Bush Hogging 8 acres - pricing?

[Hay Dude]

“Bidding” and “pricing” are 2 different things to me:
“pricing” is like when I go to look at a job- it’s my estimating or “pricing” process.
I look at mowing job and price it at $200/hour. So a 20 acre job might be 5 hours at $200/hour. THAT is pricing.

“Bidding” is when I take the above “pricing” and turn it into a “bid”, which I submit to my customer in writing or text, etc.

I don’t tell my customer I’m charging him $200/hour (unless I am forced to). I just send him a bid for $1,000 for cutting his 20 acres. I don’t mention the length of time it’ll take. Unless I am forced to. I don’t think I ever have been.

If he wants to check his watch for when I leave from my shop and when I leave his property in 5 hours and do the math to come up with my hourly rate, that’s entirely up to him

 

[Hay Dude]

Best place I've found is from each state's department of agriculture. I live in the midwest so I base my custom rates on an analysis of whatever info I can find in our region. When looking at these rates, notice tremendous differences. For example, consider Iowa - Mowing CRP or pasture, /acre. median is $20 per acre, range $10 to $28.

I find it hard to come out ahead, when charging what the customer will bear, unless you do a lot. Our township pays our person who mows our roadsides $75/hr. For this he supplies labor, equipment, fuel & oil, replacement parts, and insurance. Unless he's using a 50 year old tractor and other equipment that is depreciated out, he would do better at McDonald's or WalMart.

When I compared my custom farming prices (most think reasonable) with what I was making per hour when I retired (it was a salary so I estimated 40 hr per week for 52 weeks per year), what I get per hour without considering depreciation is so low its ridiculous. But if I weren't out in a field getting some money, I'd be pouring money in a hole in the water (boat). Where I do profit is raising crops. There is a lot more risk but the returns can be good, especially with all the taxpayers supporting us farmers.

Yeah I echo those sentiments. I wouldn’t want to run a weed whacker for much less than $75/hour.
Ain’t no way I’d run a tractor and mower for $75 unless it was a like a paying hobby. You might think you are making money until you look at depreciation, fuel, insurance, parts & repairs long term.
There’s no money left over to replace the equipment once it’s worn out.

I don’t disparage anyone who wants to run a 50HP tractor & 7’ hog for $75. Its a free country and more power to them.

 

[grsthegreat]

I make it simple….i have a neighbor that cuts and bales my 10 acre grass field in exchange for the bales. Beats doing it or paying for it. I just occasionally spray for weeds.

once its cut i can turn the horses out on it.

 

[gages50]

I find it very interesting how many are getting on SKramps to find out his location when he clearly says so in his original post. Unless you guys want to know his exact street address….read the post completely.
He’s in Maine. Last sentence of the first paragraph.

 

[jayhawk238]

I cut small fields as a side business (I have insurance and run under a licensed business name, so not a side "gig") and echo Haydude's and LD1's advice. Couple of items from my point of view with small equipment like yours and here in the Northeast:

- Always walk the property first. The grapple or bucket will do a good job as a bumper, but you may not see the standing water until too late. Getting stuck sucks.
- NH and southern ME is all hills, rocks, and poison ivy. You'll likely get very acquainted with all three on this and every other job.
- With a 25HP machine and 5ft cutter in thick high grass, you'll be struggling to cut 1 acre per hour. Could be as low as 1/2 acre per hour.
- My hourly price started at $65 per hour with travel to the site included. At first, it was reasonable because I was cutting unmaintained fields with a lot of unknown issues. Now, I have established a small customer base, no longer advertise (more below), and regularly cut about 6 properties. My cutting time has reduced by 1/3 by knowing the property, how to attack it, and knowing the hazards. Now, it takes less time, but I get paid much less.
- I have a good customer base that treats me great. So I have not increased my price to them. New customers are going to get a price of at least $75 per hour, but if they seem look like a return customer, will be priced by the job, not the hour.
- I took one ad out on CL and got a lot of positive results. But just as many people thinking I could move boulders the size of houses, excavate for roads and utilities, mow their lawn for cheaper than their current landscaper (no lawns here) and every manor of lewd acts you can imagine.
- My tractor has taken a minor amount of damage over the years, but the cutter is another story. Ugh - its nickname is the "grenade tester". It was pretty nice when I started.
- I spend about an hour cleaning the rig (trailer, tractor, cutter), greasing and re-fueling after every outing. I never charge for any of that time, no matter how filthy the equipment gets.
- Get a nice handheld battery powered blower. Helps when you load up and want to clean the chaff off before leaving the customers site.
- With a full day job, take a 1/2 hour out to eat your lunch, re-fuel, blow off the tractor and clean the radiator screen. Don't charge that time.
- Bring fuel, oil, wire cutters, gloves, cold water at a minimum.
- View the property first and find a spot to park the truck and trailer with room to unload. I like to ask because I hate parking on the side of a road.
- I bought Next Insurance online from a recommendation here on TBN. Super easy, fast and got a certificate right away. I got a $1M policy for a reasonable rate, but a lot of exclusions. No tree work, no excavation, etc. That's fine by me.
- You'll find out the next day if you have allergies or not. My reaction to poison ivy has gotten so sensitive I have had to drop customers that have a lot of it in their fields.

Good luck and le us know how you first cutting goes!

Could you share the insurance company or the TBN posting you saw? Thanks!!

 

[Skramps]

First thing. Get liability insurance that covers you off your own property. If you don't get insurance stay on your porch. Just because the potential customer is nice doesn't mean they won't sue if something goes wrong.

Absolutely. Luckily I already have insurance through my business

 

[Little Red Tractor]

If you're looking to do you friend a favor, the $750 is probably pretty fair, notwithstanding the market.

HOWEVER

A couple other guys have given the most important thought: DON'T go without commercial insurance!
Not that you need another way to estimate it but, one friend who would rent out his equipment charged $1/$1000 of purchace price for the machine--that was 20 years ago--so figure double or triple that now; that would make between $60 and $90/hour for the machine alone. Add to that what your labor is worth worth, then add the actual cost of moving the machine.

 

[Torvy]

I would have separate pricing for the 1st time you mow a property. Many service industries do this, pool maintenance, house keepers, etc. That helps you easily address the problems with tall grass, unknown hazards and unfamiliar properties in general.

Regular services are less, per visit, than 'will call'. First time is $X, regular repeat business is $X minus Y% discount.

Also, be careful on insurance. If you are doing commercial work with your equipment, but it is covered by a personal policy, they are not obliged and may not pay out if they discover the damage happened during commercial use. You said liability is commercial, that's good.

 

[Fixastuff]

You're better off being to high and not getting the job than being too low and wishing you never took the job. Know your expenses and how much you want in profit and charge that. Who cares what other people charge, just do good work.

 

[Torvy]

I'm curious if you are doing this for main income or a side hustle. I have done lawn care as a side hustle for 6 years or so in the past. It was good money and I enjoyed it. I tried my best not to under-cut the established guys.

I would never take this into account.

1) As a side hustle, you will not do enough to cut into their business/profit unless they are way over charging

2) Profesionals should be much more efficient than you and have lower average overhead (unless you are doing ill-advised things like doing paid work with personal insurance).

3) The only time to adjust your prices based on competitors is when you are trying to undercut them to get jobs. Otherwise, price what you need to cover cost, make a profit and secure the number of jobs you wish to do.