I have recently started and the way my figures come out I can apply a 35% profit margin on my mowing accounts and be competitive with other companies. Now I haven't put this in to effect yet but this is the margin I am looking at applying.<p>----------<br>Integrated Landscape Solutions<br>Lexington, KY
Boy I hope your talking about realized (NET)profit and not gross sales profit. This is even low eather way in my standards. Because if your only wanting 35% it would look something as follows<p>$30 for a typical lawn<br>2 lawns per hour if you are fast<br>10 hour day (no family time 0)<br>5 days per week (rain & weekends)<p>30x2x10x5x.35=$1,050 for a week<p>x 26 or so weeks= $27,300 to spread out for the entire year
Doug,<br>This is a more typical rate for bidding large contracts were you have to be competitive. The profit margin will vary from property to property. The profit will be set such that it is competitive with other bidders. On a small site obiviously the markup will be close to 100% to make it worth it. And yes this is net profit what I take home and it doesn't include labor. So with your figures above, you aren't including my labor per hour which is about 10.64. The beauty of my 35% is that it is fairly competitive with other bidders in town and this is what I can clear without setting foot on the property(aka..an employee is doing the work for me).<p>----------<br>Integrated Landscape Solutions<br>Lexington, KY
I think its important to have a MINIMUM profit margin, not one thats cast in stone. <p>Every area has a going rate for mowing, as long as you can get the bid at or near the going rate and keep your profit margin at or above your minimum its a go. No sense in bidding at the market rate if it will leave your margin below your minimum.<p>I can underbid lawns in my area if need be and still be over my own m9inimum margin because either my own overhead is low, or the other operators in my area have a higher overhead which is usually the case, unless Im up against a lawn scrub, where it doesnt matter in a month or so Ill be able to re-bid.<p>Bill
toroguy--you might be right about the origin of "scrub" here on the forum.
I do recall about a year and a half ago, however, that there was a song by jennifer lopez or christina aguilara (or somebody) that discussed the desirability of being with a "scrub". pretty funny, actually. "...hangin' out the side of his best friends ride..."
dude shoudda rode up on a new ZTR! yeah! that's the ticket!