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Old 07-01-2012, 06:40 PM
grassmasterswilson grassmasterswilson is offline
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Profit from employees

Im wondering what kind of profit you guys are billing above wages and taxes for your employees? 10/hr guy + 3/hr tax/workers comp + $5 profit? I figure the same labor rate for mowing, pruning etc.

I've lost a few commercial accounts and I'm thinking my labor rates are too high. It could also be the estimated time to complete a job.
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Old 07-01-2012, 08:40 PM
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Kelly's Landscaping Kelly's Landscaping is offline
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There is a lot of hours per week per man you don't get to bill for so it can skewer those calculations. Down time adds up drive time can be 1-3 hours a day, lunch and loading and unloading at the shop then there's servicing the equipment. Id like to pretend I bill out for 75% of their time but I doubt its even that high. As for labor rates I add in 20% in F Us to what ever their rate is and I'm real close. 6.9 UE 1. something Fed UE 7.5 SSI 4.5 WC then theres medicare and payroll services. Now if your guy is at 10 and I wish I was that low if he hits OT now hes at 15 plus 20% and your paying 18 and hour now if hes not producing on say a quarter of those hours hes now 22.50 and hour. You can see how quickly your 5 dollar profit number could get lost in all this and this doesn't touch fuel and all the other costs.
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Old 07-09-2012, 12:50 PM
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maelawncare maelawncare is offline
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Quote:
Originally Posted by Kelly's Landscaping View Post
There is a lot of hours per week per man you don't get to bill for so it can skewer those calculations. Down time adds up drive time can be 1-3 hours a day, lunch and loading and unloading at the shop then there's servicing the equipment. Id like to pretend I bill out for 75% of their time but I doubt its even that high. As for labor rates I add in 20% in F Us to what ever their rate is and I'm real close. 6.9 UE 1. something Fed UE 7.5 SSI 4.5 WC then theres medicare and payroll services. Now if your guy is at 10 and I wish I was that low if he hits OT now hes at 15 plus 20% and your paying 18 and hour now if hes not producing on say a quarter of those hours hes now 22.50 and hour. You can see how quickly your 5 dollar profit number could get lost in all this and this doesn't touch fuel and all the other costs.
Plus all the equipment costs.
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Old 07-09-2012, 02:02 PM
Dr.NewEarth Dr.NewEarth is offline
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Overhead also needs to include rent, insurance, gas and a return on investment.

Are you just judging these things in your 5 dollars?
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