wages

[treehumper]

A simple formula to use is gross revenue/5 or 6 = gross wages

That way the employee can, knowing the revenue on a job and the hours taken to complete it see whether they are producing enough to justify their wage and or a raise.

 

[Starlet]

i think you have a good business sense and everything you comment on is good, i agree with you.

 

[Cameron]

When caculating overall payroll for the week verses gross income, do any of you have a percentage you try to keep payroll to know how profitable your jobs are? Does that make any sense to you guys? I try to keep mine at 20%

 

[HÖLLENREICH]

As low as any can pay you and keep you working, Make sence. DA. Employers are not going to tell yea how much they will pay up to per hour. They will however tell you till they are blue in their face, I never pay any that much to start, no one here makes that much, If I start you the same as some that have been here for years they'll get upset. Blahh Blahh Blahh. they are all the same. Ask what you want, you don't get it, move on someone eles will pay it. Keep in mind papers mean crap compaired to real skill.

 

[Cameron]

Where you been hiding Holly?

 

[rfwoodvt]

Holle's right. Ask for what you consider a fair wage. Whenever I went for a job when I was a programmer I asked lots of questions, backed up my credentials, and told them what I was looking for. More often than not I got what I asked for and when I didn't, I still got more than advertised.

 

[HÖLLENREICH]

[ QUOTE ]
Where you been hiding Holly?

[/ QUOTE ]

I'm tring to help other companies around you get a new crane also.

All kiddin aside, been workin my tail off. Too many long days, no time to buzz.

 

[Cameron]

I hear ya, you no longer at Lou's?

It has been really crazy this year. Seems to be plenty of work out there for everyone.

 

[treehumper]

Cameron, your 20% is right in line with the 5:1 I mentioned earlier. That is a business standard that goes for most industries.

 

[williamd]

If you're the owner, do you include yourself in the payroll? An owner who is on the job/part of the crew vs. the owner who is not.

 

[Paul Biester]

you should be including yourself in payroll to get a true percentage of what your labor costs are.

 

[treehumper]

Paul's right, you definitely need to always reflect a labor cost for whatever you, the owner, does. In this way when you grow your business and need to supplant yourself with an employee there is already a cost built in.

 

[williamd]

I started this thread and am glad I did. The input I've gotten has helped me in trying to change the way I do business. I've been underpricing way too long. I'm sort of starting all over after almost a decade of self employment. I just got a letter from the NJ tree expert society. I'm taking the test for certified tree expert on 7/14. The 3 prep courses were a big help. I've been cracking the books. Also had myself and the crew take first aid and cpr training. And will be looking in the future to further my, (and any crew member's) education and training in this field. The only way to survive while trying to be better compensated is to sell my services on quality/professionalism rather than lowest price.

 

[Jamin_Mayer]

[ QUOTE ]
... I've been underpricing way too long... The only way to survive while trying to be better compensated is to sell my services on quality/professionalism rather than lowest price.

[/ QUOTE ]

I underpriced myself for years for the sake of who knows why

After the light went on, I started communicating what you mention above.

It pays off.