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 > Business > General Business Discussions

General Business Discussions A place to talk about general business discussions.

Calculating overhead equipment costs.


General Business Discussions

A place to talk about general business discussions.
Reply
 
Thread Tools Search this Thread
  #1  
Old 02-03-2009, 07:09 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,511
Rep Power: 10
Steve has disabled reputation
Default Calculating overhead equipment costs.

Quote:
I pretty much know exactly what I need to charge to make a good profit. One of the things that I am struggling with a little is how to "exactly" figure your overhead expenses when it comes to the equipment. I have seen some guys figure in what it would costs to replace their equip. in a fisical year and others who would figure it over the life spand of the equip. This is where I am confused. If you do large equip., this makes your overhead extremely high.

I am looking for a bullet proof way to figure my overhead costs!
This is a fantastic question posted in another post by BNC.

My view is you have to figure the overhead equipment costs over the life of the equipment.

I do agree with large equipment the overhead is extremely high. If you buy a piece of equipment, it must pay for itself and make you a profit or it was a bad investment and you should have instead rented it.

If you buy a backhoe, you will be able to dig faster and you will charge more for the time you are using it than if you manually dug, but it improves productivity so ultimately the customer should be happier with the value they are getting.

Any thoughts on this?
__________________
- 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

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 02-04-2009, 04:10 AM
c4trash c4trash is offline
Cash4Trash
 
Join Date: Apr 2007
Location: New Zealand
Posts: 52
Rep Power: 8
c4trash
Default

Lawn care business tipsLawn Care Business Book
Quote:
Originally Posted by Steve View Post
This is a fantastic question posted in another post by BNC.

My view is you have to figure the overhead equipment costs over the life of the equipment.

I do agree with large equipment the overhead is extremely high. If you buy a piece of equipment, it must pay for itself and make you a profit or it was a bad investment and you should have instead rented it.

If you buy a backhoe, you will be able to dig faster and you will charge more for the time you are using it than if you manually dug, but it improves productivity so ultimately the customer should be happier with the value they are getting.

Any thoughts on this?
Ive extracted my method of calculating my equipment overheads from my spreadsheets and converted it to a text file which can be imported to a spreadsheet
It allows you to calculate the net hourly charge out for each item of equipment you own
Have a look here http://c4trash.bravehost.com/Equipment2.txt
Save it as a txt file then open it in your spreadsheet as Tab Delimited
Feel Free to give me any feedback
If you like it then maybe someone could convert it to use on the forum as an online version
__________________
Cash4Trash

Property Services
Reply With Quote
  #3  
Old 02-04-2009, 05:27 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,511
Rep Power: 10
Steve has disabled reputation
Default

I was trying to get the file open and this is what I got so far. Does this look correct to you or no?

These are the instructions I found to open such a file in open office.
Attached Images
File Type: jpg equipment-spreadsheet-screencap.jpg (205.9 KB, 35 views)
__________________
- 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
  #4  
Old 02-04-2009, 07:35 AM
bnclawncare bnclawncare is offline
Member
 
Join Date: Jan 2009
Location: North Carolina
Posts: 68
Rep Power: 6
bnclawncare is on a distinguished road
Default Calculating overhead

I could not get it open either.
__________________

www.bnclawncare.com
Reply With Quote
  #5  
Old 02-08-2009, 06:17 PM
c4trash c4trash is offline
Cash4Trash
 
Join Date: Apr 2007
Location: New Zealand
Posts: 52
Rep Power: 8
c4trash
Default

Quote:
Originally Posted by bnclawncare View Post
I could not get it open either.
I will need to go and check it
My computer is down right now am at Local Internet Cafe
I dont use Open Office so will need to have a look at it
It was created in MSExcel and saved as a Txt File Tab Delimited
I was then able to open it in both Note Pad and Word Pad and import it back to Excel
Give me a few days untill I get my system back online

C4Trash
Frank
__________________
Cash4Trash

Property Services
Reply With Quote
  #6  
Old 02-08-2009, 06:54 PM
c4trash c4trash is offline
Cash4Trash
 
Join Date: Apr 2007
Location: New Zealand
Posts: 52
Rep Power: 8
c4trash
Default

Quote:
Originally Posted by c4trash View Post
Ive extracted my method of calculating my equipment overheads from my spreadsheets and converted it to a text file which can be imported to a spreadsheet
It allows you to calculate the net hourly charge out for each item of equipment you own
Have a look here http://c4trash.bravehost.com/Equipment2.txt
Save it as a txt file then open it in your spreadsheet as Tab Delimited
Feel Free to give me any feedback
If you like it then maybe someone could convert it to use on the forum as an online version
I just checked and when I was playing setting up the Website I accidently deleted it

