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Old 03-09-2013, 10:22 PM
32vld 32vld is offline
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Percent of billable hour to non billable employee labor costs

Eample:

Employee works 8 am to 12 pm
1 hour non paid lunch
Works 1 pm to 5 pm
Total 8 hrs worked

morning
.5 hr load, fuel, etc. am
.75 drive time
2.75 mowing

afternoon
.75 drive time
2.75 mowing
.5 unload, clean up, etc. pm

5.5 billable hours produced

8 hours of salary paid.

Now what are real world comparisons between billable employee hours produced and hours paid in employee salary?
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Old 03-09-2013, 10:27 PM
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grandview (2006) grandview (2006) is offline
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Shop time should be built into your billable hours.
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Old 03-09-2013, 11:10 PM
32vld 32vld is offline
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Quote:
Originally Posted by grandview (2006) View Post
Shop time should be built into your billable hours.
Yes shop time is a business expense thus a cost of doing business, and must be included in the hourly rate jobs are estimated.

To me billable hours is the hours used producing work or a service that produces income.

Non billable hours is fueling, loading trailer, cleanup end of day.

I am asking for real world examples of what LCO's have of billable to non billable hours.

This is an indication of how well a business is controlling costs/efficency.

If most LCO's are averaging 7 billable hrs out of 8 hrs and one is below that then he has to look at why to see how he can get billable hrs up and nonbill. hrs down.

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Old 03-10-2013, 10:19 AM
djagusch djagusch is online now
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While I don't have a percent figure for my operation in a Vankoolie seminar he advice was to add 10% for the morning circus and add 10% for mistakes (ex. Losing key for mower and needing to go get one off the jobsite). So if you see 1hr of actually work estimate 1.2hr for what your talking about.

What grandview was pointing out is maintence that isn't billable but needs to be accounted for somewhere. Most account for it in overhead.
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Old 03-10-2013, 11:28 AM
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Efficiency Efficiency is offline
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We are usually 105-110% billable: paid hours.
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Old 03-10-2013, 05:14 PM
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grandview (2006) grandview (2006) is offline
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Quote:
Originally Posted by djagusch View Post
While I don't have a percent figure for my operation in a Vankoolie seminar he advice was to add 10% for the morning circus and add 10% for mistakes (ex. Losing key for mower and needing to go get one off the jobsite). So if you see 1hr of actually work estimate 1.2hr for what your talking about.

What grandview was pointing out is maintence that isn't billable but needs to be accounted for somewhere. Most account for it in overhead.
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For me if I'm doing a landscape job or something to where I need to go pick something up. I include it in the price .
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Old 03-10-2013, 06:18 PM
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Kelly's Landscaping Kelly's Landscaping is online now
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I think you missed what he was asking entirely. He is simply asking how many hours per day that your employee is on the clock does the employee actually spend working on billable time vs how much time is non productive time. Working on a job site is billable all the rest that goes with it is not. Yea you can take on a few bucks to go buy plants or what ever but in a lawn business you get paid by the cut not for your drive time. And there are plenty of low production beginners around to keep you honest by bidding the min and keeping your prices in check.

32VLD We over come allot of the problem by working longer hours. So you work your guys 9 hours we work ours 11-12. We both have the morning circus and we both have lunch and the end of the day, but we get more billable hours per shift and percentage wise each day. Now fueling up is brought up a lot here but that is not a daily concern for us. Our trucks can go 14-28 work days per tank yes 52 gallon tank rams are nice. So our only issue is fuel for the mowers and we take on enough to go the entire cutting week on a single stop. Some guys don't thats their call but I for one don't like paying guys to stand around.
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Old 03-10-2013, 07:10 PM
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grandview (2006) grandview (2006) is offline
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How are you doing billable hours for lawn cutting? 5 minutes or an hour it's still the same amount. Only billable hours you have would be for landscaping.
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  #9  
Old 03-10-2013, 07:23 PM
NC Greenscaper NC Greenscaper is online now
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We average about 80% billable.
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  #10  
Old 03-10-2013, 07:48 PM
fastlane fastlane is offline
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I'am solo. 8 out of 9hrs are billable. I use a box truck so no loading or unloading. 15 min. for fuel every other day.
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