what to charge for man hours

[darkstar]

we put a 200 xp chipper on each job, a new holland loader if needed ,chip truck and f700 dump for big wood usually 3 or 4 men 2 climbers and 2 groundies + all tree gear saws etc. what do you all think i should be charging per man hour ...or per 7 hour day with all equipment ? the crew is pretty fast as well . dark

 

[vharrison2]

Dark, I am just glad to know you have the right chipper on the job. Good choice.

 

[treeman82]

What is the price range for your market area? If people are only getting $50 - $60 / man hour, then you aren't going to be able to get $125 / man hr. Do some research on what the market will bear, and what you need to cover your costs, plus put some $ in your pocket, and have some profit left over.

 

[Treeman14]

What are your costs per hour? You HAVE to figure out what your costs are BEFORE you can set a rate to charge. It never ceases to amaze me how many people start a business with absolutely no clue about running a business. Good luck to you, my friend.


After reading my response, I know it sounds callous. But really, how can you run a business if you don't know how much to charge? And how will you know what to charge if you don't know what your costs are?

 

[vharrison2]

Dark, tell us what you are charging now and we will let you know if it is enough and whether it would fly in the area where we live.

 

[darkstar]

vharrison i see you remember i recently bought a new chipper .... very good memory .... i paid 17500 1992 200 + 110 hp perkins with winch [ i love zee winch ] 1400 hours its good ... maybe i paid top $ but i bought form a reliable source ..... anyhow yes i do know the cost of buisness as i pay insurance advertising and maintenaince ...it is a lot i wont talk actual $$$ i just want to know how much should i get for a darn good crew per hour etc.... i pay 100 to 300 a day for my contract labor ......dark

 

[Derag2]

every guy is different......... different places have different rates. unless you can give numbers i doubt your gonna get much answer. add up all your fuel cost for the day, what you pay for your workers add in additional cost for wear and tear on equipment.

I'm no business man nor do i run a business but, We do landscaping and charge 37bucks a man hour just for the guy. To figure up some of the equipment cost i'd check and see what you could rent the machine for and then go with that, a little less or little more incase you ever have a break down and have to rent that machine to cover your butt so you don't lose money.

 

[Treeman14]

Costs plus overhead plus profit.

 

[TreeJunkie]

cover your major costs for the day-fuel-equip-labor-dump fees- and try to put 500-1000 in your own pocket. That should cover insurance, advertising, and all that good stuff. In the end you might get about $10 for beer money!..

 

[Lifesabeach]

My company averages $130 to $200 per hour after Labor and disposal fees. I know a guy that figures his man-hour rate for tree work at $75 per man counting himself as one. With all that equipment (much more than I have) I would say you could charge that.

In Hawaii anyway

 

[TREETX]

General rule is cost x 2 will keep the doors open. Cost x 3 will make a profit. Cost x 4 or more and there is lots of room for growth.

If you don't have at least cost x 2, you need to be staying at home watching Oprah or AS.

 

[vharrison2]

Lifesabeach, welcome to AS. Nice to have someone else from HI.

 

[Lifesabeach]

Thanks, It's great to be here.

I spent some time in florida in "01". Just a few months. Much like Hawaii with all those beautiful women everywhere. Hope you all can make it here for the conference next year I believe.

Aloha

 

[darkstar]

treetx i like you r thinking ..........

 

[stehansen]

On the equpment you should estimate a value for it and figure on costing the equipment over 5 years or so, plus all of your other expenses for it, license, insurance and so forth then put a daily or hourly value on the equipment also with some sort of multiple as suggested by Treetx.

 

[Jim1NZ]

$160 NZD for 4 guys, big truck and chipper

 

[a_lopa]

a big company near me is 3.8k a day 8 guys massive chipper,stump grinders etc.

 

[TimberMcPherson]

Jim, that stinks, who do you work for? I guess its pretty cut throat in tauranga!

 

[arboromega]

[/QUOTE]$160 NZD for 4 guys, big truck and chipper

what does NZD stand for

 

[TimberMcPherson]

New Zealand dollars, so 160nzd is probably around 105 USD (United states dollars)