14 Business Tips


HOWTOMAKE IAPROFITN LANDSCAPING


It is not possible to make a


profit until you fully understand your costs. When your client asks you to submit a price for a job there are 3 questions you need to ask yourself. Sam Hassall reports.


Ensuring your profit from Landscape contracts


1.How much is this going to cost me to do? 2.What is the minimum profit I am prepared to make on this job?


3.What is the maximum profit I can put on this job and still win it?


The two latter questions and answers are a matter of your needs, risk and acumen. The first question is simple – It’s just arithmetic and that is the one we will deal with now.


THE THEORY 1. There is no point in working if you are going to lose money.


3.You have to understand your costs.


THE COSTS OF MECHANICAL EXCAVATION Different types of dig require different machines and have different costs. The amount of time that the excavator arm can swing per hour (Cycles per hour) determines the efficiency of the machine.


Table 1 shows the basic costs of different machines commonly used in our sector.


THESE PRICES INCLUDE


• Hire rate based on a weekly hire • Operator at £19.00 per hour


• Non productive time of 8 hours per 40 hours weekly hire (20%)


• Fuel using manufacturers issued information for consumption.


| October 2011 | Volume1 | Issue2


TABLE 1 Type of Dig Work carried out


Loading Bulk


Loading to trucks or dumpers. Dependent on availability of dumpers returning to be filled


groundwork’s usually work in a radius Excavation


reduce levels Trenches for


foundations Trenches The machine moves occasionally but can


for removal Excavation to This is usually fairly accurate work and is slower


As above but working in a specific area Accurate work and the machine must move


along the trench. (Trenches are often deeper and wider than services trenches below)


for services must move often Usually narrow trenches and the machine TABLE 2: MACHINE CAPACITIES


Machine Cost/ Bucket Cycles/ type


1.5 tonne 3 tonne 5 tonne 7 tonne 21 tonne


TABLE 3


Bulkage Rates Factor the price from Table 4


Sandy loams Heavier loams Clay


Heavy water- logged clay


1.2


1.25-1.3 1.5


1.6-1.8


23.68 42.65 52.23 63.15 81.50


hr volume m3 0.04


0.13 0.28 0.28 1.21


25.0 7.7 3.6 3.6 0.8


THESE FIGURES DO NOT INCLUDE


• Delivery to site and collection charges • Profit • Bulkages of soils • Banksmen which are a legal requirement


The most common excavation types are shown in Table 1.


SIZE OF MACHINE Generally speaking the larger the machine the lower the rate per m3 excavated. Obviously there are numerous factors affecting choice of machine


• Access • Operator ability • Efficiency


www.pro-landscaper.co.uk 1.5 expensive Most


Cycles per Cost minute


2-5 3.5 3 2 1.75 Cheapest


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