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Payroll ratio to Sales

Discussion in 'Business Fundamentals' started by EGLC, Mar 19, 2015.

  1. EGLC

    EGLC PlowSite.com Addict
    Messages: 1,733

    What is your guys payroll (including the labor burden) to GROSS Sales %?

    Just curious to see what the industry looks like! If you'd like to pm me thats cool

    - Jared
     
  2. Camden

    Camden PlowSite Fanatic
    Messages: 6,598

    I wasn't sure so I just looked and it's just a hair over 29%. Man, that sure seems high. Holy smokes!

    I'm interested to see what others say.
     
  3. EGLC

    EGLC PlowSite.com Addict
    Messages: 1,733

    I have found material and fuel costs do not come close to what labor rates are with the proper worker's comp and tax statutes.
     
  4. Defcon 5

    Defcon 5 PlowSite.com Addict
    Messages: 1,680




    Must be that GPO saving you ALL that money on Salt,Fuel,Equipment and Labor costs to attribute to that high rate of return.........:dizzy:......:laughing:........:drinkup:
     
  5. John_DeereGreen

    John_DeereGreen PlowSite.com Addict
    Messages: 1,889

    Right at 31.5% last year.
     
  6. Camden

    Camden PlowSite Fanatic
    Messages: 6,598

    "We mock what we don't understand."
     
  7. Herm Witte

    Herm Witte Senior Member
    Messages: 553

    Got me wondering and looking. Three year average is 41.5% which includes my salary. This is for Snow and Landscape Maintenance. We've been working hard to bring the percentage down and last year it was at 38%. We still have a ways to go. As a seasonal employer my unemployment rate is at 12.65%. Percentages do not include health insurance or retirement benefits. I'll spend a bit of time over the weekend to separate Snow from Landscape.
     
  8. EGLC

    EGLC PlowSite.com Addict
    Messages: 1,733

    I guess I must be doing well than at a hair under 20%…

    My drivers get $25hr and shovelers $16hr. I was thinking of increasing to $30hr for my 3 best guys.

    That % is for snow only, including shop time (washing trucks, etc)
     
  9. Herm Witte

    Herm Witte Senior Member
    Messages: 553

    OK, you got me going on this. 29.60% three year average labor to sales on the snow end of our business.
     
  10. John_DeereGreen

    John_DeereGreen PlowSite.com Addict
    Messages: 1,889

    My number was year round, not just winter related.

    Never really looked at winter vs summer.
     
  11. Camden

    Camden PlowSite Fanatic
    Messages: 6,598

    Almost exactly where I'm at.

    Edit: My total was for 12 months as well.
     
  12. Herm Witte

    Herm Witte Senior Member
    Messages: 553

    Maybe we need to add one piece to the equation;

    Labor + Labor Burden + subcontracting expenses (since sub contract income is part of the income) = a clearer picture or not?

    Headed home and have a great weekend!
     
  13. Defcon 5

    Defcon 5 PlowSite.com Addict
    Messages: 1,680




    I mock you.......I understand GPOs Very Well.......:dizzy:
     
  14. EGLC

    EGLC PlowSite.com Addict
    Messages: 1,733

    I should clarify, I have no real subcontractors...just a local friend who helps out if I am in a pinch. If I did that would surely change the numbers.
     
  15. Camden

    Camden PlowSite Fanatic
    Messages: 6,598

    No you don't.

    You said that Cargill wouldn't waste their time with them. It took me 1 minute to prove you wrong. (Did you ever call them by the way?) What else ya got? :popcorn:

    And what's your ratio of payroll to gross sales since that's what this thread is about?
     
  16. snocrete

    snocrete Banned
    Messages: 2,862

    32% for the whole yr, last yr.

    Winter only for last yr is looking like 20-25%....but that was just quick figuring...not totally accurate.
     
  17. Pristine PM ltd

    Pristine PM ltd PlowSite Veteran
    Messages: 3,794

    Wow! Different world's, we are closer to 50% labour expense.
     
  18. Camden

    Camden PlowSite Fanatic
    Messages: 6,598

    That's staggering. Is ANYTHING less expensive in Canada? It sure doesn't seem like it...
     
  19. Pristine PM ltd

    Pristine PM ltd PlowSite Veteran
    Messages: 3,794

    Nope, even the plows we manufacture, you get cheaper.

    Part of our problem is that our insurance costs are insane
     
  20. John_DeereGreen

    John_DeereGreen PlowSite.com Addict
    Messages: 1,889

    Holy hell. I don't see how you can make any money paying out 50% of gross in labor related costs.