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profit on employees and unexpected cost

Discussion in 'Business Operations' started by grassmasterswilson, Nov 19, 2012.

  1. grassmasterswilson

    grassmasterswilson LawnSite Platinum Member
    from nc
    Messages: 4,920

    I'm sitting down and evaluating my cost of doing business per hour in preparation for the 2013 season. I know most of my figures but have a few questions for you guys. My cost may be a little high for my area, but that may be because of the way I'm figuring my numbers.

    1. employees- right now it is me plus 1 guy. Hopefully 2 guys next year and if things go well they can mow while I do applications. I consider myself an employee in my numbers. Do you add any profit to your labor hours? I add profit for manual labor hours but wondering about in mowing cost. Do you figure your labor at cost and just take the profit for your pocket? I try to shoot for 40% profit on residential and 25% on commercial.

    2. What about unexpected costs? Anyone add a small percentage to the total for that? Maybe gas goes up or insureance? I was thinking of adding an extra 5% or so for that sort of stuff.

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