DO u know your cost per 1000?

Discussion in 'Pesticide & Herbicide Application' started by DUSTYCEDAR, Feb 18, 2007.

  1. DUSTYCEDAR

    DUSTYCEDAR LawnSite Fanatic
    from PA
    Posts: 5,134

    i was checking some numbers and found some things
    if i can lower my cost per 1000 treated i can save some good money.
    how many really know what it cost to treat a lawn for the season?
    or do u just wing it and hope your making money?
     
  2. LonniesLawns

    LonniesLawns LawnSite Senior Member
    from KS
    Posts: 317

    Applications is one of the easiest things to figure in our industry because it is based on nice easy rates.

    Materials cost is basic math.

    Labor is a little trickier because you have to average out travel times and such. What I do is that I know basically how much time an 8K yard takes me. That is about my smallest yard -- the ones that are smaller don't take em much less time. Then I know that each 5k after that add x number of minutes.

    I use my material costs + my labor costs + desired profit = price


    But I know you know that -- so maybe I'm not getting your true question.
     
  3. ThreeWide

    ThreeWide LawnSite Bronze Member
    Posts: 1,116

    This is one of few cost elements you can control in terms of the entire price charged.

    With good planning, you can cut material costs by as much as 50% by doing some homework. If you are close to $2 per M on average, it is certainly possible to get it closer to $1.
     
  4. Shades of Green LService

    Shades of Green LService LawnSite Bronze Member
    Posts: 1,011

    I figured a bag that cost me $16.8 and covers 12,000, my cost per K is $1.40
    If i did my math right.
     
  5. LonniesLawns

    LonniesLawns LawnSite Senior Member
    from KS
    Posts: 317

    but remember -- material costs are only a snmall part of your overall costs.

    How much does it cost you per minute to operate?
     
  6. ArizPestWeed

    ArizPestWeed LawnSite Bronze Member
    Posts: 1,457

    Pendulum cost me about $1.27 per 1K sq ft .
    Most yards are about 7K sq ft
    My cost is about $9 for one yard.
    I charge at least $125.
    My profit is about $115
    I can do a yard in under 15 minutes .
    2-3 yards an hour , if I rush .
    That's about $345 an hour .
    I do about 200 yards each and every Feb
     
  7. GrazerZ

    GrazerZ LawnSite Senior Member
    Posts: 670

    I try to keep up with my costs throughout the season for the same reason. I start by breaking my intended products down to cost per acre to use. I do this because its amazing how a few dollars here and there add up depending on slight variations, then I try real hard to stick to my choices. Overhead, labor, etc then comes next. I do find it very challenging to keep on track and up to date with this information about mid season though.
    One thing that I started using last year was GPS for my applications to figure efficiency and productivity. I have a small unit that I use to do wide area sq ft measurements that also has a timer on it. The timer tells me how long I was stopped and moving throughout the day. I compare those numbers with the totals for apps that day to get some great data. It has really helped me see where I waste time and when were doing well. The gps dose'nt lie. I know its not really what you asked, but it seemed to relate based on how I've seen it effect my bottom line.
     
  8. Shades of Green LService

    Shades of Green LService LawnSite Bronze Member
    Posts: 1,011

    You get $125 for an app. of 7,000 sq.ft thats it, i'm moving to where you live.:dizzy:
     
  9. willietd2

    willietd2 LawnSite Member
    from OHIO
    Posts: 210

    no kidding
     
  10. Rayholio

    Rayholio LawnSite Bronze Member
    Posts: 1,461

    Am I missing something?

    Shouldn't your cost per 1000 include not just materials, but labor, equipment, gasoline, maintenance, insurance, company vehicle milage, Call backs, software, billing materials, lawn posting signs, phone services, real estate, etc?

    It's a complicated formula and there's even a good bit of guessing.. for example, if you use a permagreen, you have to guess at how long it will be in service in terms of sq ft, how much fuel it will eat in that time, and how much maintenance will be required in that period, and what will it cost?

    I seriously doubt that very many people know their cost per 1000.. I figured mine up last year.. without looking into my quickbooks, or spending all day on it, I determined that my average overhead is around $9 per 10k + materials. that may be off by a bit, but it reflects all of those costs listed above..

    I want my cost per 1000 sq ft to ONLY include the items that I need to do the app. I've got to have a shop to operate out of.. I've got to pay the help. I can't do an app without insurance. My software is integral to the app. on the other hand, the app can be done WITHOUT a secretary, business lunches, Chamber of Commerce membership, and advertizing. those are examples of cost that is not included in my per 1000.
     

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