Thanks for the extra input Bobby.... now if I may borrow it...
Originally Posted by bobbygedd
the $35 per man hour, was for labor on work like leaf cleanup, trimming of shrubbery, etc. as far as the mowing, he bid less than us by about 12%. while talking to him, he said his lawns are all priced at about $35 per mow. each mow takes his 2 man crew about 25 minutes gate to gate (for u geniouses, that's gate down, when stopping, to gate up, when leaving).
Now look you guys... this is not rocket science. All you have to do is figure the numbers with no fuzzy math involved to make yourself feel better about how the numbers look.
This guy is doing better on extra services involving the small equipment than he is the larger stuff from mowing on up. Here's how it works out.
Gate to Gate time-> 25 minutes x 2 men = 50 minutes
Even if the route is pretty tight, at the end of the day, his route average for his $35 lawns will come in at 1 man hour per lawn at least. IOW $35 per man hour. With that said, he does worse on services from mowing on up, because the costs involved beyond labor expenses are a LOT higher than they are for two guys running a shovel/rake/blower/hedge trimmer.
Anyways... take the $35 per man hour and subtract some REAL HOURLY NUMBERS instead instead of "$4.16 each guy per lawn".... because trying to make your numbers LOOK AND SOUND GOOD will not make them good in reality.
Lets do it like this... (with simple numbers that work out even)
Gross Route > $35 x 8 hrs = $280
Direct Employee Wage > Crew leader + Helper x 8 hours = $200 per day
That leaves $80 per day/ $10 per hour to cover everything else.
(But you all consider this profit right?)
Think that's going to cover it the expense? THINK AGAIN.
Mix oil expense?
Stuff like 8 tires on the road, blades, belts, filters, oil, grease, repair parts, trimmer line, and other misc expenses... and we haven't even ventured into the fixed operating expenses.
$80 bucks a day ain't going to cut it for covering the expenses, much less paying the owner a wage.
Anyways, you guys should keep better records of your expenses.