Yes! Going over how, where, and what reports in SA would be great. The software side is not discussed in SAA so this is awesome. Thanks again Jonathan.
This would be a great series of videos for you to do. Each one adding to and expanding on factoring in data points that you mentioned like expenses, COGS, etc. Thank you for giving back to the community.
This is awesome I have to make spreadsheets. The past 3 seasons in business I’ve wrote every thing down in a book with times from mowing to bushes mulch and leaf clean ups. Yes yes expand
Elaborating on the overhead recovery would be a nice 2nd part to that video. Also dealing with drive time and what ballpark percentage is a good overhead target. Your input on when to hire a production manager would also be great, Thanks for the videos!
If you could answer this for me. My dad has a nursery. We dig trees with a spade off of our Christmas tree farm. My dad pays me 20 an hour when we dig and 25 an hour planting a job. So say we plant 10 trees that takes about a day. He charges for the tree by the foot or caliper inch if it's a maple, charges for delivery, install, removal if needed then mulch. Then say it took us 10 hours. So that's 250 I made off of that job. Say my dad made 3 grand. Just for example. Do you think hes charging right? Shouldnt he be charging labor for me to be there? He says we are selling a product so the labor is fixed into the cost? Didn't make sense to me. I think he needs to charge labor? Help me out cuz I have no idea
I know he's got overhead. Bobcats, baskets and burlap for the trees, man hours paid to dig them and plant them into nursery. I want to help him figure out his profits and stuff but idk where to begin.
Profit is subjective based on your overhead. You need to know your daily, weekly, monthly and yearly expenses for both your company and yourself. If you need to make $48,000 per year for just your personal living expenses, plus have $2,400 per year in equipment loans, plus insurance of $2,400 per year and vehicle and equipment repair expenses of $3,600 per year. That's $56,400 in expenses you need to cover. Gas for the equipment and employee salary is an unknown variable until you have the work. If you have 1 employee working 40 hours/week at $13/hour you also have to pay FICA and unemployment insurance on them so now it is around $15/hour so $600/week times say 26 weeks. $15,600 gets added to the $56,400 and i can estimate gas at $4,400 per year. $56,400+$15,600+$4,400=$76,400 needed to "break even" paying you $48,000. $76,400/26 weeks is $2,938.46 income needed per week. You have 1 employee and you working 40 hours per week so 80 hours. $2,938.46/80 hours means that you need to average $36.73 per total man hour (not production hours your cutting, trimming, seeding, etc..). You'd have to calculate the driving time too. So if you have a property that takes 2 people 15 minutes, you have 30 minutes (or 1/2 hour) into that property which cost you $36.73 just the time at the lot. If it took 2 people 7.5 minutes to drive there, that's another 1/4 hour so an additional $18.37. For that specific property, you would have to charge $55.10 to hit you necessary minimum hourly rate. I'd recommend adding a few dollars to cover delays at either the lot or on the road. This is if you have enough work to work a steady 40 hours per week with 2 guys for 26 weeks. If you take the above figures and break them down to know how many lawns you need to mow to cover the expenses, you divide the total expenses by the number of weeks then by the number of man hours or by lawns, etc.. So $76,400/26 weeks =$2,938.46 needed. How many lawns at $35 per lawn do you need to cut to cover the $2,938.46. $2,938.46/$35 per lawn=84 lawns needed at $35 each to cover the expenses. If each lawn takes 15 minutes for 2 people and it took another 15 minutes to drive to that property (poor route density), you have 30 minutes into the lawn. This means you can cut 1 lawn per 1/2 hour or 2 lawns per hour. In an 8.5 hour day, you'll cut 17 lawns. Over the course of a week and 42.5 hours, you'll cut 85 lawns and you'll make your $2,938.46 needed for each week (weather permitting). Long and winded but I hope this helps.
Once again, Johnathon is spot on and most relevant amongst UA-cam green industry education. Study it, learn it or get left behind....that simple.
Yes! Going over how, where, and what reports in SA would be great. The software side is not discussed in SAA so this is awesome.
Thanks again Jonathan.
This would be a great series of videos for you to do. Each one adding to and expanding on factoring in data points that you mentioned like expenses, COGS, etc. Thank you for giving back to the community.
