growler
Senior Member
- Location
- Atlanta,GA
What planet are you on that you are assuming a contractor is billing out a six month apprentice at $100 an hour?
And I think I know enough about the business on what contractors are charging out for their help.
I don't think an apprentice or even a journeymen is ever billed out at $100 an hour. You pay labor rates to include all the resources provided by the company.
The labor cost for a job may be billed at $100 an hour but this includes much more than what it cost to hire an employee.
If you were to send one journeyman and one apprentice on a one hour service call and bill $200 in labor what exactly does this mean? Does this mean that you paid the apprentice his $8 and the journeyman his $20 and make a $172 profit? This $200 in labor cost has to cover all the cost of putting these two men on the job for that one hour service call. These cost may include advertising, insurance, office rental, telephone, vehicle, fuel, tools and inventory.
It may look as if the customer is paying $100 an hour for a 6 month apprentice but that's really not the case.
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