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View Full Version : whats YOUR monthly overhead?


NEPSJay
04-23-2006, 11:44 PM
all these threads lately on how much, sales, profit, earnings, etc, etc. Good buisness people know their overhead, the bad ones, do not. What is YOUR TOTAL, MONTHLY overhead, on average?

topsites
04-23-2006, 11:48 PM
1/3 of gross deposits before labor and taxes, always, and literally.

Every deposit I make, 1/3'rd is marked to pay accounts due, anything can get paid with this money but nothing more. If 1/3'rd of my deposits do not pay the bills, I am doing something wrong. So, deposit 1.2k, 400 is for bills, be it credit card or whatever, yes this includes fuel and anything and everything except labor and taxes.

Labor is a k a month, taxes is another 1/3'rd, the rest should be profit.

p.s.: Actual deposit, not book gross.

olderthandirt
04-23-2006, 11:48 PM
Good buisness people know their overhead

And they don't post it for there competition to know :dizzy: :dizzy:

NEPSJay
04-23-2006, 11:51 PM
And they don't post it for there competition to know :dizzy: :dizzy:

why, they post everything else? contracts, pics of customers houses, sales letters, ads, flyers, prices, hourly rates, insurance premiums, costs of equipment, truck payments, equipment payments, shop morgage or rent payments, health insurance premiums, cost of fuel, cost of supplies, costs of $13.00 mulch..... etc, etc,:dizzy: :dizzy: Come clean, mack, just say you dont know

Badgerz
04-23-2006, 11:54 PM
And they don't post it for there competition to know :dizzy: :dizzy:

I'm sure there a few LCOs on here from Northern Ohio but the rest of the thousands of users here aren't really your competition. :)

olderthandirt
04-23-2006, 11:56 PM
why, they post everything else? contracts, pics of customers houses, sales letters, ads, flyers, prices, etc, etc,:dizzy: :dizzy:

but none of those will help your competition KNOW what you need to charge for a job :dizzy: :dizzy: Look through the archives and show me where 1 legitamate company has posted there cost ? they may indicate a general amount but thats all your gonna get.

kdbetters
04-23-2006, 11:59 PM
for me its about $5800, now about $4300 of thats labor and labor burden. The rest is things like phone, truck payment, gas, yellow page ads, shop charges, and the list goes on. Basicaly, about $1500 is fixed costs per month, and the $4300 is labor but of course that can fluctuate depending on the workload. So if I'm producing $10000-$12000 a month then of course you can see where profit is. But of course you still have those variable costs that sneak upon you like repairs or new equipment purchases, or a good deal thats to good to pass on.

olderthandirt
04-24-2006, 12:20 AM
I'm sure there a few LCOs on here from Northern Ohio but the rest of the thousands of users here aren't really your competition. :)

your right $7800 a month. :waving:

Howie's Lawn Care
04-24-2006, 05:37 AM
Do I need to include my regular/only vehicle and my regular vehicle insurance. I use my cell phone for business and personal, and will include it in the total. Is there a way to get a business cell phone so I can write it off or do I need a land line. Thanks for any help guys.

-Nick Howard

daveintoledo
04-25-2006, 10:13 AM
it cost me 9.85 per hour to operate.....

Fantasy Lawns
04-25-2006, 11:42 AM
Let's keep apples to apples n oranges to oranges

True Over Head Take place even when no work was done ….. expenses that support the operation of a business.
èRent for facilities, utilities, advertising, property taxes, storage, insurance on buildings, office expenses and other "behind the scenes" costs that in some cases take place simply because time went by.

DIRECT COST: those expenses that happen because labor was applied, equipment and vehicles were put into action, materials were used and work was done.

Direct costs are usually easy to document and predict when you know how much time a project will take and what equipment and materials will be needed.

INDIRECT COST: costs that follow with direct labor
· Payroll taxes
· Employee benefits & Insurance
· Fuel consumption
· Depreciation
· Repairs and other on-the-job costs.

Payroll taxes, benefits and insurance can be easily estimated
Indirect costs related to equipment are tougher to predict.
Fuel consumption can vary greatly & Repairs are often unexpected.

So too keep it simple è Direct costs happen when work is done and labor is applied. The workers come in to work, and as soon as they turn the key in the ignition, direct costs and indirect costs follow them and stay with them all day.

Overhead items of expense that support the operation

Fore me my “Over Head” is just under 13% of Gross ….. Labor or Direct cost takes the larger “slice of the pie”