$/h

Discussion in 'Lawn Mowing' started by Trevors Lawn Care, Apr 24, 2004.

  1. Trevors Lawn Care

    Trevors Lawn Care LawnSite Bronze Member
    Posts: 1,180

    In a solo opperation, is $/hour a huge neccessity. If you can cover your overhead, and make money is it that important?

    I understand that time = $ when you have a crew, but if someone likes to take thier time will it matter much?

    My $/H is not where i would like it to be, seeing as how i bid assuming i would have two people, and right now it is just one. i am making money, as well as paying bills.


    Just curious. I dont think it matters much, but a high $/H give incentive to work hard/faster.

    Trevor
     
  2. EastProLawn

    EastProLawn LawnSite Bronze Member
    Posts: 1,110

    I agree, when I was solo, I could play alot more with the hourly rate, but now I have employees it's different. Figure out your overhead and set a standard rate but give yourself some plus/minus room for the the slower & busier times:D
     
  3. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    trevor, have you figured out, roughly, how much it costs you, per hr, to run your business? certainly it takes the strain off, hourly wise, to be solo. like today, it's saturday, i'm stuck in traffic, and i'm all over the place making up what i missed yesterday, plus doing my saturday route. i'm getting very stressed, cus i'm in traffic, and my man is on the time clock. biggest mistake i see for lawn guys is, they have no idea what it costs them hourly, weekly, or monthly to operate.
     
  4. Trevors Lawn Care

    Trevors Lawn Care LawnSite Bronze Member
    Posts: 1,180

    Thats what I am kinda asking...Is it neccessary to figure out how much i need to make hourly even if i am covering my overhead, and putting $$ in the bank? I am turning a profit, its not a question of will i cover myself, but rather, does it matter as long as I am making money? Or does it just give incentive and direction to get to here you want to go.
     
  5. Trevors Lawn Care

    Trevors Lawn Care LawnSite Bronze Member
    Posts: 1,180

    that last one was supposed to say "or does it just give incentive and direction to get to WHERE you want to go?"
     
  6. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    'making money". how much money? how do you know, unless you have determined your operating cost?ok, check it ot, over the winter, i've managed to come up with my solo operating cost, per hr. of course when u have an employee, u add his hourly salary, plus $2 an hour for him. i've decided, that instead of recognising my hourly costs, i'm going to concentrate on my weekly operating costs. this is more accurate. i know how much i need to make, each week, to cover my overhead. after i've covered it, i start making money.
     
  7. Trevors Lawn Care

    Trevors Lawn Care LawnSite Bronze Member
    Posts: 1,180

    Well ya I have determined how much i need to make on a weekly/monthly/yearly basis. I do make that plus some. I am not looking to make a million this year. This being my first commercial year I am looking to pay off all the mowers/Truck/trailer/accessories..ETC. I will cover all that and still walk away with profit, but not much after taxes. Next year I feel is when i will buy a couple more mowers, and go balls out to make the $$$$$$$$$$$$$$$$$$$$$$! So for right now, yes i am covering overhead, making money/paying for new "toys", but next year i will really have to decide how much per hour i need to make.
     
  8. Trevors Lawn Care

    Trevors Lawn Care LawnSite Bronze Member
    Posts: 1,180

    I was shooting for about $45 per hour, but am not making that...YET (still getting used to the new set-up), but i am still making the money i need to cover everything..It just takes me a little longer.


    Trevor
     
  9. snippy

    snippy LawnSite Member
    Posts: 130

    I find being a newbie and knowing its going to take me twice as long to do the job as a seasoned pro it would be a bit rude of me to charge double!
    I just try and quote on what I think the next guy would probably charge for the job regardless of how long it will actually take me to do it.
    I gotta serve an apprenticeship first hey?
     
  10. Randy J

    Randy J LawnSite Bronze Member
    Posts: 1,124

    Although this pains me to say it, Bobby is exactly right. There is no way you can know you're making money if you haven't figured your costs of doing business. You've covered your overhead, but how about the cost of your equipment, or depreciation - or do you plan on your equipment lasting forever? I used a spread sheet to calculate my fixed costs, as well as variable costs, and then divide by the expected number of hours worked. That tells me how much I really need to make. I could charge less and still pay my bills and maybe put a little in my pocket, but then when I need a new mower I would be in trouble.

    Randy
     

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