View Full Version : Equipment cost per lawn
01-06-2000, 11:54 AM
I had seen in one of the ancient posts were there was discussion of how to estimate properties and figure the "clean" profit you'd make from the job. Example: gas = $2, liability insurance = $3, labor $7.50, depreciation = $1, etc. I figured this would help me and some of the new guys in order to take this into account. What do you guys figure into your costs(the above and more), how do you figure this, and what kind of profit do you like to tag on top of this? I think you all can see where I am going. If not let me know and I'll make it clearer.
01-06-2000, 01:33 PM
matt--see steven's post on the price of doing buisness. I've approached pricing from a different angle than yours because the profit margin I make, makes things such as the cost of gasoline for the machine negligible. now income taxes aren't negligible but if you aren't making the money you aren't gonna owe the taxes. good luck! e-mail if you want to discuss ideas.<p>by the way--in your area you ought to be able to knock 'em dead in the grass buisness!<p>GEO
01-07-2000, 03:09 AM
Im a one-man operation, I spend $400/year on fuel for my machines, I wouldnt consider that negligible, Im painfully aware of how long I need to work just to pay for my fuel, also when I spend $1.75 at D&D for a large joe I think, "gee Im drinking x square feet worth of overseeding" or whatever. Times 300 days is, you get the picture. All the "negligible" items will add up quickly so be aware of all the costs and figure accordingly or guarantee you will soon be one of those with the equipment up for sale because "theres no money in this business, boohoo".<p>Bill
01-08-2000, 10:40 AM
I figured my overhead for mowing runs me $24 for each hour that the mower ran last season, that includes taxes, insurance repairs depreciation etc. Doesnt include paying myself. During the four winter months it cost me $650/month just to be waiting for the snow. Definitely need to fill in the slow time from Dec-Mar.<p>Ill use these figures along with my times for individual lawns to adjust pricing for 2000. Theres a max that you can charge for a lawn based on competition, and at least Ill know whether its costing me to mow a particular lawn. Sometimes you make more leaving the equipment in the shed.<p>Bill
01-08-2000, 11:59 AM
i saw a great summation of our concerns on the wall of a local construction office today. it read: <br> <br>volume without profit is like eating soup with a fork, you work real hard but always stay hungry.<p>i thought this best fit our situations, no matter what business you are in<p>----------<br>Stephen<br>
01-09-2000, 05:56 AM
Hello all I have never Itimized the cost of all Eguipment per hour.But do think that it is a good idea from the truck and trailer on down to the smallest hand tool every thing has a cost.and a replacement cost also u reach a point where some of your big mowers are paid for and still in good shape but you still need to charge as if you are paying for new stuff because eventually you will need new equipment .Always charge as much as the market will bare do top quality work leave the trashy lawns for the low ballers dont take every thing that comes your way ei bidding cheap on undesirable yards. it just doesnot pay in the long run. Just some thoughts. Knowing costs is very important when your small you kinda can tell how you are doing without tracking every doller but a bigger outfit would have to be really concerned on doller figeres for all equipment used .
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