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: 3
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: 3
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: 3
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: 1,120
Rep Power: 6
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 online now
Administrator
 
Join Date: May 2003
Posts: 36,430
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
Sprinkler head guards...
Sprinkler Buddy
09-27-2014 04:55 AM
Today 02:50 PM
by Sprinkler Buddy
6 421
Look out Bob Villa -...
Mr Dave
Yesterday 10:06 AM
Today 02:19 PM
by Steve
5 185
John Deere z235 Deck
WesleySnips
09-29-2014 06:02 PM
Today 02:17 PM
by Steve
4 212
Real Estate??
tbtigers03
Yesterday 06:43 PM
Today 01:47 PM
by Steve
4 152
Question?what should I...
dalvan0
09-24-2014 11:10 PM
Today 01:39 PM
by Steve
17 801
Whe does Mowing season...
jack2048
Yesterday 07:05 AM
Today 01:38 PM
by jack2048
4 186
Kohler command carb...
ExtremeLawncareServices
09-21-2014 03:09 PM
Today 01:30 PM
by Steve
26 1,150
Help a brother...
tbtigers03
09-28-2014 11:41 AM
Today 01:26 PM
by Steve
7 374
Hello from Kentucky
TRV
Yesterday 05:42 PM
Today 01:20 PM
by Steve
2 110
Give Me Your Problems
ellakit
Yesterday 04:10 PM
Yesterday 04:10 PM
by ellakit
0 17
Say Hello !!!
Steve
03-19-2007 11:18 AM
Yesterday 03:53 PM
by ellakit
1,188 336,267
Falling into business
stellarmowing
09-28-2014 04:35 PM
Yesterday 02:17 PM
by Steve
4 338
hey
sizemorelawncare
09-28-2014 08:12 PM
09-29-2014 03:10 PM
by Steve
2 266
Update on LawnsAway and...
Ian Lovejoy
09-28-2014 10:24 AM
09-29-2014 03:09 PM
by Steve
2 322
Need to figure out how...
tjslawnde
09-28-2014 10:31 AM
09-29-2014 03:05 PM
by Steve
4 333
Aerocore Deck?
wdrdoctor
09-26-2014 06:21 PM
09-29-2014 02:36 PM
by Steve
3 462
Hello from CNY
arazucontracting
09-22-2014 06:07 PM
09-29-2014 02:33 PM
by Steve
3 711
How to price lawn mowing.
jack2048
09-24-2014 04:18 PM
09-29-2014 02:27 PM
by Steve
4 569
Pricing ????
6295danny
01-14-2013 07:54 PM
09-29-2014 02:22 PM
by Steve
35 6,582
30 Inch Push Mowers Pros...
Billy Goat
06-27-2013 08:07 PM
09-27-2014 04:11 PM
by SGL1
30 7,111
Replacing a Shindi T-27
Dan Tanner
09-13-2014 12:59 PM
09-26-2014 04:16 PM
by stevef1201
5 1,099
Looking for feed back on...
ExtremeLawncareServices
09-17-2014 08:38 AM
09-25-2014 09:18 AM
by ExtremeLawncareServices
10 1,124
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
09-25-2014 08:01 AM
by ExtremeLawncareServices
124 9,321
Trying something new,...
ExtremeLawncareServices
09-21-2014 09:07 PM
09-23-2014 11:13 AM
by Steve
4 805
This sucks...
Matther777
09-18-2014 04:56 PM
09-22-2014 08:02 PM
by ExtremeLawncareServices
11 1,183
Not sure, but anyone do...
SnowRemoval2k14
09-22-2014 12:10 AM
09-22-2014 04:49 PM
by Steve
1 752
Tribulations of working...
stevef1201
09-13-2014 08:37 AM
09-22-2014 04:45 PM
by Steve
9 1,081
Mulching beds
Bradcook21
09-21-2014 07:43 AM
09-22-2014 04:43 PM
by Steve
3 823
Scag turf tiger hydrolic...
ExtremeLawncareServices
09-04-2014 10:55 PM
09-22-2014 04:35 PM
by Steve
