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  #1  
Old 12-31-2012, 11:34 AM
Ghopper3345 Ghopper3345 is online now
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Man hour rating (Job Costing)

after running some of your job costing reports where does your man hour rating come in at? This report is after doing work at a customers house less labor and less material. Im right around the $60.00 per man per hour mark. I know everyone has different overhead and what they have to make but just seeing where i come in

thanks for the help and happy new year
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  #2  
Old 12-31-2012, 11:55 AM
ReddensLawnCare ReddensLawnCare is online now
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So your employee is costing you 60/hr? If i read that correctly then you are extremely high. My employed cost me 14.70 after hourly rate plus payroll and what not. I charge around 50 per man hour depending on the job when I'm not on site
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  #3  
Old 12-31-2012, 12:10 PM
Ghopper3345 Ghopper3345 is online now
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No I am making $60.00 after labor and material. so i would be alittle higher than you. what is the avefage for fertilizer does anybody hit $100.00?????
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  #4  
Old 12-31-2012, 01:41 PM
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cpllawncare cpllawncare is offline
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It seems that everybody is trying to wrap everything into their labor rate thus coming up at 60 per man hr, from what I can figure most labor rates should come in at around 40-50 per man hr depending on pay rates and such, 35-40 being a start up with little overhead and 40-50 being an established company. Of course their are all kind of variables but these seem to be a general guideline. I can tell you these guys touting 60+ per man hr must not need much new work cause even the established companies around here aren't getting those kind of rates most are in the 45-50 range.
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  #5  
Old 12-31-2012, 01:59 PM
Sean Adams Sean Adams is offline
 
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It's always going to be difficult to compare apples to apples. I work with one landscape business owner who is dominating his area because his expenses in general are so low - no facility rent, vehicles and equipment paid for, low labor rates. When we determined what he needed to charge per man per hour to break even, he was in the $24 per hour range.

The area in which he works in general seems to have most companies charging somewhere in the vicinity of $42 per man per hour.

As you can imagine, he can come in with his bids in the $35 per man per hour range, charge a much lower price, and still make a significant profit.
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  #6  
Old 01-01-2013, 08:06 AM
coolluv coolluv is offline
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Quote:
Originally Posted by Sean Adams View Post
It's always going to be difficult to compare apples to apples. I work with one landscape business owner who is dominating his area because his expenses in general are so low - no facility rent, vehicles and equipment paid for, low labor rates. When we determined what he needed to charge per man per hour to break even, he was in the $24 per hour range.

The area in which he works in general seems to have most companies charging somewhere in the vicinity of $42 per man per hour.

As you can imagine, he can come in with his bids in the $35 per man per hour range, charge a much lower price, and still make a significant profit.
That's all well and good until that same company has to grow to keep up with demand and is forced to have that facility to rent and all of the overhead that comes with growth.

You don't price your jobs for where you are...but for where your headed. If not you soon realize you can't afford to grow without raising prices....and those customers who are used to that low price will look elsewhere when you raise them to where they should have been in the first place.

You advocate the typical road to failure so often seen around here and on this site. BTW....just because equipment is paid for doesn't mean you don't have to replace it and the overhead for that just goes away. You lack the basic understanding of how a business works and you pass that ignorant information on to new guys without a clue. Stick to managing a website not doling out bad business advice.

Bad advice.


Dave...
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  #7  
Old 01-01-2013, 10:28 AM
Duekster Duekster is offline
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Quote:
Originally Posted by Sean Adams View Post
It's always going to be difficult to compare apples to apples. I work with one landscape business owner who is dominating his area because his expenses in general are so low - no facility rent, vehicles and equipment paid for, low labor rates. When we determined what he needed to charge per man per hour to break even, he was in the $24 per hour range.

The area in which he works in general seems to have most companies charging somewhere in the vicinity of $42 per man per hour.

As you can imagine, he can come in with his bids in the $35 per man per hour range, charge a much lower price, and still make a significant profit.
What happens when he needs a new truck or new equipment. Even if your stuff is paid for you have to charge for the next piece of equipment.

I would not put 40K in the bank and not expect a return on my investment?
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  #8  
Old 12-31-2012, 02:16 PM
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cpllawncare cpllawncare is offline
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Sean, you pretty much hit it right on, For some reason these guys are trying to make $30+/hr plus expenses, not realistic imop. Customers aren't stupid, when you qoute 60 per man hr your gonna get laughed at most likely, I had one local LCO tell me he was getting 70 per man hr I just laughed and walked off.
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  #9  
Old 12-31-2012, 02:57 PM
Ghopper3345 Ghopper3345 is online now
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well then what would your average of rev. per hour for a 2 man crew like about 80.00? even if you are just charging a flat rate for something like mowing at 40 per cut?
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  #10  
Old 12-31-2012, 03:06 PM
Sean Adams Sean Adams is offline
 
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Location: Pennsylvania
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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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