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Thread: What your Profit Per Hour over 12 months ?

  1. #1
    Member Macka's Avatar
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    Default What your Profit Per Hour over 12 months ?

    What you charge per hour means nothing, its the Profit per hour you make over the year. Charge out rates of $60 p/h & $90 p/h are the same.

    Some high ballers make a small profit per hour, charging high rates but with very high expenses and high downtime.
    And some low ballers are raking in the profit per hour, with very little expenses and downtime

    one operator may do jobs for $60 p/h another $90 p/h, and both making the same money.

    Operator 1# charges $60 p/h for $39 Profit per hour
    25 % Annual expenses.
    15 % Annual down time "Non chargeable activities" travel, maintenance, book work, quotes etc.
    $60 for a 1 hour job
    15 % Annual down time is 69 Minutes for the $60 = $52 per hour Gross.
    Less 25 % expenses = $39 Profit per hour

    Operator 2# charges $90 p/h for $40 Profit per hour
    40 % Annual expenses.
    35 % Annual down time "Non chargeable activities" travel, maintenance, book work, quotes etc.
    $90 for a 1 hour job
    35 % Annual down time is 81 min for the $90 = $66 per Hour Gross
    Less 40 % expenses = $ 40 Profit per hour

  2. #2
    MEMBER Fred's mowing's Avatar
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    Default Re: What your Profit Per Hour over 12 months ?

    Why does the guy who charges a higher rate have more expenses ?

    Cheers Fred.

  3. #3

    Default Re: What your Profit Per Hour over 12 months ?

    Quote Originally Posted by Macka View Post
    What you charge per hour means nothing, its the Profit per hour you make over the year. Charge out rates of $60 p/h & $90 p/h are the same.

    Some high ballers make a small profit per hour, charging high rates but with very high expenses and high downtime.
    And some low ballers are raking in the profit per hour, with very little expenses and downtime

    one operator may do jobs for $60 p/h another $90 p/h, and both making the same money.

    Operator 1# charges $60 p/h for $39 Profit per hour
    25 % Annual expenses.
    15 % Annual down time "Non chargeable activities" travel, maintenance, book work, quotes etc.
    $60 for a 1 hour job
    15 % Annual down time is 69 Minutes for the $60 = $52 per hour Gross.
    Less 25 % expenses = $39 Profit per hour

    Operator 2# charges $90 p/h for $40 Profit per hour
    40 % Annual expenses.
    35 % Annual down time "Non chargeable activities" travel, maintenance, book work, quotes etc.
    $90 for a 1 hour job
    35 % Annual down time is 81 min for the $90 = $66 per Hour Gross
    Less 40 % expenses = $ 40 Profit per hour
    It means something to me
    Profit at the end of the day, week, month, year is dependent on what I charge, how quick I get the work done and how I control my expenses.

  4. #4
    Member Macka's Avatar
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    Default Re: What your Profit Per Hour over 12 months ?

    Quote Originally Posted by Fred's mowing View Post
    Why does the guy who charges a higher rate have more expenses ?

    Cheers Fred.
    Just examples of different operators, to show the charge out rate isn't the key to focus on. some operator are less and more than those %'s

    It Would be many reasons, contributing to it.

    May Drive's more km's to many Suburbs, more vehicle wear and tear, plus more down time. Operator 1# may do 80km a week with a vehicle a fuel bill of $20 and Operator 2# may do 500km a week with a vehicle a fuel bill of $125

    May pay full price shop prices for original parts and also pay for services and repairs on equipment and vehicle.

    may own equipment that the parts are expensive or doesn't last as long.

    May catch grass a lot and pay tips fee's everyday, plus adding more down time.

    May have even spent $55,000 on Equipment or even got a loan for it all and paying interest. $10,000 on a trailer, $25,000 on a ute, $15,000 for a ride on, $5,000 on other equipment

    May pay more for a book keeper or higher accountant fee's.

    Has a fix Minimum rate and wont discount to get multiple lawns in a row, so travels further to more individual jobs. More fuel and more down time

  5. #5
    Senior Member GardeningSolutions's Avatar
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    Default Re: What your Profit Per Hour over 12 months ?

    Too many variables.
    Only way to work out your'e actual hourly rate for the day or week is to divide income by hours minus expense percentage. It'll give you an idea.
    This doesn't allow for GST. Each day will be different as for example weedspray and add on sales. Weedspray can make $30 for 10 minutes. Do a few of those and it'll markedly change the take home hourly rate.

  6. #6
    Senior Member sterlo's Avatar
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    Default Re: What your Profit Per Hour over 12 months ?

    Quote Originally Posted by Fred's mowing View Post
    Why does the guy who charges a higher rate have more expenses ?

    Cheers Fred.
    haha he doesn't have to...but I hope the guy with actual higher expenses charges a higher rate ;-)
    I spend most of my money on beer and horses, I just waste the rest....


    http://www.sterlinggardenservices.com/

  7. #7
    Senior Member sterlo's Avatar
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    Default Re: What your Profit Per Hour over 12 months ?

