WarrenF
Gold Member
In my business, I charge .50 cents a mile roundtrip outside of a fifty mile radius....I.E., if a customer lives 100 miles from my home they pay me $50.00 for the travel. I charge $70.00 per hour from the time I arrive at their home. My business is not tractor related, but that should give you an idea on what to charge. Call a plumber and they will charge you minimum of $70.00 per hour while on site.
Now then, sit down and put a pencil to it. If your truck gets 10 miles per gallon when loaded with with tractor and implement....if you go fifty miles to a job, then you have spent minimum $20.00 in fuel to get there just for your truck. If your tractor will use 2 gallons of diesel working under load, the fuel cost is easily figured.
One thing I will caution you on is this....BAD BUSINESS IS WORSE THAN NO BUSINESS. Why? Because bad businesss costs you time and wear and tear on your equipment. No business means that you have not put that wear on your equipment.
I would suggest that you give the customer one bill....with just a flat fee, however in your head and on your calculator you have all the expenses figured into the bill. Remember if you have 30 thousand dollars invested in your equipment, there MUST be some return on that investment. You will lose some you wished you could have gotten, you will get some you wished you would not have gotten.....but most importantly DO EACH JOB AS IF THEY ARE THE MOST VALUED CUSTOMER. Leave your business cards at each home. Tell your current customers that you will give them a 10 percent discount on the next job...AFTER....they have sent you a PAYING REFERAL.
Get long term with the business, and remember that what you do today will pay you OVER AND OVER again down the road.
Good luck and you are now entering one of the most fulfilling times of your life....WORKING FOR YOURSELF. Note I did not say profitable....I said fulfilling. It may be VERY profitable....and I hope it is,
Now then, sit down and put a pencil to it. If your truck gets 10 miles per gallon when loaded with with tractor and implement....if you go fifty miles to a job, then you have spent minimum $20.00 in fuel to get there just for your truck. If your tractor will use 2 gallons of diesel working under load, the fuel cost is easily figured.
One thing I will caution you on is this....BAD BUSINESS IS WORSE THAN NO BUSINESS. Why? Because bad businesss costs you time and wear and tear on your equipment. No business means that you have not put that wear on your equipment.
I would suggest that you give the customer one bill....with just a flat fee, however in your head and on your calculator you have all the expenses figured into the bill. Remember if you have 30 thousand dollars invested in your equipment, there MUST be some return on that investment. You will lose some you wished you could have gotten, you will get some you wished you would not have gotten.....but most importantly DO EACH JOB AS IF THEY ARE THE MOST VALUED CUSTOMER. Leave your business cards at each home. Tell your current customers that you will give them a 10 percent discount on the next job...AFTER....they have sent you a PAYING REFERAL.
Get long term with the business, and remember that what you do today will pay you OVER AND OVER again down the road.
Good luck and you are now entering one of the most fulfilling times of your life....WORKING FOR YOURSELF. Note I did not say profitable....I said fulfilling. It may be VERY profitable....and I hope it is,