Quick Question about Lawn care calculator

[MJK]

It ask you how much you wanna make per Hour- I say 45 It ask you How many other workers beside you are working- i say 1 It asks you avg. hourly wage of wokers? is that your 45 an hour and the cost of the employee? I'm paying them 12 cash. so that avgs out to be about 28 an hour? Is this what they mean or i'm i doing it wrong? Thanks for all the help. Marc

[Steve]

Lawn care business tips

Originally Posted by [b Quote[/b] ]I'm paying them 12 cash. so that avgs out to be about 28 an hour? Can you explain more how it avgs out to be $28 per hour?

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[MJK]

I took 45 dollars an hour that i wanna make and the 12 dollars an hour my helper makes and added them together and then divided by two and it equaled out to be 28.5

[Steve]

Oh I see what you did.

Well just from what you are saying if you want to make $45 an hour and you have a helper for which you want to make an additional $12 dollars an hour to cover them, you would bill $57 an hour.

I know this topic is old, but you want to make $45 per man hour. Since you have a helper then you should be billing $90 per hour. You don't want to just add his cost to your $45 hour goal because not all of his payroll will be billable (drive time, etc), plus why would you want to provide a laborer to cut hours with no gain to yourself.

Don't forget that it probably cost you more money to obtained enough work to keep your helper busy (advertising, time giving bids, etc.), so why give him away at cost. You might as well just do half the amount of work and work solo.

Bottom line is when looking at a job determine how many man hours it will take. Remember that with 2 guys working each hour is really 2 hours, then charge $45 an hour plus materials and any other direct cost related to the job. So if you looking at a job and saying you and your helper can do it in 5 hours then is reality you are working 10 man hours. That would be $450 pls cost.

Your paying a pretty good wage for only charging $45 per man hour. A good rule of thumb is that each employee should generate 6 times their hourly pay to cover their total cost to you and bring in a decent net income off of them. A worker will cost you more then their hourly wage. It's like having an extra person living in your house, they use more resources, plus you have things like WC, unemployment etc.

[MJK]

Thanks for the help. I appreciate it.