Expense cut surprise

Discussion in 'Lawn Mowing' started by tiedeman, Mar 8, 2004.

  1. tiedeman

    tiedeman LawnSite Fanatic
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    Posts: 8,745

    Well, many of you know that i have been going through a lot of expense cutting for the upcoming season. The last major issues that I have left is whether to cut cell phones and accepting credit cards. To cancel my credit card merchant account it will be $250 and to cancel my managers cell phone account it will cost $200.

    My credit card charges are less than that a year, and with the cell phone I would save about $400 per year, but I lose contact with my manager when on a job site.

    So I dug deeper. It was looking at me right in my face. I pay my manager a guarantee pay of 64 hours from the end of March until the end of Novemeber. Basically it means that even if he only works 62 hours, he gets paid 64 hours worth of pay. This comes in very handy for him early in the year, during rainy times, drought times, and at the end of the season.

    I decided to pull my records to see how much I would have saved for not paying him guarantee pay. Well, he collected 119.50 hours of guarantee pay for not working. It totaled approx $1209.63 in gross pay, and $185.07 in social security and medicare taxes.

    I overpaid him about $1,400 in guarantee pay between March and November compared of just paying him for the amount of hours actually worked.

    Well, lets just say we are going to have a meeting today.
     
  2. upsondown

    upsondown LawnSite Senior Member
    Posts: 251




    I'm having trouble understanding this..... Are you saying that your "manager" is only making a little over $10 per hour? Clue me in if my figures are wrong.
    Dave
     
  3. tiedeman

    tiedeman LawnSite Fanatic
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    Posts: 8,745

    how many times have I had to tell people this, where you live it varies on what you pay people. Hopefully this will FINALLY get it through peoples heads.
     
  4. IndyPropertyCare

    IndyPropertyCare LawnSite Member
    Posts: 201

    That is exactly why we dont have " Supervisors"... then they expect a higher $$$ wage. We have team leaders and pay people what they are worth, based on experience and many other attributes. We feel that everyone is a team player and if they are not.... then they are not working for us.
     
  5. upsondown

    upsondown LawnSite Senior Member
    Posts: 251



    I don't mean to ruffle your feathers - I'm simply asking - am I correct - that you pay your "manager" a little over $10 and hour?
     
  6. tiedeman

    tiedeman LawnSite Fanatic
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    Posts: 8,745

    actually, upsondown, last time I checked I am the highest paid employer for LCO's in the area. There are two other places in the city here that only pay managers $7.50 an hour.
     
  7. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    yes, he actually gets paid $11.25 right now. He started out as not a manager early in the season at $9.00, then jumped up to $10.75 in July, then finally $11.25 in September.
     
  8. upsondown

    upsondown LawnSite Senior Member
    Posts: 251

    I never pay my manager's by the hour. They are strictly annual salaried employees. You may want to consider changing from hourly to salaried and see how that works. What kind of benefit package do you offer your employees and manager?
     
  9. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    sorry for sounding like I was jumping down ya
     
  10. upsondown

    upsondown LawnSite Senior Member
    Posts: 251

    no problem - i was just trying to get a feel for your situation and perhaps be able to make some constructive suggestions is all. I know that wages vary greatly in different parts of the country. I wish I could get a $10 and hour employee here - but when a 1 bedroom apartment rents for $725-$1000 a month - there's a fat chance of that happening. I suspect for $1000 a month out your way a person could have a decent place to live. This is one of the benefits of being in a bedroom community for Washington, DC .
     

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