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Reply by Madmark2

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Posted on How much can I charge for my hourly labor

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Madmark2

1381 posts in 1365 days


#1 posted 03-28-2020 04:57 PM

Now “how much an hour” and “how much for the job” are two different questions. The “hour” figures vary regionally, over time, with inflation, etc. So what the “best” answer is today, may well be wrong tomorrow.

For decent size jobs the old man used to bid 2X materials. This was real close to time + materials answers without having to do all the cipherin’. Since it’s a ratio and not an absolute, it absorbs lots of the variables that impact the hourly rate. Material costs tend to track the regional cost of living and this formula automatically compensates for that.

So ultimately you tune the 2X ratio to 2.5X or whatever works best. This also encourages you to work faster since you’re being paid by the job and not the hour!

Customers appreciate knowing the fixed cost instead of an endless T+M job.

Bidding using the materials ratio sharpens your estimation skills quickly.

-- The hump with the stump and the pump!


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