What is a fair price to charge for tracktor/backhoe work?

[Egon]

Have I read this thread correctly:

IE:
when contracting one's self out for work always charge the highest rate going to maintain your reputation???

now if the above said contractor buys some equipment does he always go to the dealer charging the highest price???

 

[C.G.S.]

High price dose not in it self mean quailty it just means high price and a big ego to go with it .If you can not prove your works worth more then your the one with the problem and your not get work from me. I am not paying for someone's ego only their preformance!Big heads can go on down the road this economy will ether adjust their attitude or put them down both work for me.

 

[davitk]

I guess I came across wrong You guys sort it out. Me no big ego, me just wanna be in business tomorrow

 

[davitk]

Have I read this thread correctly:

IE:
when contracting one's self out for work always charge the highest rate going to maintain your reputation???

now if the above said contractor buys some equipment does he always go to the dealer charging the highest price???

I went back and re-read my post. The word "reasonable" jumps out at me, what an arbitrary term, perhaps that's causing some misunderstanding.

What I should have said is "when contracting one's self out for work always charge a high enough rate so that all of your overhead is covered, in addition to providing some "reasonable" profit, so that you can afford to give the customer the quality and service they expect" (because the reason they hired you in the first place was for your outstanding reputation ), unless, of course, you wish to be that "cheap guy"; the cheap guy if he so chooses can provide either quality, or service, or neither, at his discretion. If he chooses to violate that rule and give the customer price quality and service he will not likely be in business long.



Now to address the issue of buying equipment, if I were to buy from the lowest price dealer, or for that matter the lowest price manufacturer, I would be an absolute asp for expecting both high quality and high service.

 

[Egon]

What I should have said is "when contracting one's self out for work always charge a high enough rate so that all of your overhead is covered, in addition to providing some "reasonable" profit, so that you can afford to give the customer the quality and service they expect"

That statement makes perfect sense.

Somewhere along the line I must have not read things correctly. Oops!

 

[atgreene]

I make a good living correcting the mistakes of lowballers. People hire them, they cut corners to do it cheap, shortly thereafter the homeowner hires me to come fix it for them. Would have been cheaper to have spent the the money in the begining and done it right.

Being the most expensive doesn't mean that you have an ego, it may mean that you have enough experience and knowhow to know that the job requires more than the average Joe would figure on. I tell my customers that surprises are not good for either of us, I try to plan for worst case. Most of the time I come in under budget, that's my goal, but I give them the worst case price just in case. I haven't had a complaint in years.

BTW, I haven't advertised in about 5 years. Almost all my work is repeat customers who keep finding more work for me. Other contractors have told me I'm too high, but I think my level of service is what people are looking for. If they want less service than there are plenty of guys out there who will dig for beer.

 

[C.G.S.]

I have been doing this kind of work 25 plus years and I know BS when I hear or see it. I have fixed just as many jobs from big headed high priced blockheads who would justify their price by wearing out the dirt on a job moving it here and there with no plan and no ability to see a finished job before they start, as from "low ball" half asses. I am not saying that you should give away your services,but you can work with a plan and do the work better and in a cost effective manor that allows for best job that can be done with out screwing the person whose money feeds your kids and pays your bills. I do my work with though and a plan to not have have it redone, not to cost my customer undo expense,and prevent unforseen problems. You can fill a garage backfill with dirt ( " low ball") or stone. It is going to cost more up front to do it with stone but I don't have to worry about the concrete floor failing on down the road. That protects both contractor and customer and provides for a good product.

 

[atgreene]

I think you hit the nail on the head.

 

[DmansPadge]

This thread appeared to start getting off track and I didn't feel like reading all the crap.... so I don't know where you are at on this decision now so I'll just tell you what I know in my area. I have a highly experienced operator that runs a newer model Case 580 for $60/hr, $75 setup fee, 4 hour minimum. You have a nice setup but that Case would work circles around you... not trying to be negative... just honest. We all know it depends on area... but if a full size hoe is getting $60/hr here.... then I would think you would be in the $45-50/hr range here. Of coarse if a full size is getting $100/hr where you are... you could probably get $75-80/hr.

 

[AX MAN]

Price. Service. Quality.


Pick two, you can't have all three. I you are the low Price guy, you have to drop either the Service or the Quality element from the package. Long after the sweetness of the bargain is gone, the bitterness of the poor Service or Quality remains.

If you choose to become known as 'cheap guy' in the beginning, good luck changing customers perceptions of your company in the future.

That was very good and worth remembering. Thanks