PDA

View Full Version : I need HELP with hourly wages


jklawncare
03-05-2011, 12:19 PM
Hello everyone
the past few years i have been dividing my overall income into percentages and distributing it this way. But if i want to give better bids, become legal and make sense as to how im paying my employees. I want to start paying by hour.

How would i convert this?
This is what i came up with but i think its wrong.

Charge 25$ for a house
mow 4 times a week
thats 100$

takes 15 minutes to mow that lawn
mow 4 times a week
thats an hour

so were all making 25$ an hour? if i divide it even that is..
not sure how this works..

maybe someone can help me
what do you get paid? what do you pay the company? and what do your employees make?

thanks alot

SLPettet
03-05-2011, 12:22 PM
Do you actually mow them 4 times a week or did you mean month??

jklawncare
03-05-2011, 12:24 PM
Do you actually mow them 4 times a week or did you mean month??

haha my mistake 4 times a month (once a week) haaha

jymie
03-05-2011, 02:56 PM
Actually your minimum would be the per hour rate.

jklawncare
03-05-2011, 04:35 PM
Actually your minimum would be the per hour rate.

I'm sorry i dont understand what you mean.

jymie
03-05-2011, 05:09 PM
For each time you do a property, you should have a minimum 1 hour charge that you would charge for that property, whether it takes you 15 minutes or the full hour. If your hourly charge is $25, I would not charge them 1/4 of the hourly charge if I do the lawn in 15 minutes.

jklawncare
03-05-2011, 05:35 PM
The minimum i will go is 20$ per cut (very small houses)
I will most likely average 25-30$ per house

that price will always be constant
i dont time my cuts


but i need to know how to track my hourly wages

i will be working 6 hours a day..for example
I will pay each employee for those 6 hours

but i dont know how to figure the amount i pay them percentage wise to the ammount i pay them hourly

SpokaneSRC
03-05-2011, 06:45 PM
but i dont know how to figure the amount i pay them percentage wise to the ammount i pay them hourly

Can't you just pay them an hourly wage? Why do you need to compare the 2?

jklawncare
03-05-2011, 06:51 PM
Can't you just pay them an hourly wage? Why do you need to compare the 2?

Because i need to be paying them what they were making when i was basing it off of percentages

jymie
03-05-2011, 07:35 PM
I pay my help $10 per hour. That should be sufficient.

SpokaneSRC
03-05-2011, 09:38 PM
Something doesn't make sense. This is your business? You find the customers? Do the advertising? Pay for the gas? And split the income equally?

Simpkins
03-05-2011, 10:56 PM
Yeah, I agree you shouldn't be splitting things equally. You have overhead, they don't. I think $10-$12 per hour is a great wage for helpers.

To answer your question though, "If it takes 15 minutes to mow a lawn and I charge $25, what is that per hour?" (I think that's what you asked) It is $100 per hour.

60 minutes in an hour
divided by the 15 minutes it takes to mow gives you 4
times the amount in question gives you $100.00

If you decide to split down the middle (I really wouldn't) and let's say their are 3 of you splitting, you

take the $100.00 per hour
divided by the amount of people, in this case 3
gives you $33.33 per hour each.

Not only does it not make sense to do it this way, it's harder to figure all the variables. Are you paying your guys "their share" to ride in the truck between jobs? Because you aren't making any money then. Also, each yard will more than likely yield a slightly different per hour rate.

I say make it simple and pay them $10-$12 per hour the whole time they are "on the clock" and you shouldn't have to worry about going in the hole.

jklawncare
03-05-2011, 11:44 PM
I figured everything out already
thanks for all the help

i wasnt plannign on splitting it 4 ways evenly but only using that to make it easier as an example...

if i were to do that though..it would be 1/4 going to me, my 2 employees, and the company.

right now ill be paying my employees 8$ per hour
they are okay with it as am I

im young and so are they so its not like they need more to live..plus alo of bigger companies aroundhere pay there help minimum wage (7.25 here)

then the remainder of the money will be split between me and the company evenly

so say im making 2k a month

they get 400 a month each
i and the company get 600 a month

based off of 20 houses at 25$