What hourly rate do you charge for jobs that require two people onsite?

[WhatsYourSign?]

We charge $75/hour for work done with one employee but I always question what I should charge for two employees onsite.

I could see charging double ($150/hour), but I also think reducing the rate for the 2nd person may make sense.


How do you handle this?

 

[Gino]

What's your shop hourly rate ?? In your own shop.

 

[WhatsYourSign?]

What's your shop hourly rate ?? In your own shop.

I typically try to base our pricing on $75/hour for labor no matter the location (I charge for travel when onsite).

 

[Gino]

Doesn't it make sense, when your guys/gals are in your shop is where they can make the most money for you ?? If so, they aren't bringing is as much when somewhere else, especially if mistakes are made or things forgotten or whatever else, so outta the shop should be a much higher rate. Now, you wanna send another person out and even less is getting done in the shop and you wanna give a discount ??

I'm not sure if you're the person or it's another member here, but someone said, while the sign business ins't their forte, business itself is. Therefore, why would you start discounting your workforce when they are not making peak bucks for you ??

 

[equippaint]

We charge same rate per head but typically the people we send on jobs have the same skill level and do their things independently. If its a lead guy and helper, id be inclined to charge less, probably $120-125 if the lead was $75.

 

[iPrintStuff]

Do you pay the second guy less when he’s on site? Assuming that’s a no, why should you take the hit and not the customer?

 

[equippaint]

Do you pay the second guy less when he’s on site? Assuming that’s a no, why should you take the hit and not the customer?

I dont, it seems to be common in construction practice though when theres a guy doing the brain work and using a gopher to fetch tools, dig holes or climb in attics.
The gopher would get paid considerably less but generally cant do much without the lead guy there.

 

[Andy D]

Doesn't it make sense, when your guys/gals are in your shop is where they can make the most money for you ?? If so, they aren't bringing is as much when somewhere else, especially if mistakes are made or things forgotten or whatever else, so outta the shop should be a much higher rate. Now, you wanna send another person out and even less is getting done in the shop and you wanna give a discount ??

I'm not sure if you're the person or it's another member here, but someone said, while the sign business ins't their forte, business itself is. Therefore, why would you start discounting your workforce when they are not making peak bucks for you ??

Plus your liability is a lot higher. Some shops won't do installs due to the insurance being so much more.
If my shop rate was $75, my install rate would probably be $100 - $115 per person, $130 - $150 per person that had to work off a ladder or lift.

 

[WhatsYourSign?]

Doesn't it make sense, when your guys/gals are in your shop is where they can make the most money for you ?? If so, they aren't bringing is as much when somewhere else, especially if mistakes are made or things forgotten or whatever else, so outta the shop should be a much higher rate. Now, you wanna send another person out and even less is getting done in the shop and you wanna give a discount ??

I'm not sure if you're the person or it's another member here, but someone said, while the sign business ins't their forte, business itself is. Therefore, why would you start discounting your workforce when they are not making peak bucks for you ??

Thank you, that's helpful perspective.

 

[WhatsYourSign?]

Plus your liability is a lot higher. Some shops won't do installs due to the insurance being so much more.
If my shop rate was $75, my install rate would probably be $100 - $115 per person, $130 - $150 per person that had to work off a ladder or lift.

That's a good point, I hadn't considered that but you're absolutely right.

 

[iPrintStuff]

I dont, it seems to be common in construction practice though when theres a guy doing the brain work and using a gopher to fetch tools, dig holes or climb in attics.
The gopher would get paid considerably less but generally cant do much without the lead guy there.

I suppose it depends on the actual install. I.e do you need a gopher or two lead guys? This wouod probably be specific to your shop and/or the individual job.

The on site charge should definitely be higher than the shop charge. You need to also pay for the work in the shop that these guys might be doing if they’re also production guys etc.

 

[WhatsYourSign?]

I suppose it depends on the actual install. I.e do you need a gopher or two lead guys? This wouod probably be specific to your shop and/or the individual job.

The on site charge should definitely be higher than the shop charge. You need to also pay for the work in the shop that these guys might be doing if they’re also production guys etc.

In this specific scenario I was thinking of a lead + gopher, so that's helpful.

Lots of great feedback in this thread, thanks everybody.

 

[Gino]

So, what do you do when the customer knows a certain guy doesn't require the big bucks and next time he says, I want HIM to do my work ?? You can't just discount indiscriminately. You need to have policies and prices set, so you can recite them from memory. You're either a business with everything kinda set in stone.... or ya run by the seat of your pants. Now, if you hide the fact that you are discounting someone, they won't know, but why cheat yourself outta money ??

 

[Texas_Signmaker]

I don't like charging by the hour... always do by the job because I make more that way


BUUTT with that said.. I shoot for $150/$200 for myself (the brains) and $100/hr for my helpers

 

[equippaint]

So, what do you do when the customer knows a certain guy doesn't require the big bucks and next time he says, I want HIM to do my work ?? You can't just discount indiscriminately. You need to have policies and prices set, so you can recite them from memory. You're either a business with everything kinda set in stone.... or ya run by the seat of your pants. Now, if you hide the fact that you are discounting someone, they won't know, but why cheat yourself outta money ??

The kind of helper that I was referring to is someone nobody will request and they couldn't do much on their own anyways. It's not another capable shop person that goes a long to help, that is different. They really don't serve any purpose other than freeing up your main guy to get more billable hours in a day. It also puts off needing to hire another full on installer that you may not be able to keep busy 40 hours a week. If you pull a production guy to go help, even if they just do nonsense, that is different and should be billed as 2 people full install rate.

 

[equippaint]

I don't like charging by the hour... always do by the job because I make more that way


BUUTT with that said.. I shoot for $150/$200 for myself (the brains) and $100/hr for my helpers

If you're doing bid work, that's where a helper really comes in handy to beat your quote. Not so much on hourly. I do see the other thinking on this too

 

[Jeremiah]

Our local mechanic shop charges 55.00 per hour , and no rounding up. My neighbor charges 55.00 per hour, be is a licensed electrician. But he charges a slight trip charge. Just a skilled worker comparison for this thread.

 

[kcollinsdesign]

In my market the union shops are charging $95 - $115.00. Non-union charging $25 - $85.00. I can get near the top end for anything over 45' or so. 20' - 50' is very competitive, and I can sub-contract that cheaper than I can do it myself. Anything on the ground I charge $65.00, and get about half of it (many people just opt to put the sign up themselves rather than pay my price for installation - there are hundreds of fairly qualified gig workers charging around $25.00/hr. always hungry for work).

Most of my work is bid work, so I calculate my costs then add a margin on top for profit. I do not discount labor directly. I do have guys at different pay levels, so I often pair up an experienced (more expensive) installer with a less experienced (less expensive) installer to reach salable price points.

 

[shoresigns]

IMO there are two options: charge the same hourly rate for every billable employee (production, install, design), or charge different hourly rates depending on the value of their work, however you want to determine that. On top of that, charge an hourly rate for machines (vehicles, lifts, printers, laminators, etc.)

And however you break down your hourly rates, they all need to add up to enough to cover your shop's total hourly operating costs.

 

[MikePro]

simple math: $75/hr x2ppl = $150/hr.
seems "pricey" but the same work that needs completion is done in less than half the time if you were to send 1 employee.