lawn application profit margins

[ClipKing]

I was wondering what some typical profit margins are for lawn applications, both fert and herbicides. I know some of you will say that it depends on many variances. I realize that but am simply looking for a ballpark number. After viewing some posts on this site, I feel that the profit margin range for lawn maintenance is anywhere from 10-20%. I also read that the application business typically has higher profit margins. I am interested in what profit margins some of you may be dealing with. thanks for the input!

[CCLS]

Application cost minus product cost & overhead = Profit

Typical fertilizer/weed control cost for me is $1.00 per 1,000 square feet. I charge $35.00 for the first 5,000 square feet and $3.00 a thousand there after.

Do the math:
Lawn application price: $35.00

Product cost for 5,000 square foot lawn: -$5.00

Overhead including labor: -$10.00

Total profit for 5,000 application: $20.00

Percent profit: 57%

If your overhead & product cost is $30.00 your profit would be $5.00 and your percent would be 14%.

It all comes down to cutting your overhead to increase your profit margin. You can spend more or less on your product, but your biggest cost is going to be your overhead.