Register free!

The Green Industry's Resource Center



Reply
 
Thread Tools   Display Modes
  #21  
Old 11-06-2009, 11:48 PM
TMlawncare TMlawncare is offline
LawnSite Bronze Member
 
Join Date: Feb 2002
Location: nw missouri
Posts: 1,169
The one rule that must be remembered it "never tell the customer your hourly rate." Now repeat this again and again. Yes some might get away with it, but more often then not you will have a customer question you. Its not worth losing a job or a client. If you are fairly good at accessing time just figure a little long and you will usually be fine.
__________________
TMlawncare
Reply With Quote
  #22  
Old 11-07-2009, 12:14 AM
greendoctor greendoctor is offline
LawnSite Fanatic
 
Join Date: Mar 2008
Location: Honolulu, Hawaii
Posts: 7,438
Never. If someone needs to know that, they can find someone who will buy all of their materials at the orange box and work for $10 an hour. If they called me, it is because they are looking for a professional and a technician who knows his business. I bill by the job. That price includes materials, my time and overhead.
__________________
They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety.
Benjamin Franklin 1775

Sell not virtue to purchase wealth, nor Liberty to purchase power.
Benjamin Franklin Poor Richard's Almanac1738
Reply With Quote
  #23  
Old 11-07-2009, 12:24 AM
Stillwater Stillwater is offline
LawnSite Platinum Member
 
Join Date: Mar 2006
Location: The United States
Posts: 4,250
Quote:
Originally Posted by TMlawncare View Post
The one rule that must be remembered it "never tell the customer your hourly rate." Now repeat this again and again. Yes some might get away with it, but more often then not you will have a customer question you. Its not worth losing a job or a client. If you are fairly good at accessing time just figure a little long and you will usually be fine.
I don't go out of my way to anounce labor rates either but you guys must know the moment you hand them the bill and they write the check they know your rate for the job you performed, it is really no secrete then.
Reply With Quote
  #24  
Old 11-07-2009, 03:34 AM
greendoctor greendoctor is offline
LawnSite Fanatic
 
Join Date: Mar 2008
Location: Honolulu, Hawaii
Posts: 7,438
I do not hand people bills. In fact, someone who is home is a red flag to me. If they were out making money, my invoice would not be cause for a Buddhist rite.
__________________
They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety.
Benjamin Franklin 1775

Sell not virtue to purchase wealth, nor Liberty to purchase power.
Benjamin Franklin Poor Richard's Almanac1738
Reply With Quote
  #25  
Old 11-10-2009, 11:04 AM
topsites topsites is offline
LawnSite Fanatic
 
Join Date: Mar 2005
Location: Richmond Virginia
Posts: 21,677
My answer to this question is ALWAYS:

"My minimum is 30 dollars."
Which, yeah, that just so happens to be my minimum.

The thing is I have to answer the question yet it's really none of their business and that gets the point across.
And I do say it nicely but I'm not working for less than my usual rate, either.

Last edited by topsites; 11-10-2009 at 11:13 AM.
Reply With Quote
  #26  
Old 11-11-2009, 10:26 PM
Dave_005's Avatar
Dave_005 Dave_005 is offline
LawnSite Senior Member
 
Join Date: Apr 2007
Location: North Central Illinois
Posts: 359
i NEVER tell a customer my hourly rate. when i give an estimate thats the price i do the job for.
__________________
Dave_005
business name : Dave's Mowing Service
Years in the buisness: 4 years
Reply With Quote
  #27  
Old 02-23-2010, 05:13 PM
JohnnyRocker JohnnyRocker is offline
LawnSite Senior Member
 
Join Date: Jan 2007
Location: Charlotte, NC
Posts: 685
So if you were to NOT give an hourly rate, how would you throw leaf clean up in a detailed annual contract if you had to? Given that there are no leaves on the ground when you write up the contract.
Reply With Quote
  #28  
Old 02-23-2010, 10:56 PM
Roger Roger is offline
LawnSite Fanatic
 
Join Date: Dec 1999
Location: McMurray, PA
Posts: 5,825
Quote:
Originally Posted by Stillwater View Post
I don't go out of my way to anounce labor rates either but you guys must know the moment you hand them the bill and they write the check they know your rate for the job you performed, it is really no secrete then.
Agree. I realize many are saying "never give them an hourly rate," but are we so naive as to think the customer can't do the simple math? Surely not. Yes, some customers may not be on the property and see the amount of time involved, but some customers, especially residential, will be at home. It is easy for them to track time spent on the job. Residential customers are tuned into timed task for a home, such as appliance repair. Stillwater is right, nobody is being fooled.

I think there is confusion in terminology in this thread. I view two types of business transactions:
1. Firm, fixed price -- customer is charged a fixed sum for an agreed-upon scope of work, regardless of time and materials (if any).
2. Time & Materials -- customer agrees to pay for the labor in terms of time at a fixed rate, $/man-hour, plus the cost of materials (that may include a G & A fee). Materials may also include other fees, such as dump fees.

When many posts in this thread are speaking of "giving the customer an hourly rate," you are really meaning (2), Time & Materials. Right?

There may also be a third option, as a variation on (2), that is Time & Materials, with a "not to exceed" price.

Most of my work is mowing, and I charge on a "per cut" basis. However, other work is done on a T & M basis. I've never had anybody get upset, and question me. They appreciate breaking out the Materials piece, such as dumping fees, because they are not paying taxes on this item. Tax is collected on the labor only. If current PA taxing proposals are enacted, this probably will change.
Reply With Quote
  #29  
Old 02-23-2010, 11:35 PM
JohnnyRocker JohnnyRocker is offline
LawnSite Senior Member
 
Join Date: Jan 2007
Location: Charlotte, NC
Posts: 685
Great info on taxes, Roger!
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 11:26 AM.

Page generated in 0.09084 seconds with 9 queries