Our Methodology

Our Data Source

All pricing on LocalServiceCost.com is derived from the Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS) program. This is the most comprehensive wage data collected by the U.S. federal government.

The OEWS survey covers over 800 occupations across all 50 states, collecting data from approximately 1.1 million establishments. It's the same data used by government agencies, academic researchers, and major employers to understand labor market conditions.

From Wages to Prices

The BLS reports what workers earn as employees. However, when you hire a contractor or service company, you pay more than the worker's wage. The difference covers legitimate business costs.

We apply a 1.5x to 2.5x multiplier to BLS hourly wages to estimate consumer prices. This multiplier accounts for:

• Business overhead (15-25%): Office space, vehicles, tools, equipment, software, fuel, uniforms
• Insurance (10-15%): General liability, workers' compensation, vehicle insurance, bonding
• Licensing & compliance (3-8%): State licenses, permits, continuing education, certifications
• Employer costs (12-18%): Employer FICA (7.65%), unemployment insurance, health benefits, paid time off
• Administrative (5-10%): Scheduling, billing, customer service, marketing, accounting
• Profit margin (10-20%): Required for sustainable business operation and reinvestment

The lower end applies to straightforward jobs with minimal overhead. The higher end applies to complex projects, licensed specialists, emergency calls, or premium contractors.

Geographic Precision

We don't use national averages. The BLS provides wage data for specific Metropolitan Statistical Areas (MSAs), which allows us to show accurate pricing for your actual location.

Labor costs vary dramatically by region. An electrician in San Francisco earns very differently than one in rural Texas. By using MSA-level data, our prices reflect your local market—not a meaningless national average.

For cities not directly covered by BLS MSA data, we use the nearest metropolitan area and apply regional cost-of-living adjustments.

Update Schedule

The Bureau of Labor Statistics releases new OEWS data annually, typically in March or April. Our pricing guides are updated within 30 days of each new BLS release.

• Current data: May 2024 OEWS (released April 2025)
• Next update: When May 2025 data is released (expected April 2026)
• Site last updated: January 2026

Limitations

• Not quotes: Actual prices depend on your specific project, materials, site conditions, and the contractor you choose
• Averages only: Individual contractors may charge more or less than our ranges
• Labor focus: Our prices primarily reflect labor costs; materials, permits, and disposal are often additional
• No emergency rates: After-hours and emergency services typically cost 1.5-2x our estimates
• Market fluctuations: Local supply/demand can cause prices to vary from BLS-based estimates
• No contractor vetting: We do not recommend, endorse, or connect you with specific service providers

Always get 3+ written estimates from licensed, insured contractors before making any hiring decision. Our guides help you understand if quotes are reasonable—they don't replace professional estimates.

Questions?

If you have questions about our methodology or data sources, please contact us. We're committed to transparency in how we calculate and present pricing information.