What Are Operating Costs For Traffic Turning Movement Count Service?
Traffic Turning Movement Count Service Running Costs
Initial monthly running costs for a Traffic Turning Movement Count Service are substantial, averaging around $105,000 to $150,000 in the first year (2026), depending on variable project volume The largest recurring expense is payroll, estimated at $978,800 annually, followed by fixed overhead of $23,550 per month You must budget for high upfront capital expenditure (CapEx) totaling over $14 million for specialized equipment like LiDAR and cameras before operations even stabilize The model shows a clear path to profitability, hitting break-even by October 2026 (10 months), but requires a significant cash buffer to cover the minimum cash need of -$983,000 projected in February 2027 This guide breaks down the seven critical monthly running costs you must track to manage cash flow effectively
7 Operational Expenses to Run Traffic Turning Movement Count Service
#
Operating Expense
Expense Category
Description
Min Monthly Amount
Max Monthly Amount
1
Staff Payroll
Fixed
The 2026 annual payroll is $978,800, covering 119 FTEs across technical and administrative roles.
$81,567
$81,567
2
Office/Utilities
Fixed
Fixed monthly costs for Office Rent ($8,500) and Office Supplies/Utilities ($850) total $9,350.
$9,350
$9,350
3
Fleet/Fuel
Fixed
Budget $3,200 monthly for Vehicle Fleet and Fuel to support field technicians deploying and maintaining traffic counting equipment.
$3,200
$3,200
4
Equipment Maint.
Variable (COGS)
Equipment Installation and Maintenance is a variable cost, budgeted at 120% of revenue in 2026.
$0
$0
5
Cloud/Data
Variable
Cloud Computing and Data Processing costs are budgeted at 80% of revenue in 2026, reflecting high computational needs.
$0
$0
6
Software License
Fixed
Monthly expenditure for specialized Software Licensing is fixed at $4,500, essential for data visualization and reporting tools.
$4,500
$4,500
7
Sales/Contractors
Variable
Variable Sales & Marketing (80% of revenue) and Contractor Fees (40% of revenue) total 120% of revenue.
$0
$0
Total
All Operating Expenses
$98,617
$98,617
What is the total initial capital required to launch and operate the Traffic Turning Movement Count Service?
The initial capital for the Traffic Turning Movement Count Service is dictated by the $14 million outlay for physical assets and the working capital needed to cover the projected $983,000 cash shortfall by 2027; understanding this gap is key to planning your raise, and you should review How Increase Movement Count Service Profitability? to see how operational efficiency affects this timeline.
Asset Capital Expenditure
The required CapEx (Capital Expenditure) stands at $14 million.
This covers the purchase of necessary sensors and specialized vehicles.
Securing this funding is step one for service deployment.
This amount represents the fixed investment in operational capacity.
Working Capital Bridge
You must fund operations until the business is cash-flow positive.
The model shows a minimum cash point of -$983,000 in 2027.
Working capital must cover this deficit plus initial overhead costs.
This burn rate impacts the total raise needed, defintely.
Which recurring cost categories will dominate the monthly budget in the first three years?
The dominant recurring cost category for the Traffic Turning Movement Count Service will be payroll, projected to hit an average of $81,567 monthly by 2026, overshadowing standard fixed expenses. To manage this, founders need tight control over staffing efficiency now, which directly impacts how you approach How Increase Movement Count Service Profitability?
Payroll vs. Baseline Overhead
Payroll is the largest known monthly spend category.
Projected 2026 average monthly payroll hits $81,567.
Fixed overhead stands at a lower $23,550 monthly.
Staffing costs are defintely the primary operational anchor.
Variable Cost Exposure
Variable costs tie directly to service volume and project load.
These costs represent 32% of total revenue.
High utilization lowers the effective fixed cost absorbed per job.
You must scale revenue fast enough to cover the high payroll baseline.
How many months of operating expenses must be covered by working capital before achieving positive cash flow?
You've got to secure enough working capital to cover operating expenses until October 2026, which is when the Traffic Turning Movement Count Service expects to hit breakeven. Honestly, the primary funding target isn't just covering costs until breakeven; it's absorbing the $983,000 peak cash deficit projected for early 2027, defintely showing the true capital requirement.
Funding the Deficit Gap
The required runway must cover expenses until October 2026.
Your capital raise must account for the $983,000 maximum cash hole.
This deficit represents the total negative cash flow needing coverage.
Every month past the breakeven date burns capital faster than projected.
Controlling the Burn Rate
Focus on driving project volume immediately.
Track hourly billing rates versus actual operational costs.
High fixed costs mean small delays compound the capital need fast.
What are the primary levers available to reduce running costs if project volume is lower than expected?
When project volume for the Traffic Turning Movement Count Service falls short, your primary focus must be on dialing down variable expenses tied to active data collection and analysis, while simultaneously freezing non-essential fixed spending; this is crucial for managing cash flow until demand recovers, and understanding this sequence is key to How To Write A Business Plan For Traffic Turning Movement Count Service?. You defintely need to act on the costs you control daily.
Attack Variable Costs First
Pause all non-essential field deployments immediately.
