calculating overhead

Discussion in 'Starting a Lawn Care Business' started by Mad_Russian776, May 1, 2008.

  1. Mad_Russian776

    Mad_Russian776 LawnSite Member
    Posts: 41

    In regards to figuring your overhead, how do you figure for major equipment purchases? Being a company in its infancy stage, i'm looking to grow considerably this season.

    If you all were in the position of starting a relatively new business, how do you figure in your new equipment? In regards to setting your pricing, do you look to pay it off in 6 months...2 years?

    Any other advice in regards to this would be greatly appreciated.

    Thanks,
    M.R.
     
  2. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    Look at current equipment and its prices, that would be the replacement cost, that is what I use.
    Yes it does matter that it will last x-many years, but rather than fool with depreciation percentages I just figure raw sums...
    For starters anyhow, and I still use this method.

    Oh as for paying it off?
    No, I save up for it, then pay cash.
    It's harder and it takes longer, but the rewards are well worth it.
    As for how long, well however long it takes lol
     

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