whats YOUR monthly overhead?

Discussion in 'Business Operations' started by NEPSJay, Apr 23, 2006.

  1. NEPSJay

    NEPSJay LawnSite Senior Member
    Messages: 492

    all these threads lately on how much, sales, profit, earnings, etc, etc. Good buisness people know their overhead, the bad ones, do not. What is YOUR TOTAL, MONTHLY overhead, on average?
  2. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    1/3 of gross deposits before labor and taxes, always, and literally.

    Every deposit I make, 1/3'rd is marked to pay accounts due, anything can get paid with this money but nothing more. If 1/3'rd of my deposits do not pay the bills, I am doing something wrong. So, deposit 1.2k, 400 is for bills, be it credit card or whatever, yes this includes fuel and anything and everything except labor and taxes.

    Labor is a k a month, taxes is another 1/3'rd, the rest should be profit.

    p.s.: Actual deposit, not book gross.
  3. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Messages: 4,899

    And they don't post it for there competition to know :dizzy: :dizzy:
  4. NEPSJay

    NEPSJay LawnSite Senior Member
    Messages: 492

    why, they post everything else? contracts, pics of customers houses, sales letters, ads, flyers, prices, hourly rates, insurance premiums, costs of equipment, truck payments, equipment payments, shop morgage or rent payments, health insurance premiums, cost of fuel, cost of supplies, costs of $13.00 mulch..... etc, etc,:dizzy: :dizzy: Come clean, mack, just say you dont know
  5. Badgerz

    Badgerz LawnSite Member
    Messages: 122

    I'm sure there a few LCOs on here from Northern Ohio but the rest of the thousands of users here aren't really your competition. :)
  6. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Messages: 4,899

    but none of those will help your competition KNOW what you need to charge for a job :dizzy: :dizzy: Look through the archives and show me where 1 legitamate company has posted there cost ? they may indicate a general amount but thats all your gonna get.
  7. kdbetters

    kdbetters LawnSite Member
    Messages: 70

    for me its about $5800, now about $4300 of thats labor and labor burden. The rest is things like phone, truck payment, gas, yellow page ads, shop charges, and the list goes on. Basicaly, about $1500 is fixed costs per month, and the $4300 is labor but of course that can fluctuate depending on the workload. So if I'm producing $10000-$12000 a month then of course you can see where profit is. But of course you still have those variable costs that sneak upon you like repairs or new equipment purchases, or a good deal thats to good to pass on.
  8. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Messages: 4,899

    your right $7800 a month. :waving:
  9. Howie's Lawn Care

    Howie's Lawn Care LawnSite Senior Member
    Messages: 512

    Do I need to include my regular/only vehicle and my regular vehicle insurance. I use my cell phone for business and personal, and will include it in the total. Is there a way to get a business cell phone so I can write it off or do I need a land line. Thanks for any help guys.

    -Nick Howard
  10. daveintoledo

    daveintoledo LawnSite Silver Member
    Messages: 2,587

    it cost me 9.85 per hour to operate.....

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