[KevinKriha]

Hey guys I have recently started my own buisness about 45 min. south of the Twin Cities in MN. I have been bidding a few jobs and the clients don't seem to be questioning my price when bidding labor only. I've been charging about $60 an hour and then adding about 25% overall on the bid for a profit margin for the company and to cover the overhead of running my buisness. I am woundering if I setting myself up to be known as the guy low-balling all the other landscapers in my area or are my labor prices fair or could I possibly go higher. Just woundering if some of the guys around here could let me know where I stand or if they are charging more per hour. Any help would be appreciated. Thanks.

[GLAN]

If you are consistently doing and getting that..........I'd say you are doing GREAT....

Can't get where I am.........some hit and miss jobs we can come in with those kind of numbers. Some aspects within a job we can get numbers like that as well.

Come to think of it........that hourly rate we can get close to on side work and just about anything other than weekly maintenance.......the 25% additional I would be dreaming...

That is the only thing I have yet to do is break down the extras work and keep a detailed break down of hours on, materials and so on.......Not so easy for some days.

Take yesterday for example..........I had my crew broken down from 1 crew in the morning......to 2 crews from mid morning to just past lunch.......then 3 crews for a couple hours.......then back to one crew. This is also my typical Saturday during the spring. I am running back and forth from job to job......Setting them up, coordinating the men and materials.

[TrickyDick]

$60/hr is like the kind of money that bikini lawn mower woman gets....if you can get that consistently for labor, without wearing a bikini, you are doing pretty well. You say you're just starting out so I wouldn't expect that to last but if the work keeps coming than good for you.

If we could get 60/hr for all our labor I'd be retired in five years. We don't charge anywhere near that (for general labor) and we tend to be on the higher side around here. We can hire a sub driving a ten wheeler for less than that.

[KevinKriha]

Maybe I should be a little more clear. Right now I am only a 1 man operation. If I were to hire general labor I don't think I would charge much over $25 to $30 per hour, depending on their abilities, knowlege, and duties within the company, but as for myself I thought $60 per hour may be reasonable, being that I am the guy that is supposed to have the answers for my clients and gaurantee the work I do for them. the $60 is before taxes, social security, medicare, and what not. The 25% markup on labor I figure will cover the cost of doing business, allow for money so my business can expand and obtain needed equipment in the future, and also give it a little cushion for any unforseen problems like maintance on equipment. Plus I figure if the business is not going to make a profit and only pay me a wage to live on. I might as well forget about all the headaches of running a business and go get employed somewhere. So as a wage for a single person business doing the work himself, $60 per hour fair, low, or way to high? I just want to make sure I am not going to end up getting a bad reputaion either as a low-baller by competitors or as over-priced idiot by customers. What are soe of you charging out for yourselves per hour. Thanks for the responses so far and any further responses would be appreciated.

[Malrex]

I'll bite.

I'm just starting out myself, 1 man operation. I'm sorta playing around with wages too. I charge $30 an hour for labor...I split that 30$ an hour, giving myself 15$ and my business 15$. If I am building ponds, then I will charge 35$ an hour.

I have very little overhead, and trying to save up for a dump trailer and bed edger. I believe other companies around me are charging 30-35$ for labor as well...not that this info is too important to me as it doesn't deal with how my business operates. Next year, I'll probably bump up my wage to 20$ an hour. I want a nice blanket to cover myself if I run into a snag in the beginning. So far, my system has been working nicely (although would like a better wage for myself), but I plan to analyze it after my first year (after taxes, buying essential equipment, etc.).

In my opinion, 60$ an hour sounds a little high, unless you are specialized in something, for example a certified pond builder, etc. But if its working for you, then that's great!

[AZTLANLC]

When I work by myself I can make around that figure cause I know I'm 100% efficient, much less windshield time, not guys standing around, etc. etc.
Not trying bash anyone here Malrex but if I'm going to work for 15 or 20 dls per hour I would rather work for another company and make that or more with benefits.

You'll also find out that the more workers you have the less your actual hourly rate you get.
In my best days I can get $40 per man hour but most of the times is 33-35 and that still works good for me.

Most of the times you make more per hour working solo so I think your hourly rate is not overpriced for a one man operation even if you don't have a certificate of any kind most people care about the quality of your work not a piece of paper.

The way I see it is this I know that by myself and the equipment I have I can finish a 200sqf patio easy access, regular patter in 25 hours but since I have to bring my crew
that estimate would have to be 40 man hours so I would charge for labor 1600 ($40 man hours times $40) now I can still charge the same amount by myself and make a little over $60 an hour, hope you get my point.