Renegotiate cloud processing rates for video analytics processing.
If you use subcontractors for specialized analysis, halt new contracts.
Reduce data transmission costs by batching uploads instead of real-time streaming.
Delay Non-Critical Fixed Spending
Defer advanced training modules for the analysis team.
Cancel licenses for non-critical software subscriptions.
Freeze hiring for administrative or sales roles not immediately needed.
Review office leases; can you sublease excess space starting Q3 2024?
Key Takeaways
The initial capital expenditure required to launch the Traffic Turning Movement Count Service is substantial, exceeding $14 million for specialized sensors and vehicles.
Monthly running costs are projected to be between $105,000 and $150,000 in 2026, dominated by an annual payroll expense totaling $978,800.
The financial model anticipates achieving operational breakeven relatively quickly, projected for October 2026, just 10 months after launch.
Robust working capital is essential, as the business faces a projected minimum cash deficit of -$983,000 by February 2027 that must be covered.
Running Cost 1
: Staff Payroll
Payroll Baseline
Your 2026 payroll commitment hits $978,800 annually for 119 Full-Time Equivalents (FTEs) across technical and admin roles. This means you are budgeting for an average monthly spend of $81,567 just to keep the lights on. That's a serious fixed cost to cover before any revenue comes in, frankly.
Staffing Inputs
Estimating this cost requires summing all loaded wages-salary plus benefits and payroll taxes-for 119 FTEs projected for 2026. Since the average monthly outflow is $81,567, this figure sets your minimum operational burn rate. You need firm internal salary bands for technical versus admin roles to validate this large projection, so don't guess on loaded rates.
Controlling Burn
Since payroll is mostly fixed, growth must drive volume through existing staff, not just hiring more people. Watch the ratio of technical staff (data collection/analysis) to admin staff closely. If onboarding takes 14+ days, churn risk rises, impacting productivity fast. Keep hiring lean until utilization rates clearly justify the next FTE hire.
Fixed Cost Reality
This $978,800 annual payroll represents your single largest fixed overhead challenge. Every service job must generate enough gross profit to cover this monthly burn of $81,567 before you see a dime of net profit. If project volume lags behind staffing plans, you'll burn through cash defintely fast.
Running Cost 2
: Office Rent & Utilities
Fixed Facility Burn
Your base operating burn rate includes $9,350 monthly for facilities. This covers Office Rent at $8,500 and Office Supplies/Utilities at $850. Since this cost is fixed, it must be covered by project revenue every single month, no matter how busy your field teams are.
Cost Inputs
This $9,350 figure sets your minimum monthly floor. It includes the $8,500 lease payment and $850 for utilities and basic supplies for your administrative hub. Compare this to the large $978,800 annual payroll; this rent is a small, but unavoidable, piece of your fixed overhead.
Rent: $8,500 monthly fixed.
Utilities: $850 monthly estimate.
Total fixed overhead: $9,350.
Managing Fixed Space
Since this is fixed, you can't scale it down with lower project volume. If you scale up staff, you might need more space, which kills the benefit of this initial small footprint. Defintely avoid signing long leases early on.
Negotiate shorter lease terms initially.
Use shared office space models first.
Keep administrative staff lean.
Break-Even Context
This $9,350 must be covered before you account for variable costs like Equipment Maintenance (120% of revenue). If you generate zero revenue, this $9,350, plus payroll and software fees, is your immediate cash drain.
Running Cost 3
: Vehicle Fleet Expenses
Fleet Budget Reality
You need a dedicated budget for the vehicles your technicians use to install and service traffic counting gear. For this operation, plan on allocating $3,200 per month for fleet expenses and fuel. This covers the mobility costs required to service clients across different US locations. This is a necessary operational baseline cost.
Fleet Cost Breakdown
This $3,200 monthly allocation covers the vehicles and fuel needed by your field technicians. It supports the 119 Full-Time Equivalents (FTEs) who deploy and maintain the specialized sensors. Unlike variable costs like Equipment Maintenance (budgeted at 120% of revenue), this fleet budget is a relatively stable operating expense supporting service delivery capacity.
Technician travel distance.
Vehicle lease or depreciation costs.
Average fuel price per gallon.
Managing Vehicle Spend
Managing this cost means optimizing technician deployment routes to reduce unnecessary mileage. Since your payroll is high ($978,800 annually), maximizing the billable hours per vehicle trip directly impacts profitability. Avoid letting service calls become inefficient drives across wide geographic areas.
Prioritize jobs by zip code density.
Negotiate bulk fuel contracts.
Standardize vehicle models for maintenance.
Fleet Budget Anchor
This $3,200 figure is your starting point for fleet operations supporting field deployment. If technicians are driving significant distances between municipal planning departments, this number will defintely rise quickly. Track mileage closely against deployment schedules.
Running Cost 4
: Equipment Maintenance (COGS)
Variable Cost Shock
Equipment installation and maintenance costs are budgeted to consume 120% of revenue in 2026. This massive variable expense, covering specialized cameras and sensors, means every dollar earned in service revenue generates $1.20 in associated hardware upkeep. You must find immediate ways to drive down this cost ratio or revenue growth will destroy margin.
