What are your daily overhead costs?

Mitty87

LawnSite Silver Member
I am a small company, about 700k Canadian of landscaping and irrigation service work, maybe 300k cost of good and myself, wife and 2 full time employees, it should be 3 but can't find the other worker right now.

I have one truck paid off, 1 truck with 1 year left of payments at $450 a month and 1 truck with 5 years of payments at $650, 1 excavator with 3 years at $700 per month.

We don't generally use a lot of expensive equipment otherwise, lots of shovels and rakes and wheelbarrows.

It looks like with insurance and maintenance for vehicles, gas, tool replacements, putting aside $500 per month for misc items etc we have a $250 per work day overhead cost. Then with my 4 hours unpaid office time I would call that $350 per day. $87.50 per worker and average of $25 per hour over 4 employees plus 20% payroll costs, is $327.50 breakeven per day.

Assuming we get 7 good billable hours from an employee in a day, that is $46.80 breakeven, which could go down a couple dollars with an extra employee.

So the lowest cost work we can get away with (weeding) is $55/man hour for a few clients we have on hourly and $60-70 for landscaping and irrigation work.

Just wondering if you have your per day costs and the size of your business, wondering if maybe I'm missing something here?

The numbers seem about right to me, but maybe I'm not putting away enough money every month, though a lot of my overhead is because I have 2 new trucks and the excavator.

Am I right to think all the overtime work I do on weekends is basically pocketing the full hourly rate we make minus taxes?
 

Hayduke

LawnSite Bronze Member
Location
Oregon
Wow, 1 mil gross with four people, yourself included? That would be 800 K gross in American dollars. Pretty damn good for a a four person show.

I can never count on 7 billable hours per employee per day. I wish I could but it just doesn't happen with my highly skilled but lower motivated crew of three (myself not included). I basically estimate 44 weeks per year, 25 hours per week per employee. So only 1,100 billable hours per year per employee (really wish it could be more). This is a fairly close estimate, but this year I am meticulously tracking billable hours so I have a real number at the end of the year. I always track large projects well, but all the little projects I haven't over the years.
You're figuring you're numbers a little differently than I do, but $4.55/hr is my general overhead. Administrative overhead (project manager/office manager/Owner salary/and business profit) is $25.15/hr. Add my Crew Average wage with tax/benefit burden of $38.30/hr (yeah my guys are paid way too well!) , and my minimum I need to be making is $68 per labor hour. Can I make that or more on most installation projects? Yes, but it is not a competitive rate, so I've got to show the client that we are level or two above most other lower priced companies. Can I charge that for weeding, leaf cleanup etc? That's a push, but I'm trying it this year!
 
OP
M

Mitty87

LawnSite Silver Member
No sorry that is 700k cad minus materials so about 100k per 4 workers, but I am doing a huge amount of overtime myself, my wife included.

I was just reading a thread here and noticed my labour rates are only about what others are getting but in USD, so I’m 20% lower. I do feel like I should be making a bit more and maybe I’m just not actually getting the 7 hours per day. I might have to figure for 6 per day realistically.
 

Hayduke

LawnSite Bronze Member
Location
Oregon
No sorry that is 700k cad minus materials so about 100k per 4 workers, but I am doing a huge amount of overtime myself, my wife included.

I was just reading a thread here and noticed my labour rates are only about what others are getting but in USD, so I’m 20% lower. I do feel like I should be making a bit more and maybe I’m just not actually getting the 7 hours per day. I might have to figure for 6 per day realistically.

Well that is still around 560K gross in US dollars. You guys are busting arse!
No kids I presume?
 

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