Mike Andes breaks down how he pays his crew on a $1,000 mulch job: $400 goes to materials, $600 to labor, and the crew gets a guaranteed $200 (33% of labor revenue) regardless of how long it takes.
All right, let's break down the math. Let's assume you have a $1,000 mulch installation job. Let's assume $400 of that is material cost and material markup. That's off the table for P4P. Let's assume $600 of that is labor revenue. Now let's assume that we're giving 33% on P4P to our crew, meaning out of that $600 of labor revenue, the crew is going to make $200. It doesn't matter if it takes 4 hours, 6 hours or 10 hours, they're making $200 for that day on their wages.
