Labor Rate: A labor rate is the dollar amount charged per…
Definition
A labor rate is the dollar amount charged per hour for a technician on a job. There are two rates: cost rate (what it costs to employ someone) and billing rate (what the client is charged).
Common Questions
Real-World Example
CRM Services calculates a technician costs $38/hour but bills at $85/hour — the difference covers overhead and profit.
Why It Matters
Correct labor rates are the foundation of profitable pricing.
Related Terms
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Overhead and profit (O&P) is the combined percentage added to estimates to cover indirect business c...
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