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Hourly Rate

Discussion in 'Landscape Maintenance' started by calvarylandscapegroup, Jul 26, 2010.

  1. calvarylandscapegroup

    calvarylandscapegroup LawnSite Member
    Posts: 43

    Hey everyone i'm an owner of a landscaping company. I've been in business for two yrs now and I was wondering what is the average hourly labor rate for any kind of work I've been charging $40 hr for work is that too low?
  2. NarNar

    NarNar LawnSite Senior Member
    Posts: 489

    I would venture out to say, it depends on your area, and how you view yourself.

    Here we have day laborers with a mower charging $19.95 a cut. They also low ball mulch jobs and lay 1 yard of mulch when it requires 2 yrd.

    Also it depends on if you are licensed (as in lic. landscape architect). At the moment we bill between $40-$60.00 depending on the job, which is fair to our customers here, that's right in the middle. But once he have our lic. our rates will shoot up. Most of our billing is added into the project.

    For example we bill about $65.00 per yard to mulch, that's delivery and install (weeding is extra) and it will be an extra $35 per yard of weeding.

    Hope this helps.
  3. calvarylandscapegroup

    calvarylandscapegroup LawnSite Member
    Posts: 43

    so pretty much i am on the low end of the average man hr rate
  4. NarNar

    NarNar LawnSite Senior Member
    Posts: 489

    I couldn't tell you if your on the low end or high end, becuase your area is differ from my area. My suggestion was to do some groundwork and figure out what the other companies (legit companies) are billing and stay a couple of points below them.
  5. knox gsl

    knox gsl LawnSite Fanatic
    Posts: 5,055

    I estimate $40 per hour on most jobs, and get $80 per yard on mulch delivered and spread, if it needs weeding $40/ hour.
  6. g21

    g21 LawnSite Senior Member
    Posts: 326

    I would really caution you about being influenced by what others are charging.
    Especially on this site. You are going to get everything from $20. to $80. an hour. One of the Core Fundamental parts of building your service business is understanding EXACTLY what it costs you to run your company by the hour. Then, like any business, you add what you consider to be a good profit margin.

    The worst thing you can do is worry about what the rest of your market is charging. If your cost of doing business is $25. an hour and guys in your market are charging $22. Does it matter? No. You can't charge less than $25. or you will be bankrupt. If guys in your market are charging $60. does it matter? No. Why? Because even if you know some guys are charging $60., how do you know what the guys you are bidding against are charging? Are they bidding $60. this time? Why do you care? Know your costs -add a good profit and sell your but off!

    I've worked with so many companies that were so hung up on this that they wasted precious years that they could have been growing. Don't let any outside influences determine your pricing. It's all wrapped around your costs.

    In the event you don't know how to calculate your manhour rate, let me know and I'll send you a link to a video that will help you.

    Good luck.

  7. g21

    g21 LawnSite Senior Member
    Posts: 326

    Oh, and I just wanted to make sure I didn't offend anyone for trying to help you. I didn't mean it that way. Just use it as market research. There are a lot of guys in here that will attempt to help you the best they can.
  8. ajslands

    ajslands LawnSite Silver Member
    Posts: 2,238

    Ya so I like to make about 150$ pr hour.
    Posted via Mobile Device
  9. unkownfl

    unkownfl LawnSite Gold Member
    Posts: 3,838

    Assuming you're solo I would say 40 per hour could be on the higher end of the scale. I current run at 31.08 an hour running solo to operate including my salary of a modest $15 an hour. I add usually around 20% profit margin on top of my bids so it puts me with a bidding hourly rate of 37.30. I figure my mower cost 6.5 per hour on the clock. Assuming I get 2000 hours on it and spend 5k on it thats with buying it at 7k and selling it at 2k so the mower is costing me 5k. That's 2.5 an hour just on replacing the machine the other 4 bucks is maintaining and fuel. I then added 300 for storage and office space 400 in fuel 45 in insurance 100 for round up 400 truck and trailer 200 misc. Misc is for trailer and truck expenses licenses etc. Hope this helps. I just rough balled my expenses for the purpose of this thread but I usually have about the same hours cost every year give or take a few bucks for gas.
  10. ZAQLandscaping

    ZAQLandscaping LawnSite Member
    Posts: 8

    i usually charge $30 an hour per worker.

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