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, 05:15 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, 09:45 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, 12:34 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
Thumbs up

thegroundscrew

Thanks! that is the exact post I was looking for
Reply With Quote
  #4  
Old 03-03-2012, 03:01 PM
stevef1201 stevef1201 is offline
Senior Member
 
Join Date: Apr 2010
Location: Central Florida
Posts: 1,215
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 03:06 PM.
Reply With Quote
  #5  
Old 03-05-2012, 02:05 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,679
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 03:43 AM
Can someone help me figure the lot size? SECTLANDSCAPING Online Lawn Care Estimator - Help me bid this job 10 04-17-2011 11:22 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 09:17 PM
What's gas cost near you? Steve General Business Discussions 10 04-23-2008 12:07 AM
Lucas’ new role: ‘Star Wars’ action figure Steve General Talk 0 05-04-2006 02:13 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Hello from Md
homey
Yesterday 06:55 PM
Yesterday 06:55 PM
by homey
0 39
Repair or replace the...
lxarth
Yesterday 05:07 PM
Yesterday 06:08 PM
by Sprinkler Buddy
1 62
what do you "love" to...
calebmoss
07-06-2011 10:05 PM
Yesterday 05:09 PM
by Chilehead
28 8,852
Employee job training...
brookline
12-15-2014 08:15 PM
Yesterday 04:59 PM
by Chilehead
3 160
What Fertilizer to Use?
acrajchel
04-07-2014 02:56 PM
Yesterday 01:11 PM
by Steve
23 2,883
I'm BACK!
SuperiorPower
12-16-2014 11:08 PM
Yesterday 01:09 PM
by Steve
1 82
Grass hopper mower
ExtremeLawncareServices
12-05-2013 09:51 AM
Yesterday 09:40 AM
by SuperiorPower
34 6,022
Peco Bagger
AGPS
11-18-2014 02:20 PM
Yesterday 09:13 AM
by SuperiorPower
15 1,227
These are the days on...
ExtremeLawncareServices
03-22-2014 10:12 AM
12-15-2014 10:30 PM
by ExtremeLawncareServices
188 16,398
New to Gopher Haul-from...
323k13l
12-12-2014 10:34 PM
12-15-2014 02:58 PM
by Steve
3 226
hi
creteland
12-12-2014 09:06 AM
12-15-2014 01:45 PM
by Steve
5 227
New addition to my small...
googus
12-12-2014 07:36 PM
12-15-2014 07:47 AM
by googus
4 292
Ferris IS700Z
rmccutchan
12-14-2014 01:10 AM
12-14-2014 11:41 PM
by rmccutchan
4 204
Charge what the market...
Billy Goat
12-09-2014 12:39 PM
12-14-2014 06:39 PM
by biglee
20 723
Hi from IL
steveinil
11-25-2014 02:07 PM
12-12-2014 07:18 AM
by steveinil
4 742
Utility Company Right of...
eastsidelandcare
12-11-2014 04:54 PM
12-11-2014 04:54 PM
by eastsidelandcare
0 218
leaf removal
Double J LLC
10-03-2014 05:24 PM
12-11-2014 04:50 PM
by eastsidelandcare
33 3,958
suggestions on full lawn...
Brian3137
12-10-2014 07:18 PM
12-11-2014 03:41 PM
by Steve
6 320
new to me box truck
jrayb39667
03-06-2014 11:20 PM
12-11-2014 09:43 AM
by Sprinkler Buddy
18 3,276
Hello from SW FL!!
5StarLawnscaping
12-05-2014 02:35 PM
12-10-2014 02:45 PM
by WesleySnips
7 558
Echo pb200 blower fuel...
googus
12-06-2014 09:03 PM
12-09-2014 06:35 PM
by Steve
3 401
Facebook
element009
03-23-2011 09:36 AM
12-09-2014 06:24 PM
by Steve
36 9,709
Are you prepared for the...
Steve
12-02-2014 04:13 PM
12-09-2014 06:22 PM
by Steve
7 819
Email Address Name
Just Cuts
12-07-2014 09:49 PM
12-08-2014 03:15 PM
by Steve
3 365
Inspection form
stevef1201
12-07-2014 10:38 AM
12-08-2014 03:10 PM
by Steve
1 363
Truck, Trailer,...
