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View Full Version : $35 per man hour labor rate?


AllAmericanlawn
03-22-2009, 11:41 PM
I was wondering what you guys charge for labor rates? What formula do you use? I charge $35 per man hour for me and my employees. Give me your input.

Big Bad Bob
03-23-2009, 12:32 AM
I was wondering what you guys charge for labor rates? What formula do you use? I charge $35 per man hour for me and my employees. Give me your input.

Are you making a profit at $35.00 per man hour? How much is going for taxes, insurance, fuel, equipment maintenance and storage, workman's comp and all of your other expenses? Sit down and figure you hourly expenses and subtract that from you hourly rate.
Nobody can answer your question without knowing your expenses. Talk to an accountant if you don't know how to figure your expenses. An accountant is money well spent and deductible.

TuffWork
03-23-2009, 12:35 AM
OK, I have to say, I have started to develop a dislike for all the pricing questions. That's one of those things that's hard to call not knowing the demographic factors of your region.

Big Bad Bob had a great suggestion. GET A CALCULATOR AND GET REAL WITH YOUR D*MN SELF ABOUT HOW MUCH YOU AND YOUR COMPANY ARE WORTH!

nobagger
03-23-2009, 11:13 AM
OK, I have to say, I have started to develop a dislike for all the pricing questions. That's one of those things that's hard to call not knowing the demographic factors of your region.

Big Bad Bob had a great suggestion. GET A CALCULATOR AND GET REAL WITH YOUR D*MN SELF ABOUT HOW MUCH YOU AND YOUR COMPANY ARE WORTH!

I like many, many other's have said in years past, there should be no pricing questions allowed. It just takes up space on here and no one gets a good answer. I don't even bother with them any more. (except this one I guess,lol)

Jeff Tracey Enterprises
03-23-2009, 11:50 AM
are you saying you charge 35 per worker, like 35 for you, 35 for 1 employee, 35 for another and so on on just 35 for all of you? If its just 35 total I give me a call when you go bankrupt and I will buy your stuff for 10 cents on the dollar.

ExtExc
03-23-2009, 11:59 AM
he said 35 PER MAN HOUR, so obviously, 35, per man, per hour.

kaferhaus
03-23-2009, 01:17 PM
No one can answer that question.... are you a "scab"? or are you a legitimate business, paying taxes, WC, Insurance etc? If the latter and you're paying your guys more than 7-8 bucks an hour you're probably going to do nothing but tread water.

I'm charging closer to $60 per man hour. Obviously this doesn't include windshield time, time at the shop etc.

Marek
03-23-2009, 01:40 PM
Some of you guys on here are just to much. The same guys who come on here and talk about getting 60 plus an hr are some of the same ones who are out there mowing for half of what we charge. What does your 35 and hour include , any equipment or just the labor then you charge and equipment charge ?

haybaler
03-23-2009, 01:50 PM
Some of you guys on here are just to much. The same guys who come on here and talk about getting 60 plus an hr are some of the same ones who are out there mowing for half of what we charge. What does your 35 and hour include , any equipment or just the labor then you charge and equipment charge ?

That's what a lot of guys do, undercut everybody on the mowing price to get a lot of customers and then charge more for other services. it's actually a pretty good plan

Marek
03-23-2009, 02:15 PM
Why loose money on anything ? Alot of people only have the mowing done, why ? Because there are so many guys out there mowing way to cheap. As far as our residential market, thing are rediculous, I rode thru one of our neighborhoods that we do several houses in and the mail boxes are loaded with fliers. 2 spanish named guys who made some cheap fliers who do everything from grass to painting and house cleaning, and 2 nice door hangers from companies who are over 15- 20 miles away and looking to "move" into this area. Most of our jobs are full service and the ones that arent can go at anytime without hurting my feelings. The guys who cut prices will soon find out that they are hurting themselves alot more than they are hurting the rest of us.

dewos
03-23-2009, 03:17 PM
I charge 45 per hour but I charge for time from shop to time we return to the shop... And I charge double for gas. figure wear and tear on my truck.

Marek
03-23-2009, 06:30 PM
Have you guys also thought about the fact that these guys might not price things so low if they could meet other people in the industry that could explain to them what they charge and why ?

VAMower
03-23-2009, 06:43 PM
I do mostly mowing but when it comes to projects (plantings, mulch install, leaf clean up, weeding etc) I charge $40 per man hour and bill in 15 minute increments. That's for my year round mowing customers. For one time jobs I like to bid a flat price, I try to make sure me and my helper are billing around $100 an hour ($50 per man hour).

