Figuring out your Hourly rate on things other than maintenance.

Discussion in 'Lawn Mowing' started by outsideimage1, Feb 9, 2005.

  1. outsideimage1

    outsideimage1 LawnSite Member
    Messages: 14

    Hey guys...just a quick question to all of you in the business. How did you go about finding your hourly rate for things other than maintenance accounts? I have been in the business for a number of years but have just recently started my own company and would really like to know how you go about figuring out your hourly rate on things like small installs, etc. Thanks in advance for your help.
  2. LB1234

    LB1234 LawnSite Gold Member
    Messages: 3,208

    Generally speaking, I deal with two hourly rates. One is a falt labor rate. Just the laborer and a shovel, rake etc. The second rate is one with equipment...i.e. hedge trimmers, chainsaw, brush hog, etc.

    In order to figure your hourly rate you need to figure out what ALL of your expenses are. From phone bills to insurance. By figuring out your expenses you can come up with a base rate that will cover (provided you estimated correctly) your expenses. On top of this number you need to add in your desired profit.
  3. ed2hess

    ed2hess LawnSite Fanatic
    Messages: 14,694

    About 10% of our income is from things other than lawn maintenance. For a starter point we used the same hourly rate as mowing. When the installs get in the $1K range you can generally double the cost of product(plants/dirt/sod) and come out ok. The landscape guys triple the cost...obviously it depends on competition and how much work you want or have. I don't want another guy making money off my customers so we bid those low.
  4. yamadooski

    yamadooski LawnSite Senior Member
    Messages: 434

    I think you will get different answers for other parts of the country.
    If Im not grossing $75.00 per hour working solo Im doing something wrong.
    I base my manual labor at 75.00 hr too.
    If the customer has a problem with it I tell them I make 75.00 hr mowing and would much rather do that than manual labor.

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