Hardware Cost Breakdown
This cost line item covers the upkeep and deployment of your specialized cameras and sensors used for traffic counting. Since it's pegged at 120% of revenue for 2026, the input needed for estimation is simply projected revenue. What this estimate hides is the upfront capital expenditure needed to buy the initial fleet before operations even start.
Covers specialized cameras and sensors.
Budgeted as 120% of revenue (2026).
Directly tied to service volume.
Cut Maintenance Drag
A 120% COGS ratio on hardware is not viable; you must aggressively manage asset utilization and lifespan right now. Negotiate bulk purchase discounts or longer warranty periods directly with sensor manufacturers to push this number down. If you can't reduce the 120% rate, you need to increase your hourly billing rate significantly to cover costs.
Negotiate extended warranties now.
Track sensor failure rates closely.
Benchmark maintenance quotes against OEMs.
Margin Killer Alert
If equipment installation and maintenance runs at 120% of revenue, your gross margin is negative 20% before accounting for payroll or rent. This isn't a cost to manage; it's a fundamental flaw in the pricing or the asset strategy that needs fixing before scaling past pilot projects. Honestly, this needs immediate attention.
Running Cost 5
: Cloud & Data Processing
Processing Cost Shock
Cloud and data processing is your biggest variable drain, hitting 80% of revenue by 2026. This massive spend is unavoidable given the heavy lifting required to process video and sensor inputs into usable traffic counts. You must treat this line item as the primary driver of your gross margin.
Inputs for Cloud Spend
This 80% cost covers the compute power needed for video ingestion, object recognition (vehicles, cyclists), and generating the final turning movement reports. Since revenue is tied directly to billed hours, this cost scales perfectly with sales, but it eats nearly all margin before fixed costs hit. What this estimate hides is the initial setup cost for data pipelines.
Cost scales directly with analysis hours.
Reflects high GPU/CPU usage for video.
Budgeted at $0.80 for every $1.00 earned in 2026.
Optimizing Compute
You can't cut quality here, but you can optimize the pipeline. Look into reserved instances or volume discounts with your cloud provider, especially if processing schedules are predictable. A key tactic is optimizing the analysis algorithms to reduce processing time per hour of footage. Aim to push this cost down toward 65% within 18 months post-launch.
Negotiate better rates for sustained usage.
Benchmark processing time per data point.
Avoid over-provisioning storage long-term.
Pricing Warning
If your variable Sales & Subcontractors cost is 120% of revenue, and Cloud is 80%, you have a structural problem before payroll even starts. You defintely need to rethink the pricing model or find a way to drastically lower that 120% sales overhead immediately.
Running Cost 6
: Software Licensing
Fixed Software Spend
Your specialized software licensing runs a fixed $4,500 per month. This spend covers critical tools needed for data visualization, engineering analysis, and final client reporting for traffic counts. It's a necessary fixed overhead supporting every project delivered.
Cost Inputs
This $4,500 monthly covers essential subscriptions for processing sensor data and generating the final deliverables. Since this is a fixed cost, it doesn't scale with project volume, but it must be covered before any revenue is earned. It sits alongside rent as core overhead.
Covers visualization and analysis platforms.
Fixed at $4,500/month flat.
Essential for compliance reporting.
Optimization Tactics
You can't easily cut this cost if the tools are required for analysis. Look for annual prepay discounts to potentially save 10% to 15% versus monthly billing. Also, audit usage quarterly; stop paying for seats no one uses. Don't defintely over-license tools.
Seek annual prepayment discounts.
Consolidate overlapping tool functions.
Audit user seats every quarter.
Break-Even Impact
Because this $4,500 is fixed, your gross margin calculation must first subtract it from contribution margin before hitting true operating profit. If revenue drops, this fixed cost eats into cash reserves faster than variable costs do.
Running Cost 7
: Sales & Subcontractors
Sales Cost Overload
Your Sales & Subcontractors line item hits 120% of revenue, driven by 80% for sales efforts and 40% for contractor fees. This structure immediately puts you in a contribution margin deficit before accounting for fixed overhead, meaning you lose money on every project sold right now.
Acquisition & Delivery Spend
This cost covers securing projects (Sales & Marketing at 80%) and paying the subcontractors who actually run the counts (Contractor Fees at 40%). You need to track projects booked versus projects delivered weekly. The key input is total revenue achieved that month.
Sales spend: 80% of revenue.
Contractor fees: 40% of revenue.
Total variable cost: 120%.
Fixing the 120% Gap
You must aggressively lower the 80% sales cost or bring delivery in-house. If you rely on contractors for 40% of delivery, you are paying a premium for capacity. Target reducing contractor fees by shifting high-volume routes to your internal staff.
Negotiate contractor rates down now.
Convert high-volume contractors to FTEs.
Focus sales on high-margin clients.
Immediate Focus Area
Since Sales & Subcontractors alone exceed revenue by 20 points, your first operational goal must be reducing the 40% contractor fee component. If fixed costs are roughly $32,350 (after allocating payroll), you need a positive contribution margin just to cover overhead, which is defintely impossible now.
