I know this question comes up from time to time, but ….
I’m not sure that I’m pricing my labor at current market prices for residential repairs
and remodeling work.
Means and other industry labor cost books do not appear to take into account for work
that is not repetitive in nature, and therfore their labor cost seem to be low. If your doing
tract housing that is one thing, but my work often can be different from hour to hour let
alone day to day.
What I am looking for is:
A self employed Carpenter can expect to make $$ an. Overhead I have (and a lot of it).
Thanks for your feed back.
Replies
It's different everywhere.
But let's start with, where do you live, who do you work for, how many years do you have in, what level of tools do you have, licensed/insured? etc.
Different everywhere
Of course labor cost are different everywhere; however, a good reference will take the cost of living
in a given geographical region into account. In addition, exactly what tools and equipment
one has is not relevant. Either you can do a job or you can't. Each job is different and what tools
are needed for each job is different as well. The same goes for how many years you have in. Either
you can do the job or you can't, and licensing and insurance is part of overhead, not labor cost.
I'm interested in a good reference source to use as a sounding board to see where I stand. We all
must have the same issue with this. How did you arrive at what you charge?
OK, I guess you want a pat answer
so how about $40/hour plus 15% markup on materials? That help at all?
jake
"The same goes for how many years you have in. Either you can do the job or you can't,"
Well Jake, I can't disagree more. There are some guys that are real good for time served. And some even know it. But unless you read alot there is a lot to be learned from years of experience. That experience just might help you do the job...............better. And better might just help you do it faster. And faster and better just might earn you more dollars on the way.
So don't dis experience. It makes a difference.
And so do tools Jake.
But then again, this from a dumb carpenter.
A Self employed carpenter makes...
hey jake,
Somehow you have to get a fix on the "Market rate" - what clients pay (whether that is a Home owner or a contractor) then add the overhead costs that are common to all competitors unless you are working off the books or for a General contractor / real estate management co. who is putting you on his payroll. To some extent you have to set a limit or an income target for yourself and seek out the clients that will pay that rate. Also this rate has to do with monthly cost of living (a rule of thumb is to double or triple the monthly apartment/house rents a particular skill is likely to be paying to his landlord and take that as a monthly salary.)
Keep a log of each job you and your crew do learn how long it takes (in hours by man) to actually do the the jobs you take on. When estimating carefully think through all the work hour by hour that a project involves. This is a talent, reckoning the time and materials that a project will require. Some guys just have no sense for guessing how long a job takes. nevertheless you have to build up a record that is specific for you and your guys (you may lean more towards quick and routine/simple or maybe more towards slow and thourogh complex projects)
For example #1 - Manhattan; 35/hr plus, transport/ parking at the begining and the end of the project, a percentage markup to cover overhead costs ie, cell phone, insurance, sales tax, bookkeeping & estimating, food, tips to doormen etc. (for me this is 18% plus sales tax when required). You can put on a profit percentage if you want (9% to 25% whatever the market will bear), if you are growing the business you will have to do this however in the current market down turn most are not adding in a profit pecentage at all. The maximum hourly rate here is about $60/hr but believe me; you are only takin' home $35.
example #2 - Jersey City; 20/hr etc.
example #3 - central PA, 15/hr etc.
These are rates for multi- task carpentry jobs ie. for coustom projects( rough & finish and some related handy man work). Developers and carpentry unions will dictate rates or you will discover the rates on the job quickly from your fellow workers.