# breakdown of your hourly rate

Discussion in 'Lawn Mowing' started by grassmasterswilson, May 2, 2011.

1. ### grassmasterswilsonLawnSite Platinum Memberfrom ncPosts: 4,548

Anyone care to share their hourly rate break down? From what I can figure out mine is 20% profit, 50% labor, and 30% equipment expense. I am anticipating a 2 man crew with me included in that labor percentage. Sound about right?

2. ### vencopsLawnSite Bronze Memberfrom NCPosts: 1,537

I don't do it that way.

I figure what I need to make for the year.....less expenses.....and divide by wks I'll work......divided by how many hours/wk I plan to work to arrive at my LCO-type work hourly rate (which is different from my main bus. hourly rate).

LCO work is about 20% of my business plan. If I don't fill the allotted hours.....that's on me. So far - So Good. I have all the LCO work I can do (in the time I've allotted for such).

3. ### Southern PrideLawnSite Bronze Memberfrom MemphisPosts: 1,382

I have never even actually broken down my hourly rate into % of profit and if someone could give me a formula. I'm guessing you take the total amount and what you brought in and figure it to what % is profit and do the same with labor. Just unsure the equation for figuring percentages lol

4. ### topsitesLawnSite Fanaticfrom Richmond VirginiaPosts: 21,653

I take all the money my customers give me.

5. ### Southern PrideLawnSite Bronze Memberfrom MemphisPosts: 1,382

lol I want to figure my percentages but all I know is it's guuuuud!

6. ### orlawncaresvcLawnSite Senior Memberfrom Fresno, CaPosts: 962

Here is an example of how we usally do it.
Formula for 6hrs of work=5guysx\$35hr/ea=\$175x6hrs=\$1050x4weeks=\$4,200
Formula for 6hrs of work=5guysx\$10hr/ea=\$50x6hrs=\$300x4weeks=\$1,200

7. ### grassmasterswilsonLawnSite Platinum Memberfrom ncPosts: 4,548

thanks guys. I've done very well for a solo guy in the business. Now i'm thinking of adding a full time guy. I also just got engaged and will need to provide for my family. I'm trying to do the math and see if I can afford a second guy at the same price rate I am now.

8. ### ALC-GregHLawnSite Fanaticfrom PAPosts: 7,053

Nothing will really change. You just need more work to compensate for the added expense of a employee.

9. ### ed2hessLawnSite Fanaticfrom Austin Texas 78727Posts: 13,190

The answer to that question is likely NO.....your profit margin is going to go down when you add a second person,