tylertown,
I think that $500.00 is not unreasonable to knock down the house (not including any concrete foundation that has to be dealt with) and pile it on the site for your customer. It is not unusual to work by the hour or base your bid on your hourly rate X estimated hours to complete the job. If you bid (rate X estimated time), be generous to yourself when estimating hours to completion. You can bite yourself in the butt really easily by under estimating the time required. I prefer to price myself by the hour. If a customer wants an estimate, I use the rate X estimated hours (plus any rented attachments and or travel) method to give an estimate. I still bill by the hour (with a 4 hour minimum). Sometimes the customer insists on a firm price. I will do this too but I am very generous to myself with the hours. Bidding against other contractors is a whole ‘nother animal that only time and experience will make you proficient at. As far as bidding goes, the best advice I ever received is know your costs and don’t take a job knowing going in that you are going to lose money.
You say that the house is in the city limits. Before you give your customer a final price, check with the city about permits, insurance requirements, hazardous waste requirements, service disconnects etc. Do not rely on your customer’s word for this, check for yourself! The only requirement from the city on the little demo job I am bidding was $50.00 for a permit. If I had started the job without checking, the fines for not having that permit could easily have exceeded the profit I would make on the job or possibly even the entire price of the demo.
I don’t think that $85.00/hr for your machine is out of line at all (at least for around here). I added the cost of a mini ex with a thumb into my bid and by the time I accounted for the rental rate, insurance, taxes, hauling, fuel and my time operating it I was hitting $104.00/hr (based on 8 hrs use on a 1 day rental).
I have a ’06 Dodge D3500 and a 14,000lb tandem axle gooseneck utility trailer that I use to haul my equipment on. It limits what I can haul somewhat, but I don’t have to deal with CDL/DOT issues here in Texas with that rig. Check with your own state about this as it varies from state to state. I have pulled that rig with my skid on it and loaded to the limit from Texas to Utah (2032mi round trip) and from Texas to Vermont (3876mi round trip) for jobs. So far I have had no trouble with breakdowns or the law (probably just lucky with the law). Typically I charge $1.20 per mile each way for anything outside of 25 miles from my home/business. Don’t short yourself on mileage, my truck will burn over 40 cents worth of diesel per mile with the fully loaded trailer. Then there is maintenance, upkeep, insurance, payments and you need to pay yourself something for herding that rig down the road.
Again, a little long winded (sorry about that) but I hope I have answered your questions.
Best regards,
Tim[/QUOTE/]
Thanks Tim, great information! I haven't had a problem with DOT or law enforcement in my area either. I tow with a 04 Chevrolet 2500hd good truck but loves that gasoline stuff. I currently have a bumper pull tandem axle 10k trailer. it gets the job done but looking to invest in a goose neck like you have in the spring. and maybe a small tractor with a loader.
About the old house, I guess to close to Christmas for any work from anyone right now. I rode by the other day and its still standing haha. people have their priorities I reckon. but im glad you don't think that $500 was to bad of a quote. yeah with no concrete foundation. just a hollow brick porch. im kind of new to the business and find giving people quotes is tougher than the actual work itself. I will try to be more generous with my quoting. don't want to work for free but have to learn from experience I guess.
I really enjoy the work and going and giving estimates and looking at jobs. its more so a hobby right now until I get all of my equipment paid for so I just look at my income from jobs as a way of keeping score haha. its hard to beat those dodge trucks. I had a 96 3/4 ton long bed with the old 12 valve engine and I loved it but my truck was falling apart around the motor but everything about it was pretty much bullet proof when hauling. but I like my new 6.0 gas motor too. the maintenance is a lot cheaper and easier on my pocket book until I go to hauling with the cost of fuel but pulls very well.
by the way do you hire any friends to help you on jobs? like a ground man or anything or have them doing something else. I was just wondering.
Thanks again for all the advice and information Tim!
Tyler