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Profit margin percentage on larger jobs

Discussion in 'Landscape Architecture and Design' started by silentbob, Mar 30, 2008.

  1. silentbob

    silentbob LawnSite Member
    from NJ
    Messages: 27

    Just wondering what everyone tries to calculate for a typical profit percentage on a large job. Say something like a $20,000 install including mulch, plants, labor, etc. If the total charge to the customer was $20k, what type of percentage would you/should you expect to make?

    From what I've heard from other LCO's, typically 25% or so is the norm. So, on a $20k job, you would profit around $5k.

    Does that sound right?
     
  2. silentbob

    silentbob LawnSite Member
    from NJ
    Messages: 27

    :confused:Are you kidding me? 40 views and not one person has a response?

    I'm not asking for hard numbers, just what everyone thinks is about average (percentage-wise) to try to make on a med-large job...
     
  3. h400exinfl

    h400exinfl LawnSite Member
    from Florida
    Messages: 106

    I'm only doing small jobs (under 3k) but it seems the margins are more like 40 - 60 percent. Yes I have a license and insurance.
     
  4. EagleLandscape

    EagleLandscape LawnSite Platinum Member
    Male, from Garland, Texas
    Messages: 4,350

    Yah, I typically shoot for 40% - 60% depending on numerous factors. But i have a real control on my costs and overhead, and we work extremely efficient.
     
  5. AGLA

    AGLA LawnSite Bronze Member
    Messages: 1,776

    In that case, you are all making $60k per year when you gross $100k. I'm not buying that.
     
  6. EagleLandscape

    EagleLandscape LawnSite Platinum Member
    Male, from Garland, Texas
    Messages: 4,350

    You talking to me?
     
  7. h400exinfl

    h400exinfl LawnSite Member
    from Florida
    Messages: 106

    We do a lot of maintenance and those margins are much skinnier so it's hard to tell. I'd bet that if I had the business to do one 2 grand job a week all year long, I could stuff away 40 - 60 percent. Maybe I'm way out of wack, but it doesn't seem so crazy to me.
     
  8. ferdinand711

    ferdinand711 LawnSite Member
    Messages: 137

    I'm hitting around 25%-35% in my Landscaping projects.
     
  9. Superior L & L

    Superior L & L LawnSite Senior Member
    Messages: 567

    i hope we are not talking net profit---if you are ive been pricing way to low for the past 12 years
     
  10. NC Greenscaper

    NC Greenscaper LawnSite Senior Member
    Messages: 446

    Silent,

    I calculate my material cost and mark up a minimum of 30%. However, I try to mark up plant material at least 50% for replacement, etc. I estimate my labor cost and mark up 30% also. However, these are currently under review and may be increased soon.
     

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