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Labor pricing? Help!

Discussion in 'Starting a Lawn Care Business' started by topchoice, Jun 27, 2007.

  1. topchoice

    topchoice LawnSite Member
    Messages: 123

    Alright, here's the scoop. I usually do my business by myself, but have been offered some landscaping jobs that would make life a little easier with two people. My base rate for labor is $40 per hour, if I do the work on my own. What would you guys charge for labor rate when you have two people at the work site. I am a new business and have not gained enough equity to pull the money from the business to pay for my other employee. I have talked with other companies in the area who are small like me and they normally up the labor rate to what that employee would make per hour: for instance- if I would be making $40 and the employee would be making $20 per hour, the labor rate would be $60 per hour. I just want to make sure I do the right thing and not screw over any of my customers or me lose out on any job bids. Any feedback would be great. Thanks for your help ahead of time!!!
  2. ferris_1972

    ferris_1972 LawnSite Member
    Messages: 59

    If I were to price any job I would do it by the job not by the hour. If you are going to do it by the hour then take your rate and multiply it by however many people you have working with you. i.e. 2 men = $80/hour or $40 per man hour.
  3. BQLC

    BQLC LawnSite Senior Member
    Messages: 574

    your labor rate is for each man hour
  4. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    dont forget expenses.... Fuel, and such
  5. fiveoboy01

    fiveoboy01 LawnSite Silver Member
    Messages: 2,988

    Yep. It's not the customer's business what your hourly rate is. Give them a total price and they either accept or they don't.

    There are some jobs I do, that I will do hourly because it's still hard to tell how long it's going to take me. IE, downed trees, cutting them up and hauling. I will tell the customer 45/hour for EACH guy with a chainsaw, plus 60 bucks per load to haul if I don't know for sure it's going to be able to get hauled in one load on my truck/trailer. But, that's a rarity. I usually estimate time and give a price for the job. Once in a while I come up a little short on time, but I've learned to over-estimate time so this doesn't happen.
  6. Stillwater

    Stillwater LawnSite Platinum Member
    Messages: 4,889

    NO NO NO AND NO! what the hell are you chargeing 20 for your other guy for.

    IF your basic labor rate is 40 dollars and you have 2 guys on the job it is 80$ per hr. 3 guys on the job would be 120.00. per hr. I piss my pants every time I read that someone is chargeing their customers less for their laborers, thats totaly ********. continue to do that your business will die on the vine!

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