When we figure jobs it is based on 30-$35 an hour. These figures arn't discussed with the customer. We also add in for paperwork and agrevation(if necessary). When the jobs are done we usually average a WHOLE lot better because of equipment and the workers.
YOU KNOW IN THINKING ABOUT NEGATIVE COMMENTS, I WONDER IF YOU REALLY CAN COMPARE ONE OPERATION AGAINST ANOTHER. EVEN THOUGH I GET ANGRY ABOUT OUR BUSINESS I AM ALWAYS THINKING TO THE FUTURE. TODAY I HAVE A BUSINESS THAT I CAN SELL IF THE OPPORTUNITY IS THERE. I KNOW THAT WHEN I WAS A SOLE OPERATOR I MADE $ 60,000. A YEAR. THATS NICE BUT THERE IS NO EQUITY IN THAT. HARD TO SELL ACCOUNTS WHEN THERE IS NO CONTRACTS. HOPE THINGS LOOK UP FOR US . LOOKED AT A CITY CONTRACT TODAY THAT WOULD PAY $ 10,000.00 A MONTH. WOULD MOVE US TO $ 40,000.00 A MONTH IN MAINT. WOULD SUCK IF IT WASN'T RENEWED. THANKS FOR MAKING ME FEEL LIKE I'M SPINNING MY WHEELS. I STILL CUT GRASS EVERY DAY LIKE EVERY ONE ELSE. JUST A WHOLE LOT OF IT. GREEN SIDE UP!
Bret, hard to sell a business that is barely profitable. Only way to sell it would be to break it apart. To be completely honest, I probably would think twice at buying any business with a 7% profit margin.<p>Don't forget that your equipment isn't an expense...only the depreciation is. Add in all your equipment's depreciation and you might actually find you are <B>LOSING</B> money. Careful.<p><br>
I too am in MN,and i do not tell my custumers what i charge,i bid all jobs except clean up before i do the work..most all jobs i do i get over 50.00 a hour and for clean ups i charge 60.00 a hour.i dont tell the customer what my hourly is but when im done i figure my man hours and charge 60.00 a hour,never had a complaint yet.but when you do your clean ups with walkers and greatdanes its alot faster than some guy with his 36in...so he might charge 30a hour but we are done in half the time,<p>scottlawns
Bret, <p>How can you include new purchases and equipment in your monthly operating expenses?? Have you heard of capital purchases and depriciation?? Do you lease or finance your equipment ?? How will you replace it ?? I would suggest you retain the services of a good accountant ??<p>I alluded to this fact in an earlier post.. Are you making more money than if you sold every piece of equipment you have (everything) and took that money and invested it conservative, would you be better off?? <p>Hell, cd's are paying 6.8% at one of ouor local financial branches. We are doing about 49K a month in maintenance, and theres no way in hell the owner would let me spend that kind of CASH on purchases of capital items every month.
Toddppm:<br>I am out there everyday with 2 crews running as hard as we can go and if I see something slow down then I tell one crew to pack up and get to the next job while I take care of whatever is left. I have 3-4 employees depending on who shows up that week.<p>Here is another thing about my operation: I don't have my employees weedeat that much. Why? Because they suck at it. Show me an employee somewhere over yonder with a weedeater in his hand and I'll show you money down the toilet. The only time employees weedeat is when they do it right next to me and they better be able to jog and do it. And they do because they want to keep up with the boss.<br>What if your mowing crew never had to trim or blow, how many accounts could they do in a day? Keep the mowers running and you've got revenue coming in. Shut them off and the money stops, end of story.<br>Trimming and blowing is work but I'm the best paid weedeater you will ever see. I'm 32 and I can run 50 yards in 5.8 seconds and I'm not about to let some slowpoke dictate the growth of my company. Anyone can ride a mower fast, so that's where I keep them.<br>I am in the business of speed as much as lawncare. When an employee starts with us I tell them how to be fast first then work on quality. Why? Because if their work sucks I can go back over it quicker than I can explain it to them, when we get back in the truck there is plenty of time for that. <br>It works for me.
I have seen some employees put put slowly along riding on a mower too. They also tend to leave alot weedeating space. Also better to use them on safe properties where they can't hit or run over something. I had a john deere at one point. Warned the employee that the pins came out of the deck wheels sometimes and to look at them every once and awhile. Well the whole bar and wheel came off when he got caught up in a bush. he cut for the longest without it and then came back around and ran over it lol. Well it wasnt funny when I had to drive an hour and get another one. Employees can screw up mowing too.