Business owners

[eggsarascal]

Today I've been talking to a fella that I do quite a bit of contracting for, two of his lads have jacked to start up together, these are good lads, one's been with him 8 years, the other a couple of years, they've asked for more money and got turned down so, they are on one. I've spoken to the lads today they are on £12/hour, company van, and all the other perks of being employed. Mark, the fella I sub to charges these lads out at £48.50/hour. Could he have given extra, or was he right?

[Gary Prentice]

Depend on his profit margin. It's always about the bottom line. 

 

 

[GA Groundcare]

Hard to say without knowing his overhead costs. The lads will probably only see the "I can make another £30 + an hour doing it on my own"

 

In our workshops they are paid in the region of that rate, (slightly higher) and we charge out at £45 per hour plus vat. However not very often every hour of said day is chargeable, the employed person is paid for all of the day, the employed person only works 11 months of a 12 month year, they get a pension, fuel coverage to - from home, then your business rates, premises lease, van lease and all your insurances. And that largely all needs to come out of the gross profit on labour.  

 

The gross profit margin is very quickly reduced to very little.

 

Edited November 12, 2019 by GA Groundcare

[Mark Bolam]

He could have given extra.

Even if it meant bumping them up to £14 and charging them out at £50.50.

[kevinjohnsonmbe]

Maybe (hopefully) they both have the energy, determination, commitment and vision to source, maintain and grow their own leads and work - plus having the resilience to manage the fallow periods, personal injury, unpaid holiday etc. 
 

If they don’t, they may be about to learn that the grass isn’t always greener on the other side!

For ??s - you know why they’ve jumped dont ya ??

 

[eggsarascal]

1 hour ago, kevinjohnsonmbe said:

 

For ??s - you know why they’ve jumped dont ya ??

 

Probably because they are interested in grafting?, I can't get my head round why Mark wouldn't pay more money, one of them (at least) will go on to good things. Treat people how you want to be treated!