breakdown of your hourly rate

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

  1. grassmasterswilson

    grassmasterswilson LawnSite Platinum Member
    from nc
    Posts: 4,537

    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. vencops

    vencops LawnSite Bronze Member
    from NC
    Posts: 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 Pride

    Southern Pride LawnSite Bronze Member
    from Memphis
    Posts: 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. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    I take all the money my customers give me.
     
  5. Southern Pride

    Southern Pride LawnSite Bronze Member
    from Memphis
    Posts: 1,382

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

    orlawncaresvc LawnSite Senior Member
    Posts: 961

    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. grassmasterswilson

    grassmasterswilson LawnSite Platinum Member
    from nc
    Posts: 4,537

    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-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Posts: 7,053

    Nothing will really change. You just need more work to compensate for the added expense of a employee.
     
  9. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,141

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

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