Payroll Percentage

Discussion in 'Business Operations' started by grasshopperslawn, Jun 14, 2009.

  1. grasshopperslawn

    grasshopperslawn LawnSite Senior Member
    Messages: 293

    I have one crew bringing in between $3400.00 - $3600.00 working 4 days just cutting grass. (residential) I pay the crew of 3 guys 1200.00 a week total is this a good percentage.
  2. grasshopperslawn

    grasshopperslawn LawnSite Senior Member
    Messages: 293

    Last month's gross was $14,900.00 and my payroll was $5500.00
  3. MowHouston

    MowHouston LawnSite Bronze Member
    Messages: 1,012

    I always felt that 30% was a good number when it comes to that subject.

    Look's like you're hovering around 35%. But I mean, if you're comfortable with your profit, then I guess you're fine.

    I don't have anyone working for me now, but last year, when my girlfriend's brother would work with me, I always cut him 30% of the revenue, rather than by the hour.

    Not sure if any of that helps you out. I think you're doing pretty good either way.
  4. grasshopperslawn

    grasshopperslawn LawnSite Senior Member
    Messages: 293

    Now I am at 39 percent to me its not good I need to get it down to 30 percent.
  5. jada86

    jada86 LawnSite Member
    Messages: 124

    30% is average. But more importantly, look at your profit. If you are making what you want to, that's what is important as long as your labor stays consistent as well!
  6. deckfurniture

    deckfurniture LawnSite Member
    Messages: 1

    I am running at just about 28% gross payroll (including taxes)...
    but its about the equipment IMO, if you are running 40% payroll with cheap equipment that is going to do just fine
  7. Mueller Landscape Inc

    Mueller Landscape Inc LawnSite Senior Member
    Messages: 489

    23.5% is what our payroll runs not including workcomp.

    CLARK LAWN LawnSite Silver Member
    Messages: 2,526

    how many hours a week are they working? if they are working 40 a week you need to raise your rates as you are under 30 dollars per man hour. if they are not working 40 hours get rid of one of them, even with paying each of them a little more per week it will save you money in the long run

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