Just wondering what other small business owners consider a reasonable % to spend on labor?

I own a landscaping business in NW Arkansas and pay what I feel is above average wages for the area... but am concerned I might be paying more than I need to...

I have had the same employees for the past three years and am just curious on my question...

Thanks

Brian

Did you call around to other similar providers and ask them what they are paying? Payroll isn't so much a percentage, but rather a system of paying your employees what they are worth, what you can afford.

As the old saying goes, you get what you pay for. Personally, I pay a little higher wage than competitors. I get a little more loyalty and my employees are "eager" to do their job and come to work.

If your employees are happy, and they are making you happy, and the work is getting done properly, keep going the way you are!

Have a great week!

Lisa :D

Hey Lisa,

Thanks for the reply!

Basically, what I was looking for was just "a number" that would be considered an accepted "average". Eg: Many years ago I can remember the owner of a restaurant that would go nuts when labor hit 20%.

We ended up with a 35% labor cost in 2006, and to me it just seemed higher than what it should be...

Again, I appreciate your reply

Take care,

Brian