Bush Hogging 8 acres - pricing?

[Hay Dude]

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.

Meh, not sure about that. Sometimes in the very beginning on first couple jobs, it’s not so bad if you under sell a little.
Nothing like a little ”on the job training”.
Just don’t make a habit out of it.

 

[Fixastuff]

Meh, not sure about that. Sometimes in the very beginning on first couple jobs, it’s not so bad if you under sell a little.
Nothing like a little ”on the job training”.
Just don’t make a habit out of it.

I can stay home and not make/lose money. I'm sure as heck not going to go out and work to lose money.

 

[Torvy]

If you look at each individual transaction bad having to make money, you will likely make less in total than someone who recognizes the value of 'goodwill'.

Say you do 3 jobs and make $300 profit on each. You also turned down 2 deals because they would have been net loss transactions.

Hay Dude had similar situations and made his $300 on 3 deals, but did the other 2 at a loss of $100 a piece. So, week 1 you are up $900 to $700 profit.

The next 3 weeks of the month, you get your same $900, but Hay Dude gets 2 more clients through word of mouth. Even if his new deals average the profit of the 1st 5, he will make $980 per week. Over time, losses can be turned into gains...sometimes, a rich client may pay more to a guy who did a charitable thing. Sometimes, getting a foot in the door can open up higher volume.

Goodwill is literally an asset on financial balance sheets for good reason. Same reason lawyers do pro bono work.

 

[Hay Dude]

If you look at each individual transaction bad having to make money, you will likely make less in total than someone who recognizes the value of 'goodwill'.

Say you do 3 jobs and make $300 profit on each. You also turned down 2 deals because they would have been net loss transactions.

Hay Dude had similar situations and made his $300 on 3 deals, but did the other 2 at a loss of $100 a piece. So, week 1 you are up $900 to $700 profit.

The next 3 weeks of the month, you get your same $900, but Hay Dude gets 2 more clients through word of mouth. Even if his new deals average the profit of the 1st 5, he will make $980 per week. Over time, losses can be turned into gains...sometimes, a rich client may pay more to a guy who did a charitable thing. Sometimes, getting a foot in the door can open up higher volume.

Goodwill is literally an asset on financial balance sheets for good reason. Same reason lawyers do pro bono work.

Exactly.
And to be clear, I was speaking more about those who are in their first year or 2.
They lack experience, so they are “learning on the job”. They arent as skilled as an old pro.
So taking a few jobs in the beginning for less than optimal profit, is as Torvy said, a way to build a customer base and learn the trade, both at the same time.

Many clients I did for less than optimal pay were open to price increases once they saw I do nice work.

Nobody should be underbidding work once they are established.

Once I cut a field for a client, it opens up further opportunities for land clearing, barn building, snow plowing, hay farming, etc.

 

[Hay Dude]

I can stay home and not make/lose money. I'm sure as heck not going to go out and work to lose money.

I didn’t say ”lose money”. I said ”Sometimes in the very beginning on first couple jobs, it’s not so bad if you under sell a little.”

Meaning you take a little less to get work and get your name out there.
Given 2 field mowing contractors with same price, 90% of customers will take the more experienced guy over the new guy. Therefore, the new guy needs to give them a reason to hire him over the experienced guy and that reason will likely be your bid price.

 

[Fixastuff]

If you look at each individual transaction bad having to make money, you will likely make less in total than someone who recognizes the value of 'goodwill'.

Say you do 3 jobs and make $300 profit on each. You also turned down 2 deals because they would have been net loss transactions.

Hay Dude had similar situations and made his $300 on 3 deals, but did the other 2 at a loss of $100 a piece. So, week 1 you are up $900 to $700 profit.

The next 3 weeks of the month, you get your same $900, but Hay Dude gets 2 more clients through word of mouth. Even if his new deals average the profit of the 1st 5, he will make $980 per week. Over time, losses can be turned into gains...sometimes, a rich client may pay more to a guy who did a charitable thing. Sometimes, getting a foot in the door can open up higher volume.

Goodwill is literally an asset on financial balance sheets for good reason. Same reason lawyers do pro bono work.

If you say so. Everytime I try to "help" someone with a low price it comes back to bite me in the butt. People who want "cheap" work don't appreciate it and complain. The one job I had a problem with last year was the one I did for free trying to help a neighbor out.

I've done much better charging properly, doing great work and only taking jobs that are worth it.

I could work 7 days a week if I wanted to(but only work 5 or 6) and turn down work all the time.

 

[Yander]

I have found this thread very informative and appreciate all of you who do this for a living offering up your feedback. I hope to do custom tractor work in a 3 - 5 year time frame, maybe sooner and it is good to read advice about it. I did do it about 18 or 19 years ago for about a year, I probably lost money since I had no idea how to bid jobs and didn't really have the right equipment.

My kids were still young and involved in too many things and I didn't have time so sold all of my equipment. I enjoyed it but always felt like I was cheating my family. Good luck to the OP, the only way you can really fail long term is if you don't do anything. You will learn, as I did and you will lose money as I and others have.

But if you listen, learn, adapt and provide great service, you will be profitable. I believe that of about any business.

 

[4jd318]

60” cut you should be able to cut 4-5 acres per hour.

 

[JJT]

60” cut you should be able to cut 4-5 acres per hour.

I'm lucky to do half that with a 72" brush hog.

 

[Fixastuff]

I'm lucky to do half that with a 72" brush hog.

I don't cut grass for a living but I thought it sounded very optimistic also.