A 10 percent profit margin for a landscape contracting company is dreadful, though. A 20 percent margin should be minimum otherwise you might as well be in maintainence instead. And the smaller the company, the higher the profit margin should be as you have less overhead and normally won't have invested in commercial property yet.
The unexpected cost's are the killer for me. The little things that cause a trip to get more supplies and eat up time. I plan jobs to the T and add extra time and It's profitable but some things you cannot plan for. We had a customer this week that had a gas line for a grill piped through PVC, thought it was irrigation and cut it to run a french drain through, lots of unexpected man hours to fix that.
Controlling labor costs and charging enough is key. That said, the best thing i ever did was get us to a position where we run with zero debt and operate late model trucks and equipment to avoid a lot of down time. It was a LONG disciplined road to get there but now when we need a truck, a tractor, a trailer, a Z mower, whatever.... we pay cash. Less stress and I have the comfort of knowing that Even if I just walked away and closed the business, I could sell the assets and have a good chunk of money. Not that I would do that.... I would sell it.
@@Aumanlandscape We absolutely used debt early on for trucks and equipment.... I had to because I started the business from zero with no up front capital. Always paid extra to get things paid off very quickly. Also didn't over buy or buy the flashiest equipment to compete with other landscapers at the gas station. I'd rather have a competition at the bank! Equipment just needs to be professional looking and sufficient to get the job done. If you buy new and maintain religiously it all clicks into place eventually.
Awesome video! Thanks for the shout-out!
We couldn't make it all happen without your expertise!
A 10 percent profit margin for a landscape contracting company is dreadful, though. A 20 percent margin should be minimum otherwise you might as well be in maintainence instead. And the smaller the company, the higher the profit margin should be as you have less overhead and normally won't have invested in commercial property yet.
Agreed.
Top notch video! Thanks for taking the time to make it.
Glad you enjoyed it!
I enjoyed this video thank you!
Great !
More wardrobe changes than a Taylor Swift concert
Hahaha. All for entertainment value
What brand of hat and model number is that?
The 1st hat
The unexpected cost's are the killer for me. The little things that cause a trip to get more supplies and eat up time. I plan jobs to the T and add extra time and It's profitable but some things you cannot plan for. We had a customer this week that had a gas line for a grill piped through PVC, thought it was irrigation and cut it to run a french drain through, lots of unexpected man hours to fix that.
Unfortunately you’re right but lesson learned for future projects on the gas line I bet!
Controlling labor costs and charging enough is key. That said, the best thing i ever did was get us to a position where we run with zero debt and operate late model trucks and equipment to avoid a lot of down time. It was a LONG disciplined road to get there but now when we need a truck, a tractor, a trailer, a Z mower, whatever.... we pay cash. Less stress and I have the comfort of knowing that Even if I just walked away and closed the business, I could sell the assets and have a good chunk of money. Not that I would do that.... I would sell it.
Very awesome and congrats for achieving that level! Did you start out using debt ?
@@Aumanlandscape We absolutely used debt early on for trucks and equipment.... I had to because I started the business from zero with no up front capital. Always paid extra to get things paid off very quickly. Also didn't over buy or buy the flashiest equipment to compete with other landscapers at the gas station. I'd rather have a competition at the bank! Equipment just needs to be professional looking and sufficient to get the job done. If you buy new and maintain religiously it all clicks into place eventually.