darkstar
Rockclimber/ treeclimber
I was wondering what ratios guys that have several employees expect.
Gross, profit, wages,ratio.
- Thread starter darkstar
- Start date
- Replies 37
- Views 4K
M
Mr. Sir
Guest
Total cost of labor - 50%
Other Expenses - 40%
Profit - 10%
Other Expenses - 40%
Profit - 10%
M
Mr. Sir
Guest
Yes, I pay myself a salary plus commission on all sales. When I had a salesman, he worked on straight commission and my salary was a bit higher than it is now.
The profit is what's left after paying ALL of the expenses.
The profit is what's left after paying ALL of the expenses.
MasterBlaster
Administrator Emeritus
Not enough.
FJR
Treehouser
Actually that's a good profit margin.
M
Mr. Sir
Guest
In that case, it would look something like this:
Cost of labor - 35%
Other expenses - 40%
Profit - 25%
Cost of labor - 35%
Other expenses - 40%
Profit - 25%
darkstar
Rockclimber/ treeclimber
- Thread Starter Thread Starter
- #9
My labor cost was almost 50 percent.Well it was 170K on a gross of 398K
So am i paying to much?
All i do anymore is sale jobs ,400k worth in 2008.
I also fix stuff and burn junk wood.
I also provide work orders and do all the talking to customers.
And i collect all the money which is actually the hardest part of my job.
You know just some people get all the work done and then forget to mail the check
over and over ... I hate that .
I sold 62 k in the month of july sheewww, that was tuff.
We did only 10 k in jan and feb combined in 2008,,, but then it just started rolling.
I could go back to running the whole she- bang but then id be baby sitting tree men again .
My main guy does that and hes awesome .
Hes payed as a sub
and supplies two awesome climbers and two ground men.
Sometime three climbers and three or four ground men.
All climbing gear and saws. Insurance .I give him work order and its done , PERIOD no complants.He is the single best tree man i have ever met.
He climbs very well very safe and he can run a big crew on hard jobs.
His other climber is very good and the ground men are awesome, youll rarely hear any cussing , no late starts, no garbage.
What i got out of 2008 was i paid all my bills, i bought a nice BB 1890 a gehl loader and a great 2005 F 250 4 by4 and i kept only 25k.
Honestly i would have saved more but unlce sam always takes so much.
I like to buy good equipment and 1079 it.
What i gave was use of my trucks chipper and mini and of course a constant flow of incoming jobs.
My old crew fell apart in december of 07 and this guy appeared like majic and we hit it.
Now sha wam its a year later.
What do yall think?
So am i paying to much?
All i do anymore is sale jobs ,400k worth in 2008.
I also fix stuff and burn junk wood.
I also provide work orders and do all the talking to customers.
And i collect all the money which is actually the hardest part of my job.
You know just some people get all the work done and then forget to mail the check
over and over ... I hate that .I sold 62 k in the month of july sheewww, that was tuff.
We did only 10 k in jan and feb combined in 2008,,, but then it just started rolling.
I could go back to running the whole she- bang but then id be baby sitting tree men again .
My main guy does that and hes awesome .
Hes payed as a sub
and supplies two awesome climbers and two ground men.Sometime three climbers and three or four ground men.
All climbing gear and saws. Insurance .I give him work order and its done , PERIOD no complants.He is the single best tree man i have ever met.
He climbs very well very safe and he can run a big crew on hard jobs.
His other climber is very good and the ground men are awesome, youll rarely hear any cussing , no late starts, no garbage.
What i got out of 2008 was i paid all my bills, i bought a nice BB 1890 a gehl loader and a great 2005 F 250 4 by4 and i kept only 25k.
Honestly i would have saved more but unlce sam always takes so much.
I like to buy good equipment and 1079 it.
What i gave was use of my trucks chipper and mini and of course a constant flow of incoming jobs.
My old crew fell apart in december of 07 and this guy appeared like majic and we hit it.
Now sha wam its a year later.
What do yall think?
W
Wagnaw
Guest
I dunno, but I wouldn't mind being that guy who subs to you! I'd love to have someone do all the sales, etc... I suck at all that, but I love working, having equipment, and running a crew.
J
Jonseredbred
Guest
I think 1 climber and 2 ground guys should whiz thru $398,000 in sales easy.
Sounds like you may have to many guys running amok.
Sounds like you may have to many guys running amok.
lumberjack
Young man on the go
I doubt there's $200k of work done in my area in a normal year.
sotc
Dormant hero!!
my labor as of june was about 20%, last year was 16-18 %
darkstar
Rockclimber/ treeclimber
- Thread Starter Thread Starter
- #14
Is that a joke
On our best days for bucket truck ,loader ,chipper, mini, never use bucket its just the bill board... 2 climbers and 1 groudie our goal is 1700 a day.We rarely get that .
Two years ago no problemo but these days no way.
The money here is pita ful.
A giant two day removal is usually goes for 2k.
So you might say ,oh ,they are slow.
Tell that to my competition.
There are several awesome tree services here and we are all in the same boat.One of the owners is Carl Absher the head of the southern chapter of the ISA.His son won the comps.
Anyhow you guys who have several employees ? Id love to hear your ratios,
The only way i make it , is ive been here so long and i have a clientale who will pay a wee bit more.
