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2Sam2233
03-01-2002, 12:45 PM
I am just starting up. I have 4 accts counting a church/cemetery. I have done searches here on this site, and I see people getting an hourly rate of $35 to $60 per hour, but most of this business is east coast and northeastern parts of the country. I have only been averaging about $17/hr in Alabama. Is there anyone else out there in my region with insight? Am I too low or is the market that much different in this area? I would like to think I should be getting at a minimum about $25/hr. Thanks for this site and all the help, it is great. If anyone else is in my area drop me an email.

Thanks,

Nebraska
03-01-2002, 04:56 PM
You will not be in business long at $25 hr.

smburgess
03-02-2002, 08:00 PM
I'm sorry, but I think $25 per hour isn't bad, specially if you have low overhead. I make a decent profit at $30 per man-hour. I'm not real big, but I do have 2 crew working now and during the summer usually go up to three or four.

Nebraska
03-03-2002, 11:05 AM
GREAT!

Glad you can cover your FICA,FUTA, SUTA, W/C, GL, Auto Insurance, Fed Taxes, State Taxes, State Sales Taxes, Phone, Gas, Repairs, Rent/Mortgage, Phone, Advertising & Marketing, Office Supplies, Internet fees, Equipment Costs, Trailers & everything else and still make a decent profit.

B. Phagan
03-03-2002, 12:52 PM
Mike, I agree with some of the others posters.......$25 per hour may be great money.............but only if you consider seasonality, your direct and indirect job costs as well as how much profit you'd like to have.

START by knowing what a job will cost you........the selling price is determined by know the above as well as what kind of a profit you must have to feed your face, your company and your family.

THE GOING RATE, whatever that may be could KILL you.

Don't know how far you are from Atlanta but will be taking a swing through GA, SC, NC and Virginia starting this month with my "Money Maker Workshops". Check my site under events if this is of interest.

Hope this helps.

LoneStarLawn
03-03-2002, 01:23 PM
Originally posted by Nebraska
GREAT!

Glad you can cover your FICA,FUTA, SUTA, W/C, GL, Auto Insurance, Fed Taxes, State Taxes, State Sales Taxes, Phone, Gas, Repairs, Rent/Mortgage, Phone, Advertising & Marketing, Office Supplies, Internet fees, Equipment Costs, Trailers & everything else and still make a decent profit.

I would consider FICA and FUTA under Fed. Taxes...

Phone was mentioned twice.

State sales tax is a liability not an expense (not everyone has sales tax either)

Not everyone has state taxes...we don't

W/C is not needed here unless you have 3 employees...


My point is that everyone's numbers are different. YOU have to figure YOUR costs to determined what you need to make to make a decent profit. Not someone elses numbers.

wesLESCO48
04-14-2002, 11:17 PM
Average rates in the B'ham, AL area are around $35-$45/HR.
some lower, some higher. The type equipment you run, your efficiency and your route plays a major role. Your market
will tell you how much you can charge.

higherpower
04-19-2002, 05:23 PM
The secret, if it is a secret, is not to be fearful of charging the right amount. If they say no, you never had it in the first place, and you should'nt want it either. Sooner or later you may feel you are not getting paid enough and began to do a sloppy job which could be bad for your reputation. I would rather have a reputation of charging too much than one who does unsatifactory work. I live in an area that one of highest unemployment in the country, yet I can get an average of $40 per hour. Just keep on asking and before you know it, you will have customers who will pay you right. Just do unto them as you would like them to do unto you.

Nebraska
04-19-2002, 10:24 PM
Thanks for disecting my post Alan! Underneath it I think you realize my point?

garydale
04-20-2002, 07:30 AM
I think you can see the main point: You have to know your costs.

Work it out on a piece of paper, you will learn alot.

Good Luck!

Jayusl
04-20-2002, 08:36 AM
See if this helps:

Lawn maintenance rates are $22.00 per hour. Before everybody freaks out let me explain. We are a large commercial company. To stay competetive we have to operate under fairly close margins. We spent a lot of time developing our bidding process and our production rates have been tested and re tested. We don't land every contract around but we do our fair share. We make even more money selling upgrades to our existing clients at our remedial rate of $36.00 per hour. To keep me from having to say this later, These prices include cost plus burden plus profit.