Labor rate price. ???????????Help!

[velezl]

Hi, I am giving my price quote for a company in Fl. The reason is that i allways price my work in a fixed amount of cost. I dont know haw may $ can i charge per HR. I was thinking $65 and $97 for over time, holly days and emergencies service. If anyone performe this types of quote please i will apreciate your help. Thanks.

 

[Rewire]

Hi, I am giving my price quote for a company in Fl. The reason is that i allways price my work in a fixed amount of cost. I dont know haw may $ can i charge per HR. I was thinking $65 and $97 for over time, holly days and emergencies service. If anyone performe this types of quote please i will apreciate your help. Thanks.

why are you thinking $65.00? Its not a matter of how much you can charge it is a matter of how much you need to charge. Even with flate rate you still need to calculate your hourly rate.

 

[John120/240]

No body but YOU knows what it cost to operate your company. Insurance, wages, tools,

vechile, fuel, cell phone, advertising, the list goes on & on. Your rates sound real low.

 

[cdslotz]

Holly days??????

 

[John120/240]

Holly days??????

Remember Command of the English lanuage is not a requirement to pull wire or run conduit.

 

[Strathead]

I dont know haw may $ can i charge per HR.

You can't charge enough, that is all I know.

 

[kwired]

Overtime is what you pay employees when they exceed regular hours for a pay period. It is not somthing normally directly invoiced to a client by a contractor. Same for holiday pay, sick pay, and vacation pay. What you invoice your clients needs to be high enough to be able to cover paying yourself and/or your employees these benefits.

Charging a different rate for after hours, emergencies, etc. is a different thing. Many will be expecting to pay more for service at those times. Those that don't expect different rate, had better be a good repeat client, and you maybe are charging them a significant rate in the first place, or you have some kind of service agreement that you do get paid extra for whether the service is needed during a particular time period or not (they are essentially paying you extra to be "on call").

 

[stevenje]

Remember Command of the English lanuage is not a requirement to pull wire or run conduit.

If it was, I would have been out of business years ago. Looking back, I sure wish I would have paid more attention to my 8th grade English teacher Mrs. Sybile!

 

[kwired]

If it was, I would have been out of business years ago. Looking back, I sure wish I would have paid more attention to my 8th grade English teacher Mrs. Sybile!

8th grade? Sometimes it isn't that 8th graders don't pay attention to the teacher, they just don't listen to what they say:happyyes:

 

[Fulthrotl]

Hi, I am giving my price quote for a company in Fl. The reason is that i allways price my work in a fixed amount of cost. I dont know haw may $ can i charge per HR. I was thinking $65 and $97 for over time, holly days and emergencies service. If anyone performe this types of quote please i will apreciate your help. Thanks.

http://www.barebonesbiz.com/catalog/how-much-should-i-charge


go read her stuff.
especially the "weekend biz plan".
do the biz plan.
then you will know YOUR number.

i have very low overhead.
my hourly rate, to avoid starving, is double your numbers.
by the time you factor in all the nonproductive labor, you
aren't gonna survive on a billable hourly rate that low...
unless you have a crew working 40 hours a week long term
somewhere.... and you are paying them $22 an hour.

most folks i know doing flat rate are a fair bit higher than i am.

my gas auto mechanic is $85. my diesel mechanic is $115 an hour.

 

[growler]

Hi, I am giving my price quote for a company in Fl. The reason is that i allways price my work in a fixed amount of cost. I dont know haw may $ can i charge per HR. I was thinking $65 and $97 for over time, holly days and emergencies service. If anyone performe this types of quote please i will apreciate your help. Thanks.

Watch out for these companies that want a straight hourly rate quote. They may only want to pay for hours actually at the job site. If you do a 2 hour service call at a job that's 40 miles away and can only bill for 2 hours of labor at $65 an hour it won't even cover the cost.

Make sure that you cover a minimum service call fee to include the cost of travel and then you can give an hourly rate after that.

 

[petersonra]

Hi, I am giving my price quote for a company in Fl. The reason is that i always price my work in a fixed amount of cost. I dont know haw may $ can i charge per HR. I was thinking $65 and $97 for over time, holly days and emergencies service. If anyone performe this types of quote please i will apreciate your help. Thanks.

People will give you all kinds of advice about what to charge. The reality is, you charge whatever the market can bear. There is no fixed number that is "right".

If you have customers that you can reliably depend on for work and actually pay their bill, you can often afford to drop your rates some. If you are grubbing for it a few hours at a time, you really need to charge more.

I guarantee you that if you are charging someone $67 an hour and getting ten hours of work a year out of them 2 or 3 hours at a time, you are losing money on that customer.

you might actually make good money if that same customer is paying you $60 an hour for 2 men 40 hours a week for a year.

the numbers are pretty straightforward. most tradesman cost their employers about 40% of their base pay for fringe benefits and government inspired expenses. on top of that, tradesman only work about 42 weeks a year, but get paid for 52 (vacations, holidays, sick time, training, etc.). So if you pay someone $25/hour, your actual cost per hour is about $35 an hour and after dealing with the almost 25% non-chargable time, you are closer to $45.

