On Farm Service Labor Rate

[Son of Butch]

Mileage rate: $3.00 mile
3 stops in same day 40 miles, 80 miles and 120 miles
$3 x 40 = $120
80 = $240
120 = $360

Should the true distance driven be charged?
or double dip because you can and charge each as though you went back to the shop between each stop?
Of course you grab the wind fall effectively getting $6 rate, equivalent to $453,940 yr pay rate for your driving time
vs breakeven.

 

[callmefence]

Mileage rate: $3.00 mile
3 stops in same day 40 miles, 80 miles and 120 miles
$3 x 40 = $120
80 = $240
120 = $360

Should the true distance driven be charged?
or double dip because you can and charge each as though you went back to the shop between each stop?
Of course you grab the wind fall effectively getting $6 rate, equivalent to $453,940 yr pay rate for your driving time
vs breakeven.

Three corn dryers emergency calls spaced along the same route every work day for a year make that math work.

 

[ddd75]

i don't need to change the oil, grease all fittings, fill the tank, wash and wax my equipment to use it for 1 use. Gov. isn't going to take much and insurance is cheap. Labor is pretty cheap on jobs like that as well > I can hire a guy for 20 bucks a day to work all day loading all the tree while I cut it.

i'm not saying he's making 100% profit but its not like he has a 800 dollar bill on a 1000 dollar job.

Actually it's probably not far off that.
You have to maintain and purchase equipment to use it everyday. You also have to keep employees busy everyday.
If I don't have fence to build. I hemorrhage 700.00 a day keeping my guys busy and that's taking my wife off the clock.
Fwiw 20.00 will barely cover the SS and Medi on three employees. And don't forget if you or your 20.00 employee makes a mistake you have to pay for it. Go to your day job and take a look around and think about if you had to pay for everything.

I do work for myself and I do have lots of equipment to maintain.

I've built fence before too, I pull up with 70k+ in equipment to build a fence. it's not cheap. I pull up with my bulldoze to get a building pad prepped. 3500 for 6 hours of work but I have 80k in equipment sitting there.

It's not cheap, it's not easy.

 

[Son of Butch]

$2.25 mileage = breakeven paying driver $15 hour (School bus drivers locally get $14.50 hr carrying precious lives)
$2.50 mileage rate is equivalent to being paid at a rate of $66,200 per year for driving time.
$3.00 mile is equivalent to pay rate of $113,485 after expenses.

Your wrong on this one..
3.00 per mile is pretty standard rate... loaded miles. And it's not just labor.
And a school bus driver does not have to pay for the bus , the fuel, the maintenance or the insurance....

Yes, $2.50 - $4.00 per loaded mile is pretty much standard here too, with $3 the most common.
Just pointing out travel time has already been well compensated.
Service truck/vans charging $3.50 mile tick me off (I'm old and remember when a Buck a loaded mile was standard)

Of course the Bus driver doesn't pay for bus ect.....
those expenses are already strongly covered at $1.975 mile in the $2.25 loaded mile breakeven rate.
I was just pointing out I even included $15 hr for driver in calculating breakeven of 2.25

True breakeven is even lower than $2.25 per loaded mile.


p.s.
Many spend 20 - 60+ minutes daily traveling to and from work on their own dime for less than $36 hr jobs.
240 miles @ 75 cents mile cost of owning and operating a service van/truck = $180
$3 x 120 miles = 360 - 180 = $180
240 miles at 48 mph = 5 hrs 180 div by 5 = $36 hr

p.p.s.s.
For service work/repairs... do you recommend a 15% tip too?

 

[callmefence]

$2.25 mileage = breakeven paying driver $15 hour (School bus drivers locally get $14.50 hr carrying precious lives)
$2.50 mileage rate is equivalent to being paid at a rate of $66,200 per year for driving time.
$3.00 mile is equivalent to pay rate of $113,485 after expenses.

Your wrong on this one..
3.00 per mile is pretty standard rate... loaded miles. And it's not just labor.
And a school bus driver does not have to pay for the bus , the fuel, the maintenance or the insurance....

