profit/expense ratio?

Discussion in 'Pesticide & Herbicide Application' started by Bamafire1, Jun 1, 2007.

  1. Bamafire1

    Bamafire1 LawnSite Member
    Messages: 26


    I have been in the lawn service industry for serveral years. I am now in the process of getting licensed in TN for chemical applications. What percentage of your gross sales/income would you say went to expenses such as application products(fertilizer, herbicide), fuel, etc and what percentage would you say was profit? Also, I know this will probably vary tremendously, but on average, if, for example, you have an annual program for a property of seven applications that totals $500, what percentage of that would be for application products? I will be a solo operator so my percentages may differ from someone who has a larger business with employees, etc. I hope this is not too broad of a question, just trying to get an idea about profitability.

    Thanks for your help,
  2. ampeg76

    ampeg76 LawnSite Senior Member
    Messages: 297

    you have already answered a few questions for yourself, your cost per product/k and pricing is what will determine your income!

    i would urge you to concentrate on quality materials/work and price accordingly:)
  3. teeca

    teeca LawnSite Bronze Member
    Messages: 1,202

    good question, at least your asking, before being called a lowballer. i figure 3x's the material cost and $45hr labor or you can substitute the hourly rate and add a stop charge, like $25 for lawns under 20k and $35 for lawns 20k-43k. ** this is subject to change, depending on product and serviced **
  4. teeca

    teeca LawnSite Bronze Member
    Messages: 1,202

    also, my rate is figured on the most costly application (besides grub and fungicide) so i figure my pre-m app, then base the rest off from that. so if it cost me $2.56 per k, then i base the rest off from it. that covers me for a service call, or the spot spraying during the rest of the year. last app is all most pure money puting down 46-0-0 $$$ helps stay alive thru the winters
  5. The Ranger

    The Ranger LawnSite Member
    from NE Ohio
    Messages: 208

    Get a P&L statement every quarter which will help you put all your expenses into percentages. You can track your numbers from yr to yr and then you can forcast or budget from that. Although that might seem like a lot for a one man band it will help you determine where you're profit is the highest or is the return worth the risk.
  6. Bamafire1

    Bamafire1 LawnSite Member
    Messages: 26

    I appreciate it fellas. I have been on this board for two or three years now but have rarely posted. I have just been researching and learning. I think it is great how you guys with experience are willing to assist start-ups and some of which may even be your competition. Anyway, thanks again, I'm sure you'll be hearing much more from me during this transition into chemical apps.

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