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I do have to say though that I'm shocked that they make so little per hour for all that they do.

Well, there are a few reasons for that -

1) There are a lot of guys who do this, and there is little that is required except a healthy body, good attitude, and good dose of common sense. Some companies pay less than I do - that's why you'll see trucks with illegal aliens piling out of them. In addition, a lot of guys do this because they just don't fit into other jobs very well. They tend to be physically aggressive, and just cannot imagine sitting behind a desk all day. Even being indoors all day is a dreadful thought to them.

2) The economics of the business are pretty rough. Let's say you're talking about a local move, with a 3 man crew. For an 8 hour job, here's how it breaks down:

Income - 8 x 115 = $920

Direct Costs:
Payroll - 9 x 33 = $297
Workers comp - $297 * .14 = 41.58
Fuel - $40
Maint - $20
Misc Crap - $20

Costs of Sales:
Royalties - 6.5% = $60
Office Staff - 5% = $30
Advertising & Lead generation - $100

Gross Profit = $920 - 608 = $311

Now, out of that $311, we still have to pay for the truck (which is about $1200/mo, and insurance, which is another $1000/mo, and a facility, which is another $1500, and utilities, and damages (which do happen) and this, and that, and the next thing. In the end, there's not a lot left. So even if you do want to pay the guys more, there's really nothing in the budget to give them.

Sheesh - I'm beginning to wonder why I'm doing this at all :)

Gary
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