03-10-2014, 09:58 AM
LawnSite Platinum Member
Join Date: Sep 2009
Originally Posted by TPendagast
Well, I don't know…. I used to buy guys meals all the time, I gave cash bonuses and most of them were paid $15/hr, and that was 2003-2004.
The guys that weren't worth it, I either gave them a chance at $12/hr…or I thought they would work out and was paying 14/15 and I ended up letting them go….
But i wasn't estimating $85/hr either.
True fuel and such was cheaper then, machines cost lost as well.
But the main point is everyone's situation (overhead) is so much different from area to area and company there is no way to forecast that their costs are.
One guy can afford X the other guy can't.
That's the whole point of a franchise, they tell you "THIS works, DO this"
and it gives you the whole package and what to do to make money (even after paying them their piece)
There is this company in town, who ALWAYS loses every commercial bid they go to… I always see their prices…they are so far out of the beaten path (in some cases twice as much) I'm surprised they keep bidding.
I know where their shop is, I see how many trucks, employees and machines they have.
I can guess their basic costs, because I know how much all the sq ft rent and ear costs.
I know about what their employees get paid (scuttle butt)
But Ive never seen them win a job…. except for one, they way under bid me on a residential install…by a freaky amount.
Which has me boggled.
They have nice trucks and equipment (better than mine)
they pay their guys well (at least as much if not more than I do)
Their shop is a tiny bit less expensive than mine.
They never win commercial bids I go to, and they under cut residential.
I can't figure out their pricing structure.
They are hiring for an estimator right now… I almost want to take the job, because I'm dying of curiosity to see how their numbers work.
but like I said…there is just no way to figure out how a com pay is making money, based off what equipment they have and what they pay their employees…. there are just too many variables.
I would like to have year around help and well payed help with benefits, but I would be pricing myself way out of my competition.