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Thread: Hourly rate increase

  1. #16
    Senior Member Scooby Steve's Avatar
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    Default Re: Hourly rate increase

    Quote Originally Posted by jd View Post
    With wage growth at an all time low and household debt an all time high, you've got to pick your mark. I work in a range of suburbs in Melbourne and i think it's horse's for courses. I generally increase by $5 every couple of years. And the apparently wealthier clients tend to be more averse to the increase than the 'average' client.
    You've also got to keep your head above water. A lot of contractors in Melbourne atm especially the newer ones are charging under market rates, how long will they last doing that. One good drought and half my competition is gone. They are working on volume and that's getting them through once that volume stops like say in a drought what happens then they are screwed. If you are at market rates a 3 to 5% yearly rise barely raises an eyebrow. I betcha your mower shop puts his/hers prices up this spring, i'd say your nearest tip will too.

  2. #17
    Senior Member kakegc's Avatar
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    Default Re: Hourly rate increase

    Quote Originally Posted by Scooby Steve View Post
    You've also got to keep your head above water. A lot of contractors in Melbourne atm especially the newer ones are charging under market rates, how long will they last doing that. One good drought and half my competition is gone. They are working on volume and that's getting them through once that volume stops like say in a drought what happens then they are screwed. If you are at market rates a 3 to 5% yearly rise barely raises an eyebrow. I betcha your mower shop puts his/hers prices up this spring, i'd say your nearest tip will too.
    Red: I've addressed this before in the low ballers thread. They come & screw with the market, then they're gone, back to the warm comfort of a job with a boss, complete failures as contractors. There are also those whose spouse works & unwittingly subsidise their partner's very poor efforts at being self employed. One guy even told me that he's so busy & always has work, but he doesn't make any money! You simply cannot fix stupid.

    Yellow: agreed, I use 4% as my yardstick!

    Green: my local dump increases their price each July, I'm not shy in telling customers the price they charge me to dump.

  3. #18
    Senior Member Scooby Steve's Avatar
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    Default Re: Hourly rate increase

    Quote Originally Posted by kakegc View Post
    Red: I've addressed this before in the low ballers thread. They come & screw with the market, then they're gone, back to the warm comfort of a job with a boss, complete failures as contractors. There are also those whose spouse works & unwittingly subsidise their partner's very poor efforts at being self employed. One guy even told me that he's so busy & always has work, but he doesn't make any money! You simply cannot fix stupid.

    Yellow: agreed, I use 4% as my yardstick!

    Green: my local dump increases their price each July, I'm not shy in telling customers the price they charge me to dump.
    Well said Kakegc.....especially this bit.......You simply cannot fix stupid......gold mate gold.

  4. #19
    Junior Member Cut'n Ya Grass's Avatar
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    Default Re: Hourly rate increase

    Hi Scooby Steve, I am a new contractor based in the City of Monash. I was hoping to get $70 per hour when using equipment and $50-60 without. I get it sometimes but mostly people expect to pay $45-50. I know that it might not be desirable to share our rates, but is $60 per hour really easily achievable? I certainly believe that it is what we should be earning - that and more!
    Out there giving it my best shot

  5. #20
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    Default Re: Hourly rate increase

    Never quote per hour always quote per job,people will pay a $100 for a job that will take you an hour but they won't pay you $100 p/h

    I did a job last week expected to take about 2 hours I quoted $180 it took just over an hour if it had taken 3 hours I still would have made $60 p/h
    P.S. It does help when you are thinking I would like some time off so don't care if I get the job or not
    Anything Ian says may or may not be garbage, it may also be his own opinion or it may not be his opinion at all, it may just be something he felt like stating anyone following his advice does so at their own risk and may be doing something Ian would actually advise against.
    And if you don't like what Ian has to say use the ignore function if you don't know how ask i will gladly tell you

  6. #21
    Senior Member BSD's Avatar
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    Default Re: Hourly rate increase

    $45 per small regular job, 1 off crap, try for the hundred bucks.

