Just remember…if your matching taxes & covering work comp that 30% will escalate to around 47% to cover that employee.Also…if & when you raise prices/rates your guys on comm/piece get a raise too!
It is solo. That would be 60% for a two man crew:eek:. Its also residential. As for their pay going up with the job rate increase- It balances and checks each other. If im making more- I dont mind paying more. These arent huge increases every year per customer. I raised every customer 3% this year across the board. I raised my minimum service call too. I know that 3% isnt much. they are predicting a recession for this year. Just being a little cautious. Dont want them droppin like flies.
Steve
Steve, so your saying you give them 30%, Take taxes out of that, then match the taxes yourself plus your paying the workers comp on top?
If they clean a home that is $300.00, they gross $90.00 off of that job. I do all of the legal stuff (witholding, match taxes, workers comp). My top guy will clean an average of 400.00 to 450.00 per day. He will typically work six days a week. Monday through Saturday. As you know in this business, every day is different. Some jobs are real mothers and some you just breeze right through them. Lets just say that he brings in 2,400 gross for the company at the end of the week. Out of that $2,400.00, I will need to pay him $720.00. that will leave me with a gross of $1,680.00. Keep in mind that these are “raw” figures. I know that I have to match FICA, social security, pay unemployment taxes, fuel, supplies - you get the picture. How much of that $1,680.00 will go for all of these expenses? If you were generous and said $900.00 of that should cover it. That still leaves me with nearly $800.00 left over after all that is said and done. Work that I didnt have to do. My landscaper buddy always tells me " why in the world do you give so much money to your guys? I couldnt do that Steve". I have to bite my lip. He goes through guys left and right and is always hurting for help. $10.00 an hour doesnt pay the bills for most people with financial obligations (unless they are still living with mom and dad and the fridge just happens to magically re-stock itself). As i mentioned up there^^ Im in a group rating for workers comp. That does take some of the burden off. My competitor also pays the commission rate that I do. He has his degree in accounting.
Just to give you a better idea as to the total cost of this guy if…he were mine it would break down as follows
Grossed 2,400.00 for the company out of that as Steve said he would gross 720.00 now for me it would be an additional 34.73% on top of that being roughly 250.05 so the grand total for that employee is…970.05
I too get a group rate a 6% discount on work comp which does help but its still at 19%
Just to give you my true thoughts on this…i would much rather pay the guy 15.00 an hr (as that 30% roughly breaks down to 18.00 an hr at that figure of 2400.00)
So…that same guy if he worked a 40 hr week would be a 600.00 dollar gross now…add the 34.73% im faced with(208.38) bringing the total to 808.38
Quite a difference from 970.05 a difference of 161.67 staying in my pocket of course i wont have to worry about them flying through gigs either & possible call backs as a result.
Im in business for profit 161.67 x 4 weeks =646.68 extra for me!
Craig,
There are several scenarios here that have not been brought to the forefront. Do you work with your crews every day and can oversee when what and where they are all the time? I dont. Everyone gets their supplies, leaves the shop and heads into different directions usually. I dont know how many guys you have but some on here are one to two man shows. Hourly pay is a no brainer there. I wouldnt knock the way i do things. You are at a 6% reduced rate for workers comp? Im at 80%. I cant give you the exact figures of what i owed for workers comp the last period but i do recall that It was a little over a hundred bucks. I ran the same figures as if i werent on the group rating discount and it was near $3,000. I know that this seems impossible but its the honest truth. I couldnt believe it myself. In closing, I dont see any problems doing the hourly thing. I was turned on to the commission thing and decided to give it a shot for 3 months. we had a meeting with all of us and we hatched out the idea. everyone agreed to it for the most part. I told them that If it wasnt working out for the company or for them- we would scrap the whole program and go back to hourly. That was going on three years ago. It works for me and it works for them. Thats all im saying.
Steve
The one thing i truly admire is we can have a decent discussion/debate without getting chitty! You know Steve… i love you like a brother.I always appreciate your input as well as your expertise.
So…those of you on the fence with which way to go this should give you some good substance to go by!!
Craig,
You know that it mutual. This discussion always ends up this way. Its good to present both opionions. They both have valid points. Its a struggle paying employees with any scenario. As one of my favorite sayings go " The only business that can operate at a loss is the US Government".
Nice chatting with you as always!
Steve
Tux Window Cleaning and our companion high-rise co. Tux Building Services are hiring! We are busy on every front. We are looking for a High Rise Manager immediately as well. For this position, applicant must have 2 years high rise window cleaning experience and be familiar with OSHA safety standards. Bilingual is helpful but not required. Salary is based on experience and this is a year-round, full time position. Send resume to [email protected] or fax to 505-888-5889. Call David Kulb for more info. Thanks
Tux Window Cleaning at 505.888.8858.
For greater effect, I would suggest starting a new thread (either here or in Job Leads) with a subject line specific to your need.
Gary Mauer has a help wanted section on his website on the window cleaning network. I have had guys call me that were moving to my area looking for work. Its worth a shot and its free. You can also post on Craigslist.com- Its free too.
Steve
