Cost per hour to operate your Z

[coastallandscapesolutions]

Just wondering is you all know what it cost to run your Z per hour taking into account fuel, maintenance, etc. by brand. I think it would be interesting to compare all of the brands we run and the maintenance schedules.

[dvmcmrhp52]

Exmarks at $6- $8/hr. depending on machine.

[coastallandscapesolutions]

That's a wide range. Can you be exact on what your cost is per hour on the machine only? No other factors.

[coastallandscapesolutions]

Ok, my machines:

JD 757 w54" deck - $6.17

JD 717A w/48" deck - $5.96

JD 1445 w/72" deck $6.53

JD 1600 w/11' on 3 decks - $6.22

Walker Model T with 48" GHS - $6.91

This includes maintenance, fuel, blades, deprecation, etc.

[dvmcmrhp52]

That's a wide range. Can you be exact on what your cost is per hour on the machine only? No other factors.


Not sure what your looking for...........
That's the cost of operation per machine hour, based on expected maintenance, fuel and expected life of the machines, etc.

[coastallandscapesolutions]

But you should know your exact cost per hour of running it. $6 to $8 per hour based on 2000 hours would range from $12,000 to $16,000. That's a potential for a $4K loss left on the table at the end of the life of the machine.

[dvmcmrhp52]

But you should know your exact cost per hour of running it. $6 to $8 per hour based on 2000 hours would range from $12,000 to $16,000. That's a potential for a $4K loss left on the table at the end of the life of the machine.



We're talking about three different models of mowers, all being exmarks.That's why the variation.
The Lazer XS is relatively new so it is but a guesstimate that may be a tad on the high side ($8/hr.) but until proven further we'll stick with it.
I can't honestly give you a number down to the penny for each model, the numbers have been rounded..........

[lawnman_scott]

Ok, my machines:

JD 757 w54" deck - $6.17

JD 717A w/48" deck - $5.96

JD 1445 w/72" deck $6.53

JD 1600 w/11' on 3 decks - $6.22

Walker Model T with 48" GHS - $6.91

This includes maintenance, fuel, blades, deprecation, etc.If the JD 757 throws a rod tomorow what will it change to?

[coastallandscapesolutions]

Yup... warranty will have to fix that one. But any mower can toss a rod.

[lawnman_scott]

Yup... warranty will have to fix that one. But any mower can toss a rod.But wont something like that make your numbers useless? I think $6-8 is a good awnser, i dont see how you can figure it to a penny, unless its in hindsite.

[coastallandscapesolutions]

You can't take into consideration everything. But for the purpose of a business plan, you allow for a certain amount of repairs based on historical repair analysis of the unit. Therefore that is what I am asking everyone. I have been exchanging emails with several LCO's who have no idea how to calculate their fixed overhead averages. So by asking this question I was hoping to stimulate a conversation and discussion in the broad spectrum of business what the costs per hour were for various mowers from different parts of the country. Fuel also effects the rate too.

[dvmcmrhp52]

You can't take into consideration everything. But for the purpose of a business plan, you allow for a certain amount of repairs based on historical repair analysis of the unit. Therefore that is what I am asking everyone. I have been exchanging emails with several LCO's who have no idea how to calculate their fixed overhead averages. So by asking this question I was hoping to stimulate a conversation and discussion in the broad spectrum of business what the costs per hour were for various mowers from different parts of the country. Fuel also effects the rate too.



These are rough numbers but close enough for reality.........

Lazer HP's, $6/hr.
Lazer's, $7/hr.
Lazer XS's, $8/hr.


These numbers are close enough for any real purposes of my intentions, any closer scrutiny neccesary, means I'm doing something wrong..........Just my opinion.

[65hoss]

Lazer HP...$6.25 is what I allocate per hour.

A person can estimate normal maintenance costs pretty closely. Things like throwing a rod are not maintenance items, they are capital expenses on the machines.

[rodfather]

Last time I did the math I was at $7.75 an hour.

[65hoss]

Last time I did the math I was at $7.75 an hour.

Last time you did math, you used a slide rule. :blob3:

Up north the costs are higher, regular maintenance items are more, fuel, price of machines, etc. So I would expect yours to be up there. Actually surprised it isn't more.

[skurkp]

So what is everyone charging per hour on their ztr's. I have four Hustler 60" cuts and when I talk to different people I get from $25.oo per hour to $65 per hour. I am assuming that everyone that I have spoken to is legal and pays there taxes and insurance just as I do, so how does one determine the best rate per hour on these mowers? One guy tells me that he charges $25 per man hour no matter what the person is operating.

[coastallandscapesolutions]

Right now we are looking at unit cost for the machine only. There are many other threads that address what people are charging per man hour. The reason I started this thread is so people could understand the machines cost per hour.

Rodfather, what factors are you basing your rate on?

[rodfather]

Right now we are looking at unit cost for the machine only. There are many other threads that address what people are charging per man hour. The reason I started this thread is so people could understand the machines cost per hour.

Rodfather, what factors are you basing your rate on?

Fuel, maintenance (materials & labor), depreciation, and replacement basically.

[Khundawg]

Anyone have numbers for a Dane Super Surfer 48" w/ a 17hp Kawasaki? Looking to buy one soon.

