Glossary term
What is Variable cost?
Short answer
A variable cost is an expense that rises or falls with the number of jobs you do, such as fuel, dump fees and blades.
Variable cost, explained for tree service owners
Variable costs move up and down with your work. If you run one more removal, you burn more fuel, pay more dump fees and wear more chain and blades. Fixed costs stay about the same whether you work or not, so variable costs are the ones you control on each job. For a tree service, common variable costs include fuel, disposal or dump fees, chipper blades, chain and bar oil, and overtime on long days. Track them per job so you know what each quote really covers. Add a safe margin for them when you price, because fuel and dump fees can change from month to month. Review them each quarter and ask whether any can be cut without hurting safety or quality.
Related terms
- Chipper
A chipper is a machine that feeds branches through spinning blades and turns them into wood chips.
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