Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Lawn Care, Landscaping, and Property Management Forums > General Talk

General Talk If it doesn't fit anywhere else, post it here.

How do you figure your cost?


General Talk

If it doesn't fit anywhere else, post it here.
Reply
 
Thread Tools Search this Thread
  #1  
Old 03-02-2012, 04:15 PM
GreenRidge Lawn&Landscape GreenRidge Lawn&Landscape is offline
Junior Member
 
Join Date: Feb 2012
Posts: 10
Rep Power: 4
GreenRidge Lawn&Landscape is on a distinguished road
Default How do you figure your cost?

I couldn't find the thread that you all just discussed this on.

So if i have a $7,000 mower how do i figure the cost per. hr.
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 03-02-2012, 08:45 PM
thegroundscrew's Avatar
thegroundscrew thegroundscrew is offline
Senior Member
 
Join Date: Nov 2011
Location: Bellevue, WA (425) - 15 minutes from Seattle (206, my city's filthy)
Posts: 141
Rep Power: 4
thegroundscrew is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
Here is what Steve said in an earlier post. Here is my view on knowing your costs.

The first thing you want to do is figure out how many billable hours you will work in a year.

You could calculate that by saying you will work 40 billable hours in a week for 50 weeks of the year. Now obviously this will vary depending on a lot of variables.

But say we go with 2,000 billable hours each year.

Now you want to take all your expenses both personal and business and divide them by 2000.

So as an example,
$400 monthly car payment
$800 monthly house payment
$400 monthly gas
$200 monthly insurance
$250 monthly equipment
$700 monthly tax payments
______

total = $2750

Now take that figure and multiply it by 12 months.

$2750 x 12 months = $33,000

Ok, now let's divide that by your annual billable hours.

$33,000 / 2,000 hrs = $16.50 per hour.

So we now know that you must make at least $16.50 per hour to cover your expenses. If you want to make a 15% profit on that you would then say.

$16.50 x 1.15 = $18.97 per hour would include your expenses plus a 15% profit.

______________________________________________

That is a very simple basic view of knowing your costs. If you want to get into it even further, you can break down each piece of equipment and know what you need to charge per hour per piece of equipment.

How do you do that?

Take a mower you purchased.

Say it's $1,000 and it is designed to last 1,000 hours. With that in mind, you will want to figure it will need to be replaced after a 1,000 so you will want to use the following calculation to figure it's cost per hour of usage.

$1,000 / 1,000 hours = $1 per hour to use.

Now what about blades, oil, gas? You can figure out how often you change the oil. How often you change the blades. How often it burns through gas.

ex.

oil is changed every 20 hours for a cost of $4.00.
It burns 1 gallon every 2 hours for a cost of $3.00.
blades are sharpened every 20 hours for a cost of $5.00.

over that 1,000 hour lifespan how much will these additional expenses cost?

(1,000 mower life span hrs) / (change oil every 20 hrs) = 50 oil changes over the life span of the mower

(1,000 mower life span hrs) / (needs gas every 2 hours) = 500 gallons of gas over it's life span

(1,000 mower life span hrs) / (20 hrs per blade sharpenings) = 50 blade sharpenings

50 oil changes x $4.00 per change = $200
500 gallons of gas x $3.00 per gallon = $1,500
50 blade sharpenings x $5.00 per sharpen = $2,500

Now let's total it all up.

That $1,000 mower over it's 1,000 hour lifetime will cost you...

$1000 mower + $200 in oil + $1,500 in gas + $2,500 in blade sharpening = $5,200.

$5,200 / 1000 hrs = $5.2 per hour.

So every time you use that mower, you have to include in your expenses an additional $5.2 an hour.

You can do this for all of your equipment. Your truck, trailer, mowers, trimmers, etc etc. And then you will know how much your costs truly are per hour.

Does this help.

This is still all basic in it's explanation and we can get into the topic more if needed. I am just trying to not make it too complex and crazy for the first post.
__________________

Curtis Michael
President
The Grounds Crew
(425) 765-2638
www.thegroundscrewllc.com
Reply With Quote
  #3  
Old 03-03-2012, 11:34 AM
GreenRidge Lawn&Landscape GreenRidge Lawn&Landscape is offline
Junior Member
 
Join Date: Feb 2012
Posts: 10
Rep Power: 4
GreenRidge Lawn&Landscape is on a distinguished road
Thumbs up

thegroundscrew

Thanks! that is the exact post I was looking for
Reply With Quote
  #4  
Old 03-03-2012, 02:01 PM
stevef1201 stevef1201 is offline
Senior Member
 
Join Date: Apr 2010
Location: Central Florida
Posts: 1,236
Rep Power: 7
stevef1201 is on a distinguished road
Default

Ya, except he for got Commercial vehicle insurance (dont get caught without it), and oh yeah Uncle sam takes 1/3 of everything you make (after legit expenses) in taxes, and maybe even your state.

