Quick labor pricing question

Discussion in 'Lawn Mowing' started by nobagger, Mar 24, 2005.

  1. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    I now am to the piont where I have to hire on some help for bigger jobs and was wondering how to charge the customer, and please no smart a$$ answers, thank you. Here goes- say our hourly rate is $30.00/hr and we have 3 guys on one job, would you charge $90.00 to the customer (and not that you would tell the customer your charging them $90.00/hr) or do you have some price break after so many employees. Thanks for your input.
     
  2. Jpocket

    Jpocket LawnSite Silver Member
    Posts: 2,278

    Then it would be $30 "Per man Hour". then yea $90 per hour but it will take less time. I would try to get alittle more for your guys so you can put more in your pocket. Maybe $45 per man hour. No Break these guys are still costing you the same amount.
     
  3. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    Thanks Jpocket thats what I was thinking but I have never had to price other employees, this is a good thing though. Thanks again
     
  4. lawncarepros2004

    lawncarepros2004 LawnSite Member
    Posts: 153

    1 guy=$35/hr
    2 guys=$45/hr
    3 guys=$60/hr
     
  5. dexpress

    dexpress LawnSite Member
    Posts: 24

    Lawncarepro

    Why are you giving them a 33% discount for 3 people? This is plain crazy.
     
  6. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    you will never know what it really costs to have an employee, UNTIL you start doing it RIGHT. $30 an hour is below poverty level! you will die at those prices.
     
  7. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    This also must be the greed site as well. Has anyone ever heard that quote- "pigs get fat and hogs get slaughtered"? I'm priced in the middle lower end of pricing in my area, so don't tell me what I should be charging. I have ONE mower payment of $156.00/mo. and that is it so I have very low overhead everything else is paid for, and yes some of it is older but it works like new and produces very good results. I'm not driving a brand new F-250 but next week my 94 F150 will look brand new after painting it and lettering it. You hear in here of a lot companies having this new something and that new something and even some with all new somethings all I can say is I would hate (or like) to see their debt to income ratio and the monthly payment. The cost of living is varies so much depending on where you live that bobbygedd's comment has no weight in this thread.
     
  8. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    Oh one more thing bobby I never said this was my rate per hour, I said "lets say" look before you leap next time.
     
  9. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,842

    Don't listen to LawnCarePro2004. That's some of the worst advice I've ever seen here on Lawnsite.

    1 guy $35, 2 guys $45????? Heck, even at a low hourly rate (e.g. $7.00 an hour) it's gonna cost you more than $10 per hour for that extra employee. You figure in matching taxes, worker's comp., uniforms, insurance, just to name a few. The list goes on too.

    You need to always charge the same hourly rate for each man. Like jpocket said, "per man hour" is how you put it. That's normal for this industry and most any client understands that.

    I have anywhere from 5-13 employees depending on the time of the year and we do 3/4 million in annual sales. And I'll tell you right now it's hard enough to make good money with several employees even when you are charging the same hourly rate for every worker. But If I were to start running my business as LawnCarePro2004 suggested, I'd last about 15 days before I went bankrupt.
     
  10. northwest lawn

    northwest lawn LawnSite Member
    Posts: 196

    stick to the $30.00 per man hour thats what i charge most companies in NW ohio charge around $42.00 per man hour
     

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