Its a tuff market here.
Jonserbred what do yall get for a day 2 climbers 2 groundies,
We always have two climbers onsight, just in case.
PCTREE
Treehouser
Guess Im not a typical tree guy. I have a strong aversion to paying workmans comp. and other BS costs assosciated with being in bussines such as financing equip. I have 1 guy who works for me and if we have a job where lowering or something requires 2 groundies my wife comes out. I climb and have a wheel loader with grapple, mini, and knuckle boom. I grossed about $150k this year and my labour cost was between 10-15%. My guy gets $150 cash a day, we work about 3 days week(he doesnt want to do that much!!). With the equipment I rarely feel undermanned and to me employees are the worst part of being in business so I chose not to have them
wiley_p
Climbing Up
darkstar
Rockclimber/ treeclimber
- Thread Starter Thread Starter
- #18
We are slow now.
400k in sales was a full time job and then some.
Yeah i dont like employees either thats why i sub.
It was a crazy YEAR.
John we often had 4 men and sometimes 6.
75 % of the days only three men crew , but those giant jobs 6 or more.
I guess in the end it up to you to decide if you are happy with the numbers.
I ran tree service in Carrolton Ga and i constantly undercharged.
I was only 20 years old and very green.
After a couple years all my equipment was worthless and i was broke.
Im trying really hard not to let that happen again, it sneaks up on you.
Tires here , fuel injector there , mini tracks here .
Next thing , you think you are making money when in reality you are using up your gear faster then you can replace it.
The numb nuts , the cheapo tree hacks , dont know these things and proably never will.
400k in sales was a full time job and then some.
Yeah i dont like employees either thats why i sub.
It was a crazy YEAR.
John we often had 4 men and sometimes 6.
75 % of the days only three men crew , but those giant jobs 6 or more.
I guess in the end it up to you to decide if you are happy with the numbers.
I ran tree service in Carrolton Ga and i constantly undercharged.
I was only 20 years old and very green.
After a couple years all my equipment was worthless and i was broke.
Im trying really hard not to let that happen again, it sneaks up on you.
Tires here , fuel injector there , mini tracks here .
Next thing , you think you are making money when in reality you are using up your gear faster then you can replace it.
The numb nuts , the cheapo tree hacks , dont know these things and proably never will.
wiley_p
Climbing Up
I've kept a couple different LLC's in he 20% profit range. Made some owners damn good money for never even getting their fingers dirty. For a few years I was doing 800-900k with a five man crew, counting me. I kept labor at 36%. The owner of that shitbag out
fit made bank.
fit made bank.
darkstar
Rockclimber/ treeclimber
- Thread Starter Thread Starter
- #20
Geezus that alot of incoming buisness.I've kept a couple different LLC's in he 20% profit range. Made some owners damn good money for never even getting their fingers dirty. For a few years I was doing 800-900k with a five man crew, counting me. I kept labor at 36%. The owner of that shitbag out
What does a five men crew and all the gear go for a average day Wiley?
wiley_p
Climbing Up
I needed to do 3200.00 a day for me to make money. The thing that sucked was the sales clown got 5% from my labor section. That and I could be doing a gravy removal for 3k for some sap, or 3 removals and 15 big cleanouts for the same price. Before I got fed up with them, My crew was doing 16-18k a week.
I removed trees I had never seen in the daylight. Hell during he winter and into spring I never saw my house in the daylight.
I removed trees I had never seen in the daylight. Hell during he winter and into spring I never saw my house in the daylight.
darkstar
Rockclimber/ treeclimber
- Thread Starter Thread Starter
- #22
3200 a day is dream money to me even with 6 men and all kit.
That was the going rate around here in 1996 but we have been flooded with hacks. One of my best and oldest competitors still sticks to his guns 3200 a day period. He doesent work that many days i hear.
Im 1700 a day 3 or 4 men ,and im happy with that .I dont seem to have a choice i get underbid all the time already.
Usually ,we get the really big jobs so i dont have alot of competition there.
We were close to you guys in june at 62k for the month.
I did all the sales and nearly popped a stroke haha.
Good times.
Anyhow thanx for the feedback.
It hard to tell how you compare around the local areas.
But then again i guess you build what you build.
That was the going rate around here in 1996 but we have been flooded with hacks. One of my best and oldest competitors still sticks to his guns 3200 a day period. He doesent work that many days i hear.
Im 1700 a day 3 or 4 men ,and im happy with that .I dont seem to have a choice i get underbid all the time already.
Usually ,we get the really big jobs so i dont have alot of competition there.
We were close to you guys in june at 62k for the month.
I did all the sales and nearly popped a stroke haha.
Good times.
Anyhow thanx for the feedback.
It hard to tell how you compare around the local areas.
But then again i guess you build what you build.
J
Jonseredbred
Guest
We work on average 300 days per year, thats only about a 1300 dollar a day average.
Using subs you are giving money away, you need employee's not another guys business to support.
Using subs you are giving money away, you need employee's not another guys business to support.
MasterBlaster
Administrator Emeritus
Not always. 
J
Jonseredbred
Guest
I might agree on a hired gun to do a difficult or specialized job, but using subs to man your business for day in and day out operations is giving his business away.
