Fixed overhead costs

Discussion in 'Lawn Mowing' started by mattingly, Jan 6, 2000.

  1. mattingly

    mattingly LawnSite Member
    Messages: 136

    I am using a 48&quot; Exmark walk behind. I am new so I don't know exact figures. About how many gallons per acre do these things use, roughly. How do you all go about figuring loading, unloading and drive time between properties? I think a lot of people here don't figure that in but that reduces your profit per hour. Also do you figure in gas on your trucks? Here is kinda the way I see it I could be wrong:<br>Example for one job that takes 50 min. billed at $45<br>Gas(mower and truck) $3<br>Depreciation on Equipment 1<br>Labor 8<br>Liability insurance 1<br>Profit 32<br>Total for job $45<br>Time to get to next job 10min<p>Here is my point:<br> If you don't figure in that 10 min travel time and you think you are making $32 profit per 50 min. You are making .64 cents per minute. If you figure in the time it comes to .53 cents per minute. The breakdown is $38.4/hr when not factoring travel time or $31.8/hr if you are factoring travel time. It plays a pretty big factor.<br>254.4 profit for 8 hr day factoring 10 min. lost travel time per hour.<br>307.2 profit for 8 hr day not factoring in time.<br>
  2. Lazer

    Lazer LawnSite Bronze Member
    Messages: 1,446

    WOW! You've really got it broken down there. I figure costs on a weekly basis. I include total time including equipement maintenance, lunch and travel time. Then all lawns are tracked for the actual time there. (for future bidding purposes) We will also track travel time twice per season to determine which lawns are causing undue mobilization expense. (use that term with your customers, they like that one!)<p>I guess I'm saying get a weekly picture and make it work and peridically analyze individual accounts for next year.<p>The key, of course (especially on residential) is to get them close together.<br>
  3. thelawnguy

    thelawnguy LawnSite Silver Member
    Messages: 2,411

    My exmark TT 52 in 18hp Kohler burns 1 gal/hr fuel this figure will do you well for most machines just figure how many ac/hr you mow with your machine.<p>BTW very few walkbehind operators will avg 3mph mowing if you figure the number of passes x distance of each pass you will find the fig closer to 2mph. I see posts like, I average 5mph thats hokey!!!<p>Bill
  4. Charles

    Charles Moderator Staff Member
    Messages: 8,930

    To add to the above list of expenses.<br>1) Milleage to and from jobs: 28 cents per mile at least.<br>2) Cost per hour to run a 5 foot deck commercial mower should be 10.00$ +. Replacement cost and maintance and repairs. Do you figure in the time you are running back and forth to the shop buying parts? Time to get gas and oil?. Sharpening the blades? etc.<br>3) Advertising.<br>4) Taxes at least 25 to 35 %<br>5) Cost to run weedeater and blowers.<br>6) Time taken to talk to customers.<br>I am by no means an expert on expenses. I just know i am not making over 30$ an hour profit. I probably left some expenses out<br>Charles
  5. mattingly

    mattingly LawnSite Member
    Messages: 136

    thanks charles. good breakdown. i think sometimes we can get too technical but, that's what makes for an efficient business. you know what you are spending and making. the thirty dollar profit was just an example. by no means is that what i am making. i just need ideas and i am getting them from you all.

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