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Discussion in 'Business Operations' started by APLUS LAWN CARE, Jul 19, 2013.
Time to trim shrubs
Yeah and do some other work that has been put off for a few months
Could someone help me figure out my cost per hour to operate? I don't have much overhead because I am an owner operator. I do pay insurance of about 600 per year. I believe my mower uses about 1.5 gallons per hour based on what I have researched. My diesel truck gets around 12-15 mpg. What other info do I need and how do I calculate it?
I am still trying to figure out how to turn out better and more profitable bids and this has to be a good place to start. If I know what it costs me to operate per hour than I just have to figure out how much time each property will take me and add in a percentage for profit.
Also, when doing a bid I need to figure in drive time. Well if I haven't added that property to my route I won't know where I am coming from so do I just calculate drive time from home (where I operate from)?
I know these seem like stupid questions but I honestly don't know so I am trying to figure it out
You do an average and start adding 10% or whatever to all bids.
Okay, that part of it I now understand. I will just come up with an average and add it to the bid. Thanks!
For now pick a price out of the air and try it out, it's better than nothing and is a place to start. I use a lot of "margin of error" for this type of stuff. It's really not an exact science anyway. Stuff breaks and you have to stop, fix, and go back. Figure that one and you got all of us here beat!!
When I am bidding landscape installations, I always leave a lot of "margin of error" but it is a little different with mowing. But you are very right that that anything is better than nothing, a little bit of padding doesn't hurt. About 75% of my mowing jobs are within 5 miles of my home but I do have some as far as 25 miles away. So I guess a lot of it depends on how far I will be traveling to get to the job.
Best to know how long it takes you to mow a acre and the fuel it takes.
So when you look at a job and it has nothing in the lawn you know the time.
Then when there is things like trees you can add mins up.
I figure about every 2 trees takes me a min longer to do the job.
Big flower beds I figure 2 mins to my time.
It might be to much but it kinda gives me idea.
The job that's 25 miles away you should have at lease $50 trip charge