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Math Question

Discussion in 'Introduce Yourself to the Community' started by Chevy05, Dec 18, 2005.

  1. Chevy05

    Chevy05 Member
    Messages: 78

    Question... How do you Mathematicaly caculate your rate per hour?

    Im confused.

    Thanks Ryan
  2. FianoLawn

    FianoLawn Junior Member
    Messages: 10

    Most peoples calculations are probably different. Is this a part time gig for you or is this your winter income?
  3. Chevy05

    Chevy05 Member
    Messages: 78

    well right now it's Part time but next winter i would like to have it be full time

    Thanks Ryan
  4. cja1987

    cja1987 PlowSite.com Addict
    Messages: 1,407

    Depends on what you want to know, are you trying to figure out how much you will need to make an hour to cover your overhead expenses plus whatever profit you want to make? In that case, you need to know or have a good idea how long each account is going to take you to plow then add those times togather, then you need to find out how much you need to make over x amount of hours that it takes you per storm.

    If your plowing driveways and not charging an hourly rate but simply want to find out how much your making an hour then you just take the amount of money you made say its $1,500 and divide it by the amount of hours you were out, we'll say 10 hours: 1,500/10= $150 per hour.

    If that was not your question, be more specific, I can elaborate and Iam sure others can too.
  5. FianoLawn

    FianoLawn Junior Member
    Messages: 10

    If it's just part time work it should rather easy for you to figure. When it becomes a business it is a totally different story. First you have to figure out your hourly expenses(wages, gas/diesel, truck, insurance, etc.). Once you figure out what it cost you to run for one hour, is where you start you upcharge for your service. Keep in mind that the more snow the longer your going to plow(If it takes you 1 hour to do lotX with 3 inches of snow, it's going to take alot longer to do lotX with 6 inches of snow). Also keep in mind if this is part time, and you are working another job NOT TO LEAVE YOUR CUSTOMERS UNATTENDED!!!!!! IF YOU WANT START A BUSINESS THE LAST THING YOU WANT IS ANGRY CUSTOMERS.
  6. Dwan

    Dwan Senior Member
    Messages: 879

    "Amount you want to charge" times "time on job" equals "amount to bill customer"
  7. Chevy05

    Chevy05 Member
    Messages: 78

    Thanks for all the help!! Basicly what im tyring to do is figuring out prices , what to charge(How much)per inch, push seasonal, are there any good books out there?

    Again thanks for the help..

  8. SnowGuy73

    SnowGuy73 PlowSite Fanatic
    Messages: 24,870

    As long as you cover all your costs, your making money. :)
  9. Dwan

    Dwan Senior Member
    Messages: 879

    But it would also be nice to make enough to have your business prosper and for you to also make a wage.
    The profit should be figured after all the bills are paid, you pay yourself a wage and enough money is put away to cover unexped costs, plus a retirement program for you. otherwise you should be working for someone else. I see so many small business out there that just provide a job for the owner but do not charge enough to make money for the business. You and the business both need to make money.
  10. TLS

    TLS PlowSite.com Addict
    Messages: 1,425

    Seeing how most contractors PAY $60-$80/hr for a plow truck sub, you should figure on charging at least double those figures if you plan on carrying the contract, insurance, and responsibility yourself.

    So, start out around $120 and go up from there. Never reveal your hourly price to the customer unless the contract stipulates as such.