Estimate Program

Discussion in 'Business Operations' started by AELawn, Jan 13, 2003.

  1. AELawn

    AELawn LawnSite Member
    from South
    Posts: 10

    Here is my spreadsheet for determining cost and final bid price. Let me know what you think.

    What is good, bad, missing, etc.


    Attached Files:

  2. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Posts: 1,847

    maybe im not in the right mindset currently, but im confused beyond all hope.
  3. juststarting023

    juststarting023 LawnSite Member
    Posts: 84

    what are you bidding on?????????:confused: :confused:
  4. AELawn

    AELawn LawnSite Member
    from South
    Posts: 10

    I'm bidding on commercial property.
  5. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    Looks like you really spent some time on that and got all you cost down. I think you did a good job.

  6. greenman

    greenman LawnSite Addict
    Posts: 1,405

    For some reason, I could not view it. Could you possibly email it to me? Thanks.
  7. bubble boy

    bubble boy LawnSite Bronze Member
    Posts: 1,020

    if the chart helps you to itemize and factor in your costs, i think it's worthwhile.

    but over time i bet you'll be able to get to your price with much simpler calculations.

    still a good exercise.
  8. HBFOXJr

    HBFOXJr LawnSite Bronze Member
    Posts: 1,712

    Where do you get your cost numbers?

    In indirect costs you have 2 items I make direct costs. Auto ins is a part of equipment expense just like tires and fuel. Liability ins ins payroll driven so it should be up with labor costs.

    Where do you account for travel and prep/maint time?

    What constitutes "accounting"?

    Who does your billing, estimating and sales?
  9. dougaustreim

    dougaustreim LawnSite Senior Member
    Posts: 488

    I would agree that general liability is part of labor burdent and should be a part of labor markup Auto ins however, should be an overhead item as it is not affected by quanitity of work. You pay the same premium wether you drive 10 miles or 10000 miles. Fuel relates directly to hours used or miles driven.

    Austreim Landscaping
  10. HBFOXJr

    HBFOXJr LawnSite Bronze Member
    Posts: 1,712

    As long as you account for it somewhere it is good. I put depreciation into equipment costs so I suppose others regard them as OH too.

    My rational is that production expenses go into direct costs and non production in indirect costs. Insurance and depreciation on production equipment are a result of having to own that particular equipment to perform a certain set of services. If business drops you can sell the production piece and get rid of the fixed and variable costs of owning it.

    Your not gonna sell the truck or car you use everyday for general transportation, sales etc. Your not going to stop your phone service. You can't change the advertising dollars that you've already spent, computer purchased, accountants bill etc.

    The end result is the same because if there are more or less than 321 hrs used you will gain or lose accordingly.

    Maybe the moral of the story should be it's better to use the real numbers somewhere than a percentage. Percentages are the most dangerous of tools many times.

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