Yes, $2.50 - $4.00 per loaded mile is pretty much standard here too, with $3 the most common.
Just pointing out travel time has already been well compensated.
Service truck/vans charging $3.50 mile tick me off (I'm old and remember when a Buck a loaded mile was standard)

Of course the Bus driver doesn't pay for bus ect.....
those expenses are already strongly covered at $1.975 mile in the $2.25 loaded mile breakeven rate.
I was just pointing out I even included $15 hr for driver in calculating breakeven of 2.25

True breakeven is even lower than $2.25 per loaded mile.


p.s.
Many spend 20 - 60+ minutes daily traveling to and from work on their own dime for less than $36 hr jobs.
240 miles @ 75 cents mile cost of owning and operating a service van/truck = $180
$3 x 120 miles = 360 - 180 = $180
240 miles at 48 mph = 5 hrs 180 div by 5 = $36 hr

p.p.s.s.
For service work/repairs... do you recommend a 15% tip too?

Um.... I'm a thinking i might know why you got overcharged butch...

 

[Farm Fence Solutions]

i don't need to change the oil, grease all fittings, fill the tank, wash and wax my equipment to use it for 1 use. Gov. isn't going to take much and insurance is cheap. Labor is pretty cheap on jobs like that as well > I can hire a guy for 20 bucks a day to work all day loading all the tree while I cut it.

i'm not saying he's making 100% profit but its not like he has a 800 dollar bill on a 1000 dollar job.

Actually it's probably not far off that.
You have to maintain and purchase equipment to use it everyday. You also have to keep employees busy everyday.
If I don't have fence to build. I hemorrhage 700.00 a day keeping my guys busy and that's taking my wife off the clock.
Fwiw 20.00 will barely cover the SS and Medi on three employees. And don't forget if you or your 20.00 employee makes a mistake you have to pay for it. Go to your day job and take a look around and think about if you had to pay for everything.

I do work for myself and I do have lots of equipment to maintain.

I've built fence before too, I pull up with 70k+ in equipment to build a fence. it's not cheap. I pull up with my bulldoze to get a building pad prepped. 3500 for 6 hours of work but I have 80k in equipment sitting there.

It's not cheap, it's not easy.

$583.33/hr for a dozer? I'm gonna have to get across the river more often!

 

[Son of Butch]

LOL why's that... because you thought that I thought school bus driver's had to pay for the fuel and the bus too?
Or because you thought $2.25 mile loaded mile = $14.50 hr

 

[Farm Fence Solutions]

Bus drivers here are contractors. They own their own bus.

 

[Son of Butch]

School districts own the buses here, although most now contract with Bus Companies who in turn hire drivers locally.

 

[Son of Butch]

Correct me if I'm wrong, but I'd estimate in the example of large tree removal $1,000
1/3 for labor and 55% for overhead = 88% ($880) leaving a 12% profit margin ($120) for the owner.

 

[Brute 23]

Correct me if I'm wrong, but I'd estimate in the example of large tree removal $1,000
1/3 for labor and 55% for overhead = 88% ($880) leaving a 12% profit margin ($120) for the owner.

Then uncle Sam took $40 so he made a profit of $80. Then did they have another job that day or did he go to the office and do paper work? If that's the case and he worked an 8 hr day he made $10 per hr.

 

[ddd75]

Actually it's probably not far off that.
You have to maintain and purchase equipment to use it everyday. You also have to keep employees busy everyday.
If I don't have fence to build. I hemorrhage 700.00 a day keeping my guys busy and that's taking my wife off the clock.
Fwiw 20.00 will barely cover the SS and Medi on three employees. And don't forget if you or your 20.00 employee makes a mistake you have to pay for it. Go to your day job and take a look around and think about if you had to pay for everything.

I do work for myself and I do have lots of equipment to maintain.

I've built fence before too, I pull up with 70k+ in equipment to build a fence. it's not cheap. I pull up with my bulldoze to get a building pad prepped. 3500 for 6 hours of work but I have 80k in equipment sitting there.

