What is a fair profit margin

Discussion in 'Lawn Mowing' started by cod8825, Sep 18, 2007.

  1. cod8825

    cod8825 LawnSite Senior Member
    Messages: 501

    I have been working with my partner for two years and one thing we don't agree on is pricing. It is a small point of contention but nothing big. For you that are willing, both solo operators and those with workers on payroll like us. What in your mind is an expected profit margin for jobs like mowing, lawn applications, etc...

    I know that some jobs make more than others, but at the end of the year what do you believe that your margin should be to say I am ok with my pricing.

    I know that is a unique question and appreciate your thoughts.
  2. cpel2004

    cpel2004 LawnSite Bronze Member
    Messages: 1,415

    Your talking two different industries, I think 10 20 for mowing after you have paid yourself and overhead depending on the size. Using chemicals your looking at 30 to 45 gross profit, for applications.
  3. DuraCutter

    DuraCutter LawnSite Senior Member
    Messages: 806

    As much as your marketplace will bear.

    In other words, charge more until customers start rejecting your bids.

  4. T.E.

    T.E. LawnSite Senior Member
    Messages: 799

    For 2007 we are right at 44% and we are mostly a maintenance co.

    Later, Tony
  5. cod8825

    cod8825 LawnSite Senior Member
    Messages: 501

    I like your thought but the other comments are good as well.

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