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calvarylandscapegroup
07-26-2010, 02:51 PM
Hey everyone i'm an owner of a landscaping company. I've been in business for two yrs now and I was wondering what is the average hourly labor rate for any kind of work I've been charging $40 hr for work is that too low?

NarNar
07-26-2010, 03:13 PM
Hey everyone i'm an owner of a landscaping company. I've been in business for two yrs now and I was wondering what is the average hourly labor rate for any kind of work I've been charging $40 hr for work is that too low?

I would venture out to say, it depends on your area, and how you view yourself.

Here we have day laborers with a mower charging $19.95 a cut. They also low ball mulch jobs and lay 1 yard of mulch when it requires 2 yrd.

Also it depends on if you are licensed (as in lic. landscape architect). At the moment we bill between $40-$60.00 depending on the job, which is fair to our customers here, that's right in the middle. But once he have our lic. our rates will shoot up. Most of our billing is added into the project.

For example we bill about $65.00 per yard to mulch, that's delivery and install (weeding is extra) and it will be an extra $35 per yard of weeding.

Hope this helps.

calvarylandscapegroup
07-26-2010, 04:06 PM
so pretty much i am on the low end of the average man hr rate

NarNar
07-26-2010, 05:20 PM
so pretty much i am on the low end of the average man hr rate

I couldn't tell you if your on the low end or high end, becuase your area is differ from my area. My suggestion was to do some groundwork and figure out what the other companies (legit companies) are billing and stay a couple of points below them.

knox gsl
07-26-2010, 05:50 PM
I estimate $40 per hour on most jobs, and get $80 per yard on mulch delivered and spread, if it needs weeding $40/ hour.

g21
07-26-2010, 09:39 PM
I would really caution you about being influenced by what others are charging.
Especially on this site. You are going to get everything from $20. to $80. an hour. One of the Core Fundamental parts of building your service business is understanding EXACTLY what it costs you to run your company by the hour. Then, like any business, you add what you consider to be a good profit margin.

The worst thing you can do is worry about what the rest of your market is charging. If your cost of doing business is $25. an hour and guys in your market are charging $22. Does it matter? No. You can't charge less than $25. or you will be bankrupt. If guys in your market are charging $60. does it matter? No. Why? Because even if you know some guys are charging $60., how do you know what the guys you are bidding against are charging? Are they bidding $60. this time? Why do you care? Know your costs -add a good profit and sell your but off!

I've worked with so many companies that were so hung up on this that they wasted precious years that they could have been growing. Don't let any outside influences determine your pricing. It's all wrapped around your costs.

In the event you don't know how to calculate your manhour rate, let me know and I'll send you a link to a video that will help you.

Good luck.

Tommy

g21
07-26-2010, 09:41 PM
Oh, and I just wanted to make sure I didn't offend anyone for trying to help you. I didn't mean it that way. Just use it as market research. There are a lot of guys in here that will attempt to help you the best they can.

ajslands
07-26-2010, 11:02 PM
Ya so I like to make about 150$ pr hour.
Posted via Mobile Device

unkownfl
07-27-2010, 02:04 AM
Assuming you're solo I would say 40 per hour could be on the higher end of the scale. I current run at 31.08 an hour running solo to operate including my salary of a modest $15 an hour. I add usually around 20% profit margin on top of my bids so it puts me with a bidding hourly rate of 37.30. I figure my mower cost 6.5 per hour on the clock. Assuming I get 2000 hours on it and spend 5k on it thats with buying it at 7k and selling it at 2k so the mower is costing me 5k. That's 2.5 an hour just on replacing the machine the other 4 bucks is maintaining and fuel. I then added 300 for storage and office space 400 in fuel 45 in insurance 100 for round up 400 truck and trailer 200 misc. Misc is for trailer and truck expenses licenses etc. Hope this helps. I just rough balled my expenses for the purpose of this thread but I usually have about the same hours cost every year give or take a few bucks for gas.

ZAQLandscaping
07-27-2010, 10:17 PM
i usually charge $30 an hour per worker.

NarNar
07-27-2010, 11:48 PM
Ya so I like to make about 150$ pr hour.
Posted via Mobile Device

Point me to this line!

Fawcett
07-28-2010, 09:55 AM
I work for myself and I ask for $25-30 per hour for labor, when I mow I look for $40 per hour but usually average more than that. I'm a bit of an efficiency freak so jobs with fixed prices (mowing) are my most profitable. I always keep track of how many hours my mower/machines are running and have to figure that they are costing me atleast $3 an hr in 91 octane fuel alone. After I finish the job I write down my hours, my fuel costs, and then I figure out a fair price and submit the bill. At times I cut my customers a break so that I don't financially burn them out.

ajslands
07-28-2010, 09:58 AM
Point me to this line!

