Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Business > Lawn Care Employees Discussions

Lawn Care Employees Discussions Discussions on lawn care employee related issues.

What percentage of labor payout is acceptable?


Lawn Care Employees Discussions

Discussions on lawn care employee related issues.
Reply
 
Thread Tools Search this Thread
  #1  
Old 10-08-2009, 10:55 PM
llelywynn
Guest
 
Posts: n/a
Default What percentage of labor payout is acceptable?

I was wondering what percentage of labor is others paying out.It seems that my payout is around 20 to 25 % for 1 person helping me,and around 33 to 40% for 2 persons. Is this normal for others?
Paul
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 10-09-2009, 03:13 AM
picframer's Avatar
picframer picframer is offline
Andy
 
Join Date: Jan 2009
Location: Halifax, Nova Scotia
Posts: 2,885
Rep Power: 11
picframer will become famous soon enough
Default

Lawn care business tipsLawn Care Business Book
Quote:
Originally Posted by llelywynn View Post
I was wondering what percentage of labor is others paying out.It seems that my payout is around 20 to 25 % for 1 person helping me,and around 33 to 40% for 2 persons. Is this normal for others?
Paul
Depends....

General Labor person i.e. trimmer, blower, edger other duties as assigned 25%

Mower 35% this person in my company is generally a driver also

Loader/excavator operator - 35%

Keep in mind this is our average, I have quoted some jobs a flat rate for say a drain install and my labor costs have been as low as 18%, others I made a mistake on and my cost rose to as high as 62%
__________________
Andy
Halifax, Nova Scotia
Reply With Quote
  #3  
Old 10-09-2009, 06:22 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 37,925
Rep Power: 10
Steve has disabled reputation
Default

Quote:
General Labor person i.e. trimmer, blower, edger other duties as assigned 25%

Mower 35% this person in my company is generally a driver also
So let's say for instance a home owner is charged $100 to mow their lawn. $25 would go to a general labor person and then $35 would go to a 2nd staff member that would mow and drive?

So out of that $100, ($35 + $25) would go for labor? Or $60 which would be 60%?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #4  
Old 10-09-2009, 02:42 PM
llelywynn
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by Steve View Post
So let's say for instance a home owner is charged $100 to mow their lawn. $25 would go to a general labor person and then $35 would go to a 2nd staff member that would mow and drive?

So out of that $100, ($35 + $25) would go for labor? Or $60 which would be 60%?
I think it would be ok if the "driver/mower" was yourself,but 60% is way too much
Reply With Quote
  #5  
Old 11-03-2009, 01:55 PM
jasonw's Avatar
jasonw jasonw is offline
Senior Member
 
Join Date: Feb 2009
Posts: 1,010
Rep Power: 9
jasonw is on a distinguished road
Default

I try to shoot for 19% but generally its higher, around 30-40%. This is only because I am lazy and hire help that I don't need for small jobs that don't require the help. I would say if it gets over %19 then do the job yourself and don't pay labor. If they are large jobs that require labor either find cheaper labor or raise your bids.
__________________
White Company
Reply With Quote
  #6  
Old 03-17-2010, 09:11 PM
manicuretouch manicuretouch is offline
Junior Member
 
Join Date: Mar 2010
Posts: 2
Rep Power: 7
manicuretouch is on a distinguished road
Default

I new to this forum. So, you are paying a % of the job instead of an hourly wage? If so, have you all found this method better than hourly and why?
Reply With Quote
  #7  
Old 03-18-2010, 03:36 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 37,925
Rep Power: 10
Steve has disabled reputation
Default

You could go either way.

I would think you might need to have a base salary because your employees would probably quit if they weren't getting at least a minimum salary they could depend on per week.

A % is great if you are trying to get them to work harder, better, faster!

I have yet to see a standard % that has seem to work across the board for everyone.

Are you leaning towards one over the other?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #8  
Old 03-19-2010, 08:35 AM
manicuretouch manicuretouch is offline
Junior Member
 
Join Date: Mar 2010
Posts: 2
Rep Power: 7
manicuretouch is on a distinguished road
Default

Quote:
Originally Posted by Steve View Post
You could go either way.

I would think you might need to have a base salary because your employees would probably quit if they weren't getting at least a minimum salary they could depend on per week.

A % is great if you are trying to get them to work harder, better, faster!

I have yet to see a standard % that has seem to work across the board for everyone.

