lbtcadmin
10-23-2006, 05:40 PM
Calculating Lawn Care - Landscape - Vehicles & Equipment Cost
For LCO's, Landscapers, Grounds Maintenance Contractors, Facility Managers, Parks, Roads & Grounds, College Campus
Since the majority of equipment and vehicles will be "consumed" as a result of use rather than time passing, units of cost can be assigned based on use and the wearing out of capital assets.This can be done in a number of ways:
1. Cost per mile driven
2. Cost per acre mowed
3. Cost per useful life hour of operation
4. Cost per year to operate over a given useful life
The following estimate form can be used for determining cost for any tangible asset.
1. Purchase cost (includes actual price plus taxes, etc.) .................................................. $____________
2. Less: Salvage value or trade in allowance .................................................. ...............$____________
3. Net purchase cost (line 1 less line 2)................................................ ...........................$___________
4. Estimated life - based on:
Hours of use____________________
Useful life years____________________
Useful life miles____________________
Useful life acres____________________
5. Units of estimated " life" (from line 4)................................................ ............................_____________
Ownership Cost
6. Net purchase cost (from line 3)................................................ ....................................$____________
7. Interest factor (current or anticipated rate)............................................. ........................$____________
8. Interest cost (line 6 times line 7)................................................ ..................................$____________
9. Interest cost on salvage value (line 2 times line 7)................................................ ..........$____________
10. Total cost of insurance, taxes, housing over useful life.............................................. ......$____________
11. Total cost of license and registrations over useful life.............................................. ........$____________
12. Total ownership cost (line 8 + line 9 + lines 10 & 11)............................................... .......$____________
Operating Costs
13. Fuel consumed over useful life.............................................. ........................................$_________ ___
14. Oil, lubricant, equipment & vehicle adjustments over useful life........................................ $____________
15. Repairs and maintenance cost over total useful life.............................................. ...........$____________
16. Total Operating Cost (add lines 13, 14 & 15)............................................... ...................$____________
17. TOTAL COST (add lines 3, 12 and 16)............................................... ..........................$___________
18. COST PER UNIT OF MEASURE (enter from line 4 selected above)................................$___________ _
19. PER UNIT COST (line 17 divided by line 18)............................................... ...................$____________
Other
resources
Nilsson's Job Estimating System (http://nilssonbooks.com/job_estimating_package.htm) has everything you need to evaluate job site specifications & work required, figure costs, how to price ~ lawns, grounds maintenance, landscape installs. You'll get step - by - step instructions, bid proposal outlines & customer contracts, labor hours job times. You'll get job price guides to compare your prices with the going rates, overhead costs, materials, profit ratios. You'll set realistic prices, and job labor hours goals based on field tested, proven, time studied labor hours for every job you bid. You'll know how to evaluate every job for total work hours required, the price to charge for the job, the profit you'll make, best crew size, job costs. You'll also get add-on service check lists to help you maximize sales by upselling customers on additional property improvements.
Sales Boosters (http://nilssonbooks.com/sales_booster_package.htm)
Job Estimating Package (http://nilssonbooks.com/job_estimating_package.htm)
FREE Job Pricing Guidelines (http://nilssonbooks.com/free_job_guidelines.htm)
New Business Startup Package (http://nilssonbooks.com/just_getting_started.htm)
Complete Operations Management System (http://nilssonbooks.com/coms_package.htm)
http://nilssonbooks.com/_borders/Phil-Nilsson-Picture.jpg
Phil Nilsson
"Best Selling Author"
www.nilssonbooks.com (http://www.nilssonbooks.com/)
Nilsson Associates are Consultants to the membership of the Professional Lawn Care Association of America. Our Learning Systems are endorsed by the leading Industry Associations, by the Horticultural Departments at Ohio State University, The University of Tennessee, The University of Georgia, and in use by thousands of Landscape Contractors, Lawn Service Companies, Property Managers, Government Facilities, Park Departments and Municipalities nationwide.