This is awesome I have to make spreadsheets. The past 3 seasons in business I’ve wrote every thing down in a book with times from mowing to bushes mulch and leaf clean ups. Yes yes expand
Elaborating on the overhead recovery would be a nice 2nd part to that video. Also dealing with drive time and what ballpark percentage is a good overhead target. Your input on when to hire a production manager would also be great, Thanks for the videos!
Jonathan - your videos are incredibly helpful. What is the most efficient way to calculate mow-able lot size?
Yes, please expand on this!
Great video and definitely a game changer as our company continues to scale up. Much appreciated for you sharing this!
Simple- Cost per minute (all costs) including profit times the minutes per service.
Wow, thank you for all the info.
The "Choose the Right Equipment" guy from your most recent Growth Guide needs more screen time. The "simple marketing" guys had some great info too.
Or add up the dollar amount of the accounts that day and divide it by how many hours you worked that day
If you could answer this for me. My dad has a nursery. We dig trees with a spade off of our Christmas tree farm. My dad pays me 20 an hour when we dig and 25 an hour planting a job. So say we plant 10 trees that takes about a day. He charges for the tree by the foot or caliper inch if it's a maple, charges for delivery, install, removal if needed then mulch. Then say it took us 10 hours. So that's 250 I made off of that job. Say my dad made 3 grand. Just for example. Do you think hes charging right? Shouldnt he be charging labor for me to be there? He says we are selling a product so the labor is fixed into the cost? Didn't make sense to me. I think he needs to charge labor? Help me out cuz I have no idea
I know he's got overhead. Bobcats, baskets and burlap for the trees, man hours paid to dig them and plant them into nursery. I want to help him figure out his profits and stuff but idk where to begin.
Jonathan, what type of truck does your company use now? Thanks.
How do I add the gross square feet in service autopilot to make it show in this report?
Awsome video much helpfulness
You think $60 per man hour is good in indiana?
Lumbergh Lawncare. Love it!
Does your company take inflation rates into account every year?
QUESTION:
Based on the per man hour how do you calculate what you need to make per hour to make money? Do you have a past video?
Profit is subjective based on your overhead. You need to know your daily, weekly, monthly and yearly expenses for both your company and yourself. If you need to make $48,000 per year for just your personal living expenses, plus have $2,400 per year in equipment loans, plus insurance of $2,400 per year and vehicle and equipment repair expenses of $3,600 per year. That's $56,400 in expenses you need to cover. Gas for the equipment and employee salary is an unknown variable until you have the work. If you have 1 employee working 40 hours/week at $13/hour you also have to pay FICA and unemployment insurance on them so now it is around $15/hour so $600/week times say 26 weeks. $15,600 gets added to the $56,400 and i can estimate gas at $4,400 per year.
$56,400+$15,600+$4,400=$76,400 needed to "break even" paying you $48,000. $76,400/26 weeks is $2,938.46 income needed per week. You have 1 employee and you working 40 hours per week so 80 hours. $2,938.46/80 hours means that you need to average $36.73 per total man hour (not production hours your cutting, trimming, seeding, etc..). You'd have to calculate the driving time too. So if you have a property that takes 2 people 15 minutes, you have 30 minutes (or 1/2 hour) into that property which cost you $36.73 just the time at the lot. If it took 2 people 7.5 minutes to drive there, that's another 1/4 hour so an additional $18.37. For that specific property, you would have to charge $55.10 to hit you necessary minimum hourly rate. I'd recommend adding a few dollars to cover delays at either the lot or on the road. This is if you have enough work to work a steady 40 hours per week with 2 guys for 26 weeks. If you take the above figures and break them down to know how many lawns you need to mow to cover the expenses, you divide the total expenses by the number of weeks then by the number of man hours or by lawns, etc..
So $76,400/26 weeks =$2,938.46 needed. How many lawns at $35 per lawn do you need to cut to cover the $2,938.46. $2,938.46/$35 per lawn=84 lawns needed at $35 each to cover the expenses. If each lawn takes 15 minutes for 2 people and it took another 15 minutes to drive to that property (poor route density), you have 30 minutes into the lawn. This means you can cut 1 lawn per 1/2 hour or 2 lawns per hour. In an 8.5 hour day, you'll cut 17 lawns. Over the course of a week and 42.5 hours, you'll cut 85 lawns and you'll make your $2,938.46 needed for each week (weather permitting).
Long and winded but I hope this helps.
Your the boss