ZTR_Diesel
03-23-2009, 06:44 PM
OK, I have to say, I have started to develop a dislike for all the pricing questions. That's one of those things that's hard to call not knowing the demographic factors of your region.

Big Bad Bob had a great suggestion. GET A CALCULATOR AND GET REAL WITH YOUR D*MN SELF ABOUT HOW MUCH YOU AND YOUR COMPANY ARE WORTH!

My oh my...39 posts, joined in March 2009 and talking like this already?!

Quite helpful...why not try being a bit more patient...Life is too short as it is.


As for what man hours are worth in your area, it's going to be pretty difficult to figure that out without attending some sort of business seminar, or, if you really want to do it, take a couple of beginning business classes at a local community college. At least this will give you face time with folks who could give you some ideas. Good luck with this = pretty essential before you start hiring folks.

KT. Unlimited
03-23-2009, 08:58 PM
My hourly rate is $46.00 per man per hour. on all T&M jobs. Thats the # i need to make $$$$$. It is my own formula for my bus. Not to say some one can't work for less. if your costs are low. My formula on maintenance is price @ Ind. standards not cut throat!
and make your $$$$ on spin work. Most people will stay in house for any aditional projects and thats where you make your $$$$$$$$$$$$. we all know maintenance just floats the boat the real $$$ is in landscape/construction

ooo
03-23-2009, 09:09 PM
I charge $35 or $40 per man hour depending on the work / customer.

grasschopperofchicago
03-23-2009, 09:17 PM
There is no formula, it is dependent on what you want to make and how you value your service...bottom line...$35 @hour as a solo?...no way!--if I am doing a job that requires 2 other guys to help so I am not there for 10 hours...and the addition of three guys helps me get it done ...then I factor what that time is worth and what work I am doing...If I have 5 acre parcel with no obstacles or house, a commercial vacant land, which I have a lot of...it is going to take me about 1.0 hours with my 74 and I charge $185 for the cut...I drop a 60 with one of my guys and I have it done in 30 minutes...so that equates to $370 per hour...or $185 per man hour...so you see..$35 is an open ended question!---I like the green of the grass, but I LOVE the green of the money more!---I don't work for free or cheap!

lifetree
03-23-2009, 09:39 PM
Why loose money on anything ? ...

Because it's what marketer's call a "loss leader" ... look it up, it's actually a good plan !!

grasschopperofchicago
03-24-2009, 12:21 AM
Because it's what marketer's call a "loss leader" ... look it up, it's actually a good plan !!

Yup!!...Gallon of milk advertised for $.99 cents!!---designed to catch ya and give you a shot at upselling, selling additional, to eventually make money basically

dewos
03-24-2009, 01:29 AM
I charge $35 or $40 per man hour depending on the work / customer.

Yikes ;) good thing your north of me then lol

Classified
03-24-2009, 01:39 AM
Very subjective question. I wont answer but I will say commercial is a whole different ball game than residential. While price matters in the resi market, commercial is very cut throat. I will say, I base my mowing on per 1000sqft + degree of difficulty and distance from last job.

topsites
03-24-2009, 03:23 AM
hmmm, let's see...

137 x 2= 275...675+30-275= 430 / 11 = $39.09

But you see...
I forgot to include the 2.5 hours drive time.
And it wouldn't have taken so long but it was like a 50 mile round-trip that I didn't want to make
but twice so I loaded up heavy and thus got to crawl down the roads at 35-40 mph...
Oh, and I 'forgot' to eat before I left the house, there went another 30-45 minutes.

Tomorrow will be easier, hopefully I can do it in 1.5, and it still shouldn't take
that long but me and the guys down at the supply center like to stand around and BS :p
Oh yeah, and since I also 'forgot' to load certain equipment after I got home, that has to be done first.
Plus a stop at the parts store to get new light bulbs, seeing how my 3rd brake light is out.
Do I get paid for this?

The time spent estimating.
The time I'll spend depositing the payment.
The time I'll spend doing taxes.
And I'm sure I'm forgetting stuff...

But where do I stand now?

van Oss landscapes
03-24-2009, 03:39 AM
It is getting pretty bad

ooo
03-24-2009, 07:02 AM
Yikes ;) good thing your north of me then lol

$35 or $40 far off from you. This is for landscape work, not lawns. I also charge for travel time, gas, and etc..

cod8825
03-24-2009, 08:09 AM
$175 a man hour nuff said...

We use lasers and such to cut the lawn and are mind power...

cmlandscapeconstruction
03-24-2009, 09:17 AM
If bitching about low ballers is allowed than trying to educate the new guys about accurate pricing of the proper job should be our goal and responsibility(aren't we here to help each other?) The end result of helping those with less experience to accurately price jobs should be an overall decrease in lowballing and a better understanding and establishment of industry standards with regard to pricing, within certain demographics and socioeconomic statuses.
"Allamerican" pm me i will put you in contact with someone in your area that can help you.

