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Edgewater
01-22-2006, 11:18 AM
I would like to see the different approaches that you guys take to costing out your gear.

1) On things like a rider, how do you figure yor opperating cost? Do you decide you want it paid for in a set amount of calendar time (ie 3 years) or is it by hours (1000)? Then, what are you applying for maintenance. The regular stuff is easy, oil, greas etc can be fairly predictable, but how do you account for more involved repairs down the road.

2) Lets say that you have decide that a $10 k mower will be paid for in 1000 hours. Add $3 per hor to cover oil, grease, bades and parts. We now have a $13.00/hour opperating cost. This cost is for hours on the clock. How do you translate that to daily hours?

For example, my guy work 10 hours per day, how do you assign the number of hours that the mower will run per day? is it just from experience? In a ten hour day, my riders may run 4 hours engine time.


I would like your input,

Adam

YardPro
01-22-2006, 10:09 PM
sounds like you have it down..

The Ranger
01-23-2006, 08:49 AM
You should be realistic in your total hours for the life of the equip. One hourly cost would be your replacement cost the other your maintenance/fuel cost. Add them both together and you have a cost of operation. Travel time can be figured in your cost from job to job (hence 10hrs work, 4 hrs on machine) but you can't figure the cost of that machine in the other 6 hrs. Sounds like your travel time is a little high; 60% (6 hrs out of 10) of the day.

grass_cuttin_fool
01-23-2006, 09:34 AM
Travel time can be figured in your cost from job to job (hence 10hrs work, 4 hrs on machine) but you can't figure the cost of that machine in the other 6 hrs. Sounds like your travel time is a little high; 60% (6 hrs out of 10) of the day.[/QUOTE]

I think he meant that in 10 hours of time that he only had 4 hours of run time on the mower, He also had time in that 10 hours that were trimming, edging, blowing or what other services he offers.

wayne

Edgewater
01-23-2006, 01:14 PM
That right wayne,

Im a 10 hor day, there are about 8.75 productive hours for us.

My questions were really

1) how do most of you account for rapairs apart from oil, filters blades etc?

2) lets say that my total operating cost comes to $13 per enging hour, do you just say "ok, I put 300 hours on the machine in a season, I work roughly 1600 hours in a season and devide. What I am trying to arrive at is what my cost is for the crew to operate per hour and then in a 10 hour day. The actual cost i have to bill the machine out will be less than $10 per hour, but it will be accounted for every minute.
Drive time, lunch working etc.