Hours charged for tractor work

[MoMower]

If your business is legitimate (or not). You’re leaving money on the table bidding hourly.

 

[FERLING]

I just do per job in my jobs, there is no unexpected surprises and people know what they are paying upfront, sometimes they win, sometimes I win, but i get better at bidding everytime, and I don't get mad cus i know what i quoted.

Love to hire people like you! No surprises at completion and I don't have to worry about whether you are working or taking a break.

 

[LD1]

If your business is legitimate (or not). You’re leaving money on the table bidding hourly.

While I agree bidding by job is better than hourly in most cases.....this statement simply isnt true.

Those that quote a flat price for the job DO have an hourly rate they associate one way or another with their bid. They have to anticipate how many hours or days it takes to do a job.....and have a certain target in mind.

For example if I quote a job thats gonna take me a full day and I quote it at $1500. How is that any different than spending 10 hours and billing $1500? Arent they the same? What money is left on the table?

 

[aircommuter]

Money is left on the table when your bid is radically lower than other bidders. Nothing to do with hourly rates.

 

[charlessenf]

It is local work so there is no travel time , is the hour meter as accurate as the watch on a minute by minute basis ? I only want to charge them when the machine is actually being used if that is a normal way of figuring a bill , I want to be fair with my customer and myself.

Your time is valuable. The rental of your tool is valuable. So, if the rental company charges by the day for a tractor rental - there's your fair pricing for that. Then you add what you need per hour of your time, and, of course the fuel you bought to complete the job!

As folks have pointed out, the replacement cost of your equipment is increasing even as the 'taxable' value of it is depreciating. If you think of the fact that your neighbor would have to pay RENT-ALL for the use of the equipment, fuel and transport, all you're adding is your time and, not insignificantly, your expertise in handling that equipment.

If a hydraulic hose breaks mid-job - who pays to have it repaired? You're assuming that risk.

 

[aircommuter]

What about insurance, self employment tax, time dealing with rental company and other overhead. All factors must be considered. In my state insurance is the big number.

 

[scootr]

Professionals bid. The buyer typically pays more for the bid.
Charging hourly is a neighborly thing to do, usually reserved for unlicensed often uninsured skilled workers who branch out on their own.
I did this in my neighborhood this year. We had record rainfalls which yielded record weed growth and I've done hourly mowing and disking at 4 places near me mostly for fire prevention. Some of these weeded acres are as tall as corn stalks.
Luckily I was careful and did not do any damage to my tractor or anybody's property. The hourly rate was more than fair and seemed to be agreeable with everybody.
Mine is not a business. Just a way to help out and make fuel money.

 

[bowenskye]

When using a tractor to do work for other people and charging by the hour my understanding is the hours are measured by the hour meter on the equipment versus the wrist watch.
What say you ?

When I do custom excavating for neighbors. I break out my time, the machine's time, and the fuel. I can be flexible with billing for my hours, but the machine gets paid in full.

 

[LittleBill21]

While I agree bidding by job is better than hourly in most cases.....this statement simply isnt true.

Those that quote a flat price for the job DO have an hourly rate they associate one way or another with their bid. They have to anticipate how many hours or days it takes to do a job.....and have a certain target in mind.

For example if I quote a job thats gonna take me a full day and I quote it at $1500. How is that any different than spending 10 hours and billing $1500? Arent they the same? What money is left on the table?

because with hourly there is no buffer. I may bid 1500, but realistically only expect to take 7-8, and even if you go hourly, lots people get nervous, because they don't know how to budget it, you tell someone 10 hours and it takes 20 on a hourly rate, they are going to be pissed period.

 

[MoMower]

While I agree bidding by job is better than hourly in most cases.....this statement simply isnt true.

Those that quote a flat price for the job DO have an hourly rate they associate one way or another with their bid. They have to anticipate how many hours or days it takes to do a job.....and have a certain target in mind.

For example if I quote a job thats gonna take me a full day and I quote it at $1500. How is that any different than spending 10 hours and billing $1500? Arent they the same? What money is left on the table?

Ok? I’ve done it both ways.

When starting out I did hourly $80 per. Once I legitimized and had a lot more overhead, that became unsustainable. Minimum is now $300. That 20 minute job would have grossed $80 before, now grosses at least $300.

There is no legitimate contractor that bids hourly, weather or not the target is in mind. It leaves money in the table.

 

[aircommuter]

Even when I started out I had insurance, too much to lose. Old saying is I have no quarrels with those who sell for less as they know what their time is worth.

 

[aircommuter]

Ok? I’ve done it both ways.

When starting out I did hourly $80 per. Once I legitimized and had a lot more overhead, that became unsustainable. Minimum is now $300. That 20 minute job would have grossed $80 before, now grosses at least $300.

There is no legitimate contractor that bids hourly, weather or not the target is in mind. It leaves money in the table.

Yep at least a 4 hour minimum. Too hard to piece together little jobs. Leave those for others starting out or just puttering around.

