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figuring overhead

Discussion in 'Business Operations' started by grassmasterswilson, Mar 22, 2011.

  1. grassmasterswilson

    grassmasterswilson LawnSite Platinum Member
    from nc
    Messages: 4,826

    First I've been doing this solo for a while and have a pretty good handle on what I need and how to calculate overhead. I've been asked to bid a few commercial properties and having trouble with labor and equipment.

    With labor I am just figuring an hourly wage + 30% for payroll taxes and fees.

    Equipment is tough. I usually pay for my equipment in full. So should I just break the purchase price down into estimated number of years used? What about replacement cost for buying new equipment? Is that taken into account of just pulled out of profits?
     
  2. RedSox4Life

    RedSox4Life LawnSite Bronze Member
    from Mass
    Messages: 1,593

    Take everything into account. If you pay $10k for a mower and expect to run it 2000hrs, then it costs $5 an hour.
     

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