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Do I Include All My Fuel and Repair In My Equipment Budget?

Almost definitely not.  Although most of your fuel/repairs can be recovered when you estimate jobs (the hourly/daily rates the LMN calculates for your equipment include fuel/repair/insurance/etc) you almost certainly put fuel/repairs/etc in overhead vehicles/equipment (like the owner's truck!)

Estimate how much fuel goes to field vs. overhead and then put fuel/repairs/insurance in both field and overhead.

Example:

Jake runs a landscape company.  He never includes costs for his own truck in estimates, but his company has 4 crew trucks that he can estimate to jobs.  Since 1 out of 5 of his trucks are "overhead":

  • Jake puts 80% of his forecast fuel/repair/vehicle insurance costs in his Equipment budget.  These costs will get recovered in Jake's estimates as part of the hourly/daily costs and prices calculated for his crew trucks.
  • Jake puts the remaining 20% of his forecast fuel/repair/vehicle insurance costs in his Overhead budget.  These costs will get recovered as part of each job's overhead markup, since Jake does not include his truck, or its costs, when he's estimating jobs.

 

Note:  You can treat all your fuel/repair/insurance/etc as an overhead cost, if you prefer.  However, if you do this, do not include the costs of fuel/repair/insurance in LMN's equipment catalog cost calculator.  If you do, you will be recovering those costs twice, and are likely over-pricing your estimates.

 

Example:  LMN's Equip Cost Calculator when Fuel/Equip/Repair are in the Equipment budget 

 

 

Example:  LMN's Equip Cost Calculator when all Fuel/Equip/Repair costs are in the Overhead budget

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