In order to Make that 16.50 per hour You need to divide that time .66 for a real income of 25 per hour, then comes commercial vehile insurance, here its around 250 a month divide by 4.3 or another 58 bucks a week. (about another 1.5 per hour)

Then there is your liability insurance, mine is cheap only 1M business unbrella liability for 2K per year ( another buck an hour)

My cost of doing business (fuel, equipment replacement, repairs, maint etc is 13.28 per hour)

so
13.28+1.50+1.00+25 is 40.78 per hour for me, yours might be different.

Helpers cost me 10 in wages, 1.5 in workers comp, 1.6 in matching soc sec taxes plus 1.25 in unemployment insurance or 14.35 per hour, yours may be different.

I add 30 percent for his wages (profit and overhead) for a 19.08 billable hour.

Total for 1 hour with a helper is 59.86.

Dont think because you can do the job in 1 hour with a helper you can do it in 30 minutes with one - don't happen.

It will take 45 minutes.

These figures were based on working 52 weeks, at 40 billable hours per week

Last edited by stevef1201; 03-03-2012 at 02:06 PM.
Reply With Quote
  #5  
Old 03-05-2012, 01:05 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,460
Rep Power: 10
Steve has disabled reputation
Default

Quote:
So if i have a $7,000 mower how do i figure the cost per. hr.
Can you show us what you came up with? How you now figure your costs that take into account the new mower?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Need help figure out how to make a bid for lawn service JMBonesteel General Talk 14 02-01-2012 02:43 AM
Can someone help me figure the lot size? SECTLANDSCAPING Online Lawn Care Estimator - Help me bid this job 10 04-17-2011 10:22 AM
can't figure out how much to spend/which lawn mower to get. Reminisce32 Truck, Trailer, and Outdoor Power Equipment Discussion, Repairs. 11 10-23-2010 08:17 PM
What's gas cost near you? Steve General Business Discussions 10 04-22-2008 11:07 PM
Lucas’ new role: ‘Star Wars’ action figure Steve General Talk 0 05-04-2006 01:13 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
another newish job for me
holymoly
06-07-2015 08:34 AM
Today 02:06 PM
by American L&T
9 2,083
Should I buy this Exmark...
googus
Today 09:22 AM
Today 09:46 AM
by Steve
2 37
Unemployment rates drop,...
Steve
Yesterday 12:40 PM
Today 09:42 AM
by Steve
2 58
Before & After tree...
COREtreeservice
07-01-2015 09:20 PM
07-01-2015 09:20 PM
by COREtreeservice
0 65
Dogs
Mr. Mow
06-29-2015 02:37 PM
07-01-2015 11:28 AM
by Steve
6 1,848
Ready to learn and get...
Koley Lawn & Landscape
06-28-2015 05:16 AM
07-01-2015 11:26 AM
by Steve
8 1,841
Three Stripe Land Care...
hammr04
06-30-2015 07:19 PM
07-01-2015 11:24 AM
by Steve
1 65
Just about mid year, how...
GreenWorx
06-24-2015 07:05 PM
06-30-2015 07:41 PM
by hammr04
5 1,880
Country Life Lawn Care
darleneh
06-29-2015 11:24 AM
06-30-2015 01:25 PM
by Steve
3 1,725
Rubber mulch...
avetslawncare
06-24-2015 09:28 PM
06-29-2015 09:23 PM
by Chilehead
6 1,850
I dont know what to do...
Bradcook21
06-21-2015 08:49 AM
06-29-2015 02:30 PM
by Mr. Mow
11 2,107
Marketing ideas
xandrew245x
04-29-2014 06:35 AM
06-25-2015 07:11 PM
by GreenWorx
34 5,707
Never ending sod jobs
avetslawncare
06-05-2015 09:46 PM
06-25-2015 11:42 AM
by Steve
11 2,332
Weed and Feed Service...
mike94740
06-23-2015 05:50 PM
06-24-2015 09:56 PM
by avetslawncare
2 1,778
Trimming hedges / trees,...
Hard-Body lawn & garden
06-23-2015 07:08 PM
06-24-2015 09:59 AM
by Steve
1 1,779
Hi Everyone from Arkansas
KellyMarie
06-04-2015 04:16 PM
06-23-2015 01:34 PM
by KellyMarie
4 2,050
how to make customers...
Bradcook21
05-27-2015 05:04 PM
06-23-2015 06:36 AM
by GreenWorx
7 2,278
problems with a customer...
LawnCareMan280
06-16-2015 10:26 PM
06-22-2015 11:11 AM
by Steve
6 2,068
Please review this FREE...
markty
06-21-2015 07:42 AM
06-22-2015 11:00 AM
by Steve
1 1,801
A good commercial bid...
burtle
06-20-2015 09:09 PM
