please clarify 2-man crew rates....

Discussion in 'Lawn Mowing' started by dave80, Sep 12, 2003.

  1. dave80

    dave80 LawnSite Member
    Posts: 42

    Next year I will be a two-man crew, me and one employee (at least to start). I read over the posts regarding hourly rates, but would like something clarified. If I am working towards running the business end eventually, but will do the work for now, should my pricing change for if the crew does or doesn't include me?

    Example:

    Say I will bill around $50/hr. for myself and $35/hr for my employee. Next year I hire two more employees (run two 2-man crews), and if I keep the same $35/hr, this will be an hourly gross of $70 as opposed to $85. If I have a property that me and employee are doing this year that takes an hour and we get $85, but the other two guys do it next year, does that mean I just make more per hour? Also, if I were in the position of 3 employees, do I bid work if I were going to do the job, or if they were going to do it, if I am still working with one of the employees. Sorry it seems so confusing, I just don't really know how to explain it more easily.
     
  2. thill

    thill LawnSite Member
    Posts: 245

    Dave, perhaps it would help if you think of jobs in "manhours" not hours on site.

    You do the job by yourself and you spend 1 hour. Then you add an employee and the two of you do the same job in 1/2 hour.(in a perfect world). But you would be spending 1 "manhour".

    The rate per hour you charge can then be based on manhours.

    Hope this helps.

    How you calulate your costs and how much to charge per hour is a whole different subject.
     
  3. TLS

    TLS LawnSite Fanatic
    Posts: 7,937

    Why would you bill less for an employee?

    Does he do less work?

    Do as thill says. Take manhours and multiply by your $50 figure, or whatever your going to use.

    Don't bill less for employees. This ISN'T a beauty Salon!
     

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