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  #1  
Old 12-28-2013, 11:26 PM
Pingui Pingui is offline
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Location: Green Bay, wi
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How do you calculate equipment costs

Hey guys, I'm new at this, so please, be gentle. I run a small landscape maintenance company, I do mowing, trimming, fertilizing and things like that. No hardscape of any king and minimal planting. The equipment in my small arsenal is basically a truck, a trailer, a zero turn mower, walk behind mower and small equipment such as trimmers and blowers. When I estimate a job, I estimate the number of hours that it'll take, and the materials I will need (fertilizers, pesticide, etc). Add my markup and voila, the customer has a price. I never include any cost for equipment use... Because I don't know how to do that!!! How do I know what it costs me to run my mower, or use the trailer per hour? I know how much gas I use, but that's about it. My equipment is in very good condition, so maintenance costs are minimal. Any advice?
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  #2  
Old 12-29-2013, 04:59 AM
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Lighthouse Lawncare Lighthouse Lawncare is offline
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How do you calculate equipment costs?

I was given a spreadsheet with a great breakdown. I do not remember from whom I received it. I can not attach a spreadsheet here so if you want I can email it to you.
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  #3  
Old 12-29-2013, 10:10 AM
Tropical Gardens Tropical Gardens is offline
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Lighthouse..If you wouldn't mind sending me an attachment of your spreadsheet as well, I would appreciate it. I have relatively good estimating systems in place, yet would like to see if I am calculating properly. Thanks
tropicalgardenslandscape@yahoo.com
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  #4  
Old 12-29-2013, 10:18 AM
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inzane inzane is online now
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here's the post from a while back where some guy posted a good spreadsheet. http://www.lawnsite.com/showpost.php...2&postcount=36
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  #5  
Old 12-29-2013, 10:19 AM
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inzane inzane is online now
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dang, think that was the wrong one. there was one i got a while back from a thread.. it was really good. can't find it.
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  #6  
Old 12-29-2013, 12:01 PM
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grass-scapes grass-scapes is offline
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You are probably going to be around 12 an hour operating costs for a zero turn, 3 an hour for trimmers and other handhelds.
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  #7  
Old 12-29-2013, 12:13 PM
Pingui Pingui is offline
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Email

Quote:
Originally Posted by Lighthouse Lawncare View Post
I was given a spreadsheet with a great breakdown. I do not remember from whom I received it. I can not attach a spreadsheet here so if you want I can email it to you.

Thanks, lighthouse. You can email it to n.corn.lyons@hotmail.com.
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  #8  
Old 12-29-2013, 12:25 PM
32vld 32vld is offline
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Quote:
Originally Posted by Pingui View Post
Hey guys, I'm new at this, so please, be gentle. I run a small landscape maintenance company, I do mowing, trimming, fertilizing and things like that. No hardscape of any king and minimal planting. The equipment in my small arsenal is basically a truck, a trailer, a zero turn mower, walk behind mower and small equipment such as trimmers and blowers. When I estimate a job, I estimate the number of hours that it'll take, and the materials I will need (fertilizers, pesticide, etc). Add my markup and voila, the customer has a price. I never include any cost for equipment use... Because I don't know how to do that!!! How do I know what it costs me to run my mower, or use the trailer per hour? I know how much gas I use, but that's about it. My equipment is in very good condition, so maintenance costs are minimal. Any advice?
Keep track of all the money you spend and the hours that you worked. You will then have your hourly costs.

As you record your costs keep them separate with a running total. This way you can see how much money you spent on fuel for your equipment. Then get the hourly costs.

Same with maintenance. Record oil, filters, plugs, line. Then you can get hourly maintenance costs.

Then you need to factor in replacement truck, trailer, mower, hand helds, then new equipment to expand the services that you offer, into your hourly cost.

Truck costs $35,000. Average truck life 10 years. You work 40 hour week, for 35 weeks = 1,400 hours x 10 years. That comes to $2.50 hour truck cost.

Right off the bat you have a $2.50 hr cost.

Then a $10,000 mower that will last 10 years. Another $.72 hr.

License, insurance, advertising, all have to be factored in.

You know that you will have to buy 2 sets of tires for the truck and the trailer before you buy a new truck and trailer then those costs have to be factored into you hourly costs.

Takes time to learn costs. One reason you do not know for sure if you will need two sets of tires or three sets.

Then as I have pointed out costs there will always be other costs that you did not realize. Then costs that you underestimated.

You will get a handle on your costs though it takes time.

What is left over is your net/salary. It becomes a sad day when you thought you were clearing $30 a hour until your real costs are learnt.

Last edited by 32vld; 12-29-2013 at 12:31 PM.
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  #9  
Old 12-29-2013, 02:58 PM
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tyler_mott85 tyler_mott85 is offline
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I believe I've also read in a book some basic numbers for different equipment. Maybe the E-myth for landscapers? But that is all going to be VERY generic and most likely out of date. Mowers purchased even 5 years ago have a different owning expense than new ones do.
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  #10  
Old 12-29-2013, 10:08 PM
Jessefloyd1 Jessefloyd1 is offline
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Quote:
Originally Posted by Lighthouse Lawncare View Post
I was given a spreadsheet with a great breakdown. I do not remember from whom I received it. I can not attach a spreadsheet here so if you want I can email it to you.
Lighthouse if you wouldn't mind sending me the spredsheet also my email is: lawnbarberfl@gmail.com
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