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mwalz

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Discussion starter · #1 ·
Have this bid to do. Going with 3 guys. They are only getting paid $9/ hour each. I am going to give myself what works to be $37/hour. Grand total of $55/man hour.

I am doing this job in the St. Louis county area but feel like it might be a bit low. Costs are very minimal because of the type of job, I'm talking only $40 or so for gas in the truck and blowers.

It's a huge cleanup job and a dumpster will be rented for it because it's cheaper than paying to dump the stuff. Expecting 8 hours or work. so I put in 9 on price just in case something will take longer than expected(it always seems to).

Just double checking my price. Should i be worth more for myself?

I know my expenses, and right now, are minimal, i almost feel like i deserve more for myself though.

Thanks for your input
 
Discussion starter · #3 ·
So are you bidding 55 per hour or 165? Around here for three guys people bill out between 90 and 200 per hour
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$55/hour for all 3. I'm estimating 8 hours but it could always take less. but my guys i'm paying are costing me just the $9/hour too. Like i said there is basically no overhead but gas and of course dump.
 
Discussion starter · #4 ·
2 other guys other than me if i wasn't clear before
 
Depending on ability and equipment on hand I would say that you should be minimum of $80/hour but really should ask for at least $100. Personally I would want $120-$150 for 3 guys/hour on cleanups.
 
$55/hour for all 3. I'm estimating 8 hours but it could always take less. but my guys i'm paying are costing me just the $9/hour too. Like i said there is basically no overhead but gas and of course dump.
If your running a legit company, every job has overhead. COGS or the cost of doing business. You need to learn what yours are. Say you figure your COST not price is 20 per hour. That cost is fixed and will not change whether you are pulling weeds or cutting down a Forest. These are you basic fixed cost for the year divided by estimated man hours worked to come up with a cost per man hour
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Discussion starter · #8 ·
Well....I don't have insurance and all that Yet...this year I will be but haven't got it yet and I need to get on it, I'll re figure some prices tomorrow and check everything again.

I don't have workers comp and all that either. Basically it's "under the table" money.

I know what you all are saying. I usually get around $30/hour mowing around here.

I knew a bigger company around here who did more work for the same amount of money and they had 4-5 guys doing it.

But in all reality I don't think it will take 8 hours I just am unsure because of things that come up at job site. But if it took 4 hours I then would be up at $110/ man hour.
 
Well....I don't have insurance and all that Yet...this year I will be but haven't got it yet and I need to get on it, I'll re figure some prices tomorrow and check everything again.

I don't have workers comp and all that either. Basically it's "under the table" money.

I know what you all are saying. I usually get around $30/hour mowing around here.

I knew a bigger company around here who did more work for the same amount of money and they had 4-5 guys doing it.

But in all reality I don't think it will take 8 hours I just am unsure because of things that come up at job site. But if it took 4 hours I then would be up at $110/ man hour.
O boy STL has rules City inspector going catch you If he doesnt you have a accident Say good buy Mowing business
you going wish you had the Ins. Do you even have a City Business License
 
wow no insurance?! if one of your guys cuts off his leg with a chainsaw he will flat out own you, your house, your truck and anything else he can get his hands on. what if there is a little kid walking by with his mom and one of your guys is trimming and a rock flies into the kids eye? (this HAS happened before too) I am simply trying to tell you get liability insurance, get workers comp too, don't roll the dice, it only takes one time and that will haunt and follow you the rest of your life.

as for price, I agree with the other guys you have to know your costs. I wouldn't charge less then $90 for 3 guys but that's me. Don't forget to add the cost of fuel.
 
Min $40 to 45 per man. Thats lowwwww. 50 to 60 is average per man...

If they dont pay they dont play. Let them sweat and do it.

Charge as u r supposed to and hello you can afford insurance. Its not worth hurting someone.
Get licensed
Get bonded
Get insured
 
Go to your insurance person tell them you want liability insurance for your lawn service now. Most plans let you pay monthly. Less than $100 bucks a month. Now grab your 2 guys and go to a local worker labor force( rent a worker) have them sign up there now you pay their wages to the work force place plus an extra percentage. Work force does taxes, SSI, workers comp etc. And legally they are nolonger your employees and they now have instant coverage should something happen to them. It's only fair to have them covered if they got hurt they don't have pay out of pocket. It's about being fair to your workers. Then you budget your work to cover these expenses.
 
wow no insurance?! if one of your guys cuts off his leg with a chainsaw he will flat out own you, your house, your truck and anything else he can get his hands on. what if there is a little kid walking by with his mom and one of your guys is trimming and a rock flies into the kids eye? (this HAS happened before too) I am simply trying to tell you get liability insurance, get workers comp too, don't roll the dice, it only takes one time and that will haunt and follow you the rest of your life.

as for price, I agree with the other guys you have to know your costs. I wouldn't charge less then $90 for 3 guys but that's me. Don't forget to add the cost of fuel.
I definitely agree with this^^^.

Another concern is, that you could be driving down the road with the help in your truck and someone could run a red light, slam into the side of your vehicle. The other driver's (who caused the accident) insurance company and your insurance company would fight any claim you or your helpers put in for medical coverage, because you are operating outside the law. You would be personally responsible.

Also man hours refers to the cost per man. Your charge of $55 is $18.33 per man hour. $55 divided by 3 = $18.33

You need to raise the amount you charge and incorporate your insurance cost into your overhead, if you are going to hire people.

Once work stops or you fire someone there is nothing stopping your help from filling an un-employment claim (which you should be paying into) against you also.
 
Discussion starter · #17 ·
I am aware of the insurance stuff, liability, licensing, all that.

I was just looking for advice on working with me and 2 other guys on pricing. The cost I have figured for what I currently have going. The workers are actually friends of mine because the job came up fast and he wants the bid fast. Not that it makes any difference.

I'm going to try and get insurance at least this week or next week when I have time.

I understand the risks, I'm trying to get more organized with everything being my 2nd real year of doing it. All of the sudden the past weeks I am feeling overwhelmed because of everything that is involved.

Thanks for the replies, sorry if I came out being a jerk about anything.
 
Not at all. You are not being a jerk. And hopefully you don't think we are jerks. We are just saying if customer puts something out on bid, it means he would rather pay someone to do it for him. For what ever reason. And you then are providing a VALUABLE service to that person. You need to charge enough to cover all those cost, even if you don't have those costs yet. Cause you will and they need to be covered.
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I just meant you should be careful saying on a public forum that you are paying workers "under the table." Do things right (insurance, workers comp, taxes, licenses, insurance, etc.) and price accordingly.
 
I don't see you being a jerk, you are just asking questions and there is nothing wrong with that. I thought of something else you may want to look into, staffing agencies can run all that stuff (insurance, payroll, taxes, workers comp, etc) for your guys too, at least one of them up here does that (can't think of the name at the moment). You will pay a higher hourly but it saves you the headache and stress of having to do all that too, then just add that into your price.

anyway, good luck.
 
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