Percentage of direct expenses for mowing crew

Discussion in 'Business Operations' started by seabee24, Jun 26, 2013.

  1. seabee24

    seabee24 LawnSite Senior Member
    Messages: 619

    Just doing some math. Without going into a ton of details, if you figure labor and labor burden, direct fuel, equipment maintenance, repair, and depredation/replacement, vehicle maintenance/repair/depredation/insurance. What's your total direct percentage? Mine seems really high to me.

    After you then add in overhead costs, it seems like I would be better investing money in other areas when comparing the liability and potential profit

    I need to figure out if my sales numbers are low or our expenses are too high. I feel I'm charging a fair price, could be higher, but I'm not mowing for cheap either
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  2. 205mx

    205mx LawnSite Silver Member
    Messages: 2,393

    Get quick books.
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  3. seabee24

    seabee24 LawnSite Senior Member
    Messages: 619

    Qb will not tell you if your percentages and dirrect cost are high or low

    Just wondering industry averages. I'm aware it will change with areas, but it shouldn't by much with dirrect costs
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  4. Fubba

    Fubba LawnSite Senior Member
    Messages: 360

    We're at 63% profit based on April, May, and estimated June numbers, but we have trucks, trailer, and mowers all paid off.
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  5. McFarland_Lawn_Care

    McFarland_Lawn_Care LawnSite Bronze Member
    Messages: 1,445 still should be setting aside money to replace equipment.

    @Seabee - after all the items you mentioned, then what is left that you are considering "overhead costs"? Sounds like you are looking for nets for mowing?
  6. Fubba

    Fubba LawnSite Senior Member
    Messages: 360

    That number takes into account our retention in the business as well.
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  7. seabee24

    seabee24 LawnSite Senior Member
    Messages: 619

    In my mind, I'm not profiting enough for the effort put forth.

    So that means

    A. We are priced too low
    B. we have too high of over head costs
    C. Direct cost is too high. Due to high labor costs or slow production and too much o/t

    Factoring mower depreation should be similar accross he country and that's the "fund" that replaces my equipment
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  8. 94gt331

    94gt331 LawnSite Bronze Member
    Messages: 1,718

    I'd figure mine out, but I don't feel like getting depressed right now:laugh:
  9. Efficiency

    Efficiency LawnSite Bronze Member
    from zone 6
    Messages: 1,855

    Im can grab these later but we are also feeling victim of A B & C. No sure if its real or percieved.
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  10. Exact Rototilling

    Exact Rototilling LawnSite Fanatic
    Messages: 5,378

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