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Profit Margins

Discussion in 'Bidding & Estimating' started by sle, Aug 30, 2009.

  1. sle

    sle Member
    from midwest
    Messages: 51

    Hi,
    Just wanted to know if anybody would like to share their profit margins..
    I have nothing to hide, so I'll share mine. 38-40% .
     
  2. LoneCowboy

    LoneCowboy PlowSite.com Addict
    Messages: 1,760

    wait, we're supposed to make a profit at this??????????/

    I knew I'd been doing something wrong. :nod:
     
  3. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I thought plowing was to get away from the wife? You mean I can make a profit too?
     
  4. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    Profit? How much is a six-pack of Bud now?
     
  5. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    With a dollar off coupon 6 bucks.
     
  6. sle

    sle Member
    from midwest
    Messages: 51

    Ha you guys are funny..
    BTW bud stinks I perfer highlife:nod:
     
  7. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    with all the profit your making you could buy a better beer to drink!payup
     
  8. sle

    sle Member
    from midwest
    Messages: 51

    Actually, I am a small operation compared to alot of you guys.
    The thing is, I bid 6 properties and only land 1.
    I know its a regional thing, but I was just curious.
    I never really investigated the local competition, so I'm thinking I may be on the high side.
    Who knows.
    Thanks
    BTW Grandview, who is that women on your av? shes hot
     
  9. cet

    cet PlowSite Fanatic
    Messages: 7,202

    That is a pic of his wife, so stop staring.
     
  10. grandview

    grandview PlowSite Fanatic
    Messages: 14,609


    :nod: :gunsfiring:
     
  11. RLM

    RLM PlowSite.com Addict
    Messages: 1,270

    I have found you have to get to know your markets pricing then almost work backwards to get what you want as a margin. If you want higher, run older stuff, don't pay your guys as well, scam salt quanities, etc., its all out there. Its not just one market (I once thought it was). I was at the SIMA show, one speaker was talking about bidding on proerties 5 times to get the "right number", I thought only I got stuck feeling that way till then.
    Unfortunalty in this business there are so many varibles out of our control you just equip yourself & staff the best you can, & do the best within the clients specs (& budget).
    I had a conversation with a property manager last week about snowplowing at a couple of his properties & issues durring daytime snowfalls because we had three storms last year come through durring the day last year & his clients though we should've done more. These are HOA's; 3" triggers, we started at plowing 2.5 ", plowed through the storm with normal equipment for the site, got done with our "route" within our aloted time 80 drives 4-5 hours. Their feeling was we should've sent more equipment over. Which means we just stole equipment off another clients route, so there going to be done late. I made him no new "promises" & politly explained my thinking, budget, etc. This same management compay wanted us out doing sod repairs in February because there was a break in the snow. We have gotten plowable snow here in April. These are seasonal contracts, with sod repair included (so its my budget not theirs).
     
  12. Dubliner

    Dubliner Senior Member
    Messages: 130

    Profit is a relative thing, some days you make it, some days (with breakdowns, etc.) you don't :gunsfiring:
     
  13. terrapro

    terrapro PlowSite Veteran
    from MI
    Messages: 3,878

    I make 100% profit all the time, as long as I don't take into consideration my time, cost, and materials!
     
  14. AC2717

    AC2717 Senior Member
    Messages: 669

    Wow

    MA and NH do not give beer coupons
    Now I am even more depressed
     
  15. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    Mine is actually pretty high because of the way I think about it. My insurance has to be paid year round so I don't count that. My equipment is all paid for, so no monthly payments. I do all the labor myself, so no weekly pay checks. Advertising is year round.

    I pay for gas and coffee out my my profit. Then there are the break downs. I can usually fix it myself, but I'm out time and materials.

    I like plowing snow.
     
  16. redman6565

    redman6565 PlowSite.com Addict
    Messages: 1,411

    bigger lots i tend to have higher profit margins because there is less competition bidding on them than smaller lots (150,000 SF or less)
     
  17. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    HAhAHAHAHAHAHA Now that is funny.

    Sorry Bud I couldn't help it.

    It's just the opposite here, everybody want to push big snow.
     
  18. Doin_It

    Doin_It Senior Member
    from Mt.
    Messages: 133