Originally Posted by
Macka
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