Basically to calculate my cost per item I take into account the following
In all cases my costs for all items are based on The Maximum price /gal /pint or item I paid for them over the last 12 months which means the charge / tem will remain quite good for a considerable period

This way should prices go up you arent out of pocket or have to increase prices If they go down or you get more that the recommended life from it you make money its more profit

What ever you do dont be tempted to put prices down based on Economics like the price of gas or rate of exchange for the US$

1 The maximum cost you would pay retail for the item this is the start price
2 I then went to the manufacturers web site to work out the recommended hours of use for commercial use before a major overhaul was required
3 I then allow what ever % the local tax laws allow for for depreciation ( this gave me my Salvage cost) based on the recommended working hours because in my opinion if its going to cost money to be overhauled then its past its use by date
4 Once I have the salvage value I then add in a figure for Gas based on maxium prices /gal also the tank size and for the reccomended life If you already have a similiar item and keep good records you can do this from your records)
I also add a figure in for Trimmer Cord , Mower and trimmer Blades and similiar items used in the maitaince and repair of the item over the period
Once you have that total just divide it by the Manufacturers recommended life
What ever the rate comes out to then that is my charge out rate/hour for that item
__________________
Cash4Trash

Property Services
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
Average Startup costs? Steve General Business Discussions 37 04-18-2010 06:50 PM
Entering your overhead costs - Online estimator Steve Online Lawn Care Estimator - Help me bid this job 2 04-13-2009 11:49 AM
Gas Costs JMM0254 General Talk 2 06-05-2007 08:10 PM
Start up costs? Steve Starting a lawn care business. 10 01-10-2007 09:08 AM
Calculating Weekly Totals Gopher Software Support Archived Question & Answers - Read Only 1 06-16-2005 07:36 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Pda
stevef1201
10-18-2014 02:05 PM
Today 04:49 PM
by WesleySnips
3 258
Workmans compensation...
CDLAWNCARE
10-15-2014 08:05 AM
Today 01:47 PM
by The Hunter
3 417
Dealing With Gas Can...
Mr. Mow
Yesterday 01:41 PM
Today 01:39 PM
by Steve
5 162
Pressure Washing Like a...
TNTurf
08-01-2014 11:47 PM
Today 01:33 PM
by Steve
9 728
Hello, from TEXAS
sanchez5
10-17-2014 09:56 PM
Today 01:27 PM
by Steve
6 354
Leaf Box & Loader Set...
ringahding1
Yesterday 06:20 AM
Today 01:25 PM
by Steve
3 151
Organic Lawn Care...
NHray
10-17-2014 06:05 PM
Today 01:23 PM
by Steve
3 326
Hi Steve From West...
Mr. Mow
Yesterday 01:59 PM
Today 01:19 PM
by Steve
1 101
Cheapskate Landlord...
Mr. Mow
10-20-2014 06:33 AM
Today 01:17 PM
by Steve
9 264
Help a brother...
tbtigers03
09-28-2014 11:41 AM
Today 08:51 AM
by ringahding1
12 1,464
first year update
cmdlawncare
08-12-2014 05:41 PM
Today 07:47 AM
by ringahding1
4 1,284
What parts do you carry...
Just for Cuts
10-17-2014 09:08 AM
Yesterday 01:36 PM
by Mr. Mow
16 610
Jungle to Beautiful
stevef1201
10-17-2014 09:54 AM
Yesterday 01:26 PM
by stevef1201
11 460
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
Yesterday 01:19 PM
by ExtremeLawncareServices
158 11,308
Sunny Beach Tennis...
SGL1
10-19-2014 11:24 PM
Yesterday 01:04 PM
by SGL1
4 222
Have you ever had to...
SouthernRootsLawnCare
07-26-2014 02:41 PM
10-20-2014 08:34 PM
by biglee
10 1,768
Look out Bob Villa -...
Mr Dave
09-30-2014 10:06 AM
10-20-2014 05:42 PM
by SGL1
7 1,273
how to fi d commercial...
mchampion319
10-19-2014 09:50 PM
10-20-2014 04:41 PM
by Steve
1 185
Hello From Tennessee
mrmann901
10-17-2014 10:02 PM
10-20-2014 04:24 PM
by Steve
1 258
questions on order to...
jack2048
10-13-2014 11:15 AM
10-20-2014 03:27 PM
by Mr. Mow
15 702
