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sme | Is it ethical to charge a client 65 dollars an hour for a laborer who earns 12.90 an hour? |
If the work is worth the 65 dollars, shouldn't the worker get more; and if the work is really only worth 12.90, isn't 65 dollars a rip off?
How is this 500+ % justified in the mind of the employer, it just seems wrong to me somehow.
Please explain. |
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Angel
 |
The business needs to make money to cover all of their expenses and to make a profit so it is understandable. If you get vacation time and other benefits, that all gets factored into your salary as well. :) |
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Liz H
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You're not taking into account a lot of factors. There's overhead, that many people don't even consider. Some how the company has to pay for the electric, AC/heat, cars, insurance, salaries, cleaning people, computers, etc. All of this is factored into an hourly billable rate. Reconsider all the expenses. |
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intrigued
|
the employer has to pay the worker 12.90 an hour but also has to provide the transportation for that worker to get there and for the equipment needed for whatever they were hired for, a building maybe, utilities and some profit to make the company some money...companies have other expenses you just dont see.... and with gas prices it is even more justified |
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Needlatinhelp
 |
If the client is willing to pay that, there isnt anything wrond with that, the company has to make money... |
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Janet T
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I agree with you, but that's the way business works. I've worked for a sign shop and it was the same way. A sign that costs $45.00 to make would be sold for $350.00. I was making the sign and only got paid $15.00 /hr. Its just the way the business is. Of course you have to con cider the cost of running the business too. The shop may be closed, but hydro still has to be paid and the phone still has to be connected etc. |
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annsrum
 |
Well, you have to take into consideration that the owner has to pay rent for the building, the utilities, the cost of any materials used in the service, any gas and cars used by the company, and any benefits that they provide to employees, and other employees salries, and their own salary out of that same money.
So while it might not seem fair it actually isn't the worst percentage either. If the laborer were a co-owner, they they might get half ($ 32.50) but he would have to pony up his share in the business cost as well. So he wouldn't really end up with the 32.50 per hour in his pocket either.
Oh and of course any hours where work isn't available that they still might have to pay their employees too.
Usually it takes an owner several years of having to turn his own profits back into the company before he even sees much extra money either.
To get ahead, the laborer may want to consider opening his own business, but he has to think about how much time he will need to sacrifie to get it off the ground first. |
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Jay B
|
It's kinda like an Auto Mechanic - the auto repair shop will charge $60 to $80 for an hours worth of work and pay the actual mechanic $12.50 for the hour of work. But the repair shop has overhead costs that the mechanic does not have to worry about (utilities, rent, insurance etc.) - It's the way it goes. You can always go work for yourself and charge whatever you want. |
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Michael G
 |
You have to also include all of the other costs associated with the 65$ an hour charge.
I am a configuration specialist and I set standard costs for the company where I work.
Consider these costs...
-Cost of raw materials and tools to work.
-Price of company funded gas and utilities.
-Price of other workers that schedule the jobs, but dont actually work at the job site. (I.E. Managers and bosses)
-Compensation due to owners or Union. |
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hiss_meow
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its not just what the laborer gets in one hour, its the fact that they had to drive there, make plans on their phone with you, complete paperwork, provide reliable transportation to the site, pay utilities, it all adds up... not to mention make a profit and probably pay the lease for their business.
It is fairly resonable once you add up everyday expenses.
At my job at a jewelry exchange we charge 300% what the jeweler charges us because of added expenses. |
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RedFox
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That's the was business works. Unfair isn't it? That 's capitalism.The rich get richer and the poor get poorer.Then we die..... |
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