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I need help!!!!!

Discussion in 'Lawn Mowing' started by Big C, Jan 26, 2008.

  1. Big C

    Big C LawnSite Bronze Member
    Posts: 1,641

    I need help calculating my per hour expenses, I need to figure this out so that I can better figure what to charge my customers per hour. Can anyone share with me the formula they use to calculate this....... thanks in advance.
  2. Flex-Deck

    Flex-Deck LawnSite Silver Member
    Posts: 2,846

    Your per hr. cost depends a lot on how many hrs. a year you put on your machine. There are two factors.
    1. Yearly fixed costs such as liability insurance, workman's comp, license costs, marine insurance on equipment, depreciation(I have always felt this is fairly consistant no matter how many hrs are on a machine-when it comes to trade-in they don't care, just how old is it?) and truck insurance. When these are totaled, you have to then divide by the number of hours you mow. For example lets say they add up to $4000 per year, and you mow 100 hrs. per year, they contribute $40/ hr to your cost per hr. However if you mow 1000 hrs per year, they contribute $4/ hr.
    2. Fixed Hourly costs would entail such things as fuel, wages, maintainance. Fuel is easy (My 24hp diesels burn 1 gal/hr.=$2.80), and wages are easy (I pay $10/hr. for one part time person), and for maintainance and depreciation I use $4/hr on $12,000 machines - (I plan on running them to 10,000 hrs.)

    As you can see from #1 above, if you are just starting out, there is no way you can bid a per hr. bid and be competitive if you have only a few customers and are only putting a few hrs a year on your mower. You have to bid by the job or acre, within the going rates in your area, or you will land no contracts. You can land a lot of nice jobs that are at the top end of the pricing in your area, but it takes time to establish such a reputation for quality etc.
  3. Big C

    Big C LawnSite Bronze Member
    Posts: 1,641


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