  7. #22
    Junior Member Cut'n Ya Grass's Avatar
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    Default Re: Hourly rate increase

    Very good points Ian. Thank you.
    Out there giving it my best shot

  8. #23
    Junior Member Cut'n Ya Grass's Avatar
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    Default Re: Hourly rate increase

    Thanks BSD, I did that yesterday and got $120 for a job that I think will be a one-off. :-)
    Out there giving it my best shot

  9. #24
    Member Victoria jal2007's Avatar
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    Default Re: Hourly rate increase

    We did slashing job in Glen Waverley on 1 Mar for $250 which only took 35min.

    WhatsApp Image 2018-03-01 at 13.28.59 (1).jpg
    WhatsApp Image 2018-03-01 at 13.28.58.jpg

  10. #25
    Senior Member BeetleJuice's Avatar
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    Default Re: Hourly rate increase

    Lets say for example we are going to charge $60per hour lawn mowing as a guide on how we are going to quote jobs in a certain area.
    So you take on a job for $30 and it takes you 30 minutes,you stand there talking to the customer at completion and get paid.
    Started job 10am turn vehicle key to leave 10.40am.Drive to next job and start at 10.55am..
    So how much was made during that hour.??. $30
    This can go on like this most of the day,realistically no where near $60 per hour.Get a job that takes 90 minutes = $90.
    So for those out there living and working smaller yards will never make the same money $60 per hour to those working elsewhere with the bigger jobs..

  11. #26
    Member Macka's Avatar
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    Default Re: Hourly rate increase

    $30 - $40 a hour is a good starting point for all solo beginners, they will get work and referral work because of there rate, and a chance to learn. They will make a more when they are working more efficient.

  12. #27
    Senior Member BSD's Avatar
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    Default Re: Hourly rate increase

    Quote Originally Posted by Macka View Post
    $30 - $40 a hour is a good starting point for all solo beginners, they will get work and referral work because of there rate, and a chance to learn. They will make a more when they are working more efficient.
    Exactly, I just moved down the South Coast NSW and will have to kick off again .

  13. #28
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    Default Re: Hourly rate increase

    Quote Originally Posted by jal2007 View Post
    We did slashing job in Glen Waverley on 1 Mar for $250 which only took 35min.
    Well looks like I won't be getting the $350 I quoted















    Just joking
    Anything Ian says may or may not be garbage, it may also be his own opinion or it may not be his opinion at all, it may just be something he felt like stating anyone following his advice does so at their own risk and may be doing something Ian would actually advise against.
    And if you don't like what Ian has to say use the ignore function if you don't know how ask i will gladly tell you

  14. #29
    Member Victoria jal2007's Avatar
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    Default Re: Hourly rate increase

    Quote Originally Posted by ian View Post
    Well looks like I won't be getting the $350 I quoted















    Just joking
    probably next time i should increase to $400

  15. #30
    Senior Member BeetleJuice's Avatar
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    Default Re: Hourly rate increase

    Quote Originally Posted by Macka View Post
    $30 - $40 a hour is a good starting point for all solo beginners, they will get work and referral work because of there rate, and a chance to learn. They will make a more when they are working more efficient.
    $30 - $40 a hour is a good starting point for all solo beginners,
    I know guys which have been in the business for many years and working new housing developments which all have small yards all there jobs are going to be 20-30 mins working at that $1.00 per minute,no point trying to raise the $ rate as you'll get dropped and replace because that's all those suburbs are paying.

    The only way they can work more efficiently is when there is no customer to talk too and the jobs are only minutes apart,but reading on this forum long term contractors who run a round that's 50kl's long i hate to think what that hourly rate is like.

    I call bull$hit to some of these dollar rates being thrown around on forums as it's not possible to achieve in every round Australia wide..Why.. Because not every round is the same.

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