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Old 08-07-2010, 02:29 PM
mcw615 mcw615 is offline
LawnSite Senior Member
Join Date: Jun 2009
Location: Virginia
Posts: 473
BIG MISTAKES WHEN HE FACTORED THE OVERHEAD/EXPENSES. He said you and 1 full time employee are working 40 hours a week, a total of 80 man hours per week, 320 man hours per month. Take your 12 month expenses and make it 8 months, then divide by 320 hours for each month.

Here is MY correction and fact. You are working 40 hours a week and we are trying to figure your hourly rate right? Well you are not working 40 billable hours a week, you have drive time, load equipment, unload etc. I would say on average 66% or a 1/3 of your time will be driving so you will only therefore be doing 30 billable hours per employee, total 60 billable hours. Your downtime/drivetime is not generating money, it is an expense, therefore you cant factor overhead recovery as downtime.
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