12 1,453
2014 Gie-expo
ExtremeLawncareServices
08-19-2014 11:22 PM
09-21-2014 09:23 PM
by ExtremeLawncareServices
3 1,478
Mowing 7 acres
avetslawncare
08-31-2014 04:24 PM
09-19-2014 03:29 PM
by acrajchel
6 1,700
snowplowing
jshak40
09-01-2014 07:20 AM
09-19-2014 11:49 AM
by Steve
23 2,129
Lowballers scrubs &...
Darksteel
01-13-2014 07:35 AM
09-18-2014 06:32 PM
by Northwoods Outdoors
58 7,524
Hello from upstate NY!
A&MLawn&Snow
09-18-2014 11:19 AM
09-18-2014 04:10 PM
by Sprinkler Buddy
2 920
Price to apply fertilizer
SS.Lawncare
09-15-2014 11:10 AM
09-18-2014 01:16 PM
by Steve
9 1,104
Trailer tires
J.A.S.LawnService
09-01-2014 10:17 AM
09-17-2014 09:57 PM
by curts lawn care
4 1,534
new to the forum
SGlawncare
09-16-2014 11:20 PM
09-17-2014 08:29 PM
by curts lawn care
3 932
Help With Snow Blowing...
Robertf31
09-13-2014 10:55 PM
09-17-2014 12:34 PM
by Steve
11 1,297
Non-Stop Summer?
SouthallMowing
09-14-2014 10:51 PM
09-17-2014 10:48 AM
by stevef1201
6 1,052
Poll - net income
Dan5082
11-15-2010 08:08 PM
09-16-2014 04:44 PM
by jrs.landscaping
12 3,803
Getting lowballed!
PineHillLawn
06-27-2012 07:23 AM
09-16-2014 01:25 PM
by jrs.landscaping
24 5,544
Compare this summer to...
Steve
09-03-2014 12:52 PM
09-16-2014 11:20 AM
by Hanks Lawn Care Services
15 1,724
thinking about throwing...
veteranslawncaresystems
09-09-2014 10:31 PM
09-15-2014 03:41 PM
by Steve
12 1,449
Hello
Robertf31
09-12-2014 10:34 PM
09-15-2014 03:17 PM
by Steve
2 943
Newbie......Again
Jibber
09-13-2014 12:17 PM
09-15-2014 02:54 PM
by Sprinkler Buddy
2 1,072
need help with starter...
GoGreenerKS
09-12-2014 04:23 PM
09-15-2014 02:25 PM
by Steve
3 992
Brake job!
kslawn
08-30-2014 07:49 AM
09-15-2014 02:16 PM
by Steve
12 1,800
Hello
jawnebgoode
08-28-2014 08:37 PM
09-15-2014 02:15 PM
by Steve
3 1,531
Employee uniforms
Gerardo_Landscape
01-21-2014 11:11 PM
09-15-2014 02:12 PM
by Steve
5 1,594
Greetings from the north
Northwoods Outdoors
09-13-2014 08:55 AM
09-15-2014 02:07 PM
by Steve
1 939
» Popular Tags
2wd 4x4 aerocore apartment bid article marketing auger bid billy goat brushcutter care charge collections subcontractor decorating deliquentaccounts equipment rental exmark ferris foreman four wheel drive gopherhaul grass gravely growing a lawn care business health hills honda how much to charge husqvarna installation john deere quik trac landscape services lawn lawn care lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website lighting brass outdoor lights managing a lawn care business marketing mechanic monthly mr dave mulch mulch price new buisness new business podcast pto push versus ride scag schedule scripts search engine optimization seo small engine repair snow starting a business starting a lawn care business stihl sulky theft theft of services toro toro grand stand trailer trimmer rack walk behind walker
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 03:02 PM.


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

All times are GMT -5. The time now is 03:02 PM.

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