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  1. #16
    Join Date
    Sep 2013
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    It also depends on how much work the business has to if they will bid high or low for a job, and if that they think that they think that they can charge more for a job and still get it. sorry that I can't explain it better but it just depends on how much profit and how big the company is to what the price is.

  2. #17
    Join Date
    Feb 2003
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    back in Alberta for a while
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    Quote Originally Posted by artme View Post
    Got all that Par but it still does not explain the disparity in the quotes.
    I'll have a go

    Tree Lopper A
    Self employed, as is their off-sider.
    In terms of "wages" is paid what is left over at the end of the week.
    Makes no provision in their job costing for non work days, paid holidays, inability to work due to illness or superannuation.
    Likewise makes no provision for replacing their tools of trade -- chain saws, ladders, truck, etc. -- doesn't charge travel time.
    Will dispose of the tree by dumping what they can at the local council tip and burning the rest. Expects that the customer will keep the bulk of the tree for firewood.
    Job is costed something like this...
    It'll take a whole day.
    $200 to pay the off-sider
    $150 for Tip fees
    $50 for fuel and consumables
    $400 retained by tree lopper as "profit"

    Total $800.


    Tree Lopper B
    a proper company structure
    employees work for wages and are paid for public holidays, annual leave, sick leave, superannuation, plus any other entitlements. Collectively these are known as employee overheads
    each employee's costs also include an amount to cover the company expenses -- insurance, owner's salary, etc -- sometimes called general overhead
    company makes provision for replacing / maintaining the tools of the business, including the truck.
    company owner and his wife (and some of the kids) are each paid a salary by the business plus a dividend (= retained profit) at the end of the year.
    all of the tree will be chipped on site
    Job is costed something like this ...
    $2000 -- day rate for four employees, including their employee overheads
    $800 -- day rate for the company's truck, towed chipper, saws, etc -- covers the use, maintenance and depreciation of these items
    $500 -- general overhead for four employees
    $150 -- travel costs
    $150 -- Tip fees

    Total $3600


    At the end of the day, it comes down to how many people will be on site, how much (and how) they are paid, and whether you are dealing with a company or sole trader.
    regards from Alberta, Canada

    ian

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