$1 per minute????

Discussion in 'Bidding, Estimating and Pricing' started by Bo Bob, Sep 25, 2018.

  1. Ohio Landscaper

    Ohio Landscaper LawnSite Member
    Messages: 49

    No, I can answer to it. The OP didn't specifically ask what we charge by man hour. The way the post was worded was essentially "to get the job done" is $1 per minute, which is what I answered.

    I also understand the $47.50 per man hour. That's just not how I do it, like I explained above, because of how I forecast. Each is to their own. :)
     
  2. Mark Oomkes

    Mark Oomkes LawnSite Fanatic
    Messages: 18,111

    Ironically...if it was just HIM, he's losing money because his hourly rate should be $120\hour.

    And that's why rates are per man, not per crew. Same reason if your laborer is running a trimmer one day while you are mowing and the next day you are running the trimmer and he is mowing, the hourly rate is equal.

    Or...when he hires more than one employee (I'm assuming that's it right now) theoretically he's going to be overcharging his customers because his "crew rate" should be $70\hour instead of $95.

    I told myself I wasn't going to go down this rabbit hole...
     
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  3. Tara Ann

    Tara Ann LawnSite Senior Member
    from Midwest
    Messages: 598

    Not an owner, nor do I work in the field (which possibly renders my opinion useless), but I agree with this logic.

    If our owner steps onto the lawn, the price does not go up (although the value of the service goes up for sure). With that being said, if he’s on a property, he’s using it as a training/coaching/correcting opportinity.
     
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  4. Mow-Daddy.com

    Mow-Daddy.com LawnSite Fanatic
    Messages: 5,730

    And by you stating: { I charge $95 per hr} was very impressive.

    And I was a bit confused? Suddenly your name changed halfway through this thread ? I wasn't sure who I was talking to, SouthallMowing?
     
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  5. Ohio Landscaper

    Ohio Landscaper LawnSite Member
    Messages: 49

    I'm not going to show financials on here, or how I forecast because that's not what this post is about, and it would lead to a monstrous rabbit hole that we can get into on another new post.

    I clearly have my business setup in a different way, which is perfectly fine. We all do it differently. I don't overcharge, undercharge, etc. I have every person and other expense listed as a resource. From there, I can bid accordingly. A $1,000 job at your average calculation of $47.50/hr versus my $60 & $35 hr calculation at the end of it is still $1,000. The only difference is I have is a better level of detail on my job cost report. If the client were to ask what's the total labor rate per hour, my answer would be $95, just as yours would be if you did it the $47.50 route. It's all the same, our math to get the same answer is different because I dive down to a more detailed level on my financials. That's it.
     
  6. hal

    hal LawnSite Bronze Member
    from Georgia
    Messages: 1,235

    Another bs thread to get people riled up.... I want to invest in the 500% profit gig, ya that's what I want.
     
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  7. Ohio Landscaper

    Ohio Landscaper LawnSite Member
    Messages: 49


    Yes. Sorry about that. I've been trying to get it changed for weeks and finally found the right person to ask, so they did it a little bit ago. Definitely messed things up a little bit.
     
  8. Mow-Daddy.com

    Mow-Daddy.com LawnSite Fanatic
    Messages: 5,730

    By your logic?

    I bring my car to Bobs Auto repair.
    He has a sign saying
    [ Labor rate $400 per hr]
    I'm like WHAT $400 per hr?
    So Bob has to explain:: well you see we have 4 mechanics and we charge $150 per hr for me, $75 per hr for those 2 guys, and $100 per hr for that guy. But when you add it up, it comes up with $400 per hr .

    My response to Bob would be.
    WHAT ?
     
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  9. Ohio Landscaper

    Ohio Landscaper LawnSite Member
    Messages: 49

    Not in the slightest. I think you overlooked one of my replies, but i'll say it again. quite frankly, you need to go re-read this whole thread. You're missing a large chunk of it.

    My minimum is $95 per hour. This gets two guys. Usually myself and one other. IF I need to add more people for whatever reason, like a the client wants a 2 day job done in a single day, the rate increases $35 per additional person. Like in my most recent reply:

    Let me say it again for the fourth time now, my base rate for a job is $95 for two people. If the job is going to require more people, let the client know that each additional person on the job is an additional $35 per hour. I have a high level of detail on the internal reporting side and a very simple $95 rate on the external level. What's not clear about this?

    It wasn't Mow-Daddy, but someone else took what I said out of context. While talking about the net profit everyone gets (another BS topic that I figured I'd dive into for giggles) I said " Some jobs may only yield 25% while others yield 500%" Smaller, recurring jobs usually net less profit because they're recurring, whereas there's some jobs that you have nothing invested in but the gas to get you there and you yield a massive net profit.

    It was a simple statement that got blown up, like t
     
  10. JMK26

    JMK26 LawnSite Fanatic
    Male, from Missouri
    Messages: 10,283

    If the business needs to make $XX.xx per man hour to function why would you work out different hourly rates for each individual working?

    The business needs to be fed $XX an hour to live. It doesn't matter how it is bringing that $XX a man hour. That doesn't change based on experience or lack of experience of each employee or their role in the company. Their personal pay will be higher or lower, but to feed the business that $XX.xx per man hour needs to be met or you're losing money.

    The business needs $60 a man hour to make a good profit and pay all expenses. Let's say I charge $80 an hour for me. I charge $40 an hour for no experience guy. I charge $50 an hour for experienced guy. All 3 of us are on the job so what you're saying is I'm making $170 an hour which technically I am BUT the business needs to be making $180 an hour with 3 people to live but it's only making $170 an hour.... $56.66 a man hour is actually what you're making....so you're losing just under $4 an hour.
     
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