Hourly Manhour rate

Discussion in 'Starting a Lawn Care Business' started by rhino42n, Apr 4, 2008.

  1. rhino42n

    rhino42n LawnSite Member
    Posts: 12

    Hello all, Just a quick question for you. We are getting alot of calls for spring clean ups and want to be sure our hourly rate is competitive. What do you think is a fair price per man hour for cleanups?
    Thanks
     
  2. Wright48

    Wright48 LawnSite Member
    Posts: 242

    Wow hourly rate. You've got alot to learn.
     
  3. rhino42n

    rhino42n LawnSite Member
    Posts: 12

    Why is that?
     
  4. Grott

    Grott LawnSite Member
    from MI
    Posts: 55

    Some simple math with some serious thought.

    First you need to calculate your fixed cost. Insurance, Loan Payments, Equipment replacement budget, and anything else that cost the business money, working or home on the X-Box.

    Calculate a reasonable number of hours you are going to work during the season.

    Divide and round up to a whole dollar. This is your fixed cost per hour.

    Now what are your variable cost? Cost that go up when you work...fuel, labor,payroll tax, ss, unemployment insurance, trimmer line, blades...


    Add variable and fixed these should cover your expenses...now add for profit. What you need per hour to live and save.

    Add the Profit you need / can get. There is your per hour price.

    Here is the tricky part, bid or estimate jobs for yourself in hours, then give the price for the job. If you screw up positive of negative, suck it up and go on to the next job, that's the cost of tuition in the school of real life.

    Good luck

    Grott
     
  5. Whitetail Landscaping  MA

    Whitetail Landscaping MA LawnSite Member
    Posts: 16

    We get $35.00 per hour per man, and thats about in the middle of the road up here.So a 2 hour clean up, with 2 guys is $140.00 and add a dumping fee if you have to take it away. Good luck!
     
  6. Carolina Cuts

    Carolina Cuts LawnSite Bronze Member
    Posts: 1,152

    I read this....
    and translate it to....
    Hi, I'm new to the biz... threw some flyers and advertisements out there and don't know what to do next. Help.


    questions, what is YOUR hourly rate? What does it cost YOUR company to be on site? Sometimes it's not always about being competitive... it's about overhead, what it costs to do business and show a reasonable profit at the end of the day. My hourly rate might be $40/man hr. Joe Shmoes might be $25hr....

    some guys can't afford to drop their gates for less then $50. Others will cut for beer money. How much $ is good for you?

    ps. Yea, I'm pretty blunt. Cause this question gets asked 10x day on here.
     
  7. TNT LawnCare Inc.

    TNT LawnCare Inc. LawnSite Bronze Member
    Posts: 1,157

    If you do a search on this topic,you will find lots of help. If you have lots of overhead,expense. It will be hire. Most charge between $35-$60 a man hour.
     
  8. Slcareco

    Slcareco LawnSite Senior Member
    Posts: 682


    What is an equipment replacement budget???
     
  9. S L C

    S L C LawnSite Senior Member
    Posts: 374

    45-60 per hour... just depends on... :waving:
     
  10. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    pretty much what it sounds like. A budget to plan to save money for replacing equipment It wont last forever.
     

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