GREEN INDUSTRY EXCELLENCE AWARDS

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					 6     PRO • Volume 22 Number 1 • December 2009 • www.promagazine.com


ASK A PRO
     WHAT SHOULD I CHARGE?
     Q: If you’ve tried networking              a year for trucks and equipment. (Gas     an hour for overhead).
     with contractors in your area              and maintenance are really variable          Throw in the seasonality of the
     but they just won’t share any              overhead items, but I am trying to keep   business and you really may only bill
     info with you, how do you find             this simple.)                             1,500 hours a year, making your over-
     out what the next guy is charg-               Even in a small company where you      head $14.67 an hour. Now you are at
     ing for his services?                      do the work yourself, you will have at    almost $35 an hour.
                                                least another $5,000 a year in non-          You are right, it can be difficult to
        Here’s the thing: You need to figure    field owner’s salary.                     determine what to charge because
     out your own prices. If you go ahead          Cell and business phone is another     your competitors aren’t going to tell
     and charge $35 an hour when your           $2,000.                                   you. We teach a program that helps
     real cost is $45 an hour, you are going       Throw in other overhead costs like     with this, and also cover it through our
     to lose a lot of money.                    business license, office supplies and     networking groups. Our “Knowing Your
        Start with a simple expense bud-        business insurance for another $3,000.    Numbers” CDs are also very helpful
     get. Here’s an example. Keep in mind          This puts us up around $22,000.        with pricing. Feel free to give me a call
     that this is only an example using very       Suppose you work 40 hours a week       for some free advice.
     basic numbers—you need to run your         and 50 weeks a year. This equates to
     own numbers to figure out your own         2,000 billable hours. If you bill 2,000   Thanks to Monroe Porter of PROOF
     scenario.                                  hours a year, that’s $11 an hour for      Management Consultants
        A truck with insurance, depreciation,   overhead ($22,000 divided by 2,000        for answering this question.
     gas and maintenance is going to cost       hours).              
				
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Description: This year's Yard & Garden Dealers in Excellence winners are Stockton Power Equipment in Sheridan, AR, and Maximum Outdoor Equipment & Service in Wichita, KS.
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