Mowing How to figure Rate Per Hour

[smstonypoint]

Now the tractor. Figuring at 6000hrs, my $20000 equip will likely be bout worthless. At least have to assume that in the business world, because at 6000hrs, cost of repairs may exceed the value, and would be looking for full replacement anyway. So....just owning the tractor and using it....3.33/hr

Don't forget that what ld1 posted only pays for what you already have. If you want to get and stay out of debt and be able to grow, you should double this figure so you have money to buy again when this one wears out.

LD1 did include depreciation ($3.33/hr.), so he is pricing in replacement. However, he did not include the opportunity cost of the funds tied up in his equipment as an ownership cost. Assuming an initial investment of $20,000 and zero salvage value, he has an average investment of $10,000. If he can earn an annual return of X%, he has an annual opportunity cost of X% * $10,000 in that investment.

Steve

 

[Rocky Hoffler]

The previous post all contain good info. I do work my tractor for hire saw a sign posted on the side of road pasture mowing 25 dollars an acre so if this person can mow 2 acres an hour they make 50 bucks pretty simple math. but I don't think they will stay in business very long at this rate. My point is there is always some one who will do it cheaper. but don't set your self up to fail. Whatever you charge if by the hour or job price you need to keep half for equipment repairs and replacement then buy fuel and pay yourself out of rest so if you figure you need to make 30 dollars an hour and fuel is 5 dollars an hour at least 70 dollars an hour. if bidding by job especially if it is new to you figure how many hours it will take to do job and traveland then add to that because it seems as though it always takes longer than figured. If you get every job you bid on you are probably too cheap.

 

[smstonypoint]

Of course you would also have to figure workmans comp expenses and/or any benefits you decide to offer. I would assume your insurance would also increase if you hired on. I have heard figures anywhere from 50-100% more than payroll for other expenses.

In June, private employers had employee benefit expenses (including insurance, FICA, paid vacations, etc.) that averaged $0.43 for every $1 of wages.

Employer Costs for Employee Compensation news release text

Steve

 

[LD1]

If you get every job you bid on you are probably too cheap.

Good point right there.

I get 50-60% of the jobs I bid. And thats about perfect. Anymore And I wouldnt have time to get them done in the days I have available.

Size of equipment and how good you are with it also comes into play.

I do one job that is 10.5 acres in the form of 3 different horsepastures. Takes me ~5hrs to do the job and 1hr each way travel. I bid $400. Same as the guy she used to have do it but he was older and retired. He was using an old ford (probably N series) and a 5' cutter. With it being 3 pastures, vs a wide open field, there is alot mmanuvering. And the N's were limited on their speed as they didnt have a good gear selection. It took him over 10 hrs to do the job. So another reason not to bid by the hour. Cause while I am at 57 per hour (400/7), if his travel were the same as mine, he would be at (400/12) $33/hr. So even though his equipment cost is less, its hard to get at $25-$30/hr to pay himself a decent wage for profit.

So having good equipment and knowing how to use it is very important if you want to succeed.

 

[Rhino172]

Hey I want some opinions on this, I recently did a 19.54 acre job for a radio company, they have asked me to maintain plus spray around guide wires, building, etc. I gave them a price of $1500 a visit to maintain it. Does this sound like its way to high. Keep in mind I don't have a batwing bush hog yet, so I'm mowing with a 6 foot cutter. Averaging around 1.5 acres an hour. Let me have all your opinions.

Thanks

 

[LD1]

Sounds high to me, but then again I dont know what you are into with the spraying. So I can only speak to the mowing side of it...

20 acres +/-......what kind of conditions is it? When is the last time it has been cut?? If this is the first cutting in a few years, then yes it is going to be slow going the first time. But if it is something they want done a few times a year, you should be able to average closer to 2.5-3 acres per hour with a 6' cutter.

General rule....cutter width x MPH /10 gives you acres per hour. 6' cutter @ 5 MPH / 10 should be 3 acres per hour.

To only average 1.5, is averaging 2.5mph, which is sloooowwww. Like foraging through 10' high weeds/briars/saplings slooooow.

So......if I was bidding 20 acres, assuming a few mowings per season and fairly smooth ground and not a ton of things to mow around....6-7 hours. Assuming 1hr each way travel time (with loading and unloading)....8-9 hours.

So my bid would be somewhere around $500. But thats assuming optimal conditions. And frequent mows. Then add whatever you charge for spray.

Even if this was a first cutting and took 2x's too long, That still wouldnt put my bid over $1000

 

[LD1]

Forgot to ask, You said you recently did the 20 acres and they asked you to maintain it.....what did you charge the first time and how long did that take you?

 

[smstonypoint]

Hey I want some opinions on this, I recently did a 19.54 acre job for a radio company, they have asked me to maintain plus spray around guide wires, building, etc. I gave them a price of $1500 a visit to maintain it. Does this sound like its way to high. Keep in mind I don't have a batwing bush hog yet, so I'm mowing with a 6 foot cutter. Averaging around 1.5 acres an hour. Let me have all your opinions.

Thanks

How far do you have to travel?

Steve

 

[Rhino172]

Ld1 just curious, how much do you profit after you take out all your expenses etc. say on the 10.5 acre job for $400. If you don't want to share that info I understand. Again thanks for your input and everybody else's

 

[LD1]

The 10.5 acre job took 4.5 hours of seat time on the tractor.

Using my above # of $10.5/hr to run my tractor...It cost me ~$50 to run the tractor.

It was a 72 mile round trip. Figuring $1/mile for wear/tear (about double what IRS claims), thats $72 wear and tear and fuel on truck/trailer.

So $400-72-50=$278 profit. Total time including travel was 6.5 hrs. So i made ~42-43 per hour.

I know I didnt figure insurance in and all that. Like I said, the more jobs you do, the cheaper the insurance figure is PER JOB. So I look at it this way....I make 43/hr and pay for my own insurance. Still pretty good numbers IMO. Now if I only did $2000 worth of work a year, and insurance was $1000, it would be a different story. But get enough work, and the cost of insurance is peanuts.