Mike AndesFounder, Augusta Lawn Care and Homeworks · Founder of Homeworks and Augusta Lawn Care

Labor REVENUE in your lawncare business. 📈

4 May 2023 · 1 min

Watch on YouTube

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YouTube video (May 4, 2023) by Mike Andes discussing a pay-for-performance compensation model in a lawncare business: employees are paid a percentage of the labor revenue they generate daily rather than an hourly wage. Raising customer prices increases employee pay because employees earn a share of that revenue. Since implementing this model the speaker reports employee wages rose 28% and the company was able to offer medical benefits, gym reimbursement, profit sharing, and paid time off.

Questions this video answers

May 4, 2023.

They receive a percentage of the labor revenue they earn for the business every day (not an hourly wage).

28%.

Medical benefits, gym reimbursement, profit sharing, and paid time off.

Chapters

So, yes, we will make more money as a company, but you guys make more money because you're generating same budgeted hours. But because we're going to raise prices, this is what we get. Same work you did yesterday. We'll pay you more per hour. Same work.
We don't pay an hourly rate to our employees. Instead, they get a percentage of the labor revenue they earn for the business every single day. Which means if we raise our prices to our customers, it's actually giving a raise to our employees because they get a percentage of all that revenue. People can say we're ripping off our employees as much as they want, but the truth of the matter is that since we instituted pay for performance, our wages have gone up 28%. As well as we've been able to afford medical benefits, gym reimbursement, profit sharing, and paid time off for our team members.