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Profit Margin from grass?

Discussion in 'Lawn Mowing' started by rclay11541, Apr 24, 2005.

  1. rclay11541

    rclay11541 LawnSite Member
    Messages: 100

    Hey guys trying to figure some things out here. What is your profit margin in a % on the dollar? What size lawns are you cutting and how many? THanks Ryan
  2. Likestomow

    Likestomow LawnSite Senior Member
    Messages: 997


    DUSTYCEDAR LawnSite Fanatic
    from PA
    Messages: 5,134

    u would be lucky to get 15% depending on your overhead
  4. MacPhersonlawn

    MacPhersonlawn LawnSite Member
    Messages: 170

    Trying to get to 30%. Not there yet.
  5. ProLawns

    ProLawns LawnSite Senior Member
    Messages: 476

    What?? 15% of $35 is $5.25 So if it takes you 30 minutes to do a $35 yard you only make $5.25??
  6. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Messages: 10,178

    60-70%. working on 75
  7. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Messages: 4,891

    5% Or Under
  8. YardPro

    YardPro LawnSite Gold Member
    Messages: 3,570

    he just says that becuase he does not understand what profit for a business actually is.
    Unfortunately a lot of other members here don't as well.

    profit is what is left after EVERY expense is paid EVEN YOUR PAY.......

    your business has to make a profit if IT is going to pay for the operations of your company. it should not come out of your salary.....

    also try and get a loan for YOUR BUSINESS ( not a personal loan) without it SHOWING a profit... good luck...

    you should not have your business finances comingled with your personal finances, It can cuase a lot of trouble it there is ever a problem, like a suit or a defualt on a loan...

    Most businesses that pay workmans comp, are insured, have office expenses, etc.. operate on 20% or less. The vast majority are 10% or below.

    this means that a business that grosses $500K/year will have $50K in the bank at the end of the year AFTER all payroll etc.........

    smaller businesses CAN be more profitable, but you are dealing with smaller numbers ..
    ie.. a business that grosses $50K and has a 20% margin will have 10K in the bank at the end of the year.
  9. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Messages: 10,178

    i am a sole proprieter, I AM THE BUSINESS. there are not 2 different parties-xyz lawn, and bobby g. we are one in the same. what would be the point in taking a smaller paycheck, just so i could leave more money in the business, so it shows a better profit? if this were an advantage, then i'd leave 90% of the money in the business account, and draw a tiny paycheck every week. what could i possibly benefit from doing that? 75%, thank you
  10. landcare pa

    landcare pa LawnSite Member
    from pa
    Messages: 51

    Booby with 8000 post i cant see that you do much other than post alot ,how many lawns do you cut. also if i cut 5 lawns by myself i could operate at 70% i think 15-25 % is the norm 70% is in bobby land.

    thats him cutting 5 lawns a week after his 10 hr shift on lawn site. at 20 bucks a pop

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