How do you calculate equipment costs

Discussion in 'Starting a Lawn Care Business' started by Pingui, Dec 28, 2013.

  1. CraigCowen

    CraigCowen LawnSite Member
    Posts: 102

    Would you mind e-mailing it to me as well? cowen.craig@gmail.com Thanks!
     
  2. MidwestLawncareNWA

    MidwestLawncareNWA LawnSite Member
    Posts: 20

    Lighthouse could you plese email me the spread sheet as well. joehatfield84@gmail.com

    Thanks for the help
     
  3. Tuttled

    Tuttled LawnSite Member
    Posts: 151

    I only use walk behind equipment, aerator, power rake, edger, mowers and handhelds as well. I'm in this part time, I figure with insurance. business licences, workman's comp, telephone, accountant, dump fees (flat yearly fee), ect, it costs me $12 to show up at your door. I have calculated that it is another $10/hour to operate the equipment on the average; this includes depreciation and fuel as well as gloves, garbage bags and everything else. The only extra cost is when edging I will go thru a blade about 100 to150 feet but that extra cost is covered in the pricing. Remember even using a shovel or a rake or broom costs money, as they need to be purchased, hauled and replaced when worn out. Don't forget your truck and trailer costs including depreciation costs. So I show up and cut your lawn (30 minutes) for $40 dollars it costs me $12 to show up plus $5 equipment cost. I have made $23 dollars before taxes. Allowing for 10 minutes travel time between cuts an 8 hour day is about 12 cuts. 12 x 40=480, 480-(12x12)-(12x5)=x 480-144-60=x 480-204=276 276/8=34.50/hour.
     
  4. bburger68

    bburger68 LawnSite Member
    Posts: 4

    hey there,
    I would love that sheet and any other excel spread sheets . I trying to come up with costs also.
    love this site ,just learning how it works.
     
  5. grassmasterswilson

    grassmasterswilson LawnSite Platinum Member
    from nc
    Posts: 4,515

    When calculating equipment are you using the hours on a machine or the billable hours in the field?

    Example... Mower that gets 400 hours of use and $4000 annual cost is $10/hr or $4000/1300 billable hours by a solo guy is $3.07?
     
  6. Tuttled

    Tuttled LawnSite Member
    Posts: 151

    But what about the truck, trailer, handhelds? Don't forget depreciation, interest costs if applicable ect ect.
     
  7. grassmasterswilson

    grassmasterswilson LawnSite Platinum Member
    from nc
    Posts: 4,515

    Yeah. The mower was just an example. I would obviously go through all the equipment.

    What I'm unsure of is it better to use the annual hours put on a piece of equipment or use the billable hours from labor to get your per hour cost.
     
  8. CCA Green Services

    CCA Green Services LawnSite Member
    Posts: 106

  9. Judo

    Judo LawnSite Member
    Posts: 45

    People spend thousands of dollars on equipment but will not spend a couple hundred bucks on business education. Buy the Profits R Us program and call it a day. Don't be like most other contractors and just take a wild guess at figuring out pricing and recovering your costs. We bought the whole program and it's one of the best things we have done for our business.
     
  10. MAD Lawn Care

    MAD Lawn Care LawnSite Member
    Posts: 28


    I just saw this thread and I would also like the spreadsheet.
    Posted via Mobile Device
     

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