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Permalink Reply by Susan Gallagher on November 28, 2008 at 20:22
Permalink Reply by Daniel Johnson III on November 29, 2008 at 16:10
Permalink Reply by niall gibb on November 29, 2008 at 19:33
Permalink Reply by Simon Smith on November 29, 2008 at 20:50
Permalink Reply by Jonathan Brewster on February 17, 2012 at 11:47 Just to drag up an old discussion, we are looking at our pay structure for the staff and are just wanting to know what the going rates are for staff in the present climate. Does the above calculation B still hold water, I know this links into the £15/hour discussion but helps us all understand pricing structures.
Remember that the IMMEDIATE cost of employing is around 30% on top of the wage (holiday, NI, tax), then you have the secondary costs such as lower productivity (possibly), sickness, training, secondary equipment and additional servicing. If you don't charge double the labourers wage you will lose money. You need to charge more than double to make additional profit, otherwise you are no better off than if you work alone.

When i asked my accountant about becoming an employer he said that i needed to charge an employee out at 3 times their wage. Makes it hard to pay a decent wage.

Interesting reading today. We all seem to think on another thread that £15 per hour is laughable for a gardener when it's clients paying us, yet we are mentioning minimum wage for employees? I guess we all might be struggling to justify our £20 per hour, when the client hears of £6 or £7 per hour being the going rate for employees.
I fully understand that there's a difference between labourers and business owners, but perhaps it's worth bearing in mind that clients might be aware that the guy we send to maintain their garden is only paid less than half what they are being charged? Just a thought.
I'd like to see the service the client would get if they tried to get the labourer to do the work directly!
I'd like to see the service the client would get if they tried to get the labourer to do the work directly!

I know, although I've never worked with anyone (when I employed people) who I wasn't happy could be left alone to do the job equally as well as me, and the client would be comfortable with them around their home, family etc.
My point is that some businesses run by sending low-paid inexperienced staff to do the work, whilst charging them out at the higher rates we would expect to earn as professionals. I've picked up a lot of business from clients unhappy with this. They know the difference between a gardener and a labourer, and expect to pay different prices. Just my experience!
Dan Frazer Gardening said:
I'd like to see the service the client would get if they tried to get the labourer to do the work directly!
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