Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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 :)

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.