patrick_g
Elite Member
Not to be overly pessimistic but... There always seems to be someone with a machine of one kind or another with no clue about how to operate it as a paying business. They frequently seriously underprice their hourly rate or the per job price. Eventually they may learn and adjust (not always) before they get so behind dollarwise that they just fade away.
There seems to be an endless supply of these people, some willing to lose money so long as they can maintain the illusion of doing stuff for pay. Unfortunately it makes it hard for someone in business to stay in business who is charging what it costs plus reasonable labor rates and a small margin for the unforseen equipment expenses WHICH ALWAYS HAPPEN. ONe of the illusion factors seen often is the guy with new equipment and low maint charging low rates but continuously taking value out of his equipment through wear and getting no compensation. Eventually he will have "given away" the machine.
Unfortunately the uninformed customer frequently has no other selection criteria but price and ends up soured on hiring work done if the "amature" can't git 'er done.
I was in this IGNORANT category (once again) for a period of time at the begining of my house build (CBN Oklahoma Farmhouse thread) I hired a dozer and after 2 days the dozer guy figured out what I had figured out. His dozer was way too small and his skill level was too low. I hired a guy with oodles of HEAVY equipment and an operator with 30 plus years experience on heavy equipment. I pay them top dollar and it is a bargain. 4 ft bucket track hoe/excavator or 11 ft blade dozer or extendahoe or ... The operator is an artist and is so efficient and productive that the $/unit work is less. I pay more per hour but less per job due to the right sized equipment and a whiz at the controls.
Short version: You can underprice yourself to ensure you get work but will you be wearing your equipment out with no $ for replacement? If it is to be a commercial operation you are supposed to come out ahead, not behind, not even to maintain an illusion that you are a commercial operation.
Pat
There seems to be an endless supply of these people, some willing to lose money so long as they can maintain the illusion of doing stuff for pay. Unfortunately it makes it hard for someone in business to stay in business who is charging what it costs plus reasonable labor rates and a small margin for the unforseen equipment expenses WHICH ALWAYS HAPPEN. ONe of the illusion factors seen often is the guy with new equipment and low maint charging low rates but continuously taking value out of his equipment through wear and getting no compensation. Eventually he will have "given away" the machine.
Unfortunately the uninformed customer frequently has no other selection criteria but price and ends up soured on hiring work done if the "amature" can't git 'er done.
I was in this IGNORANT category (once again) for a period of time at the begining of my house build (CBN Oklahoma Farmhouse thread) I hired a dozer and after 2 days the dozer guy figured out what I had figured out. His dozer was way too small and his skill level was too low. I hired a guy with oodles of HEAVY equipment and an operator with 30 plus years experience on heavy equipment. I pay them top dollar and it is a bargain. 4 ft bucket track hoe/excavator or 11 ft blade dozer or extendahoe or ... The operator is an artist and is so efficient and productive that the $/unit work is less. I pay more per hour but less per job due to the right sized equipment and a whiz at the controls.
Short version: You can underprice yourself to ensure you get work but will you be wearing your equipment out with no $ for replacement? If it is to be a commercial operation you are supposed to come out ahead, not behind, not even to maintain an illusion that you are a commercial operation.
Pat