Business
solution links
Advertising (http://nilssonbooks.com/advertising_and_sales.htm) -
Bidding Jobs (http://nilssonbooks.com/job_bidding_pricing.htm) - (http://www.asharpdesign.com/nilsson/discounts_and_deals.htm)
Business Growth (http://nilssonbooks.com/mangement.htm) -
Business Plan (http://nilssonbooks.com/mangement.htm#Business Planning Workbook) -
Commercial (http://nilssonbooks.com/advertising_and_sales.htm#Selling To Commercial Customers) -
Company Policy (http://nilssonbooks.com/mangement.htm#Writing Your Company Policy Manual) -
Contract Cost (http://nilssonbooks.com/job_bidding_pricing.htm) -
Customers (http://nilssonbooks.com/advertising_and_sales.htm#Selling To Commercial Customers) -
Employees (http://nilssonbooks.com/employee.htm) -
Estimating (http://nilssonbooks.com/job_estimating_package.htm) -
Job Cost (http://nilssonbooks.com/job_bidding_pricing.htm#Labor Time Data Handbook) -
Job Specs (http://nilssonbooks.com/job_bidding_pricing.htm#Writing The Maintenance Speci-fications) -
Labor Time Data (http://nilssonbooks.com/job_bidding_pricing.htm#Labor Time Data Handbook) -
Maintenance (http://nilssonbooks.com/operations.htm#Grounds Maintenance Manual) -
Management (http://nilssonbooks.com/mangement.htm) -
Mowing Profits (http://nilssonbooks.com/operations.htm#Maximizing Profits In Mowing) -
Pricing (http://nilssonbooks.com/job_bidding_pricing.htm#Pricing Your Services) - Sales (http://nilssonbooks.com/advertising_and_sales.htm) -
Sales Letters (http://nilssonbooks.com/advertising_and_sales.htm#How To Write Effective Sales Letters) -
Sales Skills (http://nilssonbooks.com/advertising_and_sales.htm) -
Snow Removal (http://nilssonbooks.com/operations.htm#The Snow Removal Business) -
Subcontracting (http://nilssonbooks.com/employee.htm#Subcontracting the Work) -
Training Video (http://nilssonbooks.com/video_tapes.htm) -
Website Services (http://nilssonbooks.com/other_services.htm#Web Design) -
Winter Income (http://nilssonbooks.com/operations.htm)
Special Book Discounts (http://nilssonbooks.com/discounts_and_deals.htm)
(http://www.nilssonbooks.com/)FREE JOB PRICING GUIDELINES (http://nilssonbooks.com/free_job_guidelines.htm)
(http://www.nilssonbooks.com/)http://hispaniclawnforum.com/banners/jobestpakbanpn.gif (http://nilssonbooks.com/job_estimating_package.htm)
(http://www.nilssonbooks.com/)http://hispaniclawnforum.com/banners/coms_banner_d.gif (http://nilssonbooks.com/coms_package.htm)
(http://www.nilssonbooks.com/)http://hispaniclawnforum.com/banners/nilsson_assoc_banner_b.gif (http://nilssonbooks.com/)
For LCO's, Landscapers, Grounds Maintenance Contractors, Facility Managers, Parks, Roads & Grounds, College Campus
Since the majority of equipment and vehicles will be "consumed" as a result of use rather than time passing, units of cost can be assigned based on use and the wearing out of capital assets.This can be done in a number of ways:
1. Cost per mile driven
2. Cost per acre mowed
3. Cost per useful life hour of operation
4. Cost per year to operate over a given useful life
The following estimate form can be used for determining cost for any tangible asset.
1. Purchase cost (includes actual price plus taxes, etc.) .................................................. $____________
2. Less: Salvage value or trade in allowance .................................................. ...............$____________
3. Net purchase cost (line 1 less line 2)................................................ ...........................$___________
4. Estimated life - based on:
Hours of use____________________
Useful life years____________________
Useful life miles____________________
Useful life acres____________________
5. Units of estimated " life" (from line 4)................................................ ............................_____________
Ownership Cost
6. Net purchase cost (from line 3)................................................ ....................................$____________
7. Interest factor (current or anticipated rate)............................................. ........................$____________
8. Interest cost (line 6 times line 7)................................................ ..................................$____________
9. Interest cost on salvage value (line 2 times line 7)................................................ ..........$____________
10. Total cost of insurance, taxes, housing over useful life.............................................. ......$____________
11. Total cost of license and registrations over useful life.............................................. ........$____________
12. Total ownership cost (line 8 + line 9 + lines 10 & 11)............................................... .......$____________
Operating Costs
13. Fuel consumed over useful life.............................................. ........................................$_________ ___
14. Oil, lubricant, equipment & vehicle adjustments over useful life........................................ $____________
15. Repairs and maintenance cost over total useful life.............................................. ...........$____________
16. Total Operating Cost (add lines 13, 14 & 15)............................................... ...................$____________
17. TOTAL COST (add lines 3, 12 and 16)............................................... ..........................$___________
18. COST PER UNIT OF MEASURE (enter from line 4 selected above)................................$___________ _
19. PER UNIT COST (line 17 divided by line 18)............................................... ...................$____________
Other
resources
Nilsson's Job Estimating System (http://nilssonbooks.com/job_estimating_package.htm) has everything you need to evaluate job site specifications & work required, figure costs, how to price ~ lawns, grounds maintenance, landscape installs. You'll get step - by - step instructions, bid proposal outlines & customer contracts, labor hours job times. You'll get job price guides to compare your prices with the going rates, overhead costs, materials, profit ratios. You'll set realistic prices, and job labor hours goals based on field tested, proven, time studied labor hours for every job you bid. You'll know how to evaluate every job for total work hours required, the price to charge for the job, the profit you'll make, best crew size, job costs. You'll also get add-on service check lists to help you maximize sales by upselling customers on additional property improvements.
