cost of equipment & materials

Discussion in 'Starting a Lawn Care Business' started by dlenz32, Jan 20, 2007.

  1. dlenz32

    dlenz32 LawnSite Member
    Posts: 12


    I understand how important it is to know how much the cost breakdown of what it takes to be in business everyday.

    I see alot of companies on here say they add their labor + material cost + equipment cost + the markup to get the price they need to charge to stay above water.

    My question is, how to come up with the equipment cost? I get the labor and material calculations but the equipment baffles me a bit. I know it depends on how long you use it and how much gas or use it takes as well as depreciation. For example I see some guys say their truck costs X amount of dollars per hour or when mowing/trimming a yard, the equipment cost is like $5 or so an hour?'

    For you season vets, did you establish an "hourly or daily equipment cost" when you first started out? Or did you just wait until you got a steady flow of work to see how much it was costing you and adjust from there?

    Sorry if I've confused anyone....I've probably gone and confused myself even more. Ya ever notice how hard it is to type your exact thoughts so everyone interprets them correctly? ok well any helpful insights are always appreciated.

    my brain is fried for the week. cant wait for football tomorrow.:drinkup:


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