MarginWorkshopOwner Field Labor vs. Management Time (Owner Replacement Cost)
Find out what it would cost to replace the hours the owner personally works in the field and in admin/management.
How we got here
- Field cost = field hours × field rate × weeks = 20 × $32.5 × 50 = $32,500
- Admin cost = admin hours × admin rate × weeks = 15 × $40 × 50 = $30,000
Shared fields save automatically as you edit them. Review or edit everything in one place in your Business Profile, so every engine starts pre-filled.
Next Decision
Based on your results, these related decisions are available.
- First Manager / Working Foreman Break-EvenUse this baseline to decide whether a first manager or working foreman pays for itself.
- Office Manager / Dispatcher Break-EvenUse this baseline to decide whether an office manager or dispatcher pays for itself.
- Estimator Hire Break-EvenUse this baseline to decide whether a dedicated estimator pays for itself.
- Operations Manager Break-EvenUse this baseline to decide whether an operations manager over multiple crews pays for itself.
Methodology
Formula: field replacement cost = field hours × field rate × weeks worked. Admin replacement cost = admin hours × admin rate × weeks worked. Total = the sum of both.
Assumption: this does not itself recommend a hire, it establishes the baseline the four management-hire break-even engines measure "hours freed" against.
Limitation: replacement rates are entered directly, this engine does not estimate local market rates for you.