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: 37,246
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
what's the big deal...
Tony317
Today 02:19 PM
Today 02:19 PM
by Tony317
0 20
Big (to me) mulch job
tl757
04-23-2015 05:32 PM
Today 01:44 PM
by jrs.landscaping
6 138
mowing pic
joshlawncare
Today 12:34 PM
Today 12:34 PM
by joshlawncare
0 27
Total yard rehab
SGL1
04-23-2015 03:59 PM
Today 12:31 PM
by joshlawncare
5 115
Lawn Care Service in...
Friscobob
Yesterday 03:33 PM
Today 05:35 AM
by Sprinkler Buddy
2 66
New company in Michigan
SEM
Yesterday 09:27 PM
Today 05:26 AM
by Sprinkler Buddy
1 42
Newb Question - Multiple...
DependiLawn
Yesterday 11:36 PM
Yesterday 11:36 PM
by DependiLawn
0 34
maintandlawndispatch...
SGL1
04-21-2015 03:31 PM
Yesterday 04:42 PM
by Steve
9 209
Thoughts on Undocumented...
element009
09-25-2011 11:08 AM
04-23-2015 09:32 PM
by Chilehead
56 15,498
Hello Everyone
DesignsByBnC
04-22-2015 04:07 PM
04-23-2015 02:19 PM
by DesignsByBnC
2 86
The upcoming rainy...
5StarLawnscaping
04-21-2015 01:22 PM
04-23-2015 12:54 PM
by Steve
7 185
color fliers?
holymoly
04-18-2015 02:32 PM
04-23-2015 12:50 PM
by Steve
12 350
I'm Back With The Best...
aduttonater
02-21-2015 12:41 AM
04-22-2015 07:04 PM
by Just for Cuts
59 2,516
WARNING! Especially to...
SC93
04-19-2015 12:05 PM
04-22-2015 01:39 PM
by Steve
14 417
Could be great news for...
SC93
04-14-2015 11:06 PM
04-22-2015 01:28 PM
by Steve
15 501
quick pic
joshlawncare
04-14-2015 07:49 PM
04-21-2015 05:01 PM
by joshlawncare
4 329
Got Inspected today
swstout
08-09-2010 10:31 PM
04-21-2015 03:53 PM
by SGL1
10 3,984
Smoked my first belt!
SGL1
04-20-2015 08:46 PM
04-21-2015 03:28 PM
by SGL1
4 159
Pictures of commercial...
avetslawncare
04-01-2015 09:47 PM
04-21-2015 12:47 PM
by Steve
25 1,007
lawn care business...
holymoly
04-18-2015 02:56 PM
04-21-2015 06:18 AM
by holymoly
3 249
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
04-21-2015 03:18 AM
by ExtremeLawncareServices
57 5,244
landscape insurance
clarkslawn
03-30-2015 10:14 PM
04-20-2015 10:02 PM
by SGL1
4 469
Poll & Discussion...
CHEESE2009
09-16-2011 06:16 PM
04-20-2015 08:20 PM
by avetslawncare
27 5,663
weed
avetslawncare
04-16-2015 07:56 PM
04-20-2015 01:08 PM
by Steve
4 259
Aerating / Dethaching...
Hard-Body lawn & garden
04-12-2015 07:53 PM
04-19-2015 08:49 PM
by Chilehead
17 598
Start LIKING FACEBOOK...
rlclawncare123
02-26-2015 12:06 AM
04-19-2015 09:21 AM
by KJ90
8 1,007
bidding a cemetery....
NPM_LLC
03-28-2015 10:56 AM
04-19-2015 05:26 AM
by RSE
22 1,010
Hustler Raptor
SGL1
04-13-2015 09:27 PM
04-18-2015 07:53 AM
by SGL1
15 517
is craiglist good to...
JBENI
04-16-2015 11:11 AM
04-17-2015 10:25 PM
by Wolf4dk
11 414
Am I missing something...
googus
04-11-2015 06:33 PM
04-17-2015 08:01 PM
by avetslawncare
10 541
Hello
sonny54
04-16-2015 09:49 PM
04-17-2015 03:10 PM
by Steve
1 201
Unreal
Chilehead
04-09-2015 09:12 PM
04-17-2015 08:27 AM
by Chilehead
11 566
starting a lawn care...
JBENI
04-14-2015 09:03 AM
04-17-2015 08:03 AM
by JBENI
14 548
Finally got a warehouse
avetslawncare
03-12-2015 07:52 PM
04-16-2015 07:52 PM
by avetslawncare
23 1,366
New 14 x 7 Enclosed...
whitepropertydetail
04-15-2015 06:46 PM
04-16-2015 03:40 PM
by Steve
1 255
older used dump trucks
SECTLANDSCAPING
09-22-2011 12:33 AM
04-16-2015 12:41 PM
by biglee
21 8,052
Tax Poll
Steve
04-15-2015 02:13 PM
04-15-2015 02:13 PM
by Steve
0 239
lawn care by Aj
aj10261984
04-14-2015 06:50 PM
04-15-2015 01:43 PM
by Steve
2 271
Contact last years...
googus
01-28-2015 08:13 AM
04-15-2015 12:54 PM
by SC93
7 1,271
trying to sign up for...
JBENI
04-14-2015 10:20 AM
04-14-2015 12:11 PM
by Steve
1 737
Charging customers for...
Hard-Body lawn & garden
04-14-2015 07:34 AM
04-14-2015 10:35 AM
by Steve
1 304
New member
Jdlandscaping,LLC
04-11-2015 03:24 PM
04-14-2015 05:45 AM
by Jdlandscaping,LLC
2 332
hello
oasis_greenscapes
04-01-2015 06:18 PM
04-13-2015 12:03 PM
by Steve
8 572
New Member
Greenturion
04-11-2015 02:00 PM
04-13-2015 11:59 AM
by Steve
1 294
Client with...
OldSalt
04-07-2015 09:47 PM
04-13-2015 11:57 AM
by Steve
8 522
Getting rid of "mulched...
Mr. Mow
04-12-2015 04:21 PM
04-13-2015 11:26 AM
by biglee
3 331
String trim BEFORE mow...
Mr. Mow
04-12-2015 08:13 AM
04-13-2015 11:11 AM
by biglee
7 445
Billing methods
jcurr33
03-26-2015 01:33 PM
04-13-2015 11:07 AM
by biglee
15 949
Landscape Fabric
CurbAppeal1
04-10-2015 03:58 PM
04-13-2015 08:02 AM
by Chilehead
4 377
I lost a long term...
Sprinkler Buddy
09-04-2011 02:24 PM
04-12-2015 04:27 PM
by Mr. Mow
17 4,018
» Popular Tags
ad landscaping aerocore apartment bid apartment lawn care estimate applying auger billy goat brushcutter blowout bush commercial contract help curb appeal services deliquentaccounts demonstration design ditches door hangers employee problems estimate facebook foreman google growing a lawn care business how to hydraulic jobs john deere quik trac landscape services lawn lawn aeration lawn care lawn care busines plan lawn care business seo lawn care business website lawn care business website seo lawn care seo lawn care website lawn care website seo lawn mowing managing a lawn care business marketing marketing secrets mulch new mower patio install per hour service pricing pto scag v-ride search engine optimization secrets to landscaping seo shell shreaded snow plowing sq ft starting a lawn care business steep lawns theft toro toro grand stand tractor auger trailer mate pro up sell employee web design website website design wood wright stander rh www.greenturion.co.za
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 05:53 PM.


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

All times are GMT -5. The time now is 05:53 PM.

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