This sucks...
Matther777
09-18-2014 04:56 PM
10-20-2014 02:14 PM
by Steve
14 2,147
Cement mixer
KevinsLawns
10-15-2014 08:03 PM
10-20-2014 02:11 PM
by Steve
7 439
Hello ! New guy Rob here
RWorthley1
10-17-2014 04:05 PM
10-20-2014 02:09 PM
by Steve
1 276
Snow Blowing
gwilson98
10-12-2014 02:21 PM
10-17-2014 02:51 PM
by Steve
6 622
Spreading Weeds?
WesleySnips
07-27-2014 09:46 PM
10-17-2014 07:49 AM
by SGL1
6 924
Grasswhoopins.com Anyone...
GRASS WHOOPINS
06-21-2011 11:38 PM
10-16-2014 01:30 PM
by ExtremeLawncareServices
42 9,277
I Want to buy old...
ExtremeLawncareServices
10-10-2014 10:04 PM
10-15-2014 09:12 PM
by ExtremeLawncareServices
6 656
Say Hello !!!
Steve
03-19-2007 11:18 AM
10-15-2014 06:43 PM
by NHray
1,190 340,025
Do you find weed eating...
chuck2s
10-15-2014 02:10 PM
10-15-2014 02:10 PM
by chuck2s
0 370
Incorporating &...
WesleySnips
10-01-2014 09:39 PM
10-15-2014 01:37 PM
by kslawn
20 1,465
Falling into business
stellarmowing
09-28-2014 04:35 PM
10-15-2014 05:57 AM
by ringahding1
8 1,484
Apartment Complex and...
lxarth
06-22-2011 01:10 PM
10-14-2014 06:25 PM
by jrs.landscaping
42 9,565
I LOVE hedge trimming
stevef1201
10-13-2014 09:05 AM
10-14-2014 01:06 PM
by Steve
5 507
Help with seeder...
ExtremeLawncareServices
10-09-2014 07:39 AM
10-13-2014 08:09 PM
by ExtremeLawncareServices
5 669
The Market watch
WesleySnips
10-12-2014 08:47 PM
10-13-2014 05:40 PM
by SGL1
3 504
Help pricing a large...
Bradcook21
10-07-2014 06:49 AM
10-13-2014 02:00 PM
by Steve
7 856
leaf removal
Double J LLC
10-03-2014 04:24 PM
10-13-2014 06:46 AM
by Billy Goat
19 1,486
Acerage Rake
acrajchel
04-23-2014 07:23 PM
10-12-2014 10:53 PM
by SGL1
2 818
John Deere z235 Deck
WesleySnips
09-29-2014 06:02 PM
10-12-2014 06:20 PM
by kslawn
25 1,630
Credit card contract
SGL1
10-06-2014 05:31 PM
10-12-2014 03:40 PM
by SGL1
18 1,044
Truck craft dump bed...
ExtremeLawncareServices
10-04-2014 08:41 PM
10-10-2014 11:35 AM
by Steve
7 949
First Time River Rock...
berryjam
10-09-2014 06:09 PM
10-10-2014 11:08 AM
by Steve
2 592
West cost lawn prices
SGlawncare
10-09-2014 09:51 PM
10-10-2014 11:03 AM
by Steve
1 582
Question?what should I...
dalvan0
09-24-2014 11:10 PM
10-09-2014 05:58 PM
by kslawn
28 2,114
Mowing the hills
EyeCatchersNow
07-08-2014 12:22 PM
10-09-2014 04:19 PM
by Just for Cuts
25 2,992
snowplowing
jshak40
09-01-2014 07:20 AM
10-09-2014 02:21 PM
by Steve
25 3,629
Changing Scag Freedom Z...
maggiedavidson
10-06-2014 12:24 PM
10-08-2014 06:34 PM
by ExtremeLawncareServices
7 833
The most dangerous part...
Steve
10-06-2014 02:45 PM
10-07-2014 04:18 PM
by ExtremeLawncareServices
3 813
Good Mower
jack2048
10-04-2014 05:34 PM
10-07-2014 01:05 PM
by Steve
7 893
Mulching fad killing...
Tree geek
10-06-2014 08:37 PM
10-06-2014 08:37 PM
by Tree geek
0 708
» Popular Tags
4wd apartment bid apartment lawn care estimate applying bob villa bush charge christmas commercial deliquentaccounts demonstration employee problems exmark ferris first truck georgia gopherhaul gravely hardscapes holiday honda how much to charge how to hydraulic landscape services lawn lawn care lawn care busines plan lawn care business book lawn care business podcast lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care seo lawn care website lawn care website seo lighting brass outdoor lights managing a lawn care business marketing mechanic monthly mowing mulch mulch price new business patio install podcast property management company push versus ride savannah scag scag v-ride seo shell snow plowing starting a business starting a lawn care business start up lawn care business steep lawns stihl sulky toro tractor auger trailer mate pro tree truck new used landscape walker won't return wright stander rh
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 06:30 PM.


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

All times are GMT -5. The time now is 06:30 PM.

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