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Can you say recession
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<blockquote data-quote="deleted member" data-source="post: 415820" data-attributes="member: 816"><p>obi, i wasn't directing my diatribe at anyone specific. definitely not you. anyway...</p><p></p><p>i will not answer the first question.</p><p></p><p>but, will gladly address the others. i put "employees" in quotes because its quite obvious... as you explained... they weren't employees in the classic sense. i ran that operation for 3 months out of the year during the summer. the guys who worked for me were friends. i was young and dumb and all of the rules weren't followed. but, they were making 4-500/week working 20-25/hours/week for 10-12 weeks during the summer. i didn't charge the customer by the hour. i bid the job and then did the job for whatever the bid was. sometimes i made $150/hour after paying them. sometimes, $100/hour. i did have your classic other expenses though like vehicles, equipment, fuel, advertising and insurance. here's the point though....</p><p></p><p>at least in these parts... lake region... the guys doing this type of work either bid it or actually invoice it in the range of $100-125 per man hour. much like auto body, electrician, plumber, etc... those are more in the 125-150/hour range these days. either way... assume i am running 5 guys on a construction crew at $125/hour. i pay them $25/hour (which most don't) and the actual cost of that labor after wsi, payroll, ssi, unemployment, etc... is $50/hour (which i think is steep unless i am terrible at math). that means i am making $75/hour x 5 = $375/hour. that's well north of 750k/year. now lets business expense off 50% of that cause we can "write off" (according to kramer) everything from personal side by sides to snowblowers to the wife's suburban. that means i am making 375k year running a construction company. if the lack of laborers is costing me the ability to actually work at my fullest capacity, it seems the wisest solution would be to just pay them a bit more because... in the grand scheme of things... the cost of labor is a relatively small percentage of doing business. <strong>main point: no sense nickel and diming the single most necessary asset for the company to actually make money.</strong></p></blockquote><p></p>
[QUOTE="deleted member, post: 415820, member: 816"] obi, i wasn't directing my diatribe at anyone specific. definitely not you. anyway... i will not answer the first question. but, will gladly address the others. i put "employees" in quotes because its quite obvious... as you explained... they weren't employees in the classic sense. i ran that operation for 3 months out of the year during the summer. the guys who worked for me were friends. i was young and dumb and all of the rules weren't followed. but, they were making 4-500/week working 20-25/hours/week for 10-12 weeks during the summer. i didn't charge the customer by the hour. i bid the job and then did the job for whatever the bid was. sometimes i made $150/hour after paying them. sometimes, $100/hour. i did have your classic other expenses though like vehicles, equipment, fuel, advertising and insurance. here's the point though.... at least in these parts... lake region... the guys doing this type of work either bid it or actually invoice it in the range of $100-125 per man hour. much like auto body, electrician, plumber, etc... those are more in the 125-150/hour range these days. either way... assume i am running 5 guys on a construction crew at $125/hour. i pay them $25/hour (which most don't) and the actual cost of that labor after wsi, payroll, ssi, unemployment, etc... is $50/hour (which i think is steep unless i am terrible at math). that means i am making $75/hour x 5 = $375/hour. that's well north of 750k/year. now lets business expense off 50% of that cause we can "write off" (according to kramer) everything from personal side by sides to snowblowers to the wife's suburban. that means i am making 375k year running a construction company. if the lack of laborers is costing me the ability to actually work at my fullest capacity, it seems the wisest solution would be to just pay them a bit more because... in the grand scheme of things... the cost of labor is a relatively small percentage of doing business. [B]main point: no sense nickel and diming the single most necessary asset for the company to actually make money.[/B] [/QUOTE]
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