Whats your yearly overhead?

Discussion in 'Business Operations' started by burnsyscapes, Jan 10, 2012.

  1. burnsyscapes

    burnsyscapes LawnSite Member
    Posts: 180

    Just punching numbers for next year on my estimated budget. i am only 21 and living at home so my overhead is a lot lower compared to other companies.

    i am not asking exact amount. just wondering what the average landscaper is per year.

    reason i am asking is since i am young (and look young) as well people try and cheep shot me and say other companies are way cheaper than my price, (almost every job i bid on) so i am just wondering what you all are paying compared to myself. i want to know what to expect when i make the push to get my own place and have crews employees and such.

    any help or advice appreciated!
     
  2. grassmasterswilson

    grassmasterswilson LawnSite Platinum Member
    from nc
    Posts: 4,515

    impossible to answer. You might have a guy with 3 crews and 200 lawns or a solo person with 25 lawns. Their overhead is going to be different.

    My advice is to take your overhead and divide by the number of accounts or cuts you have/did. That would give you the overall cost per account. You can then price accordingly. As you grow you can add in labor, extra equipment, etc to your existing numbers.
     
  3. burnsyscapes

    burnsyscapes LawnSite Member
    Posts: 180

    im talking fixed expenses, rent, phone truck fuel, those type of expenses, labor will always be different per area
     
  4. grassmasterswilson

    grassmasterswilson LawnSite Platinum Member
    from nc
    Posts: 4,515

    still the same. you need fuel for 5 trucks or 1, you have a 10k sqft shop or park in your driveway. You have equipment payments or everything paid off? Insurance on 100k of equipment or 5k?

    Good Luck. Everyones fixed and variable expenses will be different even if you and i have the same equipment and account but live in different areas. Prices are different everywhere.
     
  5. KrayzKajun

    KrayzKajun LawnSite Fanatic
    Posts: 10,742

    $1.00 !!! There are too many variables per person to get an average answer.
     
  6. Lefet

    Lefet LawnSite Bronze Member
    Posts: 1,887

    Exactly.

    But when you DO try to figure out an overhead, even though you have a low one, try to figure it out as though you had a higher one. Say you had to pay rent to your parents for the use of the garage to store your equipment.
    Just because you don't have it, doesn't mean you shouldn't be charging for it.
    It also saves you later when you DO have it, you won't need to jack up your prices, just a "slight increase".
     
  7. burnsyscapes

    burnsyscapes LawnSite Member
    Posts: 180

    that is exactly why i wanna compare to others, not trying to know what everyone pays, just a ball park.
     
  8. Landscape Poet

    Landscape Poet LawnSite Gold Member
    Posts: 3,637

    Everyone is so scared to throw numbers out there!

    Here you go kid - my expenses run around $60K for this past year not including my deduction for household expenses and household items used in the business like internet, phone, cell phone etc etc. and anything my accountant brings to my attention that I failed to expense out.

    That is for a one operator business with a helper in FL operating Full time. It does not include all of my December expenses yet as I am till have to go over my December bank statement to ensure all expenses that are accounted for.

    As others have said - my numbers will most likely be much different than yours or others similar to my size and much much different than those who are much larger than me. The key my friend is going to be figure out what your cost are....and of course what is most important is to know what your profit will be.

    Hope that helps you with what ever it is you are looking for.
     
    Last edited: Jan 11, 2012
  9. Lefet

    Lefet LawnSite Bronze Member
    Posts: 1,887

    So do your research. Check out a couple of rental garages in your area. How much is your cell phone? Add a line and see what that would cost, (you don't really have to add, just enquire). How much insurance are you paying? Double it. Add electric, gas, maintenance, car/truck payment, taxes. Find out what an accountant would cost you in your area.

    That would be a good start. Nobody will know your bills better than you.
     
    Last edited: Jan 11, 2012
  10. djagusch

    djagusch LawnSite Platinum Member
    from MN
    Posts: 4,202

    Here is a different way to look at what you need to figure out.

    There is personal expenses, which range greatly due to age, lifestyle, etc. Figure out how much you need to pay yourself. If it's 1K a month or 5K a month figure it out. This should be considered a fixed expense and should be paid to you monthly from the buisness.

    Then there is buisness expenses, which range greatly due to size of company scope of work etc. Trucks, insurance, phones, rent's, etc. When doing this factor where you want to be in atleast two years from now. These should be considered fixed expenses. I always try to figure growth costs in this as it needs to be considered somewhere.

    Variable costs gas, labor(yes even if you are paid in fixed expenses you need to cover a employee's cost, if you do it yourself consider it extra pay), material, maintenance.

    A different way to look at how you pay yourself.
     

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