Rate Per Hour Help

RHD

I am just getting started with my own business. My father has been in the remodel business for 20 years. As a kid I spent many summers working for him. Now I have several small projects started on my own.

I did some waynes coating and crown for a friend and his contractor liked my work. He has hired me on one of his jobs and wants to know my hourly rate. I am novice at the pricing aspect of the job. I don't want to over charge or under charge but to be fair, as I want more business from him. He has supplied all the materials and some tools.

At this point your are asking why I don't just ask my father? He lives in the country and I am in San Francisco where the average one bedroom home is $700k. So his prices are far lower then the cost of living wage @ Taco Bell.

Job includes.

1. Stringer trim.1 stair case
2. Window Trim 13 windows
3. Crown molding 4 rooms
4. Base Molding 4 room and two hallways.

Whats the average rate per hour?

Grumpy

Ask him what he was paying his last carpenter. That doesn't mean you accept this price, it just means you don't under bid yourself

Next figure out how much YOU want to make an hour. Now figure in your overhead. Your overhead are things like your truck payment and depreciation. Your gas for your truck. Your cell phone, and or office phones. Any advertising is also considered overhead. Heck! Any expense you have in relation to keeping your doors open, but can't bill to any specific job is overhead. INsurance, liscenses, advertising, rent, utilities, tool depreciation etc...

Now add all that up for a full year. Divide by 52 weeks. This gives you your weekly overhead. Now divide by 40. This gives you your hourly overhead! Even if you work more than 40 hours, just use the 40 hour number!!!

RHD

I figured out that $35 an hour would be a reasonable hourly rate to charge based on your figures. I also cut this rate down a few dollars to keep it
attactive.

Thanks again for all you help. :Thumbs:

Grumpy

Wow I would figure more than that, but I don't really know the economical variable in your area. Here in chicago we bill out at $55 minimum.

hatchet

I would think it would be a bit more than that too. For a metal stud framer I'm being billed about $42/hr.

__________________
Rich
WIT Construction Co.
Superior MT Contractor

TimWieneke

RHD,
If you can tell me the equivalent of your full-time year's experience and skill set, I can give you an idea at what rate a tradesman staffing company would bill you out to a contractor in the Chicago area. I can't guarantee it, but you should consider it a guide. I would then add on top of that as CA has awful costs in the way of insurance that increases hourly rates (which contractors should be used to).

Tim

sunnyholme

It really does depend on your skill and experience.
Having to borrow tools is not a good sign. The price is greatly reduced if you do that. Builders like to see that you are self sufficient before they start paying the top dollars. When borrowing tools and of medium experience, $35.00 per hour is the max you can get. No tools borrowed and high experience, $50-$75 per hour.
Most importantly, it is dependant on his budget. You might want to subcontract the whole job, not using a hourly rate and then you could make more that way.

Grumpy

Whoa Tim, another Chicago guy. Yo're not a roofer are ya?

<hides the trade secrets>

TimWieneke

"Yo're not a roofer are ya?"

No, I need to sleep at night.

Tim

__________________
As Steve the Foreman would say, "Forgive him Lord, for he doesn't know what he's doing."

Grumpy

I have absolutely no idea what that means LOL

I sleep fine, that bottle of jack daniels really helps

I'm kidding I'm kidding... I prefer rum

TimWieneke

"I'm kidding I'm kidding... I prefer rum"

Lol. We got a couple ummm "fascinating" home construction projects in the far west/far southwest area out here that. After going out there and seeing the "quality" of their work I want to put a sign on the job "The Captain was here."

Tim

__________________
As Steve the Foreman would say, "Forgive him Lord, for he doesn't know what he's doing."

RHD

Thanks for your help guys.

I went with 40 an hour with no complaints.