what does your 2 man crew gross a year

Discussion in 'Lawn Mowing' started by jeff_0, Jun 12, 2003.

  1. jeff_0

    jeff_0 LawnSite Senior Member
    from md
    Messages: 401

    I've been in business for myself for 2 years now.. well this is my second year. And i hear that after 3 year that's when you really start making a profit.. i have 30 contract now and it's bring in about $1000 a week cutting grass. I wanted to know for those who have experised having a 2 man crew full time after 3 years what type of income is it bring in total gross... I was hopeing by my 4th year that i'd be grossing about 100k.
  2. First year I had full time mowing crews out I was just over the $100k gross and I was on it.

    I think I am avg. $4500 a week per a crew now just for mowing and we get atleast 32 cuts in a year.
  3. LawnMowerMan2003

    LawnMowerMan2003 LawnSite Senior Member
    Messages: 768

    100K gross sounds really good, but what I'm curious about is how much the net is, after expenses and taxes, if you don't mind sharing. I'm wondering how much I'll have to gross to take home $30-$40K a year.
  4. brucec32

    brucec32 LawnSite Platinum Member
    Messages: 4,403

    Whoooo Hooooo! Someone's been hitting the Budweiser tonight!
  5. smburgess

    smburgess LawnSite Senior Member
    Messages: 467

    It's a question that know one here can answer for you. It depends on YOUR overhead and YOUR profit margins. The crew here on Lawnsite run the whole gambit, from "man with mower" to regular landscape maintenance companies - all with very different overhead and profit margins.
  6. Brendan

    Brendan LawnSite Member
    Messages: 25

    Try using the one third rule. ie one third of the total turn over.

    1st third = operational wages third. If your are labouring or labour/ supervisor include the market value of this role that you are performing plus all the other operational employees.

    2nd third = office wages & all other expenses third. Includes worker comp./ superannuation/ other leave expenses/ machinery/ vehicle/ office/ insurance/ etc/ etc. If you are just supervising or managing then include the market value of this role in this section as well as all office & managers wages (employees who's work is not directly charged to the customer, ie non operational).

    Final third = should be the net profit third.

    Tax then is added to the total which should be the amount that you charge your customers.

    Service industries such as Accountants & Lawyers try to operate like this.

    It takes a good business manager to keep each third to 33.33%.

    My profit margin is well below 33%, but over the past 2 years I have managed to creeped it up a little each year. My goal is 30 to 35% profit in 2 years time.

    Here are a few things that I have learned as my business has grown:

    - Most employees don't work as hard as the owner.

    - 2 employees don't work twice as quick as 1 employee. They tend to work slower.

    - Most employees don't look after the equipment as well as you do. Nor are they as resourceful when it comes to break downs.

    - as the business grows so does the % of the 1st & 2nd thirds at the expense of the profit third. This happens because you change from being an operational employee (chargable) to office employee/ manager (non chargable) and because of the additional equipment which you need for all the additional employees.

    I hope this helps.

  7. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Messages: 8,745

    our first year I think that we only grossed around $52,000. But of course I was in the red that year as well.
  8. LawnMowerMan2003

    LawnMowerMan2003 LawnSite Senior Member
    Messages: 768

    Thanks. That sounds like a good place to start from. I'm a little confused about the taxes as well. I realize that most of your costs should be deducted, but shouldn't you take self-employment taxes and social security for youself into consideration as well? Last time I looked up the numbers I thought that added up to around 40%, although I could have been wrong.
  9. Brendan

    Brendan LawnSite Member
    Messages: 25


  10. LawnMowerMan2003

    LawnMowerMan2003 LawnSite Senior Member
    Messages: 768

    Thanks for the advice. I understand the basic principles, just not sure what to expect, making it difficult to set my goals. I may just have to figure it out as I go.

    Sorry, I didn't realize you were in Australia or I wouldn't have asked you about U.S. taxes.

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