what is your overhead per day or per year?

Discussion in 'Business Operations' started by RSK Property Maintenance, Oct 8, 2013.

  1. RSK Property Maintenance

    RSK Property Maintenance LawnSite Bronze Member
    Posts: 1,485

    seems like your overhead is high...so you don't make any profit if you don't gross over 8500 per month?
     
  2. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,262

    Basics only not including owners pay What does it cost to exist if nothing was done. And thats $178 a day. Now 3000 a month or $98 a day of that is payments on 2 trucks and 2 mowers totaling 160,000. Those payments will likely be completed by this time next year on the 2 trucks which would lower the monthly payments by 2400 a month or $78 per day which would bring the total per day cost back down to $100. And that really isn't that big a overhead its bare bones insurance, phone, internet, website, cell phone, p.o box, property taxes, registrations, rent and loan payments.
     
  3. RSK Property Maintenance

    RSK Property Maintenance LawnSite Bronze Member
    Posts: 1,485

    that sounds much more feasible, then jcontractings numbers. so after 178 a day you start making money correct?
     
  4. Tyler259

    Tyler259 Banned
    Posts: 100

    No that's just overhead if he works or not he still has to pay insurance, truck payments etc. Then if he works that day you start adding labor, gas, dump fees etc.

    I read J contracts post but it's confusing those numbers don't sound right for a solo op.

    I think I past you the other day near Greencycle in Milford Kellys. My first time buying there, was pretty good.
     
  5. JContracting

    JContracting LawnSite Bronze Member
    Posts: 1,878

    Take a look at my signature & the equipment I have. These numbers are for next year's budget with accelerating payments on all my loans including student loans as well as credit cards, plus phone bill, paying rent for parking my trailer at a buddy's, as well as paying a fixed amt per month to my IRA & gym membership. And my amts are budgeted for the 6 mo lawn season because it's easier to plan for how much money will be brought in and that way I do not have to rely on late fall/winter Nov-End of March.

    I apologize if my posts are hard to make sense, my mind is pretty much exhausted from crunching numbers all day and ill be at it again tomorrow until I am done and have everything set in stone and a plan in place. I wouldn't have been doing this if I didn't purchase "Pricing for the Green Industry" that long story short, the beginning is a step by steo guide on creating a budget and then setting up accurate pricing.
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  6. Tyler259

    Tyler259 Banned
    Posts: 100

    So from those numbers it looks like your just covering your butt on maintenance and hopefully you have an install or 2 to do every week to make some profit?
     
  7. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,262

    You may have passed me or one of my guys the two main trucks look identical and I don't always dump my own truck when were done.
     
  8. JimMarshall

    JimMarshall LawnSite Senior Member
    from NW PA
    Posts: 305

    What all are you calling overhead? In my opinion, overhead includes any expense including labor that doesn't directly contribute to revenue.
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  9. RSK Property Maintenance

    RSK Property Maintenance LawnSite Bronze Member
    Posts: 1,485

    I though overhead was all your expenses including labor. and in order to make an accurate quote for something knowing what it cost you to do business was pretty crucial.
     
  10. snomaha

    snomaha LawnSite Senior Member
    from midwest
    Posts: 859

    My two cents - I think overhead cost as a percent of sales would be more help benchmarking then what the dollar amount is.

    We are running 28% overhead including a fair market salary for me. Would like that number closer to 20% but had to invest in business infrastructure (specifically - management & admin roles) to support future growth.
     

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