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Old 05-06-2013, 09:03 PM
BruinLawn BruinLawn is online now
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Operating Costs

I'm sure there is a ton of threads about this but not one that just answerd my specific question. I'm new to the lawn care game. I've got 15 clients and a couple are 3 acres. When you guys calculate your operating cost what do you include? Do you go into detail of handheld fuel costs? Or do you just look at the big stuff like truck and mower fuel costs? I'm a one man operation so I don't have and employess to pay.
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Old 05-06-2013, 10:05 PM
Stillwater Stillwater is offline
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Everything:.......from light bulb to tire wear
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Old 05-06-2013, 10:12 PM
larryinalabama larryinalabama is offline
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Mower cost 8.00$ per hour

Handhelds 1.50$ per hour

Truck .80$ per mile

Everyones expenses and equiptment are different, those costs I listed are generally my costs, and that doesnt include advertising and such.
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Old 05-07-2013, 09:06 AM
Smallaxe Smallaxe is offline
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Operating expenses would be most comprehensive when calculated on a monthly basis and then totalled onto your tax return...
I use all purchases related to the business, plus Depreciation to get the "Real Picture"... when EVERYTHING above and beyond that is PROFIT... then you have a handle on it...
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Old 05-10-2013, 11:19 AM
TTS TTS is offline
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Free website to determine hourly cost of ownership: http://decisivecost.com/Calculator/Calculator1.aspx

Add everything you use on the job.
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Old 05-11-2013, 08:52 PM
32vld 32vld is offline
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You need to record every dollar paid out as well as every dollar that comes in.

I do not figure the gallon per hour my eqipment uses. I do keep track of all the gas and 2 stroke oil that I use in my equipment. One it is an expense that I can write off.

Say you spend $10 a week on your equipment.

Your mowing season is 25 weeks. So your spent $250 for gas.

You worked 40 hours a week for 25 weeks. So your fuel per hour cost is $.25 an hour.

Sounds simple. Eh.

Fall clean ups your fuel usage will be different. So will spring clean ups. Then snow removeal.

So depending on the season your gph will be different so will your fuel per hour costs.

Do you need to be that accurate. I am not. I am a one truck show. Now a large business with a fleet of trucks being off a little will matter.

I track all my fuel purchases over the cousre of a year. I then divide by the number of weeks I work vs 52 weeks a year. Example say forty weeks at forty hours is 1,600 hours. Divide those hours by the fuel costs to get the hourly fuel cost.

Then you change equipment then all your old numbers will be off.

Though by keeping track your guess of what you spend on fuel will be close enough to total your total hourly business costs.

Though most people will take the $.55 a mile write off though they need to record the gas used in their trucks as well.
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