Thread: Hourly Rate
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Old 01-29-2014, 12:11 PM
Tuttled Tuttled is offline
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Join Date: Sep 2013
Location: Saskatoon, Sask Canada
Posts: 136
I only use walk behind equipment, aerator, power rake, edger, mowers and handhelds. I'm in this part time (2-3 days a week), I figure fixed costs; insurance. business licences, workman's comp, office, accountant, dump fees (flat yearly fee), ect, it costs me $12 to show up at your door. I have calculated that it is another $10/hour ($5 fuel and maintenance, $5 depreciation) to operate the equipment on the average; this includes depreciation and fuel as well as gloves, garbage bags and everything else. The only extra cost is when edging I will go thru a blade about 100 to150 feet but that extra cost is covered in the pricing. Remember even using a shovel or a rake or broom costs money, as they need to be purchased, hauled and replaced when worn out or broken or left behind. Don't forget your truck and trailer costs including depreciation costs. So I show up and cut your lawn (30 minutes) for $40 dollars it costs me $12 to show up plus $5 equipment cost. I have made $23 dollars before taxes. Allowing for 10 minutes travel time between cuts an 8 hour day is about 12 cuts. 12 x 40=480, 480-(12x12)-(12x5)=x 480-(144+60)=x 480-204=276 276/8=34.50/hour before taxes. Now let us figure this for a five day week. 276/day x 5 = 1380. Add in an hour a day for dumping clippings on your way home and 3 hours week maintenance and 6 hours answering calls and doing estimates after hours on $1380. $1380/(40 +14) =y 1380/54=y ...$25.5/hour=y. Add in a fertilizer application or a quick cut of one of your customers neighbors, 3 times a week adds $3 to your hourly weekly average up to $28.5/hr.
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