Landscaping field worker efficiency

searcher profile

October 16, 2024

by a searcher in Philadelphia, PA, USA

So I purchased a residential/commercial landscaping company in 2023 and while our revenue has increased at a modest pace since then, our bottom line has taken a hit. When I took over, the previous owner had some questionable practices to avoid paying overtime at time and a half. Because I intend to someday sell this company, I have made sure all workers are paid legally for the time they work. Having said that, it has been a huge increase in expense that we did not previously have. I would be interested in chatting with any operators/investors with large residential books of business as to how they manage to maximize efficiency amongst their crews, especially during busy seasons. Any insight would be appreciated.

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Reply by an investor
from Virginia Polytechnic Institute and State University (Virginia Tech) in Richmond, VA, USA
One quick way we like to track efficiency especially on the maintenance side is revenue per crew member. We shoot for an average of 100k in contract value per crew member (ie. 2 man crew should be doing 299k in yearly contract value)
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Reply by a searcher
from Harvard University in Denver, CO, USA
Hey David, congrats on purchasing the business last year. My experience is more on the commercial side of business, but very interested to see what insights others may have on the residential side. Best of luck
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