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What to charge and why

Discussion in 'Business Operations' started by NNL&LS, Aug 16, 2006.

  1. NNL&LS

    NNL&LS Banned
    from zone 5
    Messages: 88

    In reading a lot of the posts on this site, I have noticed a number of questions basically asking what people think a good hourly rate is for a particular type of work. This strikes me as a little bit strange. How can you not know what you should charge? Inexperience would be one reason. Another would be not knowing what your time is costing you. This question can easily be solved by asking : what does my equipment cost me.. what does fuel cost me.. what does my property cost me.. basically, what is my overhead, and how fast do i need to pay for it? Add in materials, new equipment, rentals, then labor. Labor? how much is that? well, how much do you need to make? It seems to me that all of these things should be taken into consideration long before even taking or bidding on a job. Additionally, asking other contractors what they charge doesn't seem to make any sense. Their prices are set based on their needs, not yours. You cannot necessarily make money and charge the same as the competition. Just a random rant.
  2. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    Exactly why I crunch numbers continuously...and remind myself of why I am in business.

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