# Labor Costs in Your Area



## Hutch

Hey guys, I'm trying to get a general idea of what your labor costs are per Square. Obviously, there are a lot of variables to be considered, (type of material, tear-off, insured crew, etc...) but I'm trying to get a ballpark idea of how much is too much, and/or not enough.

For example: I was at lunch discussing a metal roof coating job with the owner of a company I do work for, and when the conversation came to labor cost, we could not see eye to eye whatsoever. He asked how much I had been paid for similar jobs, when I told him anywhere between $40-$60 / sq depending on the manufacturers' specs (one coat vs. 3 or 4, and mil thickness), he looked shocked, like I had just been ripping people off. He then told me that he had never paid more than $25/sq... (honestly, I don't think he'd ever contracted out labor before, but didn't want to admit it). He's the type of guy that thinks $10/sq is good (because he used to pay me by the Hour.) So, anyway I'm just trying to get an idea of what you guys think is fair. Any input would be awesome. Thanks gents


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## Aaron

The guy probably gets what he pays for.

The only way to stay in business is to know YOUR full cost of labor (including work comp, benefits, and taxes) and YOUR full cost of materials (delivered) and YOUR cost of sales and YOUR cost of overhead.

Then you mark that up to whatever level makes doing all this work and taking all this risk actually worth it.

Plenty (though not all) of the people out there (especially on the commercial / property management areas) think you ought to lose money so they can make money. They'll let you too, if you let them.


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## Hutch

@aaron- Thanks for the feedback. In this scenario, I'm basically referring to sub-contract labor costs. I have plans to invest more in advertising and marketing to expand my customer base, but as you all well know, that takes a healthy amount of capital. With that said, the majority of my income comes from sub-contract labor (atleast for the time being) for commercial roofing companies here in the Tulsa area. 

Hopefully, by the end of next year I will be able to venture out on more of my own leads than strictly providing the labor for other companies, but hey whatever gets you through the cold months is what you have to do.


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## BrandRoof

What the heck is he installing for $25 per square? Does this include tear off?


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## Grumpy

here is where the gray area begins. By the square, what does that include? Is the square all inclusive? Does it include waste? What about details, are the details included in the square or a seperate line item? Does it include insurance, or are they covered under my insurance? All these things are a factor when discussing per square price and why it's better just not to discuss pricing/paying by the square.

As for ripping people off, it is what ever the market will bear. If you people are paying your price and you are not using high pressure tricks or tactics to get them to sign the contract, in other words they are hiring you out of your own free will; well then who is to say youa re ripping anyone off? A problem with this industry in general is people are just too amned cheap and for various reasons think they need to be. It's just not true!


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## RooferJim

Most roofing contractors rip themselves off by leaving money on the table.

RooferJim
www.jbennetteroofing.com


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## BrandRoof

RooferJim said:


> Most roofing contractors rip themselves off by leaving money on the table.
> 
> RooferJim
> www.jbennetteroofing.com


It pisses me off everytime I do it!


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## 1985gt

BrandRoof said:


> It pisses me off everytime I do it!


I hear ya there. At some point we all do it.


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## topviewroofing

Aaron said:


> The guy probably gets what he pays for.
> 
> The only way to stay in business is to know YOUR full cost of labor (including work comp, benefits, and taxes) and YOUR full cost of materials (delivered) and YOUR cost of sales and YOUR cost of overhead.
> 
> Then you mark that up to whatever level makes doing all this work and taking all this risk actually worth it.
> 
> Plenty (though not all) of the people out there (especially on the commercial / property management areas) think you ought to lose money so they can make money. They'll let you too, if you let them.


yeah this is the best that the businessman should do first,,knowing the cost of everything.


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## linderman

$65.00 per man hour labor cost


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## Grumpy

Is that for a 1 man crew or a 5 man crew, because the two can't be the same.


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## linderman

Grumpy said:


> Is that for a 1 man crew or a 5 man crew, because the two can't be the same.


 

per man & per hour


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## Grumpy

Understood. So if you sent one guy out with a fully equiped truck to do a repair you'd still charge $65 an hour?


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## linderman

Grumpy said:


> Understood. So if you sent one guy out with a fully equiped truck to do a repair you'd still charge $65 an hour?


 

hell no


A) I would charge $65.00 per hour x how many hours worked

B) charge for service Truck, and fuel (anywhere from $100 - $200 for a pick-up truck)

C) 30% mark-up on the subtotal of items A& B for OH & P


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## Joe Roofer

It's a hell of a lot less here.


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