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grassmasterswilson
05-02-2011, 10:27 PM
Anyone care to share their hourly rate break down? From what I can figure out mine is 20% profit, 50% labor, and 30% equipment expense. I am anticipating a 2 man crew with me included in that labor percentage. Sound about right?

vencops
05-02-2011, 10:41 PM
I don't do it that way.

I figure what I need to make for the year.....less expenses.....and divide by wks I'll work......divided by how many hours/wk I plan to work to arrive at my LCO-type work hourly rate (which is different from my main bus. hourly rate).

LCO work is about 20% of my business plan. If I don't fill the allotted hours.....that's on me. So far - So Good. I have all the LCO work I can do (in the time I've allotted for such).

Southern Pride
05-02-2011, 11:59 PM
I have never even actually broken down my hourly rate into % of profit and if someone could give me a formula. I'm guessing you take the total amount and what you brought in and figure it to what % is profit and do the same with labor. Just unsure the equation for figuring percentages lol

topsites
05-03-2011, 12:33 AM
I take all the money my customers give me.

Southern Pride
05-03-2011, 01:19 AM
lol I want to figure my percentages but all I know is it's guuuuud!

orlawncaresvc
05-03-2011, 02:49 AM
I have never even actually broken down my hourly rate into % of profit and if someone could give me a formula. I'm guessing you take the total amount and what you brought in and figure it to what % is profit and do the same with labor. Just unsure the equation for figuring percentages lol

Here is an example of how we usally do it.
Formula for 6hrs of work=5guysx$35hr/ea=$175x6hrs=$1050x4weeks=$4,200
Formula for 6hrs of work=5guysx$10hr/ea=$50x6hrs=$300x4weeks=$1,200

grassmasterswilson
05-03-2011, 07:50 AM
thanks guys. I've done very well for a solo guy in the business. Now i'm thinking of adding a full time guy. I also just got engaged and will need to provide for my family. I'm trying to do the math and see if I can afford a second guy at the same price rate I am now.

ALC-GregH
05-03-2011, 08:11 AM
thanks guys. I've done very well for a solo guy in the business. Now i'm thinking of adding a full time guy. I also just got engaged and will need to provide for my family. I'm trying to do the math and see if I can afford a second guy at the same price rate I am now.

Nothing will really change. You just need more work to compensate for the added expense of a employee.

ed2hess
05-03-2011, 10:17 PM
. I'm trying to do the math and see if I can afford a second guy at the same price rate I am now.

The answer to that question is likely NO.....your profit margin is going to go down when you add a second person,