You might think a long term gig where you are charging $60 an hour and getting $45 for a couple guys is a heck of a sweet deal. However, by the time you pay a salesman, estimator, supervisor, and trainer (even if those people are all you), that $15 can easily evaporate.

 

[Strathead]

People will give you all kinds of advice about what to charge. The reality is, you charge whatever the market can bear. There is no fixed number that is "right".

If you have customers that you can reliably depend on for work and actually pay their bill, you can often afford to drop your rates some. If you are grubbing for it a few hours at a time, you really need to charge more.

I guarantee you that if you are charging someone $67 an hour and getting ten hours of work a year out of them 2 or 3 hours at a time, you are losing money on that customer.

you might actually make good money if that same customer is paying you $60 an hour for 2 men 40 hours a week for a year.

the numbers are pretty straightforward. most tradesman cost their employers about 40% of their base pay for fringe benefits and government inspired expenses. on top of that, tradesman only work about 42 weeks a year, but get paid for 52 (vacations, holidays, sick time, training, etc.). So if you pay someone $25/hour, your actual cost per hour is about $35 an hour and after dealing with the almost 25% non-chargable time, you are closer to $45.

You might think a long term gig where you are charging $60 an hour and getting $45 for a couple guys is a heck of a sweet deal. However, by the time you pay a salesman, estimator, supervisor, and trainer (even if those people are all you), that $15 can easily evaporate.

And yet, I argue this with my service guy, and he had his girlfriend call around, in Gainesville Florida and most contractors are charging less than the $45 per hour that he is. And he doesn't charge travel. For the record, we have established a poicy that our trucks are 2 man trucks, and I didn't do the calling so, I don't know what they actually asked. It gets to me that he says his labor rate is $90 then amends it with "for two men" I always look at this as $45.00 per manhour, he lokks at a day as 8 hours for $90 for one truck. Drives me batty! I still FIRMLY believe that we can't be making money at this price.

 

[Speshulk]

Remember Command of the English lanuage is not a requirement to pull wire or run conduit.

That may be true, but it definitely IS a requirement when interpreting the NEC.

 

[petersonra]

And yet, I argue this with my service guy, and he had his girlfriend call around, in Gainesville Florida and most contractors are charging less than the $45 per hour that he is. And he doesn't charge travel. For the record, we have established a poicy that our trucks are 2 man trucks, and I didn't do the calling so, I don't know what they actually asked. It gets to me that he says his labor rate is $90 then amends it with "for two men" I always look at this as $45.00 per manhour, he lokks at a day as 8 hours for $90 for one truck. Drives me batty! I still FIRMLY believe that we can't be making money at this price.

I think it is possible to make money at this rate depending on what the two guys are being paid and how many billable hours are involved. If the guys are billing for the whole day, it might be possible to make money, although it seems like it can't be much after paying for the truck.

profit is often found at the margins. a crew that is paid 40 hours per week and bills 38 might well be profitable while the crew that bills 35 might not.

a guy that works 1700 billable hours a year (probably close to average) is not going to be as profitable as one that works 1750 hours, if you are paying them the same amount. In fact the guy that manages an extra 50 billable hours a year for you at the same cost netted you 50X whatever the hourly rate is. Even at $60/hr that is $3000 worth of margin.

This is why business owners get nervous when people are chit chatting (or playing on the Internet) instead of working.

 

[Rewire]

two things I have learned the hard way . First a service truck will only average 4 billable hours a day second a service truck will never produce high profits billing by the hour.

 

[robwire]

two things I have learned the hard way . First a service truck will only average 4 billable hours a day second a service truck will never produce high profits billing by the hour.

Especially when its tipped over in a ditch hmy: hmy: :lol::lol:

 

[Rewire]

Especially when its tipped over in a ditch hmy: hmy: :lol::lol:

That is why you should always carry commercial vehicle insurance .Of course putting the van in the ditch was a much better option than hitting the car that pulled out in front of my guy and probably killing the lady. Alls well that ends well we replaced the van in two days and used the bins from the wrecked van to go in the one ton we had bought a month ago .We came out smelling like a rose . Now I have all four vans on the road and no spare which makes periodic maintenance a scheduling nightmare. After mondays company meeting we have a trip to the jiffy lube for all the vans.

 

[petersonra]

After mondays company meeting we have a trip to the jiffy lube for all the vans.

There is a guy around here that has a mobile vehicle service business. He comes around and does oil changes, tire rotations, belt changes, etc., right on site. Even has weekend and evening hours so no need to take a vehicle out of service for normal maintenance.

Saves a lot of money on paying someone to take the vehicles to the quick lube place and waiting on them and having them out of service when they could be making money.