Price per acre - bush hogging

[crashz]

I started doing this last year and have been surprisingly successful with a simple Craigslist add. I have obtained insurance and run this as a business, but as a side business only.

My fees are pretty simple:
- $60/hr for tractor and cutter.
- 4hr minimum unless it is one of my regulars. I have a handful of good customers that are excellent and I'll bend the rules for them.
- Same rate for mobilizing to the site. I start charging as soon as I leave my driveway. Usually my machine is loaded the night before.
- I do not charge going home.
- I do not take work that I cannot look at and estimate beforehand. I did estimate one from Google Maps, and that was not ideal, but not entirely a problem.
- I'll quote the hours and total price.

LD1 is absolutely correct, most homeowners would rather pay $480 for a job that takes all day, but will balk at $60/hr.

I will find out how it goes once I finish our taxes this weekend. My total profits did not cover expenses, with the new trailer purchase this year. My rate was a market rate, not really a total cost thing. My pricing really doesn't cover that much:
- My tractor and KTAC insurance payments are very low, so it would bear that cost
- Fuel was covered
- Insurance was covered
- Repairs (PTO shaft and loader stand)
- Chains, binders and straps
- Maintenance
- A little less than a third of the cost of the new trailer to get the tractor to the jobs.

And that's it. Notice, that I haven't included the trucks in there, or maintenance of the trucks. I figure I will break even in 3 years, and maybe I can rent to the trucks to the business if needed.

 

[LD1]

Don't know how much you grossed. But you might have turned a profit. Usually large expenses get depreciated. So your trailer purchase wouldn't come off all this year.

And keep track of miles you drive your truck for this business. And that's not just towing, but estimating jobs, run to the dealer for fluids and filters, etc. It's a write off, and better than claiming actual expense. With milage, it's simple. With actual expense, you need to know cost of tags, insurance, maintenance, and fuel receipts. You also need to know personal miles driven. Because you figure what % is business, and can only write off that percentage of expenses

 

[Molalla1]

Yep LD1 has it right . . . and you also, one must cover all expenses . . . :thumbsup: . . . and make a profit.

 

[crashz]

Thanks!

I didn't take into account the mileage issue. I will have to go back and calculate the mileages. Should be pretty easy, as I have all the projects logged. Going to get fuel, parts etc will be tough to estimate, but doable.

I was very surprised (pleasantly) at the amount of calls I got. I'd say I was getting 4-6 calls per week with 2-3 turning into viable jobs. I turned a lot away, as most were folks trying to do things on a budget that needed site contractors or land clearing contractors. Some guys needed small backhoe work that I wish I could have done, but it wouldn't justify even a rental. Also my insurance is pretty specific about no excavation below 3ft. Kept me so busy that most of my weekends were consumed. All customers that I worked for were good honest people that paid on the spot.

 

[Jstpssng]

You also need to cover the time that you spend doing estimates, including those of people who don't give you their business.

 

[LD1]

Some trucks have dual odometers which make it easy to separate business and personal....if you remember to do that.

I keep a nice spreadsheet and log everything. Jobs, location, prices, milage, how long t took me, etc.

I don't negotiate my price either. I provide a service. My rates are my rates. This isn't Craigslist bartering over a 50 year old piece of farm equipment.

Sucks that Craigslist is now charging for ads in service categories.

Get some business cards also. Vistaprint

 

[Molalla1]

Get some business cards also. Vistaprint

:thumbsup: . . . very cheep advertisement.

 

[Green Acres Homestead]

THE PROBLEM WITH SMALL BUSINESS WORKING FOR BIG BUSINESS IS COLLECTING THE MONEY. GET PAID FOR ONE LOT BEFORE STARTING THE NEXT--AND SO ON. JUST SAYING

I know a guy who almost went bankrupt because of that. They didn't pay him $50000 for about 1 year. Our famous Irving family withheld payment of forestry work completed.

 

[Jstpssng]

^^^
They're noted for that.

 

[Molalla1]

^^^
They're noted for that.

Yep, holding on to the little man's money, get paid for every job done.