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View Full Version : Man Hour $ vs employee $


wanabe
04-06-2008, 01:09 AM
Just a quick poll, but what do you charge and what do you pay per hour? My ex boss was charging $35 and paying $13.00 with no ins, vac, 401k, ect. Employees had 3-7 years exp, and all could work as the forman(had the skills). I thought it was out of line?

mslawn
04-06-2008, 06:45 AM
I thought it was out of line?

Just how was it out of line?

MOWEMJEFF
04-06-2008, 07:42 AM
once he pays for equipment, taxes, insurance hes most likely making less per hour off you then your making off him.

AI Inc
04-06-2008, 08:17 AM
Keep in mind the biggest profit killer of all , non billable work hrs. Loading trucks, driving , downtime because of down equitment.foreman talking to the customer while the crew hangs in the street smoking butts telling whhore stories and war stories.

MOWEMJEFF
04-06-2008, 08:20 AM
foreman talking to the customer while the crew hangs in the street smoking butts telling whhore stories and war stories.

That might be the one thing I miss since I went solo.

wanabe
04-06-2008, 12:28 PM
All the equipment was billed seperate. This was a landscape operation, and the only things we did not charge extra for was the stuff like shovels, rakes, ect. The skidloader, tractor, dump trucks, ect was all charged at $55-70 per hour. The company also made money on the material, and the faster we worked, the more they made. And we were not allowed breaks, or to stop at the gas station for snacks, so we did not wast time. We often loaded/unloaed on our own time before/after work. I just thought 50% of the per hour charge was a little more reasonable(with no benifits)?

txgrassguy
04-06-2008, 02:38 PM
Depends upon how profitable you want to be.
My crews are all on with-holdings, workers comp, full uniform re-reimbursement, plus I have all of the remaining operational overhead to deal with.
What you mentioned does not seem out of line to me at all, if anything it seems a bit low.
The one aspect I will not allow is loading/equipment prep off of the clock - everyone logs in each day with my secretary then proceeds to prep for that day. I have timed what a typical load out should take, the crews know this so they don't stand around jacking off.
Additionally, I will not negotiate a job or service with a crew laying idle - poor business ethic and completely avoidable.

MOWEMJEFF
04-07-2008, 12:05 AM
If he gave you 15$/hour that would cost him WAY more. For all the taxes you get taken out of your check, he has to match. For every $1000 you make he has to pay around 3% for insurance. So if he payed you half or 17.50/hour it would be costing him around $22-$23/hour. Then you factor in drive time, time spent in the shop, overtime when hes still charging the customer the same price. In Maine Foreman are lucky to get much more then $13/hour, let alone the labors. A seasoned vet might get $12 if they're lucky. And your boss is probably either working 80-100 hour weeks so he still needs to pay himself, or else he has to pay accounts, managers, and other people to do the work for him for big bucks.

wanabe
04-07-2008, 10:06 PM
There was no overtime paid, even though we worked it. I understand the whole tax thing, and the workers comp, which is not that expensive(I checked into that). Almost 0 shop time, most weeks it was zero. This was no maintance operation. I could chage oil in about everything in 2 hours and we only did that every 7-8 months. Trucks were dropped off for maintance. That was it for shop time. As far as drive time, most of the time I just drove to the job, and several other employees did so also. The clock did not start until the trucks arrived at the job. Only went to the shop on days that there was a lot to load, or nobody was able to drive a truck. Owner was working out of a shop that was family owned=no rent=no cost. So there is no overhead there. And we did not have uniforms provided. And the two trucks that we had were used more for personal use than business use. The employee truck/100% company was 34 years old. Yes, 34 years old! So $35x6 employees=$210 per hour, or $1680 per 8 hr day. Plus all the material markup. Wages =$624 per day($13x8), x3%tax=$18.72 per day, work comp $24 per day. And we never used over $75 a day for fuel in the trucks, as 95% of the work was within a 10 mile area from the home shop. I still think there was alittle more room for some more $ per hour. 50 percent of the employees left this year, and all are now making over $13 per hour starting, and all have full benifits.

Grits
04-07-2008, 10:38 PM
So quit and go where the others went. You sound like a whiner that your boss probably wouldn't mind losing.

SILVERSTREAK INC
04-07-2008, 10:38 PM
i figured out the avg emplyee costs about 23 an hour to have totally taken care of, being paid 12-14 an hour on the books

YVI
04-07-2008, 11:04 PM
Sounds Like He is running a buisness how dare he look out for his bottom line

wanabe
04-07-2008, 11:05 PM
Grits, I did. I now make $1428.xx per week, and have health, dental, life, and vision ins(with a $168 a month deduction). Overtime now pays me just over $46 per hour. Plus I now have a retirement plan, and get 14 days paid vacation, and 3 personal days(paid). I guess I was worth a little more to some one else? SilverStreak, what is all included in your $22 per hr figure? Just curious. Thanks!

wanabe
04-07-2008, 11:10 PM
He can look at his bottom line, but don't forget that without employees, there would not be much of a line to look after. Just talked to the last remaining employee, and he now has another job lined up. Was told former employer has been looking for the last couple months and can not find anyone. I guess people want money to work?

SILVERSTREAK INC
04-07-2008, 11:39 PM
not much, no 401k

just a week paid vaca and aetna dental ins and cigna health insurance, nothing special

payroll taxes add up quick

MOWEMJEFF
04-07-2008, 11:45 PM
are you trying to start a movement to raise wages and increase the cost of operation and then you can come in and lowball or are you really just a disgruntled employee who got fired? If your really making 1400/week who cares?

wanabe
04-08-2008, 12:03 AM
disgruntled employee -Yes, another walked when I did. And I don't realy care, just wonder is the margin can really be this tight. I am not a lowballer, or even in business. Silver streek, health and dental ins is something, what do you think it cost you per hour 2-3bucks a hour?

SILVERSTREAK INC
04-08-2008, 12:52 AM
close to 4......its about 28 bucks per guy per month for dental, health insurance is a killer at 550 a month.....oh the things i do....

Grits
04-08-2008, 10:40 AM
Grits, I did. I now make $1428.xx per week, and have health, dental, life, and vision ins(with a $168 a month deduction). Overtime now pays me just over $46 per hour. Plus I now have a retirement plan, and get 14 days paid vacation, and 3 personal days(paid). I guess I was worth a little more to some one else? SilverStreak, what is all included in your $22 per hr figure? Just curious. Thanks!

So, why are you crying about a past employer? Quit looking back, just move forward.