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Hourly Rate Calculator

Hi everyone.

The hourly rate calculator could have been posted in the "members only section"

It is valid to post this link within the accounting for all to see as it will reenforce our industry specific pricing structure.

People looking for a service often review here on Landscape juice first. The calculator will give a general outline of the hidden costs involved with the Landscaping/Designing/Gardening industry.

I feel it will also allow the client to appreciate why we simply cannot afford to charge £5 per hour.

Thus re-enforcing and promoting our professionalism.

CALCULATOR

Regards

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Replies

  • Interesting website Gregory, thanks for sharing.

  • PRO

    Thanks for that, where it says "Training, conferences and books - Yearly"
    I inputted my machinery spend.. Great tool

  • This is a good wake up call.
    I just did a quick 10 minute work out and found if I was charging by the hour to earn a clear salary of £17.5k after all costs I would need to charge £24.00 a hour.
    Tonight I will work it out in more detail.
    I charge by the job however I still need to know what I need to build in myself at
    Thanks for this calculator.

  • PRO

    Very interesting website; thank you! I have a spreadsheet up and from that I know what I need to make each week/month to survive. It is the most useful tool to have!

  • PRO
    It's good to see it bought so graphically home that you need to know your costs, to work out your internal/external charging rate.

    It's sobering, isn't it...? which is why this subject has had so so much exposure on landscape juice in the past.

    Even if you don't go the whole hog, just look at what you currently charge and extrapolate it for a wake up call..

    Number of hours worked per year (40hrs * 52 weeks) = 2080
    Minus Holiday, sickness and weather - you'll be lucky to work 1950 hrs per year

    If you currently charge £20 per hr, that's just under £40,000 t/over

    Now take tax, vehicle, fuel, tools, insurance etc off ( ie your costs) and it probably ends up ...not a lot .......:-(
  • Now use the calculator like the link posted or an example perfectly explained and highlighted by Gary.

    BUT now we use a different figure...

    An example could be taken from "somebody travelling around a housing estate offering a cut for a fiver". We will also run this parallel with a £10 per hour charge rate.

    Points to note. We have not include (please click)20% VAT

    Would we all agree for this simple demonstration that £1800 would be an average FUEL cost for a seasons work? (remember this is all hypothetically speaking)

    An estate car £1000 auto trader bargain basement

    Agree on approx £600 vehicle insurance?

    A B&Q lawn mower £200

    Strimmer to include oil/ cutting cord £50 (flea bay)

    A broom and bucket. £10

    We will disregard uniform, ear defenders, anti vibration gloves, eye protection.

    This little lot alone comes to £3660.

    £3660 / £5 = 732 hours to recover outgoings.
    £3660 / £10 = 366 hours to recover outgoings.

    732hrs - 1950 hrs per year = 1218 profitable annual hrs.
    366hrs - 1950 hrs per year = 1584 profitable annual hrs.

    1218 * £5 = £6090
    1584 * £10 = £15840

    £6090 / 12months = £507.50 monthly take home
    £15840 / 12months = £1320 monthly take home

    £117.12 = Weekly salary
    £304.62 = Weekly salary

    £117.12 / 37.5 average working hrs per week = £3.12per hour.
    £304.12 / 37.5 average working hrs per week = £8.11per hour.

    £6.19 = National minimum wage

    If we were to include VAT on a charge rate of £10 per hour then we would stand to earn £6.49 per hour.

    If we were paying VAT it would be fair to say we are legitimate and that we would invest in health and safety equipment (eye protection, ear protection etc).
    We would also consider public liability insurance.
    Perhaps better tools?
    Waste removal?
    Training? This has to be carried out each year or proof of being in a professional organisation. (ie: evidence by magazine subscription that proves you are still running within modern day industrial parameters.)

    One cannot operate 100% above the law on a charge out rate of £10 per hour.

    Food for thought...

  • PRO

    Here is another informative article from LJ's Blog with additional key information and guidance on working out your charging rates - whether you decide to charge per hour or by job :

    http://www.landscapejuice.com/2007/02/what_should_i_c.html?cid=6a00...

  • PRO

    It's hard to image how anyone can afford to charge less than £20 per hour these days, if they plan on doing it right.

  • PRO

    Agreed.

    Robbie @ PremierLawnsni said:

    It's hard to image how anyone can afford to charge less than £20 per hour these days, if they plan on doing it right.

  • What a clever website this is! I'll be sure to share with my horticultural students. Many thanks for posting

This reply was deleted.

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