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Old 05-21-2013, 01:35 PM
ChadHa ChadHa is offline
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Join Date: May 2013
Location: Glenoma, WA
Posts: 3
Operational Costs and Equations

Morning,

I was curious to know about anyone's operational costs and equations used to acquire the cost per hour for each piece of equipment they own.

What are your:

-Life Time or Annual Maintenance Costs (for the life span of your equipment)
o Trimmer
o Mower
o Edger
o Blower
o Truck & Trailer

Also I notice a lot of calculators for estimating lawn bids but I have not found the math to support it or it includes or doesn't include to much or to little of information. What equation do you use to estimate lawn care bids?

Current equation in development is(not to include labor):

(Equipment Purchase Price + Life Time Maintenance Cost + Annual Fuel Cost) / Life Span of Equipment (in hours) = Cost Per Hour of Service

This is something I found online, but I think it can be reimaged to be much more efficient.

Your Thoughts?

Any information and help would be greatly appreciated,

Chad
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Old 05-26-2013, 10:23 AM
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gardengnome gardengnome is offline
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Join Date: Jul 2004
Location: Easley. SC
Posts: 86
Where do you buy your equipment, if it is a home improvement store, it is throw away stuff, 2 years maybe.

How much work do you have and are you the only one using it? Many employees tend to not care and throw stuff around 'cause they didn't pay for it.

I look at it this way; handheld equipment will last me 3 years, any more is good (my current handhelds were bought in 2007), mower is good for 6 years and 8 for a diesel truck. Lot depends on how you treat our stuff and how much you use it. Someone who strictly mows large properties is going to replace equipment every (other) year. In my business I may spend an hour on site but only actually cut 20 minutes. The formula is correct but you will have to apply it to your specific numbers. That means knowing your numbers.

If you like I can send you my estimating spreadsheet.
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Old 05-26-2013, 10:29 AM
Paul's Green Thumb Paul's Green Thumb is offline
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Join Date: Feb 2013
Location: Ill Annoy
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I for one would live it if you would send me a copy of that spreadsheet. Your generosity will be appreciated!
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Old 05-26-2013, 10:30 AM
toasted toasted is offline
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Join Date: May 2010
Posts: 80
Why limit the equation to the lifespan of the equipment instead of recovering for billable hours in the year? Lifetime is not guaranteed where hours in a year never change.
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Old 05-26-2013, 12:34 PM
Working Man Working Man is offline
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Join Date: Feb 2009
Location: Michigan
Posts: 59
Operational Costs and Equations

Hours = 2k
Mower = 12k / 2k = $6/ph
Maintenance = about $2k - $4k / $2k = $1-2/ph
Gas = 1 gal/ph. = $4ph
Total = $12 ph

Then you get to sell the machine and get a few thousand back or keep it and only pay the fuel and maintenance costs on it. The weed whip guy is where you're really making the money if you think about it. Much cheaper hourly cost.
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Old 05-28-2013, 11:46 AM
ChadHa ChadHa is offline
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Join Date: May 2013
Location: Glenoma, WA
Posts: 3
Thanks for the replies.

I have a firm grasp on the equation but there are other factors I need to account for. Depreciation expenses being one.

As far as lifespan goes I agree. My thoughts were, how many hours will I get out of this equipment when it is operating at 100% capacity. I understand I will not operate that but I need to know the ideal conditions before constructing actual.

I can get this information from the manufacturer, such as Gallons per hour, maintenance, lifespan. Though always fear asking the company about its own product.

It'll take me a bit to construct it, but once I throw together an initial spreadsheet I'll post it and hopefully assist some and/or get feedback from the community.

Thanks again for all the help it is greatly appreciated.

Chad
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