Cutting Costs

Discussion in 'Business Operations' started by SprinklerGuy, Mar 4, 2003.

  1. SprinklerGuy

    SprinklerGuy LawnSite Bronze Member
    Messages: 1,778

    Thought it would be neat to compare cost cutting this season....

    I am about to make two small changes that will add up to big money:

    Nextel is is in. Cricket telecom has been in my market now for almost 18 months and those that have it swear by it.....

    3 phones at 50 per month each which includes all local calls plus 500 min of long distance......$150 getting rid of my nextel phone because it doesn't work at the pond.... $0.00
    These replace our nextel phones and my nextel phone saving about $400 per month....$4800 per year....WOW!

    Going from paying weekly to paying every other week......saves $78.00 per month.....or $936 per year....

    I just got a 5500 dollar a year raise!!!

    Anybody else got any ideas?

    I am looking into other options for Liability insurance and commercial auto insurance....that should save as well.

    also, i switched long distance providers and got 5 cents per minute with no connection fee like MCI was charging, should save about 50 per month
  2. adrianvbarrera

    adrianvbarrera LawnSite Member
    Messages: 163

    How does paying every other week save you $78?

  3. bruces

    bruces LawnSite Senior Member
    Messages: 648

    If using a payroll service, the fee is cheaper, even if doing it yourself the time involved is less, less checks, less bank charges if paying a per check fee, etc.

    But most of all, less time spent jacking with payroll.
  4. adrianvbarrera

    adrianvbarrera LawnSite Member
    Messages: 163

    Yeah I guess you can see it that way.
    But if you are outsorucing payroll then stopping that all together might make your business more efficient depending on your size.
    If you have only 10 employees and you are outsourcing then I think its over doing it. I don't know I might be wrong.

    BUT I will bet that workers will not like it.

    Keep us posted.

  5. lsylvain

    lsylvain LawnSite Senior Member
    Messages: 779

    $50 a month for 400 min long distance plus local? I pay 40 a month for 4500 min long distance with sprint pcs. I don't have long distance service on my land line anymore.

    I'm always looking to cut costs, but I'm running out of ideas.
  6. adrianvbarrera

    adrianvbarrera LawnSite Member
    Messages: 163

    When cutting cost use the MinMax concept.

    First Minimize your Maxiumum loss.

    Have your figured that out yet? In other words what is your biggest expense.

  7. lawnboy

    lawnboy LawnSite Senior Member
    Messages: 321

    The new thing we are trying this year is having one guy- salary. He is the first one in and the last one out. So far it is working well. One of his main responsibilities is to make sure all the crews trucks are ready when the guys get there. In past years we left it up to each individual crew, which cost time in the morning. When you figure 15 guys standing around every morning, and getting paid. It adds up.

    Another responsibility of his is to cut labor costs. That includes no overtime, and hiring guys at a cheaper rate. He gets a bonus of $50 for every percent our labor rate goes down each month.
  8. adrianvbarrera

    adrianvbarrera LawnSite Member
    Messages: 163

    Great idea.

    Very good at minimizing your maximum expense.
    Labor seems to be about 40-50 percent of overhead.

    It seems that one guy is quicker at loading the truck with tools before the other guys come in BUT in putting the tools away I have found out that all the guys putting the tools away is actually more efficient.

    This works out even if the guy is not on salary.

    Just a thought.

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