managerial analysis of mowing crews

Discussion in 'Business Operations' started by BradLewisLawnCare, Jun 12, 2012.

  1. BestImpressions99

    BestImpressions99 LawnSite Senior Member
    Posts: 491

    Crew size productivity versus sole operator we determine by manhours. We price a place then after about a month of one person doing the lot (can be 2 to 4 times) you get your man hour rate. Jump up to 2 guys and do the same thing (1 month of lawns). After a month, average out your 2 man crew times and multiply it by 2 (because you doubled the men working) and see how close your 2 man crew time equated into a single operator figure compares to your true sole operator man hour figure. That will be able to tell you if and how much your jumping up to 2 operators is saving you (if any).

    As far as pricing your lawns to cost we have broken down (roughly, but close enough to make the government happy and still put some coin in the pocket) the cost per minute. 15 years ago cost was $1/min, (Readers Digest version follows) breaking it down into sections of taxes, insurance, repairs, fuel, etc. If you are coming up short in any of those areas then you need to increase your cost. Roughly $2 per lawn after taxes etc was one example I figured for a 25 minute lawn priced at $25.

    Hope this helps.
     
  2. BestImpressions99

    BestImpressions99 LawnSite Senior Member
    Posts: 491

    Why do so many threads have to end up in someone trying to prove how much smarter they are. Everyone knows that Gross is before tax, net is post tax.
     
  3. Mark Oomkes

    Mark Oomkes LawnSite Fanatic
    Posts: 11,859

    Sounds reasonable.

    Apparently, quite a few in this thread don't know the difference between gross and net. I wasn't trying to prove intelligence or stupidity, just a basic understanding of business principles. Because if guys don't understand the most basic principles, then this debate is a waste of everybody's time and also a waste of good monitor ink.

    This is based on the fact that many believe that by doubling manpower but not doubling production is better than having one man working more efficiently. They even use this in their arguments, but all they look at is the revenue generated. Revenue without net means nothing. But apparently that is lost or an ignored concept.
     
  4. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    That is pay checks.

    In accounting Net is after expenses and this is what is reported to the IRS before taxes.
     
  5. Mark Oomkes

    Mark Oomkes LawnSite Fanatic
    Posts: 11,859

    Taxes are an expense.
     
  6. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    Ok, so I need to explain to you in further detail?
     
  7. Mark Oomkes

    Mark Oomkes LawnSite Fanatic
    Posts: 11,859

    Explain what?

    Maybe I should, I was talking net, net.
     
  8. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    Yes taxes are an expense/liability. When I run a financial statements for my business, my income taxes are not even on the radar of Quickbooks. Personal income taxes are not handled by quickbooks with the exception of payroll for the employees ( and not the owner)

    So to keep this simple - My business Net income is now my Gross income personal.

    If I were to claim my personal income taxes as a business expense I would be wrong.
     
  9. Mark Oomkes

    Mark Oomkes LawnSite Fanatic
    Posts: 11,859

    Good for you. I have a corporation. Not much of what you said applies to me, at least. It also has nothing to do with the original topic, or the degeneration into some equating revenue with net or net, net. Personal, corporate or whatever.
     
  10. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    Then you or BestImpressions99 should not have tried to over simplify Net vs Gross into this thread if it is not related.

    In your case my example would apply to dividends.
     

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