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Annual Gas Price

Discussion in 'Starting a Lawn Care Business' started by SDNCLAWNCARE, Nov 12, 2006.


    SDNCLAWNCARE LawnSite Member
    Messages: 232

    How do you guys figure out gas prices for the year? I'm trying to put my expense sheet together for 2007. Never done this before. How do you figure up gas prices? My goal is 20 residential Customers, 1 Commercial account. 3/4 Ton 350 Truck.. Cover about a 20 mile radius. I'm thinking 50-60 a week in gas. Is this too cheap?
  2. kentuckylawns

    kentuckylawns LawnSite Member
    Messages: 57

    you cant really guess gas prices, but i would say from experience at least double, maybe triple that, and im driving a 2500. that is of those variable expenses, gas could be 3.50 next year or hang around at 2.00. So you need to figure out what kind of mileage your truck gets while pulling your loaded down trailer, and go from there. Remember always budget on the high side for expenses.(you dont wanna be hoping to spend $50 a week, and end up costing $150, it will throw your books off big time.)

    SDNCLAWNCARE LawnSite Member
    Messages: 232

    I agree.. This has to be the hardest average to guess at. Gas prices change so much. I guess 100-150 per week to be on the safe side.
  4. Jlawnmow

    Jlawnmow LawnSite Member
    Messages: 154

    I spend arond $175 a week but I'm doing more yards than you are.

    PMLAWN LawnSite Gold Member
    Messages: 3,534

    Last year when gas was over $3.00 a gal for a long time we were above $3000.00 a month for the stuff:cry:
    Gas is a direct overhead cost-- not fixed, meaning that it runs with the amount of work produced.
    The tool part is easy as most tools will have a run time GPH. so you can get to something like 3/4 gal a job (or what works for your lots) or about $2.00 a job for gas in tools
    The truck will be a little harder as it will be different each day, but lets use your 20 mile figure. If you do work out in each direction and 5 jobs in that direction each day figure around 45 miles a day for 4 days, or 180 a week but I would round that to 200 miles after getting the gas and running for tools or what ever (sales calls, banking, call backs) so if you do 200 and get 10MPG you will need about 20 gal. and now that is 40 but may be $60 next year??:cry:
    So if you do 21 accounts you can figure about $5.00 a job for gas. (which is $105)
    You can see where a smaller circle-- more jobs in a day-- more jobs at a stop, can all help lower the per job cost of fuel

    SDNCLAWNCARE LawnSite Member
    Messages: 232

    After reading your response, I guess that route set up is very important. To improve gas milage you need to hit concentrated area's on certain days so you aren't running all over town hitting or missing..

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