hourly cost of doing business

grassmasterswilson

LawnSite Fanatic
Location
nc
I'm getting more calls from HOA's and commercial properties this year. I hate to say no to business, but i'm willing to take a look and submit a bid. I haven't been very successfull and think that either my estimated cost of doing business is too high or my estimated time on the job. I'm trying to project my cost of running with additional help and equipment. Hopeing you guys might help.

So on commercial properties I'm figuring 2 hustler super z's, 2 trimmers, 2 blowers, truck, trailer, and misc hand tools. My estimated cost on that is coming in at $28 per hour.

On labor I'm figureing myself at $30 and 2 helpers at $13 each. So labor is at $56 per hour.

My total breakeven rate is $84. I then add in a small percentage for additional overhead and then a profit percentage.

How in line am I? I think my estimated hours on some of the equipment may be off. If I run 2 mowers I will get more hours and the cost should drop a little. Just wondering if I'm in line or not.
 
OP
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grassmasterswilson

LawnSite Fanatic
Location
nc
Your missing a lot of expenses in your figuring ,gas,insurance ,back office,taxes.
All that is factored in. gas, insurance, repairs, oil, filters, etc.

I used a spreadsheet form I bought online from sean adams. i'm just curious if someone running a similar size crew and similar equipment is close to my numbers. I'm trying to project. I know the numbers down to the penny for me running solo with 1 ztr, 1 trimmer, 1 blower.
 

lawnworker

LawnSite Senior Member
Location
VA zone 7
Your labor for yourself seems low and your equipment seems high. Keep in mind that the equipment life is at least four years. You a factoring enough to pay for it in one or two years. Still, I thing your rates or where they need to be. Just need to adjust your ratios around.

I believe that 64 per man hour should be the goal for everyone on your payrole
 

grandview (2006)

LawnSite Gold Member
Location
Lancaster N.Y.
Your labor for yourself seems low and your equipment seems high. Keep in mind that the equipment life is at least four years. You a factoring enough to pay for it in one or two years. Still, I thing your rates or where they need to be. Just need to adjust your ratios around.

I believe that 64 per man hour should be the goal for everyone on your payrole
Point. Hour many hours a week are you basing that on?
 
Your labor for yourself seems low and your equipment seems high. Keep in mind that the equipment life is at least four years. You a factoring enough to pay for it in one or two years. Still, I thing your rates or where they need to be. Just need to adjust your ratios around.

I believe that 64 per man hour should be the goal for everyone on your payrole
64 per man hour...you would be out of business down here
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Bunton Guy

LawnSite Silver Member
Location
charlotte nc
I had mine down to $57.00 per man per hour to do business. And at that rate it was just barely comfortable to do business. Really would like $75 or so if I could but you got guys operating for $25 and hour so I can't be picky now.
 

lawnworker

LawnSite Senior Member
Location
VA zone 7
Forget all the estimating if that equipment sits in the shed how much do you make. To get into the biddiing you need to be around $30/hr.
You are not going to make it with these numbers. You would be better off working for 15.00 an hour at a stable job with benefits. However if the economy is so bad, finding that 15.00 an hour job is probably tough
 

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