healthy return on employee

[dmk395]

If I pay an employee 10bucks an hour, to make a healthy profit what should I aim to bill him out at per hour?

[Guido]

applicable taxes, insurance, and benefits into that hourly rate also, before you add on the profit. I think it depends on your area and your overhead on how much to "mark him up". I'm sure someone else would be able to help ou better than I on this one.

[John Allin]

$28 to $35 an hour, depending on overhead.

[dmk395]

John,

So a foreman type should be billed out at around $40 per hour, meaning someone I pay $14-15 per hour (going rate in my area)?

[Guido]

I would think if he is taking your spot on the crew you could charge what you were charging for yourself for an hour of labor. Not sure what your plans are, but I think most that hire a foreman is so they can take a step back into the marketing and customer service side and factor their cost into their overhead per hour.

[gogetter]

I agree with Guido on the foreman question. I would say you would aim for the same amount you get for yourself.

In other words, I shoot for $35 an hour for myself. If I hired an employee, I would strive for $35 per man hour.

[John Allin]

I agree ( for what that's worth to anyone )

[HBFOXJr]

Approx. employee costs per hour

$10.00/hr employee
$ 1.00 OT 40 reg hr plus 10 ot @ $15 avg/ $11.00 hr for 50hr
$ 1.95 SS, WC, LIA (approx 17.5% of wages ($11))
$ 4.50 equipment (avg)
$ 5.00 OH (up to $10)

$22.45 miniumum employee cost per hr

I'd like to make at least $10 per hr off this person working 1500 to 1600 hrs per year ($15-$16K)

[dmk395]

Hb fox,

So with that rational 32-35 per hour?

[HBFOXJr]

Depends on the real numbers for this situation, an individuals earning expections, and the industries ability to meet those expectations assuming a well run operation.

When I see what laarger companies in and out of the green industry pay for people, sometimes I think I'm nuts and I've revised my expectations up.

I have a college degree, 30 years self employed in the industry and a large investment in being able to field 3-4 crews for assorted lawn care and irrigation activities.

Figuring that technically you should be making money "renting" your employees and equipment, selling what ever materials you use on custoemr jobs and working in the field or managing yourself, you ought to be making plenty.

If you think just making $2.00-$5.00 an hour more than you could working for the man, sump'in ain't right.

Everybodies right is different in $ but not in the reasons or methods of making those $ and not the difference some people think because they don't understand that even a 1 man band has overhead.

[MLI]

Hey dmk...
Rates around here are 35-40 per hour. I charge 40. If you catch flak from clients about your pricing........remind them of plumbers, carpenters, electricians etc wages. If this still doenst work, explain all your overhead...break it down if you really feel the need too...usually at this point I tell the people .....look this is the going rates in the industry...if you dont like it......call the next guy!
What Ive found in this biz...is that its so hard to even get a call back, nevermind someone actually showing up for an estimate. Once they get you on your property, most will not let you go, the people are sick and tired of playing phone tag with contractors. Most folks dont mind the rate, infact I raised the hourly rate 2seasons ago, didnt lose 1 customer out of 130

[HBFOXJr]

You should never have to justify your rates to anyone with the overhead and everything else. I prefer the analogies of being other trade and service people. Same costs, same prices.

I wonder how many people know how much their time really costs their employer. To many people want to equate our hourly rate with their hourly wage.

[dmk395]

MLI,

Whereabouts are u from in MA?

[MLI]

dmk.......im in Weymouth Ma..........South Shore area..how about you?

[dmk395]

MLI


I am from Mansfield, Ma. Email me and we should talk dmk395@aol.com

[Dochere]

You should always bill out what your per man hour rate is or more depending on the job, here that would be $35.00 + per man hour.

[MLI]

Hey dmk......I tried your e-mail.....did ya get it?

[dmk395]

mli,

actually i didnt, try it again

[dmk395]

MLI,

What is your email?

[MLI]

my e-mail is mmcgilvray@mediaone.net. Or ya can get ahold of me usually after 6pm. (781) 337-3571...ask for Mike