hawthornelawncare
12-23-2011 01:01 AM
12-08-2014 12:37 PM
by jrs.landscaping
108 34,057
Back Pack Blower
Ian Lovejoy
11-09-2014 08:41 AM
12-07-2014 06:35 PM
by stevef1201
24 1,622
Innovation by mandate
bayoubandit
11-29-2014 01:33 PM
12-06-2014 03:27 PM
by SGL1
12 885
Trying something new,...
ExtremeLawncareServices
09-21-2014 10:07 PM
12-05-2014 11:06 AM
by Steve
9 2,190
Good help is hard to find
Hanks Lawn Care Services
11-19-2014 03:27 PM
12-04-2014 01:32 PM
by stevef1201
15 1,364
How many hours is too...
Just Cuts
12-04-2014 09:00 AM
12-04-2014 01:02 PM
by Just for Cuts
6 530
Does this sound like a...
googus
12-03-2014 07:47 AM
12-04-2014 12:37 PM
by Steve
5 605
New website
Chilehead
11-20-2014 04:39 PM
12-04-2014 12:27 PM
by Steve
14 1,146
New website
SGL1
12-02-2014 10:55 PM
12-03-2014 11:17 PM
by BLC7
19 778
Websites, how long...
Dan Tanner
03-09-2014 08:29 AM
12-03-2014 11:12 PM
by SGL1
21 3,144
I Want to buy old...
ExtremeLawncareServices
10-10-2014 11:04 PM
12-03-2014 10:36 PM
by ExtremeLawncareServices
8 1,795
GPS trackers for...
Billy Goat
12-02-2014 06:09 PM
12-03-2014 07:17 PM
by Steve
8 632
My site is on fronts page
tbtigers03
11-14-2014 05:58 PM
12-03-2014 06:31 PM
by SGL1
17 1,356
Hiring Subs over Temps
Billy Goat
12-02-2014 06:26 AM
12-03-2014 01:24 PM
by Steve
3 564
Thanksgiving cards
Steve
11-10-2008 11:57 AM
12-02-2014 11:11 PM
by SGL1
11 9,429
New parking area
ExtremeLawncareServices
11-07-2014 09:47 PM
12-02-2014 02:17 PM
by jrs.landscaping
12 1,409
Pressure Washing...
WesleySnips
07-31-2014 07:13 PM
12-02-2014 08:47 AM
by SGL1
6 1,430
old contracts
bayoubandit
11-29-2014 11:10 AM
12-01-2014 11:20 AM
by Steve
3 651
Hi to you NOTHERNERS
stevef1201
11-11-2014 05:56 PM
12-01-2014 10:54 AM
by Steve
9 1,194
Lawn care truck
Steve
10-10-2009 03:40 AM
12-01-2014 10:45 AM
by Steve
32 15,095
Intuit Quickbooks...
CDLAWNCARE
11-30-2014 10:19 AM
11-30-2014 10:19 AM
by CDLAWNCARE
0 544
Say Hello !!!
Steve
03-19-2007 12:18 PM
11-28-2014 01:36 PM
by Just Cuts
1,196 355,316
Hello from Kentucky
TRV
09-30-2014 06:42 PM
11-28-2014 10:49 AM
by Steve
13 2,234
Happy Thanksgiving!
Steve
11-27-2014 09:48 AM
11-27-2014 09:48 AM
by Steve
0 600
Contract or no contract?
TRV
11-20-2014 09:18 PM
11-26-2014 09:23 PM
by stevef1201
5 951
» Popular Tags
2wd 4wd aerocore apartment bid apartment lawn care estimate applying auger billy goat brushcutter blades bush charge christmas deliquentaccounts ditches employee problems equipment rental first truck foreman georgia gopherhaul grass gravely growing a lawn care business holiday husqvarna jobs john deere quik trac labor cost landscape services lawn lawn care lawn care business podcast lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website lighting lighting brass outdoor lights marketing mowing mr dave mulch mulch price new business new mower ordinance per hour charge podcast profit on employee pto running a business savannah search engine optimization seo shreaded small engine repair snow plowing starting a business starting a lawn care business start up lawn care business steep lawns sulky theft toro toro grand stand trailer trimmer rack walk behind wood
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 11:00 AM.


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

All times are GMT -5. The time now is 11:00 AM.

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