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Old 02-19-2009, 02:46 PM
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PROCUT1 PROCUT1 is offline
LawnSite Platinum Member
Join Date: Dec 2003
Location: TN
Posts: 4,910
The way the expenses got so high....

Commercial buildings are very expensive here for space.

The cheapest shop I could find was $1500 a month.
A commercial phone line runs over 100 a month.
Commercial internet 100
Electric for the office and shop was about 300 a month

For the size operation I had, you need more vehicles than just the ones working.

I have a truck, the supervisor has a truck. Plus the crew trucks. Plus a truck for a spare. Plus a dump truck or 2.

Commercial high coverage auto insurance is much different than your personal policy.

Each truck is about $1000 a year. Plus registration costs etc.

Cell phones for the crew.....They run 300-400 a month.

With that many customers you need someone in the office full time for the phones billing etc.....So there is about another 1200 a month in "non production" payroll

The supervisor who does the mechanic work, estimates, and everything not directly related to mowing, plus fills in on the crew, etc etc.....He is not directly in production either....Theres another $2000 a month.

Workers comp is crazy high in new york. Comp for the employees was about $16,000 a year. Yes Sixteen thousand.

Dont forget matching payroll taxes. All guys are paid on the books legally.

One truck payment at 600 a month.

Liability insurance was about 6000 a year.

Thats just a sample. We didnt even get into any debt or loan payments. Didnt get into any company credit payments.

Didnt get to my salary, which wasnt great.

Didnt get to health insurance, lawyer or accountant fees.

or the dumpster for the shop....another 100 a month

We also didnt get to equipment and truck maintenance or repairs.

Didnt get to supplies. weedwhack line etc

Keep adding..........its crazy...

Now, many of those things you can probably save a few bucks here and there and that counts. But at the same time, you cannot save enough that it would work.

Now look at those expenses and think how many of those you can eliminate by working out of your house with one or two trucks and a couple of guys.
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