Video Transcript
If I go out about in actually create aeration production rates, what are some industry standards I should be looking at? So we offered to break down some of the best practice that we’ve used in my company for aeration and based on the different type of technologies out there based on walk behind aerator or a stand on aerator and the different sizes and the things we want to take into account when we’re actually creating a production rate based estimating system around aeration whether it’s springtime aeration or fall time variation and overseeding. A lot of questions and a lot of concern around this, this is probably one of the biggest profit margin services in the landscape maintenance industry whether it’s a quick injection of cash up front for your spring time season or fall time season bringing that bottom-line profit when you are actually going out in doing the aeration and overseeding and basically recovered most of your overhead and now it’s just bottom-line profit. The problem is either in the spring or in the fall how much how much time do we really have to get this done it’s a very narrow window to get this in and get it done and get it done right so in my opinion investing in the right technology and production is probably gonna be a great investment on your time. I’m going to break down some industry standard production rates shared with X Mark, Toro and some other industry aeration companies. By all means full disclaimer you need to make sure that you are tracking your production rates but I’ve done some homework for us to get some industry standards based on the different manufacturers and how to break them out and build it out into a production rate based estimating system that can be measured online and delegated to your office team or if you’re still in the field and estimating yourself how to streamline this for predictable results day in and day out based on your numbers and not your competitors down the streets. Without any further delay in normal fashion if you have any questions feel free to ask them while we’re live on here or in the recorded version the next 24 to 48 hours and just before we hop to this I want to make a special announcement here as I open up the screen here to show the other screen is that we’re gonna break into our normal Simple Growth estimating blueprint but a lot a lot of people have been asking -Mike when is Simple Growth going to start sharing this on a podcast so ifI’m in the field driving around either doing jobs or estimates when can I get this live and get that done so great news the SA Weekly Talk Show with Cody Owens on the Facebook page over at Service Autopilot in several episodes of Callahan’s Corner are now live on Spotify we haven’t actually released the actual full release but what we’re gonna be doing here is the early bird I guess announcement here at least is you can go in and sign up for the podcast on Spotify right now but we will be live on iTunes next week already live on Spotify and then Simple Growth team right now is loading the last 25 episodes of the SA Weekly Talk Show and some of the popular Callahan Corner episodes so moving forward starting this week all of the SA Weekly Talk Shows will be live on Spotify and iTunes as well as some of the Callahan Corners top requests will be on there so you can count at least once a week the Sa Weekly Talk Show will be on Spotify and iTunes with the transcript and at least one or two if not three Callahan’s Corner episodes depending on the content will also be live on the podcast you can enjoy this while you’re driving around in your vehicle out the field estimating in the office or if you’re doing the COVID-19 workout if I’m I’mtrying to shed off a couple pounds I’ve been diving into a couple podcast myself. I ‘m gonna dive into the question but I did want to at least announce that the SA Weekly Talk Show and the Callahan’s Corner episodes will be live starting right now on Spotify and next week on iTunes and will be loading in the last 25 episodes of the SA Weekly Talk Show so you can get out and out learn your competition and go out and dominate your local market. Without any further delay we’re gonna hop into the actual question here that we have going so like I said if you have any questions here feel free to drop them and i’ll answer them live or the recorded version. First thing we need to do is go into a estimate blueprint we call this the Simple Growth Blueprint For Success so whether you’re watching live on the screen share or on the new newly published podcast feel free to check it out on the SA Weekly Talk Show Facebook page where all these are going to be posted, but industry standards that we’re looking at right now is aeration and I stand on unit in 24 inch was one hour of production and about 80 percent efficiency is where we based this at because we took out accounted for overlap and loading and unloading and things like that so on a stand on 24 inch aerator between the three to five inch depth of the times we can cover around approximately thirty eight thousand square feet so obviously you don’t want to use this right out the gate you want to test this in do sometime and emotion studies but industry average production rates what we’ve seen as far as reports is around thirty eight thousand square feet what we’ve seen from my company as well this is pretty accurate is definitely in the ballpark know whether you’re in the north, south or southwest this will definitely vary and after working with well over 350 companies with Simple Growth we do see some variation each part of the country so be aware that this is an average. What we’re looking at is between 1-38,000 square feet our base price in this example is 250 bucks we’re not doing an aeration for less than 250 and based on the industry average it is taking us one man hour so if our charge per man hour is $55 an hour our expense break-even was 36 based on this example we have about an eighty five percent net profit margin so we’re walking out with about two hundred fourteen dollars on our base price up to thirty eight thousand square feet. Now what I would probably recommend I did this wide open so we had the actual production rate for approximately one hour across the board here, we would probably want to dial that into our base price of being