View Full Version : Mileage expense
04-24-2001, 12:58 PM
I'm trying to determine the cost of hauling my equipment per mile. I want my figure to include Fuel, wear, maintenance, time, and depreciation per mile. Could somebody share your typical cost per mile to transport your equipment for a standard routine mowing? Can you also provide a little detail into how it was calculated? How do you charge it back to the customer? Obviously the customer charge back would decrease if you had a few customers in a small area. Has anybody tried presenting a customer with a bid and then giving them a second price if they could refer a close neighbor, the discount being the reduced transport expense per customer?
05-04-2001, 10:24 PM
I had the same question about giving discounts for referrals my first year,but I picked up a neighbor of a customer and I suggested this to him and he told me that if I did as good a job as I did on the neighbors lawn he would keep me busy. Then he informed me that his wife was a real estate agent in the area and needed some of my cards. I picked up 2 very good customersthat year and at beginging of next season picked up 4 more customers from this and wanted to do something so I took the price of 1 mowing off his bill. He was upset that i did that and paid me for all the mowings and said to keep doing the good job. DO QUALITY WORK AND THEY WILL REFER YOU.Plus if the neighbor finds out that you are doing his for less this might cause problems.
[Edited by mow money on 05-04-2001 at 10:34 PM]
05-05-2001, 12:53 AM
If the neighbor cancells are you going to raise his rate again
05-05-2001, 01:23 AM
Mow Money, I have found the same thing when you take the price of a mowing off the bill in appreciation. From now on I am going to give them a $25 gift certificate to Applebee's or Outback SteakHouse. No one in their right mind passes on free food.
05-21-2001, 03:02 PM
I was in sales before I decided to get out of that and go into Marketing...same thing. Now I am going to cut lawns. This was always so hard to figure out with what people feel is an appreciative gesture and so forth. Referrals are King!
I really like the GC idea - You could do it for a gas station these days and they would probably kneel down and kiss your feet!
Great ideas to add to my Business plan!
05-22-2001, 12:12 AM
Not the most scientific way but
average monthly gas cost, divide by how many days you actually work
what you pay for labor
what you pay for mechanical repairs
average monthly office and misc parts you expect to purchase ( lunch, blades, line ect...)
Dived all the above totals by the days you actually work
Divide you second total by your work hours
Can get an pretty accurate operating cost per hour.
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