Break it down... Do you know your true
costs?
costs?
The Sanitation Journal is a monthly trade publication that caters to the portable restroom industry. Each month
thousands of portable restroom operators utilize information from the Journal to aid in business decisions.
Subscribe today and make sure you never miss an issue.
thousands of portable restroom operators utilize information from the Journal to aid in business decisions.
Subscribe today and make sure you never miss an issue.
How do you figure your cost of running a portable sanitation business-what forms are there to use-How do I
know if I am profitable. This is a great start for portable restroom operators to take a look at what it cost to run
their business. There is a downloadable form at PolyJohn's website
know if I am profitable. This is a great start for portable restroom operators to take a look at what it cost to run
their business. There is a downloadable form at PolyJohn's website
How well do you know your portable sanitation business? While you may be an expert in portable restroom service
and customer care, do you know what each restroom service call costs you? How quickly can you figure your
costs for a 50-unit special event? Is it less expensive to pay overtime or hire a new person? What does a new
customer cost you? If a new portable restroom rental customer is off your usual route by ten miles, how much
more does that distance cost you?
If you don’t know the answers to these questions, perhaps it’s time to take out a sharp pencil and a calculator and
begin to figure your true costs. This is one of the best exercises you can do for keeping your portable sanitation
business running in the black.
How Does It All Break Down?
Seventy percent or more of your costs are related to portable restroom service calls. Tracking these costs should
start by finding out how many service calls you make in a given period of time; then, determine your average cost
per service call.
The following are some important numbers you could calculate to use whenever pricing portable restroom jobs.
The numbers we use are fictitious—every portable sanitation business will have different costs.
No Need to Fret
For many, tracking costs this detailed can seem overwhelming. It need not be that way. Get everyone, including
yourself, involved in keeping track of expenses by putting copies of receipts and invoices in envelopes for each
category. This way, you will have everything broken out at the end of the year to help you figure out your true
costs. Until you have accurate figures, use “best guess” estimates to get started. To calculate the average total cost
per portable restroom service call
Portable restroom Service Truck Cost
Start by adding up your annual figures for:
Financing costs (interest paid per year) $ 2,000.00
Depreciation (cost divided by est. life in yrs.) 20,000.00
Fuel 4,000.00
Maintenance 3,000.00
Insurance 800.00
Taxes and licenses 700.00
Total annual transportation costs: $30,500.00
-----------------------------------------------------------------------------------------------
The related cost per portable restroom service call and per mile
Truck costs per service call: $1.83
(costs divided by # of service calls)
Truck costs per mile: $0.31
(costs divided by # of miles/yr.)
Portable restroom dumping and water hauling costs
Add up your annual figures for:
Dumping charges $ 10,000.00
Water charges 1,000.00
Total annual dumping/water chrgs.: $11,000.00
-----------------------------------------------------------------------------------------------
The related cost per portable restroom service call and per mile
Dumping/water hauling costs/service call: $0.66
(costs divided by # of service calls)
Dumping/water hauling costs per mile: $0.11
(costs divided by # of miles/yr.)
Direct Labor Costs
Add up your annual figures for:
Employee wages including overtime $ 60,000.00
Payroll taxes (employer’s share) 4,000.00
Health, dental or other insurance costs 12,000.00
Profit sharing or other benefits 2,000.00
Total annual labor costs: $78,000.00
------------------------------------------------------------------------------------------------
The related cost perportable restroom service call and per mile
Direct labor costs per service call: $4.69
(costs divided by # of service calls)
Direct labor costs per mile: $0.78
(costs divided by # of miles/yr.)
Fixed Overhead Costs
Add up your annual figures for:
Rent or mortgage on land, bldgs., property
Property taxes $ 1,500.00
Property and liability insurance 1,500.00
Utilities 6,000.00
Telephone 2,400.00
Office payroll & payroll taxes 30,000.00
Office health insurance 1,200.00
Office other benefits 1,000.00
Office equipment expenses 1,500.00
Other
Total annual overhead costs: $45,100.00
------------------------------------------------------------------------------------------------
The related cost per portable restroom service call and per mile
Fixed overhead costs per service call: $2.71
(costs divided by # of service calls)
Fixed overhead costs per mile: $0.45
(costs divided by # of miles/yr.)
Direct Supply Costs
Add up or calculate what you spend in a year for supplies for servicing the units, and the depreciation on the
portable restrooms themselves:
Portable restroom units (500 units x $500 / 5 yrs. depr. ) $ 50,000.00
Chemicals 24,500.00
Paper towels, toilet paper 10,000.00
Soap 500.00
Paper towels 500.00
Cleaning fluid 600.00
Gloves and cleaning tools 250.00
Total direct supplies costs: $86,350.00
-------------------------------------------------------------------------------------------------
The related cost per portable restroom service call and per mile
Direct supply costs per service call: $5.19
(costs divided by # of service calls)
Direct supply costs per mile: $0.86
(costs divided by # of miles/yr.)
Total Costs
Total costs from above areas: $235,950.00
-------------------------------------------------------------------------------------------------
Total cost per portable restroom service call: $15.08
(costs divided by # of service calls)
Total cost per mile: $2.51
(costs divided by # of miles/yr.)
Find or calculate how many service
calls you make in a year: 16,640
(example is 2 men x 4 service calls per hour
x 40 hr week x 52 weeks)
Estimate the number of miles per year
expected from your trucks: 100,000
(example is 2 trucks x 50,000 miles per year)
Add up the number of portable restrooms you own and the number of days in a month or year that they
are rented out. You can then easily find out your total cost per rented portable restroom per
day.