 

[David Kees]

When using a tractor to do work for other people and charging by the hour my understanding is the hours are measured by the hour meter on the equipment versus the wrist watch.
What say you ?

I charge an hourly rate off the hrs meter for the tractor
Plus my rate to operate it off my watch

 

[LD1]

because with hourly there is no buffer. I may bid 1500, but realistically only expect to take 7-8, and even if you go hourly, lots people get nervous, because they don't know how to budget it, you tell someone 10 hours and it takes 20 on a hourly rate, they are going to be pissed period.

If you bid $1500 and only expect it to take 7-8 hours.......would this not be the same as charging $200/hr? Dont see how money is left on the table?

What makes you arrive at your $1500 number? You certainly have a target hourly rate to come up with that. Bidding flat rate and coming in under hours is good....but what about bidding flat rate and going over? As per your example.....if you tell someone ~10 hours but it took you ~20......had you bid it flat rate and it took twice as long as you expected would you not be just as equally screwed and left money on the table??

Dont get me wrong.....I like flat rate. And dont bid hourly either. But I also dont pretend to claim hourly "leaves money on the table". Because it doesnt.

Ok? I’ve done it both ways.

When starting out I did hourly $80 per. Once I legitimized and had a lot more overhead, that became unsustainable. Minimum is now $300. That 20 minute job would have grossed $80 before, now grosses at least $300.

There is no legitimate contractor that bids hourly, weather or not the target is in mind. It leaves money in the table.

Agreed that no legitimate contractor bids hourly. I just dont understand how you can claim it leaves money on the table....

Take a flat rate job....divide by the hours it took you to do the job. That gives you the hourly rate that you SHOULD be charging IF you do hourly work.....Same amount of money either way. Only difference is how its presented to the customer.

And while most legit contractors DO bid flat rate.....in many professions there are clauses that stipulate an hourly rate. For example....someone bids what is supposed to be a simple digging job. MOST legit companies will have things like a rock clause....where if they hit a rock or boulder....its $X per hour to either remove rock or rent a bigger machine or breaker, etc.

Like trying to dig a simple 150' utility trench for electric/water to a new polebarn. And you didnt know that between the two was a burried old foundation or concrete slab from a barn that was tore down 20 years ago.

 

[LD1]

I do alot of subcontract work with my mini.

When I work direct for a customer its a quoted job at a flat price. But when I cubcontract with another company its impossible to do that. The nature of the work is usually utilities (plumbing/electric) or digging footers for retaining walls, and backfilling with stone.

Jobs like that....I cannot accurately predict timing because I am at the mercy of others doing the work. (Laying pipe in trench, or laying retaining wall blocks, etc). So if they are slow.....or forgot the right connections, tools, parts and have to spend an hour running back to shop, or I show up and they had a call-off and cancel.....I will not be penalized for that. My rate is $100/hr whether my machine is running or not. Good motivation for them to keep me busy and not let me sit idle. But also guarantees me I am getting paid as long as I am there and not gonna get screwed because of above mentioned headaches that are beyond my control but 100% in the control of those paying me

 

[LD1]

Yep at least a 4 hour minimum. Too hard to piece together little jobs. Leave those for others starting out or just puttering around.

Those jobs are why I stay as busy as I want.

I am a ONE MAN show. And I want to keep it that way. Dont want to deal with employees and the hassle that goes with it.

The guys that have big equipment, dozen employees, several trucks and trailers, etc etc etc dont want to fool around with the little customers for the $1000-$1500/day jobs. Leveling for swimming pools or small garages, utility trench to a new barn that takes a few hours at most, culvert replacements, making a parking pad or turn around, etc etc. There is a place for the small contractors to keep busy and make good money by filling the void of stuff that is a little more than the average homeowner wants to tackle on their own....but not big enough to entice the big boys to show up without charging a small fortune.

 

[Ritothebull]

Getting paid by the hours registered on the hour meter probably explains why lots of contractors never shut their equipment off during the day.

 

[Fallon]

Most of my work is by firm fixed price quote. I basically make an educated guess for hours from the time I leave the house to when I get back. I just road the tractor to over half my jobs. Those I haul to, I count hauling time.

With a fixed price quote there is no question if I'm working hard enough for an hourly rate. No suprises at the end of the job if the bill is higher than expected. If I don't like the job I bid high to make up the pain in the ass factor. If I finish fast I get paid the same for fewer hours.

I do some hourly stuff on occasion. I calculate that as the time I leave the house until I finish the job & go to get paid. I eat the cost of my trip home.

If I'm untangling something from the mower, measuring something, swapping an impliment, or whatever I'm still working & gonna get paid.

 

[Baldbigears]

I figure in my equipment loading, hauling, and travel time, (that includes truck and labor), both ways. Then I figure estimated equipment time on the ground working including my labor. I tell them I have estimated X amount of time on the ground working, tractor work included and give them an estimate stating that if I run over the time estimate it will it will be added at $/ hour.

 

[RidgeTopWVA]

Getting paid by the hours registered on the hour meter probably explains why lots of contractors never shut their equipment off during the day.