Ramairfreak98ss
03-24-2009, 11:02 AM
honestly i charge WAY more than that. but i generally base prices at lower rates like $40-60 and then end up finishing small or large jobs much faster so it is more in the range of what id "like" to make on a job. To bill out straight $35 an hour, we'd definitly lose money after the month. Just the employee payroll is between $13-18 an hour for most guys, plus fuel, travel since the client isnt paying for time not on the site right? $35, who works that cheap in busines anymore?

Hell they charge $70-$100 an hour for donkey automotive repair work. and you dont have to drive anywhere to get business.

Big Bad Bob
03-24-2009, 11:54 AM
My hourly rate is $46.00 per man per hour. on all T&M jobs. Thats the # i need to make $$$$$. It is my own formula for my bus. Not to say some one can't work for less. if your costs are low. My formula on maintenance is price @ Ind. standards not cut throat!
and make your $$$$ on spin work. Most people will stay in house for any aditional projects and thats where you make your $$$$$$$$$$$$. we all know maintenance just floats the boat the real $$$ is in landscape/construction

You say, "Not to say some one can't work for less. if your costs are low."
How are you going to know unless you sit down and deeply figure them out?

Big Bad Bob
03-24-2009, 11:58 AM
If bitching about low ballers is allowed than trying to educate the new guys about accurate pricing of the proper job should be our goal and responsibility(aren't we here to help each other?) The end result of helping those with less experience to accurately price jobs should be an overall decrease in lowballing and a better understanding and establishment of industry standards with regard to pricing, within certain demographics and socioeconomic statuses.
"Allamerican" pm me i will put you in contact with someone in your area that can help you.

With all these questions and answers about price, I wouldn't be surprised if the gov't comes in here with accusations of price fixing.

ed2hess
03-24-2009, 10:01 PM
Our price point is around $35/hr. If you have a market that supports $65/hr then I wouldn't be spending time on lawnsite I would be putting trailers and workers in the field because you could make some big money. .

duke12
03-24-2009, 10:19 PM
Just look @ the views this thread generated;)That's the main reason I don't like to post my rph,cause people will take that information and use it against you.It took me a very long time to come up with a profitable rate and, theirs no way in h*** I'm going to share it with a newbie. Please don't take it personally.
FWI I suggest you guys don't share yours either.

KT. Unlimited
03-25-2009, 11:26 AM
You say, "Not to say some one can't work for less. if your costs are low."
How are you going to know unless you sit down and deeply figure them out?

Thats my point you need to know this before you can figure a number.
If you need to be told this then you have no business plan or real idea
of what it wil take to make money NOT JUST TURN $$$$$$$.

Ramairfreak98ss
03-25-2009, 02:53 PM
Our price point is around $35/hr. If you have a market that supports $65/hr then I wouldn't be spending time on lawnsite I would be putting trailers and workers in the field because you could make some big money. .

our area supports it in NJ at least, doesnt mean 100 clients are knocking down our doors for that rate, honestly id consider our company "not busy" most times, but when we have jobs theyre profitable.

Id rather be busy one week and not the next but making money than busy 100% of the time, 50hrs a week and barely breaking even:waving:

AllAmericanlawn
03-28-2009, 11:02 AM
Thanks for all the input. I was just wondering what some of you guys charge around the country. It seems that you guys up north charge a lot more per hour. I thimk i am in line with most other lco's as far as general labor pricing. I have one guy working for me and ocassionally some part time help. If i net $50 per hour on a landscape job with just me and another guy working, thats not bad for my little company. It beets flipping burgers for $7.50 hr. I pay my guys $10-$12 per hour. labor wages are not as inflated here as they are up north.

Thanks to all who had valuable input and to those who just want to be a critic and tell everyone they are stupid can F*** off.

Big Bad Bob
03-28-2009, 11:31 AM
Thanks for all the input. I was just wondering what some of you guys charge around the country. It seems that you guys up north charge a lot more per hour. I thimk i am in line with most other lco's as far as general labor pricing. I have one guy working for me and ocassionally some part time help. If i net $50 per hour on a landscape job with just me and another guy working, thats not bad for my little company. It beets flipping burgers for $7.50 hr. I pay my guys $10-$12 per hour. labor wages are not as inflated here as they are up north.

Thanks to all who had valuable input and to those who just want to be a critic and tell everyone they are stupid can F*** off.

No problem.