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Old 06-27-2013, 02:03 PM
contractorleo contractorleo is offline
LawnSite Member
Join Date: Jun 2013
Location: Rancho Cordova CA
Posts: 1
Originally Posted by seabee24 View Post
Just doing some math. Without going into a ton of details, if you figure labor and labor burden, direct fuel, equipment maintenance, repair, and depredation/replacement, vehicle maintenance/repair/depredation/insurance. What's your total direct percentage? Mine seems really high to me.

After you then add in overhead costs, it seems like I would be better investing money in other areas when comparing the liability and potential profit

I need to figure out if my sales numbers are low or our expenses are too high. I feel I'm charging a fair price, could be higher, but I'm not mowing for cheap either
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Only labor, labor burden, and direct fuel is a direct cost. Equipment maintenance, repair, depreciation, insurance, etc is an overhead cost for the company. When you bid on the job, you should always cover the direct cost and overhead. You overhead could increase/decrease depending on the size/kind/frequency of projects.
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