Sales Boosters (http://nilssonbooks.com/sales_booster_package.htm)
Job Estimating Package (http://nilssonbooks.com/job_estimating_package.htm)
FREE Job Pricing Guidelines (http://nilssonbooks.com/free_job_guidelines.htm)
New Business Startup Package (http://nilssonbooks.com/just_getting_started.htm)
Complete Operations Management System (http://nilssonbooks.com/coms_package.htm)
http://nilssonbooks.com/_borders/Phil-Nilsson-Picture.jpg
Phil Nilsson
"Best Selling Author"
www.nilssonbooks.com (http://www.nilssonbooks.com/)
Nilsson Associates are Consultants to the membership of the Professional Lawn Care Association of America. Our Learning Systems are endorsed by the leading Industry Associations, by the Horticultural Departments at Ohio State University, The University of Tennessee, The University of Georgia, and in use by thousands of Landscape Contractors, Lawn Service Companies, Property Managers, Government Facilities, Park Departments and Municipalities nationwide.
Business
solution links
Advertising (http://nilssonbooks.com/advertising_and_sales.htm) -
Bidding Jobs (http://nilssonbooks.com/job_bidding_pricing.htm) - (http://www.asharpdesign.com/nilsson/discounts_and_deals.htm)
Business Growth (http://nilssonbooks.com/mangement.htm) -
Business Plan (http://nilssonbooks.com/mangement.htm#Business Planning Workbook) -
Commercial (http://nilssonbooks.com/advertising_and_sales.htm#Selling To Commercial Customers) -
Company Policy (http://nilssonbooks.com/mangement.htm#Writing Your Company Policy Manual) -
Contract Cost (http://nilssonbooks.com/job_bidding_pricing.htm) -
Customers (http://nilssonbooks.com/advertising_and_sales.htm#Selling To Commercial Customers) -
Employees (http://nilssonbooks.com/employee.htm) -
Estimating (http://nilssonbooks.com/job_estimating_package.htm) -
Job Cost (http://nilssonbooks.com/job_bidding_pricing.htm#Labor Time Data Handbook) -
Job Specs (http://nilssonbooks.com/job_bidding_pricing.htm#Writing The Maintenance Speci-fications) -
Labor Time Data (http://nilssonbooks.com/job_bidding_pricing.htm#Labor Time Data Handbook) -
Maintenance (http://nilssonbooks.com/operations.htm#Grounds Maintenance Manual) -
Management (http://nilssonbooks.com/mangement.htm) -
Mowing Profits (http://nilssonbooks.com/operations.htm#Maximizing Profits In Mowing) -
Pricing (http://nilssonbooks.com/job_bidding_pricing.htm#Pricing Your Services) - Sales (http://nilssonbooks.com/advertising_and_sales.htm) -
Sales Letters (http://nilssonbooks.com/advertising_and_sales.htm#How To Write Effective Sales Letters) -
Sales Skills (http://nilssonbooks.com/advertising_and_sales.htm) -
Snow Removal (http://nilssonbooks.com/operations.htm#The Snow Removal Business) -
Subcontracting (http://nilssonbooks.com/employee.htm#Subcontracting the Work) -
Training Video (http://nilssonbooks.com/video_tapes.htm) -
Website Services (http://nilssonbooks.com/other_services.htm#Web Design) -
Winter Income (http://nilssonbooks.com/operations.htm)
Special Book Discounts (http://nilssonbooks.com/discounts_and_deals.htm)
(http://www.nilssonbooks.com/)FREE JOB PRICING GUIDELINES (http://nilssonbooks.com/free_job_guidelines.htm)
(http://www.nilssonbooks.com/)http://hispaniclawnforum.com/banners/jobestpakbanpn.gif (http://nilssonbooks.com/job_estimating_package.htm)
(http://www.nilssonbooks.com/)http://hispaniclawnforum.com/banners/coms_banner_d.gif (http://nilssonbooks.com/coms_package.htm)
(http://www.nilssonbooks.com/)http://hispaniclawnforum.com/banners/nilsson_assoc_banner_b.gif (http://nilssonbooks.com/)