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Next year I will be a two-man crew, me and one employee (at least to start). I read over the posts regarding hourly rates, but would like something clarified. If I am working towards running the business end eventually, but will do the work for now, should my pricing change for if the crew does or doesn't include me?

Example:

Say I will bill around $50/hr. for myself and $35/hr for my employee. Next year I hire two more employees (run two 2-man crews), and if I keep the same $35/hr, this will be an hourly gross of $70 as opposed to $85. If I have a property that me and employee are doing this year that takes an hour and we get $85, but the other two guys do it next year, does that mean I just make more per hour? Also, if I were in the position of 3 employees, do I bid work if I were going to do the job, or if they were going to do it, if I am still working with one of the employees. Sorry it seems so confusing, I just don't really know how to explain it more easily.
 

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Dave, perhaps it would help if you think of jobs in "manhours" not hours on site.

You do the job by yourself and you spend 1 hour. Then you add an employee and the two of you do the same job in 1/2 hour.(in a perfect world). But you would be spending 1 "manhour".

The rate per hour you charge can then be based on manhours.

Hope this helps.

How you calulate your costs and how much to charge per hour is a whole different subject.
 

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Why would you bill less for an employee?

Does he do less work?

Do as thill says. Take manhours and multiply by your $50 figure, or whatever your going to use.

Don't bill less for employees. This ISN'T a beauty Salon!
 
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