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tip number six how to figure out your effective labor rate this is an important number to you because when you understand what your effective labor it is you understand what your hours worth and when you understand what your hours worth now you can set your goals and targets and understand your business better enough in a better financial way so either with effective labor aid what we do is we take dollars sold so labor dollars sold and we divide them by labor hours charged so if we sold lets say thirty one thousand eight hundred dollars so if we sold thirty one thousand eight hundred dollars thats a zero and we build out three hundred and twenty hours then and we take thirty one thousand eight hundred and divide it by three hundred and twenty thats gonna tell us that we actually made in labor about ninety nine dollars and forty cents an hour give or take a penny now heres heres heres the deal if my labor rate is a hundred and twenty my posted rate and and Im only getting ninety