Total number of units owned: 500
Next, add up the number of days each unit is rented in any given month. Then, convert that to an annual number
by multiply
Total # of days in service for all units per month: 12,300
(Total # of days rented each month times total # of units)
Total # of days in service for all units per year: 147,600
(monthly figure times 12)
Your average total cost per rented unit per day: 1.70
(annual total costs divided by total # of days in service in a year)
BONUS!
You can obtain a copy of your own service cost spreadsheet directly
at www.polyjohn.com/servicecost.html
and customer care, do you know what each restroom service call costs you? How quickly can you figure your
costs for a 50-unit special event? Is it less expensive to pay overtime or hire a new person? What does a new
customer cost you? If a new portable restroom rental customer is off your usual route by ten miles, how much
more does that distance cost you?
If you don’t know the answers to these questions, perhaps it’s time to take out a sharp pencil and a calculator and
begin to figure your true costs. This is one of the best exercises you can do for keeping your portable sanitation
business running in the black.
How Does It All Break Down?
Seventy percent or more of your costs are related to portable restroom service calls. Tracking these costs should
start by finding out how many service calls you make in a given period of time; then, determine your average cost
per service call.
The following are some important numbers you could calculate to use whenever pricing portable restroom jobs.
The numbers we use are fictitious—every portable sanitation business will have different costs.
No Need to Fret
For many, tracking costs this detailed can seem overwhelming. It need not be that way. Get everyone, including
yourself, involved in keeping track of expenses by putting copies of receipts and invoices in envelopes for each
category. This way, you will have everything broken out at the end of the year to help you figure out your true
costs. Until you have accurate figures, use “best guess” estimates to get started. To calculate the average total cost
per portable restroom service call
Portable restroom Service Truck Cost
Start by adding up your annual figures for:
Financing costs (interest paid per year) $ 2,000.00
Depreciation (cost divided by est. life in yrs.) 20,000.00
Fuel 4,000.00
Maintenance 3,000.00
Insurance 800.00
Taxes and licenses 700.00
Total annual transportation costs: $30,500.00
-----------------------------------------------------------------------------------------------
The related cost per portable restroom service call and per mile
Truck costs per service call: $1.83
(costs divided by # of service calls)
Truck costs per mile: $0.31
(costs divided by # of miles/yr.)
Portable restroom dumping and water hauling costs
Add up your annual figures for:
Dumping charges $ 10,000.00
Water charges 1,000.00
Total annual dumping/water chrgs.: $11,000.00
-----------------------------------------------------------------------------------------------
The related cost per portable restroom service call and per mile
Dumping/water hauling costs/service call: $0.66
(costs divided by # of service calls)
Dumping/water hauling costs per mile: $0.11
(costs divided by # of miles/yr.)
Direct Labor Costs
Add up your annual figures for:
Employee wages including overtime $ 60,000.00
Payroll taxes (employer’s share) 4,000.00
Health, dental or other insurance costs 12,000.00
Profit sharing or other benefits 2,000.00
Total annual labor costs: $78,000.00
------------------------------------------------------------------------------------------------
The related cost perportable restroom service call and per mile
Direct labor costs per service call: $4.69
(costs divided by # of service calls)
Direct labor costs per mile: $0.78
(costs divided by # of miles/yr.)
Fixed Overhead Costs
Add up your annual figures for:
Rent or mortgage on land, bldgs., property
Property taxes $ 1,500.00
Property and liability insurance 1,500.00
Utilities 6,000.00
Telephone 2,400.00
Office payroll & payroll taxes 30,000.00
Office health insurance 1,200.00
Office other benefits 1,000.00
Office equipment expenses 1,500.00
Other
Total annual overhead costs: $45,100.00
------------------------------------------------------------------------------------------------
The related cost per portable restroom service call and per mile
Fixed overhead costs per service call: $2.71
(costs divided by # of service calls)
Fixed overhead costs per mile: $0.45
(costs divided by # of miles/yr.)
Direct Supply Costs
Add up or calculate what you spend in a year for supplies for servicing the units, and the depreciation on the
portable restrooms themselves:
Portable restroom units (500 units x $500 / 5 yrs. depr. ) $ 50,000.00
Chemicals 24,500.00
Paper towels, toilet paper 10,000.00
Soap 500.00
Paper towels 500.00
Cleaning fluid 600.00
Gloves and cleaning tools 250.00
Total direct supplies costs: $86,350.00
-------------------------------------------------------------------------------------------------
The related cost per portable restroom service call and per mile
Direct supply costs per service call: $5.19
(costs divided by # of service calls)
Direct supply costs per mile: $0.86
(costs divided by # of miles/yr.)
Total Costs
Total costs from above areas: $235,950.00
-------------------------------------------------------------------------------------------------
Total cost per portable restroom service call: $15.08
(costs divided by # of service calls)
Total cost per mile: $2.51
(costs divided by # of miles/yr.)
Find or calculate how many service
calls you make in a year: 16,640
(example is 2 men x 4 service calls per hour
x 40 hr week x 52 weeks)
Estimate the number of miles per year
expected from your trucks: 100,000
(example is 2 trucks x 50,000 miles per year)
Add up the number of portable restrooms you own and the number of days in a month or year that they
are rented out. You can then easily find out your total cost per rented portable restroom per
day.
Total number of units owned: 500
Next, add up the number of days each unit is rented in any given month. Then, convert that to an annual number
by multiply
Total # of days in service for all units per month: 12,300
(Total # of days rented each month times total # of units)
Total # of days in service for all units per year: 147,600
(monthly figure times 12)
Your average total cost per rented unit per day: 1.70
(annual total costs divided by total # of days in service in a year)
BONUS!
You can obtain a copy of your own service cost spreadsheet directly
at www.polyjohn.com/servicecost.html
| Total days rented all units 6,300 6,000 |
| Number of days rented each month 21 30 51 |
| # of units 300 200 Total |
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Serving the American Liquid Waste Industry Since 2002