Glossary term
What is Fixed cost?
Short answer
A fixed cost is an expense that stays about the same each month no matter how many jobs you do.
Fixed cost, explained for tree service owners
Truck payments, insurance premiums, software and yard rent are fixed costs. They have to be paid in a slow week as well as a busy one. That is why booked jobs matter: each job helps cover a share of them. Knowing your fixed costs tells you how much work you need just to break even. Compare them with variable costs, which rise and fall with each job, like fuel and disposal fees. Review the list twice a year and cancel what you do not use.
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