That's what I make doing tree work...
50hr for labor.
Posted via Mobile Device

calvarylandscapegroup
07-28-2010, 02:39 PM
Thanks I did watch the video and it was a big help to me. I want to make sure I am price myself honest and competitive. Do you have any video about pricing mowing, mulching, pretty much all the other aspects of landscaping especially plowing. I have gotten so many different pricing opinions about "per push" and seasonal contracts.

ajslands
07-28-2010, 06:03 PM
Thanks I did watch the video and it was a big help to me. I want to make sure I am price myself honest and competitive. Do you have any video about pricing mowing, mulching, pretty much all the other aspects of landscaping especially plowing. I have gotten so many different pricing opinions about "per push" and seasonal contracts.

1.25$ pr minute. Their Noe you know how to do it and you didn't even need a video.
Posted via Mobile Device

AzLawnMan
07-28-2010, 10:48 PM
Another "hour" thread! I posted in another thread that I just dont understand hourly rates. I get calls all the time asking me "what I charge by the hour" I always resopond the same, "I dont charge by the hour, I charge by the job". My tree crew did a job today 15- ficus trees, trimming and shaping I charged $625. It took my crew of 4 guys 2 hours from start to finish. So that comes out to $312.50 an hour. So if I charged like some of you at $40-60 and hour not much money there. If I charged $125 an hour, well I just lost a couple of hundred. If I think about it, I think I charge $125 every half-hour! If I was charging by the hour like some of you I would assume I would be swamped with work. But I enjoy charging what I think is fair and from this time last year we are up $98k and I am upset that the phone doesnt ring as much. I have about a 75% close rate and thats down 8% from 2 years ago. I am not happy with our numbers right now, I think I would shut my doors if I had to charge $40-60 an hour. :hammerhead: Dont wanna sound like an A$$ but thats just what I charge and thats how I feel.

unkownfl
07-28-2010, 10:56 PM
Another "hour" thread! I posted in another thread that I just dont understand hourly rates. I get calls all the time asking me "what I charge by the hour" I always resopond the same, "I dont charge by the hour, I charge by the job". My tree crew did a job today 15- ficus trees, trimming and shaping I charged $625. It took my crew of 4 guys 2 hours from start to finish. So that comes out to $312.50 an hour. So if I charged like some of you at $40-60 and hour not much money there. If I charged $125 an hour, well I just lost a couple of hundred. If I think about it, I think I charge $125 every half-hour! If I was charging by the hour like some of you I would assume I would be swamped with work. But I enjoy charging what I think is fair and from this time last year we are up $98k and I am upset that the phone doesnt ring as much. I have about a 75% close rate and thats down 8% from 2 years ago. I am not happy with our numbers right now, I think I would shut my doors if I had to charge $40-60 an hour. :hammerhead: Dont wanna sound like an A$$ but thats just what I charge and thats how I feel.


You still need to know how much you cost an hour. How do you know how much you profited?

BTW it comes out to 78.125 an hour :hammerhead: not 312.50 you would have been better off charging 125 and hour LMAO. WOW...

AzLawnMan
07-29-2010, 12:37 AM
You still need to know how much you cost an hour. How do you know how much you profited?

BTW it comes out to 78.125 an hour :hammerhead: not 312.50 you would have been better off charging 125 and hour LMAO. WOW...

Lets see $625 divided by 2 hours = $312.50. There is this machine that when you put numbers into it, it will tell you answers. Maybe you have heard of it, its called a calculator. Its usually black and has a bunch of numbers on it. Why dont you re-read my post because I dont even understand where you got your numbers from. :dizzy:
I know exactly what my costs are per hour, but im gonna share a secret with you, the key is to make more than your costs. So from 7/1/10 to today my costs for doing business are $87,310.08 and my income is, well if you knew that you would probobly be upset with yourself.

unkownfl
07-29-2010, 12:48 AM
Lets see $625 divided by 2 hours = $312.50. There is this machine that when you put numbers into it, it will tell you answers. Maybe you have heard of it, its called a calculator. Its usually black and has a bunch of numbers on it. Why dont you re-read my post because I dont even understand where you got your numbers from. :dizzy:
I know exactly what my costs are per hour, but im gonna share a secret with you, the key is to make more than your costs. So from 7/1/10 to today my costs are $87,310.08 and my income is........

