Originally Posted by vail snopro
The range of pay for a Level 3 at Vail varies greatly. A 1st season L3 might make $15 p/hr. On the other hand, I am in the top 10% of the pay scale, and I make just over $31 p/hr. Part of the difference is due to my examiner status, my coaching qualifications, and the number of years with the Vail org. Any request or referral gets the pro an extra $5-7 p/hr (depending on what part of the season it is). We get paid for 6.5 hrs per day on an all day pvt. Then there are the tips, on top of that.
May I offer a reply that comes from an entirely different perspective, that of a business owner and a business owner who has a lot of friends in different industries that own businesses. This may not be a popular post, but it may give you pause to think from another perspective.
The question is $750 for an all day private a reasonable amount for an employer to charge when an instructor only is paid “X” amount. I listen to accountants, attorneys, physicians, dentists and many other service professions who are employees complain on how much their billing rate per hour is verses how much they get paid per hour. Most employees have no clue on the true and total costs of supporting their wages. Most do not know what has to be billed by the owner of the business to cover all of the costs and to have a profit left over. “Profit” is not a four-letter word, “loss” is. Too much in the “loss” column and you do not have an employer to work for.
This is how you figure what your billing rate must be in order to support your gross wages. Most do not understand your gross wages. They include:
1.Your pre-tax base hourly or daily wage
2.Add your employer’s contribution to social security, state and local taxes, etc. If you were self employed you would have to pay this yourself.
3.Add all medical, dental, pension, uniform, food, free skiing, parking, housing and other perks that you quickly forget, as given per year and divide by the hours you work.
4.Add all paid time off.
5.Add reimbursements for training.
6.Take all of these other things your employers pays to you as a total and divide by the numbers of hours you actually worked to get your true hourly cost of being and employee.
7.That total numbers is then multiplied by 4 or 5 to get your hourly billing rate. Anything less billed and you are creating a loss for your employer.
Let’s figure this out. $31 per hour, is that all inclusive, after all taxes (net) or gross take home? Let’s say it is gross pay. Most other expenses around a 31 per hour employee is $7-$10 per hours. Skiers think they do not get much so let’s say it is $4; this makes a nice number of $35 per hour. I’ll bet it is closer to $41 per hour.
Okay, he is paid for 6.5 hours for an all day private. So $35 x 6.5 = 227.50, his daily gross wages. 227.50 x 4 = 910, times 5 = 1137.50. Geeze, Vail may actually be loosing money if they have to pay vailsnopro to take this lesion. Better not ask for a raise!
Maybe the employee cost is 3 times total wages: 227.50 x 3 = 682.50. Now Vail makes a nice profit.
The $15 per hour Level III wages are probably closer to 20 including all hourly benefits that he doesn’t really see. $20 x 6.5 = $130. Times 4-5 is 520-650. this is what Vail has to charge for their lower cost employee to break even.
Does anyone here know what the total employee compensation is a a percentage of total operating costs? So what ever your total pay is, to find out what has to be billed to support you, multiply you total gross pay with total benefits by 4-5.