Percentage of Gross Spent on Fuel

Discussion in 'Business Operations' started by JContracting, Jan 17, 2013.

  1. TMlawncare

    TMlawncare LawnSite Bronze Member
    Messages: 1,199

    Most people have long forgot what we paid for gas not so long ago. It is really a burdon on us. For the year we will be at 10.5%.
  2. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Messages: 4,724

    I keep a very tight rout with more than 150 accounts in Milford and then the rest are on the edges of the near by towns. So I keep our driving down as much as possible. It looks like were going to go for the EFI GOV mowers exmark now offers on their top models in the Lazer X class. They should cut our fuel by about 30%. Plus we will be upgrading the decks sizes so our 52 will be a 60 and our 60 will be a 72 so that plus the newer mowers have top speeds about 2-3 mph over what our tired old mowers currently can do. Which makes me hopeful the $9,144.68 portion of our fuel bill which is gas and used 95% in equipment can be reduced a couple thousand in the future. Despite the % of income spend on gas being nearly identical the last 2 years we did manage to use nearly 500 gallons less last year.
  3. JContracting

    JContracting LawnSite Bronze Member
    Messages: 1,878

    I have finished processing the majority (95%) of 2012's expenses, I'm at 21% of gross spent on truck fuel and 2.2% on equipment fuel. I think that's a decent number. Of course I'd like to spend less with something more efficent but in this industry, especially with maintenance, fuel is most likely the largest expense next to labor.

    For 2013, I hope to decrease the percentage spent on fuel and obviously increase the revenue by 400% (grew approx 500% last year). So far this year I'm at 19.31% of gross, spent on truck fuel, but that's with plowing where my truck will get 5.25-7 mpg, when spring arrives I'll get 7-10mpg depending on what I'm pulling, but that's the largest expense so far this year aside from insurance.
  4. Raymond S.

    Raymond S. LawnSite Senior Member
    Messages: 996

    just shy of 8%

    THORNTON SERVICES LLC LawnSite Senior Member
    Messages: 432

    I am usually about 15% , this is all fuel , mowing plowing in the winter , equipment fuel usage , etc , as I grow and get more efficient I hope to get this down under 10% though.
  6. ryde307

    ryde307 LawnSite Senior Member
    Messages: 540

    Just above 6%.
    I think a big factor is what do you do for work.
    We do maint, irrigation, landscape, and snow. If you were to break down the % of gross of each of those to compare to fuel or to break fuel down to each area it would tell alot more for people to compare to.

    I happen to have an issue of Lawn and Landscape on my desk with budget #'s in it.
    Here is what the budget builder for 2013 has as industry #'s
    Gas and oil
    Maint 2-4% avg 3%
    Lawn Care 2-4% avg 3%
    Design build 1-3% avg 2%
    Irrigation they dont factor so assuming less than 1%.

    They do not have snow. With those numbers taking your gross I would estimate an industry avg around 9-12% including snow.

    Companies that are more maint or snow than say design build would have larger %'s.
  7. JContracting

    JContracting LawnSite Bronze Member
    Messages: 1,878

  8. JContracting

    JContracting LawnSite Bronze Member
    Messages: 1,878

    Which issue is that? I've finally caught up on almost all the Turf, Snow Business, and L&L Mags.

    Those seem so low, but I suppose the larger companies that have many more established accounts will bring in more revenue and aren't spending as much money on fuel to look at jobs that they may or may not land like the young company in the start-up stage (me) will do.
  9. ryde307

    ryde307 LawnSite Senior Member
    Messages: 540

    Lawn and landscape 2012 it has the benchmarking your business report.
  10. snomaha

    snomaha LawnSite Bronze Member
    from midwest
    Messages: 1,269

    2012 - 5%

    2011 - 5%

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