probably between five or ten thousand square feet and reverse those numbers but between one and thirty eight thousand square feet it’s going to take about one hour and a stand on 24-inch areas you’re aeration based on industry standards I’m gonna say based on every thousand square feet over the base period of 38,000 with the standard production rate it doesn’t get any more efficient at this point it’s going to take .03 man-hours and based at 55 bucks an hour charging 9.20 per thousand and it’s costingus 94 cents now as we evolved into a larger machine a 30 inch stand on aerator if I kept the production rate the same we could gain some efficiency and be a little more competitive if you one to thirty eight thousand four fifty but now it’s only taking 0.76 man-hours but if you’re watching and wondering what the industry standard is for one man hour it’s up to forty seven thousand five hundred square feet at an 80 percent production rate so a 30-inch stand on is gonna run about forty seven thousand five hundred square feet per man-hour but if we’re making an apples to apples comparison instead of one hour at the 24 inch we’re going at 0.76 man-hours at the 30 inch so now based on that efficiency gain it’s only costingas 27.36 and we bumped out profit margin from eighty-five up to 89 so we’ve gained an extra approximately eight or nine dollars here from the efficiency of the machine so if you’re looking at what machine you’re buying depending on fence gates and areas you’re in that extra spend on the larger machine may have a larger payoff across that span and then once again every thousand over 38 thousand we’ve made standard 928 but now it’s gone down by 0.01 man-hours and the cost has gone down from 94 cents to 72 so there’s a massive gain there at scale now the last piece of equipment were looking at here that we’ve done some research for you is a walk behind area at a 38 inch aerator so this variation between 36, 38 and 40 we kind of took the middle through our research now that’s this is a walk behind area where you’re grabbing the handles and when you’re done you’re picking it up and moving it now some of them have a split drum where that’s a little less labor-intensive but what you’re looking at here is a larger unit somewhere between the 24 and 38 this is got obviously an extra 8 inches on the larger stand on but they production rates we’ve seen industry why is reported is a standby behind unit at 80% efficiency it’s gonna be about 23200 square feet for one hour so if we’re looking at it at a base price of 250 with that walk-behind unit for one hour our briefings gonna be 36 and obviously we’ve gone and gone to an 85 percent profit margin net on the base price of 250 bucks versus the 89 or the 85 so interesting to see those different spans and if you broke that every thousand over 23,200 square feet and we did it based on the 920 per thousand as we saw in the higher production area the stand on it is taking double the time and basically 1.5hour 1.50 or 1.54 actually per man-hour cost before profit versus the72 cents or the 94 cents so obviously the stand onions got way more efficiency and is not beating on the individual the guy or girl that’s out on it and they can probably produce more in a longer day. What we’re looking is a lot of people in the industry are going to the standon units whether it’s a 24 the 30 inch to create more production to have a better work experience for their operator and less fatigue. Question was do you have some industry standard so we went out and did some research on production rates based on different manufacturers that are manufacturing the stand on units it’s a 24 30 inches stand on and then they walked behind aerator 38, we found something in the middle so obviously them today you gotta make sure it fits within your budget but what we’re seeing is for the extra money and the spend on units the longevity of the machine lasts a little bit longer less maintenance significantly less hydraulic hoses that were in the past um unless maintenance but we are getting significantly more work and the employees are let’s just say enjoying the work of aerating a lot more getting a lot more done. Callahan’s Corner you ask the questions we bring them live on Facebook, so I’m going to swing over here and see if there is anymore questions before I close this up live and it doesn’t look like there is any questions on the live version here but what we’re gonna do here is just a quick reminder if you enjoy Callahan’s Corner- where you ask the questions we answer them live on Facebook or you’re a follower of the SA Weekly Talk Show make sure you check us out on Spotify right now and later next people make an official announcement we’ll be live on iTunes and Spotify where Sa Weekly Talk Show where Mike Callahan and Cody Owens are going live bringing the top industry experts to you will be on her as well as some of the Callahan’s Corner episodes as well that aren’t relying on more of the visual aspects of breaking down SA workflow. We’ll see you tomorrow on Callahan’s Corner- where you ask the questions and we answer them live on Facebook, quick reminder – if you’re watching right now live or the recorded version before Friday afternoon Cody Owen and Mike Callahan will be going live at 12:00 Central 1:00 p.m.Eastern with Nikki and John Decausmaker of Call Boss and Little John’s Lawn Care located out of the chandler-gilbert area in Arizona we’re gonna be breaking down everything from call center virtual assistant and lawn care in the southwest. Can’t wait to bring some more knowledge to you this coming Friday and make sure to check us out on Spotify and when the official announcement comes out on iTunes next week for Simple Growth and when you’re going into Spotify just type into the search bar SimpleGrowth all one word you’ll find us right up top and we’re gonna have some pretty amazing giveaways here in the next week or two if you do sign up and download us on Spotify or iTunes where we’re actually gonna give away a Facebook automated estimator bot for no setup fee and the first two months free of charge for just checking out the podcast. We’ll see you either on the podcast or the next SA Weekly Talk Show or Callahan’s Corner with your next question you submit where you answer the questions and we answer them live, live on Facebook