Running costs, maintenance costs and gas costs per hr.

Discussion in 'Business Operations' started by Ocutter73, Dec 4, 2007.

  1. Ocutter73

    Ocutter73 LawnSite Member
    from nj
    Messages: 58

    These are the categories that are listed above each piece of equipment I use. Ive been scouring over the posts and replies for overhead but still have questions. I have an idea of what I call "running cost" runs me, which is the cost of the equipment divided by the lifespan of the machine in hrs <check>.

    Its been a while since I did the maintenance cost and gas costs per hr/per machine so I could use a hand with figuring that part out. Does anyone calculate their "maintence cost" just like their "running cost"?
  2. beano

    beano LawnSite Senior Member
    Messages: 425

    Running cost sounds like the same thing as depreciation. You take what you paid for the machine minus the salvage value of the machine at the time you want to get rid of it. The difference is what you pay for it during the hours you put on it. Divide the cost by the hours and get the cost per hour. Then add what the cost of one gallon of gas is by the hours and you have what your paying. (most ztrs usually use around a gallon per hour more or less). When figuring out maintenance cost i figure out the cost of parts for a full tune up, then take the estimated hours for the year and figure out how many oil chages, air filters etc. Then add 20% for unexpected items such as belts etc. You can do your best to figure out "regular maintenace" cost but you'll never be right on, especially if you have a big break down.
  3. supercuts

    supercuts LawnSite Silver Member
    Messages: 2,815

    i look at my total, over $1k a month for health insurance, $1k/month fuel, mower payments, truck payments, bus insurance, maintanance, ira's etc, $6k/month, divided by 160hrs a month, $40+/hr running costs.
  4. jsf343

    jsf343 LawnSite Bronze Member
    Messages: 1,786

    I am curious with all that you mentioned, what is your hourly rate? Of course from your equipment list you look like you are into full scale and not just maintenance, yes?
  5. Ocutter73

    Ocutter73 LawnSite Member
    from nj
    Messages: 58

    Beano - I had pretty much the same kind of idea but I wanted to hear others thoughts too. Thanks
  6. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    there are tons of variables involved in the type of math.... trying to figure out what it cost...

    However it's also Quite simple.

    CHECK YOUR BALANCE SHEET...............

    umm you do have one.........Dont you? ....
  7. AintNoFun

    AintNoFun LawnSite Bronze Member
    Messages: 1,807

    for our vehicles (26k gvw or larger) i have it figured to about $1 per mile.. ive read around and noticed alot of guys are close to that. thats fuel, ins, tags, tolls, maint + repairs, depreciation, etc...
  8. Frue

    Frue LawnSite Bronze Member
    Messages: 1,472

    I was thinking what you wrote:laugh:
  9. privatelawn

    privatelawn LawnSite Senior Member
    Messages: 301

    I see your always saying how high your running cost are... ok so $40 per hour but thats if your out there as a solo right? I mean if you have 10 guys working for you and dont have 10 health insurance plans, 10 mowers, 10 trucks etc then your cost are not $40 per hour, a business with employees running at $40 expenses before employee pay must be doing something wrong


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