4 people 2 hours total that's 8 man hours... 625/8=78.125 78.125 is how much you made per man hour. Glad you're making millions :dizzy:

cut level
08-02-2010, 01:17 PM
4 people 2 hours total that's 8 man hours... 625/8=78.125 78.125 is how much you made per man hour. Glad you're making millions :dizzy:

Dude his business made a gross profit of $312 per hour no matter how you look at it. Stop fighting it. I dont understand why folks even post these "what do ya charge" threads. I am glad his business is doing that and if I am not mistaken he is the LCO in Zona that deals with higher end homes than most of us have. I dont charge by the hour per say.

I look at the job think about it, I do think about how long its gonna take but it may take 2 of us 4 hours to do a trim job of all the beds and trees but I think about the physical labor as well as the end product that I am gonna give em and come up with it from there.

I think a lot of folks get hung up on oh my gosh what hourly rate to calculate!! that they screw themselves hard on their potential profit.

I mean I picked up a property the other day where I was 25% cheaper than the current company was charging for weekly maintenance. I I have 4 properties in this subdivision and. They were fired up to get it done cheaper and I made the other company look like they were rookies after I left their place. They hired me and fired them the same afternoon. I also picked up all the bed maintenance, irrigation maintenance, fert, the whole 9 yards. I think the other company was reaming them at that price. I dont know what there cost to do business is and dont care.

Me by myself it took an hour and 40 minutes the first cut and it is a $65 job. I was by myself and I wanted to make the last company really look like they were shortchanging the clients on the quality of cut. I took a little extra time "getting it right". My help wasnt with me but if he was we are in and out in 40 minutes.

AzLawnMan
08-02-2010, 02:34 PM
I look at the job think about it, I do think about how long its gonna take but it may take 2 of us 4 hours to do a trim job of all the beds and trees but I think about the physical labor as well as the end product that I am gonna give em and come up with it from there.

I think a lot of folks get hung up on oh my gosh what hourly rate to calculate!! that they screw themselves hard on their potential profit.

.

:clapping:

unkownfl
08-02-2010, 03:16 PM
Dude his business made a gross profit of $312 per hour no matter how you look at it. Stop fighting it. I dont understand why folks even post these "what do ya charge" threads. I am glad his business is doing that and if I am not mistaken he is the LCO in Zona that deals with higher end homes than most of us have. I dont charge by the hour per say.

I look at the job think about it, I do think about how long its gonna take but it may take 2 of us 4 hours to do a trim job of all the beds and trees but I think about the physical labor as well as the end product that I am gonna give em and come up with it from there.

I think a lot of folks get hung up on oh my gosh what hourly rate to calculate!! that they screw themselves hard on their potential profit.

I mean I picked up a property the other day where I was 25% cheaper than the current company was charging for weekly maintenance. I I have 4 properties in this subdivision and. They were fired up to get it done cheaper and I made the other company look like they were rookies after I left their place. They hired me and fired them the same afternoon. I also picked up all the bed maintenance, irrigation maintenance, fert, the whole 9 yards. I think the other company was reaming them at that price. I dont know what there cost to do business is and dont care.

Me by myself it took an hour and 40 minutes the first cut and it is a $65 job. I was by myself and I wanted to make the last company really look like they were shortchanging the clients on the quality of cut. I took a little extra time "getting it right". My help wasnt with me but if he was we are in and out in 40 minutes.

First off gross is not profit. Secondly, the OP stated he was wanting to know average hourly labor rate which is comparable to per man; therefore, adding 4 guys into the mix to just to one up another is out of line in this thread. Lastly, however you want to cut it, the guy charged 70ish per man hour on the tree job.

AzLawnMan
08-02-2010, 03:55 PM
And the entire job cost me $136 to do. So a profit of $489/2= $244.50 profit per hour. Sucks doenst it. :cry:

cut level
08-02-2010, 04:09 PM
First off gross is not profit. Secondly, the OP stated he was wanting to know average hourly labor rate which is comparable to per man; therefore, adding 4 guys into the mix to just to one up another is out of line in this thread. Lastly, however you want to cut it, the guy charged 70ish per man hour on the tree job.

Yes it is its called profit prior to expenses gross profit.

have a good one I gotta go mow!

His workers may have made bout 15 bucks an hour but his business took in well over 200 in net profit.

Bottom line Do What You Like!