    Quote Originally Posted by Macka View Post
    What you charge per hour means nothing, its the Profit per hour you make over the year. Charge out rates of $60 p/h & $90 p/h are the same.

    Some high ballers make a small profit per hour, charging high rates but with very high expenses and high downtime.
    And some low ballers are raking in the profit per hour, with very little expenses and downtime

    one operator may do jobs for $60 p/h another $90 p/h, and both making the same money.

    Operator 1# charges $60 p/h for $39 Profit per hour
    25 % Annual expenses.
    15 % Annual down time "Non chargeable activities" travel, maintenance, book work, quotes etc.
    $60 for a 1 hour job
    15 % Annual down time is 69 Minutes for the $60 = $52 per hour Gross.
    Less 25 % expenses = $39 Profit per hour

    Operator 2# charges $90 p/h for $40 Profit per hour
    40 % Annual expenses.
    35 % Annual down time "Non chargeable activities" travel, maintenance, book work, quotes etc.
    $90 for a 1 hour job
    35 % Annual down time is 81 min for the $90 = $66 per Hour Gross
    Less 40 % expenses = $ 40 Profit per hour

    not quite sure what point you are trying to make here dude....but ill throw u a bone anyways, your hourly rate would inc all of the things u have *****ed about.
    I know for a fact I'm way overs on my local rates....its not due to overheads, it includes them but doesn't dictate them. I charge plenty because I'm reliable and do nice work.
    I spend most of my money on beer and horses, I just waste the rest....


    http://www.sterlinggardenservices.com/

  8. #8
    Senior Member 4 Gardens's Avatar
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    Default Re: What your Profit Per Hour over 12 months ?

    Its about making enough $$ in the year to live the lifestyle you want

    The smarter ones amongst us will make what they want to and do it with less hours and less effort

  9. #9
    Senior Member geoff's Avatar
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    Default Re: What your Profit Per Hour over 12 months ?

    yep have to agree to this ...there are certain give me in life... regular check up with the doc including blood test ( us old buggars can have some underling issues but if you dont know it will bite you big time ..lucky i am ok so far )..work smarter not harder ... and take no notice other than yourself and the mrs of what you want to earn....lifestyle is the thing we strive for everyone has a different outlook of what it should be ...i know what we want and need and work to that very goal....

  10. #10
    MEMBER Fred's mowing's Avatar
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    Default Re: What your Profit Per Hour over 12 months ?

    Quote Originally Posted by Macka View Post
    What you charge per hour means nothing, its the Profit per hour you make over the year. Charge out rates of $60 p/h & $90 p/h are the same.

    Some high ballers make a small profit per hour, charging high rates but with very high expenses and high downtime.
    And some low ballers are raking in the profit per hour, with very little expenses and downtime

    one operator may do jobs for $60 p/h another $90 p/h, and both making the same money.

    How about operate

    Operator 1# charges $60 p/h for $39 Profit per hour
    25 % Annual expenses.
    15 % Annual down time "Non chargeable activities" travel, maintenance, book work, quotes etc.
    $60 for a 1 hour job
    15 % Annual down time is 69 Minutes for the $60 = $52 per hour Gross.
    Less 25 % expenses = $39 Profit per hour

    Operator 2# charges $90 p/h for $40 Profit per hour
    40 % Annual expenses.
    35 % Annual down time "Non chargeable activities" travel, maintenance, book work, quotes etc.
    $90 for a 1 hour job
    35 % Annual down time is 81 min for the $90 = $66 per Hour Gross
    Less 40 % expenses = $ 40 Profit per hour
    How about operator 3, he charges like operator 2 but, has less expenses/down time than operator 1 ?

    Cheers Fred.

  11. #11
    Member Redeye's Avatar
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    Default Re: What your Profit Per Hour over 12 months ?

    l think you meant to post this on the other forum.......




    http://curraronggardening.com/

    "All sin is washed away in the Holy goodness of Beer"
    Book of Redeye, Psalm 69

  12. #12
    Senior Member geoff's Avatar
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    Default Re: What your Profit Per Hour over 12 months ?

    Quote Originally Posted by Redeye View Post
    l think you meant to post this on the other forum.......
    yep thats why I've have check ups ...memory loss hahahahah good one redeye...

  13. #13

    Talking Re: What your Profit Per Hour over 12 months ?

    Quote Originally Posted by Redeye View Post
    l think you meant to post this on the other forum.......
    No, lets share it with the world!!!

  14. #14
    Senior Member RSM-Gazza's Avatar
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    Default Re: What your Profit Per Hour over 12 months ?

    The trick is to have other other avenues generating profit far beyond what the Honda SP, 42inch deck and Husky battery gear can generate. Will leave that thought planted.
    Cheers Garry

  15. #15
    Member Macka's Avatar
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    Default Re: What your Profit Per Hour over 12 months ?

    Quote Originally Posted by Redeye View Post
    l think you meant to post this on the other forum.......
    haven't got access and cant contact admin the inbox is full, happy for it to be moved to private section.

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