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How do service companies not pay more?

This is just a random musing. Not complaining. I could get paid more but it's not too bad. Currently working in a commercial plumbing / HVAC office. My one benefit, profit sharing, was pulled without word about a year and a half ago. Fine. We must not be making money. But right now I'm looking at a billing form. We charge $165 an hour for our foremen. They make ~50 plus probably 3 an hour in benefits and we have 10% overhead. So in my quick math, 10 + 20 / 50 * 165 equals a LOT of money. And that's just labor. No materials, no design work, no project management. Even apprentices who make about 20 an hour are being billed at $79.16. Yes, there is drive time, SS, insurance, etc but it seems that there is a serious disparity. I used to work as an arborist, being billed…


This is just a random musing. Not complaining. I could get paid more but it's not too bad.

Currently working in a commercial plumbing / HVAC office. My one benefit, profit sharing, was pulled without word about a year and a half ago. Fine. We must not be making money. But right now I'm looking at a billing form. We charge $165 an hour for our foremen. They make ~50 plus probably 3 an hour in benefits and we have 10% overhead. So in my quick math, 10 + 20 / 50 * 165 equals a LOT of money. And that's just labor. No materials, no design work, no project management. Even apprentices who make about 20 an hour are being billed at $79.16. Yes, there is drive time, SS, insurance, etc but it seems that there is a serious disparity. I used to work as an arborist, being billed out at 80 an hour while I made 12 an hour with essentially no benefits.

I know my boss needs a new Porsche every year but there should still be money for at least a monthly pizza party, right?

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