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Discussion in 'General Industry Discussions' started by stuie, Feb 11, 2006.

  1. stuie

    stuie LawnSite Member
    Messages: 206

    Ok here the quiz Try your best to work it out as quickly and correctly as possible.....

    Stuart employs two people so there are three people doing work on your property.
    Stuart and his crew are on your property doing the work you requested at an hourly rate for 2 hours each.

    Here is the question how many total work hours does this equate to?????
    Does the customer pay more for 3 people on their property for a total of 6 hours or one person for 6 hours?:confused:

    I give up, i really do especially when they want me only on their property so they do not have to pay so much because it costs less for one person than 3:dizzy: :dizzy: :dizzy: :dizzy: :dizzy: :dizzy:
    Its not the first time ive heard this!:gunsfirin :gunsfirin
  2. mtdman

    mtdman LawnSite Gold Member
    Messages: 3,143

    Don't give them hourly rates, just a single price. When they know hourly rates they try to cut corners on you and get by cheaper.
  3. Mr. Vern

    Mr. Vern LawnSite Senior Member
    Messages: 632

    You really should tell them fine. It has been proven time and again that the synergy gained through teamwork makes you more efficient. At an hourly rate, the less efficient you are, the more you make. They've done studies that have shown that 2 horses that can pull 1000 lbs each when hitched together were able to pull in excess of 2000 pounds. I forget the exact numbers, but the increased efficiency is significant. It can easily make the difference between making a profit or absorbing a loss. Now obviously you need to have enough work to avoid the point of diminishing returns, but I would let the customer know that you are actually more efficient with a crew than by yourself
  4. sheshovel

    sheshovel LawnSite Fanatic
    Messages: 5,112

    Stuie..They are paying for your crew to work 6hrs
    Stop giving an hourly rate...You will love the difference!
  5. Gatewayuser

    Gatewayuser LawnSite Bronze Member
    Messages: 1,765

    Bingo I stopped giving a per hour price for this year its just not worth the headache.
  6. procut

    procut LawnSite Bronze Member
    Messages: 1,852

    Never been a fan of charging hourly, only have done it once that I can remember.
  7. emil35

    emil35 LawnSite Member
    Messages: 213

    What about on jobs that you don't know how long it will take (clean ups, etc.)? My experience has been that at leadt in my area, if you give a set price that's say a couple hundred bucks, rather then just the hourly rate, I lose the job becasue the customer thinks it costs too much. Just my 2 cents...but I'm still learning so let me know
  8. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    Oh I get the crap too thou, even without the hourly rate here's what I get:

    I quote 35 dollars for 1/4 acre and BLAM less than 30 minutes later it is done and they're all wide-eyed... Some of them are...
    The rest start up with this 'well gee that's just outrageous you charging 35 dollars for what... you ain't been here TEN minutes!! they tell me...

    So it really doesn't matter if you tell them the rate or not, for one. And for those who insist that you tell them, just say 60 / hour with a straight face, and they soon stop asking after that.

    But I just look at them and say I have a capable machine cuts about 6 times faster than a regular pushmower, so if I had a pushmower then it would take 2 hours at 20 dollars / hour would it be more reasonable if it cost 40?

    Most gladly pay me after that.

    Maybe with the employees, I find this tactic helpful:
    I find with helpers the work gets done faster because we help pump each other up psychologically (in the head) and when all 6 of us are busting tail, it's hard to slack off for the fear of looking like a lazy boy. It would've likely took me all day to get this done by myself, would've cost 400 dollars / day or thereabouts, but the 6 of us done in an hour, 60 / hour, 360 it comes to.

    And now they pay you gladly, too.
  9. The Cowboy

    The Cowboy LawnSite Senior Member
    Messages: 617

    I do hourly charges whenever I am unsure of how long the job will take, That way I ensure I will make a profit no matter what. Jobs that I have experience in, I quote one price. I choose not to box myself into one way of doing business.

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