Are you leaning towards one over the other?
I'm leaning toward a percentage for exactly what you said - being more efficient. We don't have any full-time employees (except me) so a minimum salary isn't an issue right now. I've been checking around for what other companies use for percentages. I'd be interested to know if other companies are doing this and using what %.
Reply With Quote
  #9  
Old 03-19-2010, 06:39 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 37,925
Rep Power: 10
Steve has disabled reputation
Default

I had gotten a few articles up in my blog about this in the past and there is much discussion here in older posts. Look for employee compensation and read some of the articles here

http://lawnchat.com/?cat=83

Let me know if any of that helps.
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
subcontracting labor? jasonw Starting a lawn care business. 7 09-02-2009 07:00 PM
Labor Pay Saddlewood Lawn Care Employees Discussions 15 02-23-2009 08:39 AM
What percentage of your estimates do you win? Steve Online Lawn Care Estimator - Help me bid this job 6 07-23-2008 07:51 PM
Labor spreadsheet grounded General Business Discussions 0 08-19-2007 07:48 AM
Percentage of Gross tiedeman Truck, Trailer, and Outdoor Power Equipment Discussion, Repairs. 5 12-20-2006 01:33 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
How to tell Cust. to...
GeeGood
04-09-2008 09:55 PM
Yesterday 02:45 PM
by JJand M Lawncare
13 5,198
Did this job free to...
JJand M Lawncare
Yesterday 02:33 PM
Yesterday 02:33 PM
by JJand M Lawncare
0 18
Correct way to quote a...
WarriorLandscapingCAN
Yesterday 11:52 AM
Yesterday 11:52 AM
by WarriorLandscapingCAN
0 20
Having an issue with...
Mr. Mow
04-27-2016 03:58 PM
04-28-2016 05:04 AM
by Sprinkler Buddy
2 112
Hello From Virginia
JJand M Lawncare
04-25-2016 01:02 PM
04-27-2016 05:20 PM
by Steve
5 141
knowledge is Key
Greg'slawnandlandscape
04-23-2016 02:23 AM
04-25-2016 02:40 PM
by Steve
2 129
Hello from Calgary
Freshcut
04-22-2016 06:10 PM
04-25-2016 02:38 PM
by Steve
1 120
Echo Bed Redefiner...
NPM_LLC
04-12-2016 10:54 AM
04-22-2016 06:15 PM
by Freshcut
4 320
Has anyone done a garden?
Brian3137
03-28-2016 10:42 AM
04-22-2016 04:42 PM
by biglee
13 9,761
What would you charge?
markty
04-18-2016 03:28 PM
04-22-2016 09:01 AM
by chris2500hd
6 285
Replaced Mower Engine
Sprinkler Buddy
04-15-2016 06:21 AM
04-19-2016 11:03 AM
by Sprinkler Buddy
6 263
Hello from Oklahoma
Ron Hall
03-24-2016 06:59 PM
04-16-2016 03:51 AM
by Ron Hall
9 9,472
Laying down some stripes
MATTNAPIER89
04-11-2016 09:55 PM
04-14-2016 11:55 PM
by Steve
3 339
Find out what business...
MATTNAPIER89
04-11-2016 09:58 PM
04-13-2016 12:32 PM
by MATTNAPIER89
2 290
Hello my name is Matt
MATTNAPIER89
04-11-2016 09:46 PM
04-13-2016 12:58 AM
by Steve
1 238
How to drop some...
nickeckes
04-11-2016 01:07 AM
04-12-2016 05:22 PM
by Steve
4 317
Trash Receptacle for a...
tannerduncan
04-12-2016 05:02 PM
04-12-2016 05:19 PM
by Steve
1 221
Small Project Lawn
tannerduncan
03-31-2016 08:21 PM
04-12-2016 05:16 PM
by Steve
7 9,346
Please Help! Bidding...
Dorali
02-15-2016 12:02 PM
04-06-2016 01:08 AM
by Steve
36 13,062
Hello
pbcleff
04-05-2016 07:45 PM
04-06-2016 12:35 AM
by Steve
1 408
Hello
llewelwa
03-18-2016 12:47 AM
04-05-2016 12:14 AM
by Steve
3 9,344
Poop and Scooping
llewelwa
04-01-2016 05:48 PM
04-05-2016 12:08 AM
by Steve
1 9,125
help with sole...
greenbuds
03-24-2016 12:21 PM
04-04-2016 05:33 PM
by WarriorLandscapingCAN
2 9,291
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 10:37 AM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 10:37 AM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy