone Gets On Here And Says..."how Much Would You Charge To Do...." Well, I Am Not Asking That Question.

    What I Am Asking Is What Do You Consider An Acceptable Profit. I Have Worked Up An Excel Spreadsheet To Help Me Factor My Cost And Even A Little Extra For Future Equipment Purchases. These Expenses Also Cover The Salary That I Pay Myself. I Have Done This And Figured Out What I Have To Charge Per Hour To Cover Those Expenses. What I Would Like To Know Is What Does Everyone Consider An Acceptable Profit Per Hour Over Your Cost. I Want To Enter The Market Competitively, But I Don't Want To Take Advantage Of My Customers. Any Incite That You Have Would Be Much Appreciated. Especially You Nc, Sc, Ga Companies.
  2. Insometry

    Insometry LawnSite Member
    from Kansas
    Messages: 43

    You willing to share the spreadsheet so I can plug in my numbers and give you the answer? ;)
  3. YardPro

    YardPro LawnSite Gold Member
    Messages: 3,570

    most companies fall between 10 and 20%
  4. AGLA

    AGLA LawnSite Bronze Member
    Messages: 1,778

    Acceptable profit is as much as you can get.

    Your ability to get jobs is going to limit you at one end. If you are charging to much for what you do and for your reputation you'll be making a high percentage on nothing. Some 'scapers have reputations and impressive portfolios that allow them to charge way more than the average, but enough people value them enough to pay it.

    At the other end, your ability to limit the cost to produce the work is going to be a key component in what percentage of your price will wind up as profit. If ten landscapers do the same job with the same price and same result, each will make a different amount of profit based on their overhead costs and efficiency.

    Some guys blow up their overhead costs by spending too much on equipment that is under utilized. Others blow their efficiency by not having adequate equipment or under trained staff working.

    In other words good work allows you to charge more and good management allows you to keep more. You can't decide the profit margin, you can only work at building it.

    SOUTHERNGREENSCAPES LawnSite Senior Member
    Messages: 763

    Once I Finish Tweaking The Spreadsheet. I May Consider Sharing It For A Small Fee. For My Time And All.

    Thanks For The Replies. I Know You Can Charge What Ever You Want, I Just Want To Be Fair. What I Have Been Quoting Here Lately Is About $20/hr. Profit (which Is In The Spreadsheet Too) And It Seems To Be Going Pritty Good. But I Change That Around Dependant On The Size Of The Job.

    Thanks Again Guys
  6. AGLA

    AGLA LawnSite Bronze Member
    Messages: 1,778

    Well, $20 per hour times 40 hours times 52 weeks is going to gross your income at $41,600. But you know that you are not going to bill 40 hour every week throughout the year and $40k does not get you far in very many places.
  7. drsogr

    drsogr LawnSite Bronze Member
    Messages: 1,275

    LOL...thats hilarious. You come here and ask peoples opinion....then you want to charge people to help you? If you know what your costs are, then how come you don't know how much you want to make?

    Not everyone can charge the same amount. People have different overhead, have different skill levels....have different levels of customer service. Go out and make a few bids at what you think is a reasonable rate, and see where you land. If you are too will be told. If you are too cheap, the customer will let you know how great you are. If you are in the right range you will hear "You came in a little higher than the other bids, but it was well worth it. I knew you would do a great job."

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