06-22-2015 10:56 AM
by Steve
1 1,862
What would you do with...
holymoly
06-20-2015 06:48 PM
06-22-2015 10:48 AM
by Steve
1 1,817
New Member just joined...
vgoleco@hotmail.com
06-19-2015 03:49 PM
06-22-2015 10:42 AM
by Steve
2 1,832
Credit Cards - What's in...
Shark1611
06-16-2015 03:04 PM
06-21-2015 07:24 PM
by Chilehead
4 1,925
Blade usage
Wolf4dk
06-16-2015 12:18 AM
06-21-2015 05:35 PM
by kslawn
4 1,938
Hello, I am new to the...
adamslawnservices
06-17-2015 08:06 PM
06-19-2015 10:28 AM
by Steve
3 1,863
Is it too late to do...
markty
06-16-2015 05:28 PM
06-19-2015 10:22 AM
by Steve
4 1,944
First commercial bid
SGL1
06-12-2015 08:57 PM
06-18-2015 05:04 PM
by SGL1
9 2,312
Needing a website built
burtle
06-17-2015 09:02 AM
06-18-2015 11:02 AM
by Steve
7 2,008
I have been rude and...
biglee
06-15-2015 10:11 PM
06-18-2015 10:46 AM
by Steve
10 2,096
Start LIKING FACEBOOK...
rlclawncare123
02-26-2015 12:06 AM
06-17-2015 08:38 AM
by burtle
9 3,184
Customer keeps adding...
Mr. Mow
06-13-2015 06:22 AM
06-16-2015 10:23 AM
by Steve
11 2,270
Pass discounts onto...
burnell76
06-03-2015 06:33 PM
06-16-2015 10:02 AM
by burnell76
3 2,032
burned grass only where...
nhauto
06-15-2015 05:28 PM
06-16-2015 09:45 AM
by Steve
2 1,901
Half year mark review.
Steve
06-02-2015 11:24 AM
06-15-2015 01:04 PM
by Steve
18 2,622
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
06-15-2015 01:01 PM
by Steve
86 9,677
New Member
Bruce Fehr
06-05-2015 07:13 PM
06-15-2015 12:53 PM
by Steve
6 2,036
New to the business,...
CarefreeMowing
06-12-2015 02:36 PM
06-15-2015 12:50 PM
by Steve
1 1,920
Beginner Mistakes:...
Steve
01-31-2007 11:45 AM
06-13-2015 08:48 AM
by holymoly
45 12,011
New to the forum, new to...
CarefreeMowing
06-11-2015 12:35 PM
06-12-2015 10:44 AM
by Steve
2 1,834
problems with a customer
LawnCareMan280
05-19-2015 06:28 PM
06-11-2015 10:50 PM
by stallman419
8 2,383
Website Review
Outdoordesignsknox
06-08-2015 08:44 PM
06-11-2015 09:48 PM
by Just for Cuts
13 2,267
Anyone need help? I have...
biglee
05-06-2015 12:22 PM
06-10-2015 01:45 PM
by holymoly
15 2,973
Hello from the GREAT...
gbfarmsllc
06-09-2015 11:10 AM
06-10-2015 01:29 PM
by Sprinkler Buddy
2 1,903
Hey guys and gals, I'm...
Joeyhall
06-03-2015 03:54 PM
06-08-2015 02:15 PM
by chris2500hd
8 2,145
Mowing Bermuda...
Mr. Mow
06-02-2015 12:45 PM
06-08-2015 12:45 PM
by Steve
12 2,304
Hey Guys
PrattLandscaping
06-07-2015 06:37 PM
06-08-2015 12:23 PM
by Steve
2 1,917
Share your stolen...
SGL1
05-27-2015 09:05 PM
06-08-2015 11:54 AM
by Steve
25 2,860
Hello there My name is...
zwalk1839
06-04-2015 11:10 PM
06-08-2015 11:52 AM
by Steve
4 2,030
Laid off oil field...
Mr. Mow
05-30-2015 09:03 AM
06-08-2015 06:20 AM
by Mr. Mow
4 2,140
How do you find one time...
Greg'slawnandlandscape
06-02-2015 09:57 PM
06-05-2015 09:49 PM
by avetslawncare
4 2,064
» Popular Tags
ad landscaping advertising apartment bid apartment complex apartment lawn care estimate applying bark blowout bob villa collections commercial contract help curb appeal services demonstration ditches door hangers edging employee problems equipment dealer equipment rental facebook flyers free advertising free lawn care google growing a lawn care business hardscapes hills hiring how to husqvarna increase customers jobs landscape landscape services landscaping lawn care lawn care busines plan lawn mowing marketing marketing secrets more customers business mr dave new business ordinance past due patio install per hour service plowing pricing push versus ride scripts secrets to landscaping shreaded small engine repair snow plowing sq ft square foot trailer trailer mate pro tree tree pics trimmer rack up sell employee web design website website design winterization wood www.greenturion.co.za
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 02:50 PM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 02:50 PM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy