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why do you rationalize with hourly$$$

Discussion in 'Lawn Mowing' started by bobbygedd, Dec 3, 2004.

  1. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Messages: 10,178

    why is it that you guys are always trying to rationalize your income by breaking it down hourly? ex: " i did a big cleanup, it took 8 hrs. i charged $400. that's $50 an hour...." what makes you even think in terms of hourly income? isn't that for employees?
  2. work_it

    work_it LawnSite Senior Member
    Messages: 976

    To begin, bobby, that's not a very accurate way of assessing ones hourly wages. Need to deduct for equipment, taxes, insurance, fuel, etc... before comming up with an hourly rate. After that it's a good way of keeping yourself in check to make sure you're making enough (net) to not only keep your head above water, but to also pull a profit. After all, the reason for starting a business is to make money (one would hope).
  3. chevyman1

    chevyman1 LawnSite Senior Member
    Messages: 852

    you see Bobby, they break it down by hour, then multiply it by the average working hrs per day, then multiply that per week, then that number by how many weeks a year to figure out how much they are going to gross. :rolleyes:
  4. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Messages: 10,178

    i think that's foolish, it's a mindset, instilled upon you by your first employer.
  5. Steve9

    Steve9 LawnSite Member
    from Texas
    Messages: 228

    Not really. if you had no bills at home or expenses you wouldnt ever need to figure out what you needed to make. You have to have something to measure by. Either hourly, weekly, yearly. Doesnt matter...its just a gauge to tell you wether you should be working at Home Depot or not!!! payup
  6. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Messages: 10,178

    it should be figured seasonally, not hourly. if i cut down a tree, for $800. and the whole job took 8 hrs. that's gross $100 per hr. if that's the only job i do all year, and i apply for a mortgage, i tell them i make $100 an hour? ya huh. you should never try and think of things on a hourly basis. it's a mindset, and a bad one. not to mention, you cannot possibly figure out , in advance, anything on an hourly basis. i think it's just pathetic rationalization by the lawnguy to make himself feel better. ok, got to go now. :waving:
  7. chevyman1

    chevyman1 LawnSite Senior Member
    Messages: 852

    let people do what they want Bobby. You think of it one way, let others think of it theirs...It would be just like everyone telling you fighting with your customers is wrong...oh wait, we do that already! :rolleyes:
  8. dishboy

    dishboy LawnSite Fanatic
    from zone 6
    Messages: 6,117

    BG has the hooks out again, what are you using for bait today?
  9. chevyman1

    chevyman1 LawnSite Senior Member
    Messages: 852

    does he even own a lawn business?
  10. mtdman

    mtdman LawnSite Gold Member
    Messages: 3,143

    Not to fall into one of the bg arguments, but what are you proposing the lawn boy use to figure estimates?

    Like it or not, hourly wages is how the working man is paid. Why? Because every hour I spend working is an hour out of my life. An hour I won't get back. If I'm trading my life, my labor, etc, I am going to trade it for an appropriate wage. I value my life and my labor highly, and using the hour is just a measuring stick for pay. If I am going to spend 8 hours of my life laboring for you, I am going to get compensated accordingly.

    And taking into account that for many of us, this job is not a continual year round job, charging a high enough wage is necessary to get me through the whole year. Yeah, $100 an hour or whatever sounds high. Take out the equipment fees, and figure that that 8 hours is really 16 hours because I only work half a year, and that number comes down significantly.

    And the problem with figuring seasonally, you don't KNOW how much work you are going to do in a season. Just because I do 30 aerations this year, doesn't mean I'm going to do 30 next year. And, if I do more, I want to make more. Figuring hourly allows me to spend more time working and making more.

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