AS many fo you know i have been a member here for some time. I am looking for an answer to a simple question. How ever it seems this question always leads to problems. I have a friend who is new in the business and is looking to find out the going rates in New Jersey that other men/women charge. He is by no means trying to cut throats but just trying to be sure he is on base. So to all my New Jersey Co-Workers can you help me out with a rough estimate of your rate for a Res. Mech & Res Helper that you charge. I have got everything from 75 hr to 95 hr. thus far? any comment would be helpfull He is in the central/south jersey/shore areas pretty much New Brunswick and south.
I work for a small shop in Union, NJ, and my boss charges $75/ hour per person. I know for sure he also marks up material quite considerably too. This is all good with me cus' I need to get paid, know what I mean Vern?
Also, Celtic is right. Nevermind what everyone else is charging, you have to charge what works best for you and your company.
this really isn't a simple question at all. For example, what is the markup on material? How do they bill? (time on job? travel? whole hours only? 1/2 hrs? if they run 5 min into the next hour, do they bill for it?)
for example: one guy charges $100/hr with a 30% profit on his material. He bills in 1/2 hr increments and will "give" the customer an extra 5 mins. Doesn't bill for travel.
2nd guy charges $65/hr with a 50% profit on his material. Bills in 1 hr increments and doesn't 'give' the customer any extra time. Doesn't bill for travel either.
They both do a job that takes 2 hrs and 10 min on site. Total material cost(with tax) is $50.
1st guy charges 2hr X 100 = $200 for labor $50/.7 = $71.43 for material Total invoice $271.43
2nd guy charges 3hrx$65 =$195 for labor 50/0.5 = $100 for material total invoice $295.00
Hourly rate is just a number to work with. He needs to determine whether he needs $110/hr (after material) or $122.5/hr (after taxes)
For the record, we are a contractor in Monmouth, Ocean and Middlesex counties. We are not the highest, we are not the lowest.
Residential service rates vary from flat rate of $300+/billable hour to T&M of $55/man/hr
(on particular guy I know of who is at $55/hr is famous for 2 for 1 (bill 2 hrs for every 1 worked - he usually bills about 12 or 13 hrs a day for each man - so he's really at about $80/hr he just would rather not tell his customers the truth.)
In addition, how many contractors have actually done a break even calculation? most guys do exactly what your friend is doing - ask around for the going rate. So we get stuck with this artificial rate (that I truly believe someone pulled out of a hat) for eternity.
"In addition, how many contractors have actually done a break even calculation? most guys do exactly what your friend is doing - ask around for the going rate. So we get stuck with this artificial rate (that I truly believe someone pulled out of a hat) for eternity." _____________________________________________
Watching what the other guy charges, is not a good way to start, Finding your actual cost of doing business, and adding the profit needed to make the business go.
As for material, anything under the break even 50% mark-up, will also lead to losses.
When I was in business, (1985-1998) we use to charge $55-$65 for the first man up to $65-$80 for two men. I was a small shop in the Morris County area, I had 4 trucks and 7 people at the height of my business. Now I am an AHJ in Morris County. Which towns in that county do you work in? ( I know that you always get a permit too. Right.
is funny that you bring up the rates and dates. Our expenses (insurance, taxes, truck prices, GAS, etc) have gone up tremendously since 1985. Yet, guys still stick to that $65/hr price mark. You could actually make some (not alot) money at that rate in the 1980's and early 1990's. These days, not so much.
Well guys and girls thanks for all the help. Sorry it took so long for me to reply back but works been busy. Yes there are alot of diferant ways of adding it all up i suppose but i must add in their alot of his upcoming work is rehabs total gut out execpt for shell and new construction so basicly both are open bare wall jobs. So how do you handle that price wise.flat rate by the square foot / time + material / etc any additonal thoughts would be great. thanks everyone