Revenue $'s per hour

Discussion in 'Starting a Lawn Care Business' started by Kawizx62003, Aug 14, 2014.

  1. Kawizx62003

    Kawizx62003 LawnSite Silver Member
    Posts: 2,411

    So when people in the industry say "you should be making around X amount of dollars in revenue per hour", does that mean solo or a crew? Lets pretend the industry average is $100 an hour, gross revenue. (Yes I am using an outrageous number to not let the thread go to a dollar amount argument). Let s say that I am a newbie in a metropolitan area. I want to serve the entire metro area so I start from the beginning doing that to get that brand recognition rolling. I am obviously losing a bit due to the dreaded "windshield time". I know this will improve over time. Anyway, lets say Im only making $75 an hour in gross revenue. Should I be disappointed? Should I assume my pricing is too low? OR by next year when its a crew (2) and I know that will bump up the revenue per hour to $100, thats whats important?



    This boils down to me questioning my pricing. I want to have everything worked out by next year. This season is going great but want to fix as much as I can NOW.
     
  2. xstatikplus

    xstatikplus LawnSite Senior Member
    Posts: 294

    Per man hour....so take you 100$ per hour. If you have 5 bodies on a property that took 1 hour to do the job you would bill for 5 man hours
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  3. Kawizx62003

    Kawizx62003 LawnSite Silver Member
    Posts: 2,411

    Thanks so does that mean if I have a crew of two people in a mowing truck they should be making $200 in revenue per hour? This example is using $100 per hour as industry-standard for an example.
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  4. Kawizx62003

    Kawizx62003 LawnSite Silver Member
    Posts: 2,411

    Really leaning towards mowing in this thread.
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  5. whiffyspark

    whiffyspark LawnSite Fanatic
    Posts: 6,093

    Mowing generally isn't that high. We are at $76 pr man hour

    And yeah you bill for each man pr hr. A lawn that takes 30 mins with two people should be billed at an hour
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  6. whiffyspark

    whiffyspark LawnSite Fanatic
    Posts: 6,093

    I recommend expanding from mowing. Mowing is really the bottom of the barrel and anyone can do it
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  7. kgs1

    kgs1 LawnSite Member
    Posts: 146

    I charge a flat rate for lawn cutting and some clean-ups. My hourly rate is a man hour rate so if I have 2 people on the crew its the man hour rate x 2, 3 people...man hour rate x 3 etc etc.

    You should first figure out what your costs are then you can figure your hourly rate.
     
  8. Dr. Cornwallis

    Dr. Cornwallis LawnSite Senior Member
    Posts: 847

    Yes. And no you shouldn't be disappointed in what your making counting drive time as long as your hitting your targeted gross or slightly exceeding it while on site. Your route isn't going to be as tight when you first start as it should/will be three years down the road. On most of my jobs I'm grossing $50 an hour on site, factor in drive time as my accounts are strung out across town and my gross drops to about $25 an hour. As time goes we will pick up more business in the neighborhoods we service and our gross will rise as our route gets tighter.
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  9. Ditta&Sons

    Ditta&Sons LawnSite Bronze Member
    Posts: 1,494

    well if that dont get your day off right, nothing will:eek::eek::eek::eek:
     
  10. Kawizx62003

    Kawizx62003 LawnSite Silver Member
    Posts: 2,411

    This answer seems to be inline with my question. I understand hourly rates. My question is more of where I should be after drive time. So when in done at the end if the day I take my gross divided by hours from shop to shop. This drops it dramatically. Yes on site I am within industry averages but then it cuts in half almost after drive time. I think it's just for now. Just worries be a little. I'm here to stay and make it. I also disagree respectfully about mowing. I'm doing well with it. I also do other things but mowing will be the bread and butter for now. I'm in a great market and that makes all the difference plus tight routes plus other overhead lowering strategies.
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