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Man Hour Pricing

Discussion in 'Lawn Mowing' started by SproulsLawnCare, Jun 20, 2008.

  1. SproulsLawnCare

    SproulsLawnCare LawnSite Senior Member
    from IN
    Posts: 365

    Most of my work so far has been either mowing or other related maintenance, and I simply charged the same rate for man hours that I would to cover the use of the mowers. My theory being that it was the same amount that I would be making if I were mowing instead of doing a manual labor. As my business grows I feel that theory doesn't hold up any more. At the factory that I work at, I found out that they are charging our customers $54 per man hour with a starting wage of appr. $9.00. It seems to me that my business is no less important than theirs, so why shouldn't I do the same?

    Question is, how do you figure/charge for man hours? Obviously there is overhead costs etc., what is your formula for making a profit from your employees man hours?
  2. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    To learn the cost of things, this varies from one job and one machine to the next, I just figured it out over the years.
  3. SpruceLandscape

    SpruceLandscape LawnSite Senior Member
    from ohio
    Posts: 502

    You need to figure out your costs of doing business for each type of service you provide. Work that into your prices along with how much you pay each worker. Then, use that as a guideline and a percentage. Ex: 65% of the job cost is in materials, labor costs, fuel, dump fees, etc., then the remaining 35% goes to your company as "profit". Thats just an example, you need to figure out what kind of percentage as "profit" your company needs to stay in business yet remain competitive in YOUR area. Good luck

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