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Old 12-31-2012, 04:06 PM
Sean Adams Sean Adams is offline
Join Date: Jun 1999
Location: Pennsylvania
Posts: 3,608
No one can give you this answer. Only you, through breaking down your numbers, can determine what you should be charging per man per hour.

This is a rough example, but follow me here....

Company 1 has 4 employees. They have two trucks that cost the company $500 a month each. All of their equipment is financed and that costs them another $1,000 a month. They rent a garage for $800 a month. They pay all of their employees $15 per hour. They pay an accountant to do their payroll, they spend a lot of money on advertising and in general, the business is unorganized and not very efficient - neither are the employees.

Company 2 also has 4 employees and two trucks and the same equipment, but the trucks are paid for and so is the equipment. They do not rent a garage space and all of their employees are paid $12 per hour. The owner does all of the payroll work and they use the internet and word of mouth to advertise their business, which costs them next to nothing. ON top of that, the company is run well and the employees rarely waste time.

If company 1 and company 2 are going to bid on the same mowing job for example, who do you think can bid less?

Company 2

If company 2 can bid less and provide as good (if not better) service than company 1, who is going to get the job.

Company 2 all day long....
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