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  #11  
Old 10-09-2013, 08:16 PM
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RSK Property Maintenance RSK Property Maintenance is offline
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Quote:
Originally Posted by JContracting View Post
I just happened to come across this thread as right now I'm working on my budget for next year. My overhead is about $38,000/yr. Snow is additional income, almost all clients are hourly/per visit, not many are monthly/seasonal and while this is more stressful when I crunch the numbers (like I am right now) for how much needs to be made in the 6 mo lawn/landscape season, however, a huge winter can be rewarding.
So $38,000 / 6 = $6333.33 after taxes which we will estimate at 25%, so roughly $8500 per month needs to be grossed, then add about $3000 (I'm not done running numbers but I'd believe this should be enough) in operating expenses for fuel, maintenance, labor, etc. That is $11,500 per mo for the 6 month season. Divide that by 4 weeks = $2875 per week. Put that into 3 working days = approx. $960 per day. Or approx $720 per day with a 4 day workweek. With these numbers I am referring to maintenance services, I prefer to get the maintenance done as early in the week as possible, leaving the remaining weekdays for installs.

This does not include expensing equipment depreciation though.
seems like your overhead is high...so you don't make any profit if you don't gross over 8500 per month?
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  #12  
Old 10-09-2013, 08:36 PM
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Kelly's Landscaping Kelly's Landscaping is offline
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Basics only not including owners pay What does it cost to exist if nothing was done. And thats $178 a day. Now 3000 a month or $98 a day of that is payments on 2 trucks and 2 mowers totaling 160,000. Those payments will likely be completed by this time next year on the 2 trucks which would lower the monthly payments by 2400 a month or $78 per day which would bring the total per day cost back down to $100. And that really isn't that big a overhead its bare bones insurance, phone, internet, website, cell phone, p.o box, property taxes, registrations, rent and loan payments.
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  #13  
Old 10-09-2013, 08:47 PM
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RSK Property Maintenance RSK Property Maintenance is offline
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Quote:
Originally Posted by Kelly's Landscaping View Post
Basics only not including owners pay What does it cost to exist if nothing was done. And thats $178 a day. Now 3000 a month or $98 a day of that is payments on 2 trucks and 2 mowers totaling 160,000. Those payments will likely be completed by this time next year on the 2 trucks which would lower the monthly payments by 2400 a month or $78 per day which would bring the total per day cost back down to $100. And that really isn't that big a overhead its bare bones insurance, phone, internet, website, cell phone, p.o box, property taxes, registrations, rent and loan payments.
that sounds much more feasible, then jcontractings numbers. so after 178 a day you start making money correct?
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  #14  
Old 10-09-2013, 08:59 PM
Tyler259 Tyler259 is offline
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No that's just overhead if he works or not he still has to pay insurance, truck payments etc. Then if he works that day you start adding labor, gas, dump fees etc.

I read J contracts post but it's confusing those numbers don't sound right for a solo op.

I think I past you the other day near Greencycle in Milford Kellys. My first time buying there, was pretty good.
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  #15  
Old 10-09-2013, 10:29 PM
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JContracting JContracting is offline
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Take a look at my signature & the equipment I have. These numbers are for next year's budget with accelerating payments on all my loans including student loans as well as credit cards, plus phone bill, paying rent for parking my trailer at a buddy's, as well as paying a fixed amt per month to my IRA & gym membership. And my amts are budgeted for the 6 mo lawn season because it's easier to plan for how much money will be brought in and that way I do not have to rely on late fall/winter Nov-End of March.

I apologize if my posts are hard to make sense, my mind is pretty much exhausted from crunching numbers all day and ill be at it again tomorrow until I am done and have everything set in stone and a plan in place. I wouldn't have been doing this if I didn't purchase "Pricing for the Green Industry" that long story short, the beginning is a step by steo guide on creating a budget and then setting up accurate pricing.
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  #16  
Old 10-10-2013, 09:51 AM
Tyler259 Tyler259 is offline
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So from those numbers it looks like your just covering your butt on maintenance and hopefully you have an install or 2 to do every week to make some profit?
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  #17  
Old 10-10-2013, 10:03 AM
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Kelly's Landscaping Kelly's Landscaping is offline
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You may have passed me or one of my guys the two main trucks look identical and I don't always dump my own truck when were done.
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  #18  
Old 10-11-2013, 08:27 AM
JimMarshall JimMarshall is offline
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What all are you calling overhead? In my opinion, overhead includes any expense including labor that doesn't directly contribute to revenue.
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  #19  
Old 10-11-2013, 08:44 AM
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RSK Property Maintenance RSK Property Maintenance is offline
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Quote:
Originally Posted by JimMarshall View Post
What all are you calling overhead? In my opinion, overhead includes any expense including labor that doesn't directly contribute to revenue.
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I though overhead was all your expenses including labor. and in order to make an accurate quote for something knowing what it cost you to do business was pretty crucial.
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  #20  
Old 10-11-2013, 09:32 AM
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snomaha snomaha is offline
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My two cents - I think overhead cost as a percent of sales would be more help benchmarking then what the dollar amount is.

We are running 28% overhead including a fair market salary for me. Would like that number closer to 20% but had to invest in business infrastructure (specifically - management & admin roles) to support future growth.
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