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Fuel cost as percentage of revenue

Discussion in 'Business Operations' started by garmel, Jan 27, 2010.

  1. garmel

    garmel LawnSite Member
    from NE Ohio
    Messages: 107

    I'm just curious to know what other companies are coming up with on this..... What is your total fuel cost as a percent of total revenue? I'm reading 2-3% and we're almost 10%. Just curious to see.
     
  2. DaveOhio

    DaveOhio LawnSite Member
    Messages: 30

    We have run 2-3% of revenue for fuel the past 8 years. It went to 4% when fuel prices spiked in 2007. We have 2 lawn maintenance crews, an enhancemant crew, and installations crews. Four of the trucks plow snow winters.

    We put between 5 and 10K miles on our trucks each year, lower than one might think.

    Why do you think your fuel % is so high?
     
  3. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    Yea, this is a bid one.

    we run agg fuel. most of our time is spent off road. it gets trickey doing it this way,
    But to answer your Q were around 5 to 7%.

    the writeoffs are HUGE
    were running around 140 to 150.00 a day in fuel cost
     
  4. Columbia Care

    Columbia Care LawnSite Member
    Messages: 158

    My total fuel consumpsion (Trucks & Equipment) was 13.1% of my revenue. Equipment was at 2.6% of total revenue.
     
  5. garmel

    garmel LawnSite Member
    from NE Ohio
    Messages: 107

    Not sure. Must be that I drive too much or I don't charge enough. I can try to change those. Another possiblity....I'm looking to see if there is a point where revenue growth and fuel cost become less proportionate. Does that make sense? I'm trying to see if fuel as a percentage of revenue falls as revenue increases.
     

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