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  #81  
Old 07-24-2013, 06:23 PM
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APLUS LAWN CARE APLUS LAWN CARE is offline
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Quote:
Originally Posted by Snyder's Lawn Inc View Post
The job that's 25 miles away you should have at lease $50 trip charge
When I bid the job I didn't figure in any extra for travel but I did charge quite a bit. I mow two properties, one is about 1.4 acres and the other is about .25 acres and I make $140 off them. It usually takes me a little less than 3 hours to drive there and mow and drive back.
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  #82  
Old 07-24-2013, 06:29 PM
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APLUS LAWN CARE APLUS LAWN CARE is offline
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Originally Posted by Snyder's Lawn Inc View Post
Best to know how long it takes you to mow a acre and the fuel it takes.
So when you look at a job and it has nothing in the lawn you know the time.
Then when there is things like trees you can add mins up.

I figure about every 2 trees takes me a min longer to do the job.
Big flower beds I figure 2 mins to my time.
It might be to much but it kinda gives me idea.
I don't mow very fast, I would say 2-3 mph so that would be around 1.5 acres per hour. I sometimes mow faster but a lot of the lawns I now are pretty rough so I have to take it easy or the mower will beat me to death. My mower uses around 1.5 gph so I use about a gallon an hour. So I'm guessing with overhead, repairs, fuel and everything else my expenses probably cost me around $20 per hour.
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  #83  
Old 07-25-2013, 04:46 PM
dllawson dllawson is offline
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Location: Southeast, GA
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When you first start trying to calculate a budget it is easy to get overwhelmed with the small details. It is often better to start with big easy numbers and then work to smaller more detailed numbers as you have the time or the interest.

There is a very simple way to start calculating your cost per hour to operate. Add up all of your expenses for the past 3 months. Dividing that number by 3 will give your average monthly expenses. Divide that number by the number of days a month you plan on working. (I use 20 for budgeting, but it would be more if you work Saturdays.) This will give your average daily expenses. Finally divide that number by the number of hours you plan on billing each day. This will give you an average cost per hour to operate.

Example: Expenses: April - $2000, May - $2800, June - $2400.
Total expenses = $7200. $7200 / 3 months = $2400 a month in expenses.
$2400 / 20 working days = $120 a day in expenses
$120 / 6 billable hours = $20 an hour in expenses

I understand this is an overly simplistic approach to budgeting, and I am only suggesting it as a starting point. However, it is fairly accurate and can be calculated in about 5 minutes so that you can start using it on your next bid.
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  #84  
Old 07-25-2013, 05:16 PM
zimmatic zimmatic is offline
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Location: Minnesota
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aplus,

PM me I have a business coach you can contact.
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  #85  
Old 08-11-2013, 11:15 AM
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APLUS LAWN CARE APLUS LAWN CARE is offline
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I just wanted to update everyone on what is going on now. I actually decided to take on some subcontract work for another LCO in my area. So far it has worked out really well. It really helps the bottom line. It did more than double my number of accounts though, so it keeps me busy.
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  #86  
Old 08-11-2013, 07:48 PM
32vld 32vld is offline
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Join Date: Feb 2011
Location: LI NY
Posts: 3,279
Quote:
Originally Posted by dllawson View Post
When you first start trying to calculate a budget it is easy to get overwhelmed with the small details. It is often better to start with big easy numbers and then work to smaller more detailed numbers as you have the time or the interest.

There is a very simple way to start calculating your cost per hour to operate. Add up all of your expenses for the past 3 months. Dividing that number by 3 will give your average monthly expenses. Divide that number by the number of days a month you plan on working. (I use 20 for budgeting, but it would be more if you work Saturdays.) This will give your average daily expenses. Finally divide that number by the number of hours you plan on billing each day. This will give you an average cost per hour to operate.

Example: Expenses: April - $2000, May - $2800, June - $2400.
Total expenses = $7200. $7200 / 3 months = $2400 a month in expenses.
$2400 / 20 working days = $120 a day in expenses
$120 / 6 billable hours = $20 an hour in expenses

I understand this is an overly simplistic approach to budgeting, and I am only suggesting it as a starting point. However, it is fairly accurate and can be calculated in about 5 minutes so that you can start using it on your next bid.
Great advice. Trying to figure in every small cost when you have know idea how much 2 stroke oil, you will go through, or line, or edger blades in a season is a total guess that you hope you will not be that off. Bad to think you were making money and find out you broke even due to under estimating one's costs.
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  #87  
Old 08-11-2013, 08:05 PM
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cpllawncare cpllawncare is offline
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Join Date: Apr 2011
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It really does get overwhelming trying to figure ALL the cost associated with a season, there's so much you just can't figure it all down to the dime, I try to keep up with all my receipts and do a pretty good job but it's almost like a job within a job, when your an owner operator. You really do have to watch though it's very easy to get in a negative cash flow situation.
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  #88  
Old 08-11-2013, 11:42 PM
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APLUS LAWN CARE APLUS LAWN CARE is offline
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Quote:
Originally Posted by cpllawncare View Post
It really does get overwhelming trying to figure ALL the cost associated with a season, there's so much you just can't figure it all down to the dime, I try to keep up with all my receipts and do a pretty good job but it's almost like a job within a job, when your an owner operator. You really do have to watch though it's very easy to get in a negative cash flow situation.
Yes, you are exactly right. When you are an owner/operator it is a job within a job. I keep really good track of my expenses. Luckily, I am not in a negative cash flow situation at this time and actually I am working on improving my cash flow but I could see how it would be easy to get in to that situation.
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