KenJax Tree
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Not you Jeffrey, you're a bully,[emoji1] How are ya Jeff?
Pricing removals and pruning
- Thread starter david1332
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Not you Jeffrey, you're a bully,[emoji1] How are ya Jeff?
david1332
ArboristSite Operative
I don't mind the criticism haha. It's helpful most times.
DR. P. Proteus
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And now we are the bad guys because we won't tell you how much you should be
Some people find it insulting to be asked the question you asked. Why do you think that is?
Some people find it insulting to be asked the question you asked. Why do you think that is?
david1332
ArboristSite Operative
I'm not saying you're bad?
I just wanted to know how to figure out my overhead so I can figure out an hourly rate and multiply it by how long it's going to take to do the job+ dump, gas, oil, chains, tolls, etc.
To figure out your costs:
- take your yearly fixed expenses ie insurance, business licences, association memberships etc and divide by your estimate hours worked each year
- take your monthly fixed expenses ie rent, leases, equipment payments etc and divide by the estimated hours worked each year
- figure out a replacement cost for your big equipment (depreciation) ie cost of new equipment divided over 7 years
- figure out a hourly cost for small equipment replacement eg $5000/yr divided by number of hours worked per year
- figure out variable costs per hour, labour, taxes, fuel, maintenance
In case you don't know, fixed costs are those you have to pay regardless of how much (if any) you work ie once you've paid your yearly insurance premium, it won't change regardless of the number of hours you work. Variable costs, as the name implies, will vary according to the amount you work, ie the more labour you use, the higher your labour cost will be.
Add all the costs up should give you an approximate rate needed to stay in business. Then add profit and risk on top of that.
Most places, if they calculate it honestly, will be around $75-100/man hour. If you are going to cheat, it's going to be in your depreciation allowance for equipment replacement.
- take your yearly fixed expenses ie insurance, business licences, association memberships etc and divide by your estimate hours worked each year
- take your monthly fixed expenses ie rent, leases, equipment payments etc and divide by the estimated hours worked each year
- figure out a replacement cost for your big equipment (depreciation) ie cost of new equipment divided over 7 years
- figure out a hourly cost for small equipment replacement eg $5000/yr divided by number of hours worked per year
- figure out variable costs per hour, labour, taxes, fuel, maintenance
In case you don't know, fixed costs are those you have to pay regardless of how much (if any) you work ie once you've paid your yearly insurance premium, it won't change regardless of the number of hours you work. Variable costs, as the name implies, will vary according to the amount you work, ie the more labour you use, the higher your labour cost will be.
Add all the costs up should give you an approximate rate needed to stay in business. Then add profit and risk on top of that.
Most places, if they calculate it honestly, will be around $75-100/man hour. If you are going to cheat, it's going to be in your depreciation allowance for equipment replacement.
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