Tree service
Tree Service Revenue Per Crew Calculator
Measures revenue per crew, which is the capacity question in an equipment-heavy trade.
Result
An average hides a lot. One strong performer and one struggling one produce the same average as two mediocre ones, and the management action is completely different.
Get a Free Business AuditHow the calculation works
Revenue divided by the number of crews gives revenue per crew, with the profit each contributes after its own cost. The figure matters in tree care because a crew is not just people: it is a truck, a chipper and often a grinder, so adding a crew means adding a substantial equipment commitment alongside the wages, and the decision to do so needs the revenue to support both.
What moves the number
- Equipment required per crew, which is the larger part of the commitment.
- Whether crews are specialised or interchangeable.
- Utilisation, since an underemployed crew carries its equipment anyway.
- Whether a climbing crew and a grinding crew are counted separately.
Where this one goes wrong
Adding a crew in this trade is a capital decision rather than a hiring one, because the truck, chipper and grinder cost more than the wages and they are committed for years. That makes the revenue per crew figure the test for whether the demand is durable rather than a busy quarter. Specialisation is the other consideration: a dedicated stump grinding crew can be more productive than a full crew doing grinding between removals, but it only works at a volume that keeps it busy, and below that it is equipment sitting idle.
Before you quote
- Treat adding a crew as a capital decision, not a hiring one.
- Test demand durability before committing to the equipment.
- Check whether specialising crews is supported by the volume.
Questions
About this calculator
What does adding a crew actually cost?
Far more than the wages, because a crew needs a truck, a chipper and often a grinder, and that equipment is committed for years. It makes adding a crew a capital decision, and the revenue per crew figure is the test for whether the demand is durable or just a busy quarter.
Should crews specialise?
Only at volume. A dedicated grinding crew is more productive than a full crew grinding between removals, and it only works if there is enough grinding to keep it busy. Below that volume it is equipment and people idle, which costs more than the inefficiency it solved.
How do I know when to add a crew?
When the existing crews are consistently at capacity on non-storm work, and when the revenue per crew supports both the wages and the equipment commitment. Adding on the back of a storm season is the common mistake, since the demand that justified it does not persist.
The formula
revenue per unit = revenue / number of units; contribution = gross profit - cost of the unit
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How to use this calculator
- Number of crews. Enter your own figure; the page starts at 3.
- Revenue per month ($). Enter your own figure; the page starts at $37,000.
- Cost of one crew per month ($). Wages with burden, vehicle, tools, phone.
- Gross margin (%). Enter your own figure; the page starts at 46%.
The result updates as you type, so you can try a figure, see what it does to revenue per crew, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Number of crews | 3 |
| Revenue per month | $37,000 |
| Cost of one crew per month | $7,200 |
| Gross margin | 46% |
What comes out
| Result | Value |
|---|---|
| Revenue per crew main result | $12,333 |
| Per crew per year | $148,000 |
| Gross profit each crew generates | $5,673 |
| Contribution after their own cost | -$1,527 |
Each crew brings in $12,333 a month and contributes -$1,527 after covering their own cost. Anything below zero there means adding people makes things worse, not better.
How sensitive the answer is
Holding everything else steady and changing only revenue per month, this is what happens to revenue per crew. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Revenue per month ($) | Revenue per crew |
|---|---|
| $18,500 | $6,167 |
| $27,750 | $9,250 |
| $37,000 example above | $12,333 |
| $55,500 | $18,500 |
| $74,000 | $24,667 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Number of crews
- A number, between 0 and 2000, starting at 3.
- Revenue per month ($)
- A money amount, starting at $37,000.
- Cost of one crew per month ($)
- Wages with burden, vehicle, tools, phone.
- Gross margin (%)
- A percentage, between 0 and 95, starting at 46%.
What the results tell you
| Result | What it is |
|---|---|
| Revenue per crew | The headline result. A money figure. |
| Per crew per year | A money figure. |
| Gross profit each crew generates | A money figure. |
| Contribution after their own cost | A money figure. |
Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.