View Full Version : cost of doing business

07-31-2001, 01:43 PM
what does this phrase mean to us, "cost of doing business"

Fantasy Lawns
07-31-2001, 07:29 PM
for me it is a value invested ....(both real $ .... & .... time, sweat, headache,etc) which I must invest or put into.....of which I either control Directly (ALL bills) or Indirectly (Damage or things like .... well sure a F250 will do ...but I Love the Crew Cab ) to return a value which is greater than the original value invested ;->

Pauls Mowing
08-01-2001, 05:39 PM
Cost of doing business is the cost of all equipment ( truck, mowers trimmers ect; insurance on the business, all office supplies and equipment, cell phone, fax, letterhead, computer ect. advertizing, so that you are in business and ready to perform your advertised service. You also need to know what that cost is so you know how to set your rates.


08-01-2001, 08:49 PM
These things are definately included. But think of all the things that you have that are really perks. Things that you have that you get to write off. Cell phone. Computer. Nice truck. Great equipment to cut your personal lawn with.The list goes on. Most people have these things but it is a total "loss expense" if you will.

08-01-2001, 08:54 PM
ok, thanx guys. because the reason i ask this is that i got burned for some money a few years ago. guy told me that it was the cost of doing business.

08-01-2001, 09:39 PM
Yup, definitely an added cost, maybe not a "perk" but a real one nonetheless.

08-01-2001, 10:35 PM
I think I would consider getting beat out of money owed me as "cost of doing business" only if I were in the business of lending money - like a bank or credit card company.

08-02-2001, 05:50 PM
If you do not collect money owed you at the time services are provided, you are also in the business of lending money.

08-03-2001, 01:33 AM
I've thought of the 'cost of doing business' as being those unexpected expenses that fall outside of the norm. Sometimes it is making a decision to give something to a customer to maintain a spirit of good will and avoid negative publicity. Sometimes it is absorbing some unusual cost that was not bid into the job.

08-15-2001, 08:51 PM
Originally posted by lawnboy82
ok, thanx guys. because the reason i ask this is that i got burned for some money a few years ago. guy told me that it was the cost of doing business.

"Bad debt' is overhead.

Other overhead items are:
postage, stationary
professional fees and licenses
educational cost
dues and subscriptions
property damage you pay for
computer and support
tax prep and bookkeeping
facility lease, rent, repair
sales vehicle

and more.

Production expenses are:

production labor wages, taxes, insurance ie: workmans comp and liability, helath ins
uniforms, help wanted advertising

Production Equip
ins, lic and reg
oil & gas
parts & repairs
shop supplies

Materials - anything installed on a job

08-15-2001, 11:11 PM
It really sucks when you get stiffed from a customer. I had 2 instances in 4 years. One was a guy who rented and moved. He said "send me the bill" and disapeared. The other was a condo. association who later paid (six months later) because I took them to small claims court. I could say that I lost $130.00 from the first guy, but all I really lost was $5.00 worth of gas and 1.5 hrs of my time.