How much does an hour of tradesmen's labor cost?
👉 Download the worksheet from this link: hubs.li/Q02x9LFm0
What does it cost to provide an hour of labor to your clients?
It’s really important to think about your cost of labor and business overhead costs because they give you a realistic picture of what you’re actually earning, and how much you should be charging. In today’s video, I cover labor costing, and how you can calculate labor cost per hour when you provide services to your clients.
How much are you currently charging for your tradesmen's services, and is that amount a true reflection of what you’re making? The truth is that many of us don’t know the real cost of our services as tradies.
In order to be a truly profitable tradie, you need to consider a number of key principles, and be a master of labor costing.
One of the things to think about is charging for unchargeable expenses. You pay your team for 52 weeks as an employer even though they don’t work for all 52 weeks. There are days that your team doesn’t work, including holiday time, leave, bank holidays, and sick time off.
You need to count what it truly costs and what you’re not charging. The cost per hour of providing services has to be spread out for unchargeable costs, and business overhead.
Stay tuned to learn more about labor costing, and see how you can measure the actual cost of labor, and figure out labor cost per hour, so you can charge better rates to your clients.
Пікірлер: 47
This is Gold Tony!
@profitabletradie
Жыл бұрын
glad your enjoying it
I really liked this video, I did know about the cost, This is the honest truth that customers can't seem to understand, Thank you for sharing this information
thank you so much
Very helpful thank you
@profitabletradie
6 ай бұрын
Happy to help!
Good video
Can you explain how to get box G a bit better im confused as to what percentage we're supposed to divide by
@profitabletradie
Жыл бұрын
Sure! So box G should automatically calculate. You should only need to enter details into the yellow boxes which are A, B, D, and E. Maybe if one of the calculations has been typed over it might not automatically calculate. If that's the case, maybe re-open the original file you got and try again. Let me know if that helps!
Is this per employee? I put in all my numbers and it’s says $86.22 a hour but on 40 hours that doesn’t cover salaries if if per hour of the business and not per person.
👉 How did you find today's video? Let me know if you have any questions in the comments below.
Line G - How do you calculate the Percentage of Chargeable Time?
@profitabletradie
Жыл бұрын
It's box A divided by box F
Is the 91 a break even or with profit?
@profitabletradie
Жыл бұрын
Hey mate sorry we missed this comment. This is a break even.
first question the $91.24 is per employee ? 2do question the $91.24 should add to the box E
@profitabletradie
Жыл бұрын
$91.24 is the Cost to run the business for 1 hour in this scenario. Your's will be different depending on your businesses inputs. Box E should be the total hourly wage you pay everyone. So if you have 3 people including yourself and if 2 people are paid $25 per hour and 1 is paid $50 per hour you would put $100 in box E. Let me know if that helps or if you have more questions
I tried getting the free download but have not received it.
@profitabletradie
Жыл бұрын
hey mate. here's a link. let me know if you have any trouble getting it. hubs.li/Q01j-Clb0
@profitabletradie
Жыл бұрын
Hey Mate, looks like we had an issue in our system that has been resolved. It's been sent to your email. thanks for letting us know.
Cost
@profitabletradie
5 сағат бұрын
Hey mate. You can grab it here: hubs.li/Q02x9LFm0
COST
@profitabletradie
2 ай бұрын
You can grab a copy of the calculator here: hubs.li/Q026wfr40
Numbers definitely lie. Managers adjust my hours manually to meet goals.
@profitabletradie
3 ай бұрын
No they don't. They charge out your labor at a higher rate to pay your wage, pay for materials, pay for overheads and keep a little bit of profit for themselves for their troubles.
@tashawaters89
3 ай бұрын
@@profitabletradie You're naive and unfamiliar with "faking the books" and "fudging the numbers"
Is this per employee? I put in all my numbers and it’s says $86.22 a hour but on 40 hours that doesn’t cover salaries if if per hour of the business and not per person.
@profitabletradie
5 ай бұрын
Apologies, I'm not sure what you meant by the last line? But yes, it is per employee.
Cost
@profitabletradie
Жыл бұрын
hey there. here's a link. let me know if you have any trouble getting it. hubs.li/Q01j-Clb0
COST
@profitabletradie
Жыл бұрын
hey mate. here's a link. let me know if you have any trouble getting it. hubs.li/Q01j-Clb0
Cost
@profitabletradie
2 жыл бұрын
Hey David here is that link pt.theprofitabletradieprogram.com/the-real-cost
Costs
@profitabletradie
9 ай бұрын
You can grab a copy here :) - hubs.li/Q026wfr40
Cost
@profitabletradie
Жыл бұрын
For sure, here's a link. let me know if you have any trouble getting it. hubs.li/Q01j-Clb0
Costs
@profitabletradie
2 ай бұрын
You can grab a copy of the calculator here: hubs.li/Q026wfr40
Cost
@profitabletradie
5 сағат бұрын
You can grab it here: hubs.li/Q02x9LFm0
Cost
@profitabletradie
9 ай бұрын
You can grab a copy here :) - hubs.li/Q026wfr40
Cost
@profitabletradie
2 ай бұрын
You can grab the download here: hubs.li/Q02x9LFm0