[Kelly's Landscaping]

I think what it makes an hour is a bit more relevant and important I know my 52 and 60 inch lazers make me over 100 dollars for every hour of use so 2500 hours and you are looking at a quarter million. Makes the 8-10k price of the mower seem rather small. When the mower is shot it gets replaced I do not feel the need to figure the exact amount it costs per hour plus I do a lot of my own maintenance so the numbers a little less in that dept so say its 7 per hour how does this figure help me? One its part of running the business and two I cannot lower it so why dwell on it.

[coastallandscapesolutions]

One its part of running the business and two I cannot lower it so why dwell on it.


You "dwell" on it so you know what your operating costs are and what your profits are. Just becuase you get a check doesn't mean that you can't tweek your business to increase profit.

[djlawn]

I think what it makes an hour is a bit more relevant and important I know my 52 and 60 inch lazers make me over 100 dollars for every hour of use so 2500 hours and you are looking at a quarter million. Makes the 8-10k price of the mower seem rather small. When the mower is shot it gets replaced I do not feel the need to figure the exact amount it costs per hour plus I do a lot of my own maintenance so the numbers a little less in that dept so say its 7 per hour how does this figure help me? One its part of running the business and two I cannot lower it so why dwell on it.


If you don't know what it costs you to run your equipment how do expect to know whether you are making money or not until the end of the year. You should be constantly doing a job cost analysis. And you may not be able to lower your prices, but if you aren't "truly" making money then why be in business.

[Kelly's Landscaping]

If you don't know what it costs you to run your equipment how do expect to know whether you are making money or not until the end of the year. You should be constantly doing a job cost analysis. And you may not be able to lower your prices, but if you aren't "truly" making money then why be in business.

I know what I am making and I do not need to wait till the end of the year to know that. We picked up a bit a debt this winter and spring. In the last 45 days I have paid off $30,000 of it and will be out soon. So that’s 30 k above our operating costs in a month and a half I would say I can live with out the per hour cost per mower. Allot of you guys go nuts with the cost of every detail and where every hour is going to go but they always seem to be based on like 40-50 hours a week its not reality to us we just got out of spring and here we see 105 hour weeks for nearly 2 straight months kind of blows all the little formulas people use to track how much to deprecate and so forth out of the water.

If we can pay all our bills and the cash starts to pile up something is going right I don’t need spread sheets to tell me that I do not do the data entry or the billing in my company. That said when its done I can spot any mistake instantly i know with in a few hundred what I made for the month before the 800-1000 job invoices are added up but perhaps that’s just me.

[YardPro]

kelly,

i will have to agree with the others on this one.
you really should know your numbers... the larger your business grows the more important it is...

here's an example.....
you say that the two mowers would produce $250K in 2500 hours.....

it will take you 4-5 years yo generate those numbers.

that's $40-$50K/year.

it takes a truck to hual them, trailer to pull them, employee's salaries to run them. and all other associated costs to keep those mowers "running" on jobsites....

added up, do all those expenses addup to less than $40K per year????

also knowing your numbers will help you when you go for business development loans. when a banker asks you what your %profit is how can you answer him...

[RedWingsDet]

costal... how does one go about determining the cost per hour? Do I just factor all the costs in and devide by X amount of hours?

[John Gamba]

Last time I did the math I was at $7.75 an hour.

This what i make :help:

John

[coastallandscapesolutions]

costal... how does one go about determining the cost per hour? Do I just factor all the costs in and divide by X amount of hours?


You need to find out the life cycle from the manufacturer on your Z. The average Z runs about 450 hours per year if you are running full time. 2000 to 2300 hours is about the normal "average" life cycle. Some run more and some run less.

Take the total costs (less employee) of running the Z over 2000 hours. That includes:

Gas (typical 25hp Kohler uses .9 gallons per hour)
Oil
Scheduled Maintenance w/labor.
Tires, filters, plugs, etc.
deprecation
insurance
inflation/cost of living adjustments

Once you have the totals for say 2000 hours for everything then divide it out.

Coastal

[Runner]

Here is along the lines that I was thinking. I was told by my dealer (who literally sels hundreds and hundreds of Lazers) that I can figure about $5. an hour for depreciation. That would put my $10,000 machine at about 2000 hrs.. Howver, what gats ne, is that at 2000 hrs., I'm still gonna get 2 to 3 grand for that machine. So, if I figure $2000, that means I should look at a total of 8000 depreciation. At a life of 2000 hrs., this gives me $4.00 per hour (for depreciation). Now, I figure my fuel, which is around 1/2 gal. an hour (fuel injected), and I add $1.10 to $1.20. As for maintenance, that is a trickier one. I think one way to do it would be add up ALL the maintenance so far - oil changes, filters, belts, bearings, idlers, clutch, etc., then average it out with the hours. Now, I don't think we should really count blade costs, since that is seperate to the machine, however, to the OPERATION is an expense. So, with all that said, I agree that the total cost of operation would come in at around 6 to 7 an hour.

[Lumberjack]

Not a critisism BUT

450 hours per year seems like about half the time the mower is sitting on the trailer collecting dust during the prime mowing season. Thats assuming 6 months growing and 40 hour weeks.

I realise its likely an industry standard but is it really an accurate number?

[coastallandscapesolutions]

Most people can't drive the Z, trim, edge all at the same time. Only Bobby G can do that. :p

Then there's travel time. 450 is a good average to use unless you are doing production mowing like I am where your Z's get 60 hours per week, 42 weeks per year.