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profit margins

Discussion in 'Landscape Architecture and Design' started by NC_Irrigator, Mar 8, 2008.

  1. NC_Irrigator

    NC_Irrigator LawnSite Bronze Member
    from NC
    Messages: 1,445

    Anyone know certain profit margins that the larger landscape co's tend to stay in, Or Stick With?
    Companies such as valleycrest, brickman, & trugreen landcare

    Im talking large scale commercial landscape/irrigation installation projects. Not maintenance.
    Any help/thoughts appreciated..
  2. EagleLandscape

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

    we have a 99% profit margin.
  3. NC_Irrigator

    NC_Irrigator LawnSite Bronze Member
    from NC
    Messages: 1,445

    bumping this back up to the top.....

    any one else?
  4. mielnicki

    mielnicki LawnSite Member
    Messages: 10

    There are many factors that go into profit margins [Labor / Operating Expenses / Taxes / Materials etc.] Each company is going to be different.:usflag:
  5. bullethead

    bullethead LawnSite Senior Member
    from Texas
    Messages: 273

    There are some benchmarks in one of the 5 billion landscape mags that I get every week. Their net profit margins on maintenance are pretty tight, 8% or so, if I remember correctly. I'll see if I can find them.
  6. JNyz

    JNyz LawnSite Bronze Member
    Messages: 1,087

    I do some sub contracting for a 12 million/yr company and they are very happy with a 10% profit. They are not doing the kind of numbers brickman and tru green are doing but they compete with them everyday. If I was working on a 10% profit I wouldn't be typing on a laptop at this moment.
  7. YardPro

    YardPro LawnSite Gold Member
    Messages: 3,570

    We do about $1.2mMIL/year and are getting about 10% as well....


    i'll bet you are not making as much of a % as you think...

    Remember that net profit is AFTER EVERY EXPENSE INCLUDING YOUR SALARY.....

    if you do $500K/year and pay yourself $75K, then at the end of the year at a 10% NET, YOU WOULD HAVE $50k IN THE BANK...... YOU STILL THINK THAT 10% IS LOW????????
  8. JNyz

    JNyz LawnSite Bronze Member
    Messages: 1,087

    I agree with what you are saying. I was thinking a little differently but you are correct.
  9. YardPro

    YardPro LawnSite Gold Member
    Messages: 3,570

    hope is did not offend you... i was not trying to be a jerk.

    many years ago i did not understand the economics of scale....
    i looked at my business (i was a sole proprietor DBA doing about $100K/year) and thought that since i made $40K i made a 40% profit........
    i had a home office and a two old work trucks.

    I was actually making a 0%profit...... my salary are up all the left over money. if i would have to go out and buy a new truck i would have to pay for it... the business could not.

    That means that that next year i would only make $34K (assuming a $500.00/month truck payment.)...

    with a real business plan, the business pays all these expenses, and you make your salary no matter what..... at the end of the year you hopefully have money left. This money is profit. this can then either be reinvested in the business or takes as a pay bonus.....
  10. cindosa

    cindosa LawnSite Member
    Messages: 2

    10% to 18% is a good guide it depends on what type of contracts you have on how much you can expect. This past week we have had to figure out all the numbers for a huge project. It can be complex to say the least. It is a good time to get it all straight dont wait untill the end of the year to figure out if you are going to turn a good profit. "Owner" isnt just for the monthly pay its for the big money that can be made. After this week I have changed some prices on private yards for new quotes and have had no problem getting new customers. Dont sell yourself short! The big landscape/maintenence projects are the ones Commercial/Industrial that you can go min 12% and get the job. It is not worth your time and energy to give your great services away. All the best.Thank You for posting this topic its a good one!

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