Hours charged for tractor work

   / Hours charged for tractor work #61  
If your business is legitimate (or not). You’re leaving money on the table bidding hourly.
 
   / Hours charged for tractor work #62  
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.
 
   / Hours charged for tractor work #63  
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?
 
   / Hours charged for tractor work #64  
Money is left on the table when your bid is radically lower than other bidders. Nothing to do with hourly rates.
 
   / Hours charged for tractor work #65  
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.
 
   / Hours charged for tractor work #66  
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.
 
   / Hours charged for tractor work #67  
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.
 
   / Hours charged for tractor work #68  
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.
 
   / Hours charged for tractor work #69  
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.
 
   / Hours charged for tractor work #70  
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.
 
 
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