It's not cheap, it's not easy.

$583.33/hr for a dozer? I'm gonna have to get across the river more often!

it's not how fast you do it, it's what gets done. but yes, most people pay around 2500 - 3500 for a building pad to be prepped around here. lots of people with money and no one wants to do any work. A lot of easy stuff (I think) gets done around here for insane money. A water line to someones house 50' away? 1500 - 2500 bucks. :lol2: etc..etc..

i might have 40.00 in fuel in that for the dozer and another 30 in the truck.. thats my expenses :lol2:

i try to do everything w/o overhead, or much work on my part. I like things that bring me money while I'm doing something else (play) so I only take on work that pays very well. I turn down work all the time as I don't have the time, or I'm just spending time with my kids.

 

[callmefence]

I do work for myself and I do have lots of equipment to maintain.

I've built fence before too, I pull up with 70k+ in equipment to build a fence. it's not cheap. I pull up with my bulldoze to get a building pad prepped. 3500 for 6 hours of work but I have 80k in equipment sitting there.

It's not cheap, it's not easy.

$583.33/hr for a dozer? I'm gonna have to get across the river more often!

it's not how fast you do it, it's what gets done. but yes, most people pay around 2500 - 3500 for a building pad to be prepped around here. lots of people with money and no one wants to do any work. A lot of easy stuff (I think) gets done around here for insane money. A water line to someones house 50' away? 1500 - 2500 bucks. :lol2: etc..etc..



i might have 40.00 in fuel in that for the dozer and another 30 in the truck.. thats my expenses :lol2:

i try to do everything w/o overhead, or much work on my part. I like things that bring me money while I'm doing something else (play) so I only take on work that pays very well. I turn down work all the time as I don't have the time, or I'm just spending time with my kids.

Please share your genius on how you operate with no overhead. Along with where to get employees for 20 dollars a day...and where to buy this cheap insurance.

 

[Son of Butch]

Correct me if I'm wrong, but I'd estimate in the example of large tree removal $1,000
1/3 for labor and 55% for overhead = 88% ($880) leaving a 12% profit margin ($120) for the owner.

Then uncle Sam took $40 so he made a profit of $80. Then did they have another job that day or did he go to the office and do paper work? If that's the case and he worked an 8 hr day he made $10 per hr.

The owner may never have been on the job site. This crew moved on to their next job and the owner may have
3 other crews doing the same. Bookkeeping/paperwork is part of overhead.

 

[Brute 23]

Correct me if I'm wrong, but I'd estimate in the example of large tree removal $1,000
1/3 for labor and 55% for overhead = 88% ($880) leaving a 12% profit margin ($120) for the owner.

Then uncle Sam took $40 so he made a profit of $80. Then did they have another job that day or did he go to the office and do paper work? If that's the case and he worked an 8 hr day he made $10 per hr.

The owner may never have been on the job site. This crew moved on to their next job and the owner may have
3 other crews doing the same. Bookkeeping/paperwork is part of overhead.

For sure, but it's still not as much money as it appears to the untrained eye.

Wether he was on that job site or not small business owners log a lot of hours, like farmers and ranchers, that when you actually do the math is not a lot per hour.

 

[ddd75]

$583.33/hr for a dozer? I'm gonna have to get across the river more often!

it's not how fast you do it, it's what gets done. but yes, most people pay around 2500 - 3500 for a building pad to be prepped around here. lots of people with money and no one wants to do any work. A lot of easy stuff (I think) gets done around here for insane money. A water line to someones house 50' away? 1500 - 2500 bucks. :lol2: etc..etc..



i might have 40.00 in fuel in that for the dozer and another 30 in the truck.. thats my expenses :lol2:

i try to do everything w/o overhead, or much work on my part. I like things that bring me money while I'm doing something else (play) so I only take on work that pays very well. I turn down work all the time as I don't have the time, or I'm just spending time with my kids.

Please share your genius on how you operate with no overhead. Along with where to get employees for 20 dollars a day...and where to buy this cheap insurance.

