Landscaping & how much to charge for a particular job?
Friday, January 27th, 2012 at
3:47 pm
You are currently browsing comments. If you would like to return to the full story, you can read the full entry here: “Landscaping & how much to charge for a particular job?”.
Tagged with: charge • Landscaping • much • particular
Filed under: Landscaping Design
Like this post? Subscribe to my RSS feed and get loads more!
If someone else has already prepared a plan for the job and made all the decisions for you, then you’re just going to be providing the labor.
I work for a landscape contractor. Because we are in business, there is overhead such as advertising, phones, office rent, accounting, equipment, gasoline, payroll taxes, worker’s comp insurance, liability insurance, etc. Overhead is all above the amount we pay the laborers as an hourly wage. We’re in California, and our laborers make $ 10-$ 14 an hour, gross pay. Plus the owner of the business makes a profit and that’s how he supports his family. Even though he doesn’t do any digging, he does the design work, meets with clients to sell the jobs, manages the foreman and laborers on jobs, and his profit is on the line every day.
When we bid jobs, we calculate $ 50 or more per man-hour on the laborers to make the job profitable for us. Because we work mostly on contract, not hourly, we have to take a hit if we underestimate the amount of time it takes to complete a job.
Depending on where you are located, $ 20-$ 25 per hour would be the absolute minimum for doing this sort of job. Remember that you will have to pay taxes, including Social Security self-employment taxes, on what you charge. The amount I quoted would be only if someone else had made all the decisions and provided you a plan to follow, so that there would be no possibility of call-backs for anything you had to redo on your own time.
It would also have to include that all the materials were being delivered. If you have to pick up materials and take debris to the dump, you’ll probably want to build in something extra to cover gas charges. Most companies now-a-days are making some kind of fuel surcharge rather than raising their rates across the board.
It also sounds like you’re not going to make any money on the materials, you’ll just be reimbursed for the direct costs. So you’re taking a risk by spending your money first and then collecting payment from the client. By you taking that risk and not making any profit on materials markup, then you’re entitled to make some additional profit elsewhere in the job.
So if you think that $ 20 per hour sounds like a lot, it really isn’t when you consider the true costs of being in business.