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Old 06-27-2013, 03:13 PM
seabee24 seabee24 is offline
LawnSite Senior Member
Join Date: Mar 2009
Posts: 619
I'm not aurguing with that, and I'm sure accountants will have different views in what costs are direct vs over head.

I do disagree however.

A 10,000 mower that has a useable life span of 2000 hours costs you $5.00 per hour in depredation, to replace that unit.... Plus maintenance costs during its life span.

If I didn't mow today, that mower would loose very little value sitting at the shop today. So in my mind, if we are mowing a house that take an hour, $5. Is the direct cost towards replacement

Insurance for the crews truck is the same. No need for a crew truck, no need for insurance on it. Granted its a fixed monthly payment, but if I decided to cut and eliminate the whole crew, we would also cut the insurance, as well as the cell phone for that crew and many other things

I guess parts of that are overhead, but I try and factor each job and crew seperatly. The landscape crew should have to pay for a new snow plow. The snow shouldn't have to pay for a new mower. Each crew, each division should cover its own expenses it uses. If not eliminate that part
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