I have mental retarded guys help me out. They can do quite a lot and are pretty smart. You just need to show them what to do. Are they going to do finish work ? no.. are they going to mess some things up? yes. But that is what you get. I do all final work and fix what they mess up if anything. They are very happy to work and will work for 10 hours a day no problem.

Of course overhead exists, but keeping it very low is the key. Some operations thats impossible though.

 

[Farm Fence Solutions]

it's not how fast you do it, it's what gets done. but yes, most people pay around 2500 - 3500 for a building pad to be prepped around here. lots of people with money and no one wants to do any work. A lot of easy stuff (I think) gets done around here for insane money. A water line to someones house 50' away? 1500 - 2500 bucks. :lol2: etc..etc..



i might have 40.00 in fuel in that for the dozer and another 30 in the truck.. thats my expenses :lol2:

i try to do everything w/o overhead, or much work on my part. I like things that bring me money while I'm doing something else (play) so I only take on work that pays very well. I turn down work all the time as I don't have the time, or I'm just spending time with my kids.

Please share your genius on how you operate with no overhead. Along with where to get employees for 20 dollars a day...and where to buy this cheap insurance.

I have mental retarded guys help me out. They can do quite a lot and are pretty smart. You just need to show them what to do. Are they going to do finish work ? no.. are they going to mess some things up? yes. But that is what you get. I do all final work and fix what they mess up if anything. They are very happy to work and will work for 10 hours a day no problem.

Of course overhead exists, but keeping it very low is the key. Some operations thats impossible though.

This is the first time I've used this rascal......... :bs:

 

[callmefence]

it's not how fast you do it, it's what gets done. but yes, most people pay around 2500 - 3500 for a building pad to be prepped around here. lots of people with money and no one wants to do any work. A lot of easy stuff (I think) gets done around here for insane money. A water line to someones house 50' away? 1500 - 2500 bucks. :lol2: etc..etc..



i might have 40.00 in fuel in that for the dozer and another 30 in the truck.. thats my expenses :lol2:

i try to do everything w/o overhead, or much work on my part. I like things that bring me money while I'm doing something else (play) so I only take on work that pays very well. I turn down work all the time as I don't have the time, or I'm just spending time with my kids.

Please share your genius on how you operate with no overhead. Along with where to get employees for 20 dollars a day...and where to buy this cheap insurance.

I have mental retarded guys help me out. They can do quite a lot and are pretty smart. You just need to show them what to do. Are they going to do finish work ? no.. are they going to mess some things up? yes. But that is what you get. I do all final work and fix what they mess up if anything. They are very happy to work and will work for 10 hours a day no problem.

Of course overhead exists, but keeping it very low is the key. Some operations thats impossible though.

:lol2:
Thanks for the tip ddd I'll head down to Austin tomorrow and check with the state school.
You use the same method for the cheap insurance??

 

[Texasmark]

i won't take my equipment into the JD dealer b/c they charge 105/hr. in ky they only charged 75.

my little motto is.. "if they can do it.. so can I"

That's how I feel, considering I have the equipment and necessary parts. That's why I don't get my shorts in a wad when I make a large purchase and the dealer isn't next door. As long as I can get one to ship me the parts I need......Branson gets a lot of bashing for not being next door. I have two and don't have a problem. Dealers are able and ready to service the badge as is UPS.

 

[ddd75]

Please share your genius on how you operate with no overhead. Along with where to get employees for 20 dollars a day...and where to buy this cheap insurance.

I have mental retarded guys help me out. They can do quite a lot and are pretty smart. You just need to show them what to do. Are they going to do finish work ? no.. are they going to mess some things up? yes. But that is what you get. I do all final work and fix what they mess up if anything. They are very happy to work and will work for 10 hours a day no problem.

Of course overhead exists, but keeping it very low is the key. Some operations thats impossible though.

:lol2:
Thanks for the tip ddd I'll head down to Austin tomorrow and check with the state school.
You use the same method for the cheap insurance??

you asked, I told you, it works for me, those boys hold fences posts and put them where I want just fine. No high intelligence needed to build fence. ;-)