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  #21  
Old 10-11-2013, 10:10 AM
JimMarshall JimMarshall is offline
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Join Date: Feb 2013
Location: NW PA
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Quote:
Originally Posted by RSK Property Maintenance View Post
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.
I was taught overhead is all expenses not direct job related ie truck payments, administrative salaries, electric, property taxes, etc. Not direct labor.

Let's just say you run 5 crews and have overhead of 100,000 a year. That's 385 per day per crew. So when pricing a one day job your price would be direct labor cost + materials + equipment + overhead + profit = price
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  #22  
Old 10-11-2013, 10:43 AM
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JContracting JContracting is online now
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If anyone is unsure of what overhead or anything accounting related, read "Pricing for the Green Industry".
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  #23  
Old 10-11-2013, 12:43 PM
Tyler259 Tyler259 is offline
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Join Date: Sep 2011
Location: Connecticut
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Originally Posted by JContracting View Post
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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Not that it doesn't make sense but a budget is much broader. I wouldn't think living expenses would be included in your business overhead. A budget sure, but Efficiency explained it well. Operating expense. At $960 a day are you saying that's what you need to live on before you make any profit? Just trying to understand where you're coming from.

I think your bunching them all together. It might be beneficial to do them separately to really see the business expenses. Then add up the college and gym payments etc on a different sheet.
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  #24  
Old 10-11-2013, 08:00 PM
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JContracting JContracting is online now
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I suppose I should have separated them as opposed bunching everything together. And the $960 per day was based on 3 working days per week.
It includes doubling payments with some expenses too, truck payment, mower payment, etc.
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  #25  
Old 10-11-2013, 10:47 PM
GQLL GQLL is offline
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Join Date: Mar 2011
Location: Hampton Roads, Va
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What you did was make a budget for the year to cover your living expense, not your business overhead. So when your out mowing all you are doing is pay bills and not saving a dime, and you make money on installs. We make money on any service rendered yes we have a set overhead for each day. Alot of people account for the payment on the equipment and the depreciation but most forget to account for replacement of said equipment when it is done.
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  #26  
Old 10-12-2013, 06:30 AM
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Efficiency Efficiency is offline
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Location: zone 6
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Quote:
Originally Posted by JContracting View Post
I suppose I should have separated them as opposed bunching everything together. And the $960 per day was based on 3 working days per week.
It includes doubling payments with some expenses too, truck payment, mower payment, etc.
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You're going to price yourself out of the market accounting for your costs this way. Paying down extra should come from profits. Im sure you'll keep posting whatever you want but reading one guys book doesn't make you an expert qualified to give advice like you are, especially with so little implemented experience.
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  #27  
Old 10-12-2013, 07:07 AM
djagusch djagusch is offline
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Join Date: Mar 2006
Location: MN
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Quote:
Originally Posted by JContracting View Post
I suppose I should have separated them as opposed bunching everything together. And the $960 per day was based on 3 working days per week.
It includes doubling payments with some expenses too, truck payment, mower payment, etc.
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So your budget is based off working 3 days a week but also making double payments? The other 2 days are for installs but are not a factor in the budget?
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  #28  
Old 10-12-2013, 09:05 AM
larryinalabama larryinalabama is offline
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Join Date: Jan 2008
Location: Ragland Al
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Im a solo operator, year in and year out my expenses are close to 33%. I see a lot of fellers don't include equiptment replacement but you should. I wish I could get expenses down but I really don't see how at this point in my career. I will say when Im in my 70s, Im just gonna run a small pu and cheap mowers.
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