Man hour rating (Job Costing)

Discussion in 'Business Operations' started by Ghopper3345, Dec 31, 2012.

  1. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Messages: 2,764

    Very true statements :clapping:

    The business owner oversees everything from maintenance to books until it become necessary to put other people into those roles.
  2. rbljack

    rbljack LawnSite Senior Member
    from Texas
    Messages: 731

    this is a great discussion that im following closely. I started tracking my numbers a bit closer last year using an excel spreadsheet, so i can start to break down my numbers and see where Im at...and where im going. My resisdential crappy mower broke last season, so i went out and financed a new honda hrc 21 inch mower (most yards i do are smaller) and im very happy with it. Long story made short, at some point, that mower will have to be replaced. So even after its paid for, there still has be a way to replace that mower down the road, so it must be calculated into the man hours cost. Im taking notes yall....LOL.

    Im taking a lot from this posting, so thanks to everyone for their contributions and points of view.

    debt free or paid for equipment does allow you to be more competivite on your prices, but you still have to break down your numbers and determine what your costs are, and from there, determine what you want your profit margin to be based on where you are currently at. interesting..... and makes sense. As time goes by and the buisness grows (hopefully) the numbers game continues, and you must be staged to grow with the buisness and the grass that we mow...LOL.
    Last edited: Jan 3, 2013
  3. Sean Adams

    Sean Adams LawnSite Gold Member
    Messages: 3,597

    It is a great topic and hopefully this thread is read by many - good info @snomaha
  4. cpllawncare

    cpllawncare LawnSite Silver Member
    Messages: 2,659

    I'm currently bidding landscaping jobs at 45/mhr with a 20% markup any subs prices and a 10% markup on materiel handling cost and take the total and add another 10% for uh oh factor so far it's worked out good, we dont get every job we bid but the ones we do get we make decent money. The market here won't really bear much more than that, I've been told on a few occasions we are high but it was a fair bid they just didn't have the budget. I think when you break down your prices within reason for the customer and educate them it makes them feel better about your bidding. I had a phamplet made up about RED FLAGS in the contracting industry and give it to the customer and tell them weather they choose us or not please be careful about the so called "Low price leader" and that great price usually comes with the long term consequence of a poor job. Just today, I was ask to bid on a repair job because the customer got a great deal but can't get in touch with the contractor to fix the poor workmanship he did.
  5. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Messages: 7,961

    Well Some one spank me if I am wrong but Vander Kooi has some good info on mark ups and how to bid work.
  6. lawnpropm

    lawnpropm LawnSite Senior Member
    Messages: 593

    Cant beat free info thats valid and relevant! Lawnsite needs more threads like this...Subscribed
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    GSO LAWNEN4CER LawnSite Senior Member
    from GSO NC
    Messages: 325

    A easy way to think of it is!

    When you grow or expand,the profit level will drop as you expand.But as you expand the profit level will slowly catch back up. This will continue as you grow the business. Its a cycle that ALL business go through,its no way around it.
  8. Charity P.

    Charity P. LawnSite Member
    Messages: 58

  9. Barrett Landscaping

    Barrett Landscaping LawnSite Bronze Member
    Messages: 1,629

    It also depends on what, if any equipment is being used....
  10. chrisvinky

    chrisvinky LawnSite Senior Member
    Messages: 355

    You must have read "The E-Myth"

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