How to find out your per man hour

Discussion in 'Bidding, Estimating and Pricing' started by Elite Lawn Pros, Jun 15, 2019.

  1. OP
    Elite Lawn Pros

    Elite Lawn Pros LawnSite Member
    Messages: 106

    Only reason I broke it down to the Minute was for others to see and hopefully open their eyes. I run 60-65 a man hour and that’s what I estimate off of regardless if it’s just me working, a helper or two because at the end it’s still the same time spent on the property.

    40min yard
    Solo 40min to complete $43.40 I round up.

    2 workers 20ish mins to complete $45
    3 workers 13ish mins to complete $45

    2 workers x 20 mins= 40 minutes ($2.17 per min=$45

    3 workers x 13.33 mins= 40 minutes ($3.25 per min=$45

    No matter how many people you have working it shouldn’t affect your per man hour rate because only overhead and what you want to make per hour(profit) should be in your per man hour.

    You can’t charge the customer more because you decide to bring help because in theory per man would be the same time as 1.

    I can say as for me (And I love math) it blew my mine trying to figure it out because I didn’t know where to put things to come up with specific numbers as to over head and what to charge for profit. I was guessing which was not good for me or the profession and the people I asked online would give pieces of advice but never numbers and break downs.

    I like what he said about getting your man hour and it’s simple.

    Take your overhead, say $6hr and add what you want to make, say $35hr. Don’t be outrageous you have to stay with the market.

    $41 then for taxes divide by 66%(33%ish is taxes)= 62ish per man hour.

    I had an issue coming up with my overhead and what to include, which should be everything it takes to run the business. Simply take your expenses that isn’t directly connected to that job and divide by the number of billable hours you estimate then that figure is your overhead cost per hour.

    It could be
    $12 an hour at 1200 hours
    $6 an hour at 2400 hours.

    Depends on what you work a year and your overhead. Some have very little overhead.

    In the same conversation efficiency is key so you can’t run 200k in equipment and expect to charge double so you can pay for it but you can’t use just a push mower and try to compete with “The big dogs” either lol just a little fun.
  2. La Chandler

    La Chandler LawnSite Member
    Messages: 236

    Annual cost per hour/minute should be updated continually, especially if conditions change, i.e. equipment, repairs, etc. Your accountant should be able to compute this using your actual experience costs, hours worked, etc.

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