Mileage expense

Discussion in 'Business Operations' started by Remsen1, Apr 24, 2001.

  1. Remsen1

    Remsen1 LawnSite Bronze Member
    Posts: 1,020

    I'm trying to determine the cost of hauling my equipment per mile. I want my figure to include Fuel, wear, maintenance, time, and depreciation per mile. Could somebody share your typical cost per mile to transport your equipment for a standard routine mowing? Can you also provide a little detail into how it was calculated? How do you charge it back to the customer? Obviously the customer charge back would decrease if you had a few customers in a small area. Has anybody tried presenting a customer with a bid and then giving them a second price if they could refer a close neighbor, the discount being the reduced transport expense per customer?
     
  2. Premo Services

    Premo Services LawnSite Bronze Member
    Posts: 1,516

    I had the same question about giving discounts for referrals my first year,but I picked up a neighbor of a customer and I suggested this to him and he told me that if I did as good a job as I did on the neighbors lawn he would keep me busy. Then he informed me that his wife was a real estate agent in the area and needed some of my cards. I picked up 2 very good customersthat year and at beginging of next season picked up 4 more customers from this and wanted to do something so I took the price of 1 mowing off his bill. He was upset that i did that and paid me for all the mowings and said to keep doing the good job. DO QUALITY WORK AND THEY WILL REFER YOU.Plus if the neighbor finds out that you are doing his for less this might cause problems.



    [Edited by mow money on 05-04-2001 at 10:34 PM]
     
  3. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    If the neighbor cancells are you going to raise his rate again
     
  4. Barkleymut

    Barkleymut LawnSite Bronze Member
    Posts: 1,117

    Mow Money, I have found the same thing when you take the price of a mowing off the bill in appreciation. From now on I am going to give them a $25 gift certificate to Applebee's or Outback SteakHouse. No one in their right mind passes on free food.
     
  5. LakeCountry

    LakeCountry LawnSite Member
    Posts: 57

    I was in sales before I decided to get out of that and go into Marketing...same thing. Now I am going to cut lawns. This was always so hard to figure out with what people feel is an appreciative gesture and so forth. Referrals are King!

    I really like the GC idea - You could do it for a gas station these days and they would probably kneel down and kiss your feet!

    Great ideas to add to my Business plan!
     
  6. Not the most scientific way but

    average monthly gas cost, divide by how many days you actually work
    what you pay for labor
    all insurances
    what you pay for mechanical repairs
    average monthly office and misc parts you expect to purchase ( lunch, blades, line ect...)

    Dived all the above totals by the days you actually work
    Divide you second total by your work hours
    Can get an pretty accurate operating cost per hour.

    John
     

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