The LeanScaper Podcast Is Profit Lying to You? Why Throughput Might Be the Only Number That Matter w/ Mike Lysecki
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Nov 25, 2025 In this engaging discussion, Mike Lysecki, an operator and efficiency expert at LeanScaper, reveals the truth behind profitability in landscaping and contracting. He explains why traditional profit metrics can mislead owners and introduces throughput as the key to understanding business efficiency. Discover the importance of the labor efficiency ratio and how different services like mowing and hardscaping compare in terms of profitability. Mike also outlines practical steps to improve throughput and boost overall productivity, urging a shift in how we measure success.
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Focus On The True Bottleneck
- Throughput focuses on the single bottleneck in your business and prioritizes improvements that increase its output.
- If an improvement doesn't make the bottleneck (often field labor) more productive, it is largely a mirage.
Measure Labor Efficiency And Expense
- Calculate Labor Efficiency Ratio as revenue divided by field labor payroll to see revenue generated per payroll dollar.
- Use Labor Expense Ratio (field payroll divided by revenue) to track percent of revenue spent on field wages.
Service Line Drives Benchmarks
- Service line type matters more than geography for labor efficiency benchmarks.
- Aim for labor expense around 20–25% (4:1 to 5:1 labor efficiency) for construction/design-build work.
