How much should I charge

[JJT]

Greg, Are you serious? $22/hr on the tractor's hour meter. Around here that wouldn't even pay for the operator, leaving -0- for depreciation, maint, fuel and profit.

 

[deere755]

All the lots are with in 3 miles of each other. I appreciate all the input. If anyone else has anything else to add please do so.

 

[gws]

I pay $50 for 3 acres of mine to be cut. Its a flat rate, he takes a long as he wants and does it whatever day he wants to do it. Does mine 3-4 times a year or when my wife says its to high.

I wouldnt pay by the hour, I want a fixed price going in.

 

[JoeinTX]

Well, if you get it figured out let me know cause I'm trying to decide the same question.....

I was thinking $30 per hour for an 8n/5' shredder set-up mowing some small lots in the area I live. No minimum or loading fee, just $30/hr however short or long in took me.

I had somebody tell me that I shouldn't even consider hiring out with this for less the $40/hr.....then I read on here and other places people charging only $20-25.

So, I basically determined the cost of renting a similar outfit from the local rental place and dividing that number by an average 8 working hours. Small JD with 5' KK goes for $175 per day or 21.85 an hour. I figure the convenience of not having to do it yourself is worth something, so $25-30 is probably what I'll do.

I'll have to see though as this is my first year doing this and I may have it all wrong.... /forums/images/graemlins/confused.gif

 

[greg_g]

</font><font color="blue" class="small">( Greg, Are you serious? $22/hr on the tractor's hour meter. Around here that wouldn't even pay for the operator, leaving -0- for depreciation, maint, fuel and profit. )</font>

Well, deere755 is a lot closer to me than to NY. So I don't think "around here" means much to the question at hand - which is how much to charge in central IL. Life is a whole lot more reasonable when you start driving south. I will admit though, that $2.20 diesel has me considering $25/hr.

My 45hp KAMA and a 6' rotary cutter can cut at least 3 acres an hour, depending upon conditions. I burn a little over a gallon of fuel an hour. Using those numbers, charging $100 per acre would be the same as $300+ per hour. At that rate, I guarantee you that I'd never get a single phone call.

I have to admit though, that I like the idea of charging a dollar a horsepower. But I respectfully suggest that it be based upon PTO horsepower. That scale would gross me almost $40/hr. Unfortunately, my closest competition has a 80hp (gross) International with a 6' HD bushhog. Last I heard he's getting $26/hr

//greg//

 

[beenthere]

I charge $40/hour (one balked at $50, so I dropped it to $40).
I figure he could get his own tractor and/or rent a cutter, and not come close to what I charged for the 5 hour job.

If some want to do it for less, that is fine. These jobs require trailering the tractor/rotary cutter and I don't charge for that time, only mowing time.

Plenty of work, and I'm not in it for the money and not looking for more of this kind of work.

I figure $20 an hour just for my own time, let alone the time on the tractor and the rotary cutter, which for $20,000 worth of equipment, should bring another $20, minimum.
If it is a friend or someone in need, I will do it for near nothing. If I think they are using me as a reason they don't need to buy their own rig, then the price goes up (I remember the guy who always begged me for a ride to and home from work because I almost drove right by his house , then bragged and talked the whole time about how he saved so much money as he could get by with the one car that his wife needed /forums/images/graemlins/tongue.gif /forums/images/graemlins/crazy.gif ).

 

[bdog]

I have not been doing it long but I do commerical shreeding, dirtwork ,tilling, etc. I charge $45/hr or $25/acre. It works out about the same in most cases with my 6 foot shredder. Most clients want a per acre price because they know upfront what it will cost. The per hour scares them as they think you might milk them and make it take longer than necessary or at least that is the impression I have got.

Right now I have a $50 minimum on all work but am thinking of raising it. For example if I mow two acres and charge $50, it takes me about 30 minutes to connect the shredder, connect the trailer, load and chain down the tractor. Then 15 minutes to drive to where I am going, 15 minutes to unload, talke to the people, have them show me things not to hit etc, 1 hour to mow, the 15 minutes to load, chain down, collect money, and 15 minutes to drive home. So a two acres to cut took me 2.5 hrs and I made $50. Take out fuel for tractor and truck I made $40. Works out to $16/hr which ain't much when you consider wear and tear on a $20,000 tractor, truck, and trailer. $45/hr turns in to good money on larger jobs. I think a $75 minimum would be better and who cares if you lose the smaller jobs as there aint no money in them anyway.

If you can get $100/acre jump all over it. Non one around here will pay that.

$22/hr is way too low unless you are charging from the time you start getting ready until when you get home. I charge $45/hr from the time it leaves the trailer until it gets back on.

 

[RickO]

I have only been tilling and bushhogging for two weeks and have already figured out that you have to have a minumum. For me I always ask where they live up front.

Based on where they live I tell them what my minumum would be. I have a $40 dollar minumum for the same reasons bdog mentioned. If they live 20 minutes away I ad another $5 for drive time/gas.

I don't worry about someone that doesn't want to pay that because I am not making enought to justify my time if they don't want to pay it. I usually go through the spiel of gas prices, unloading/loading time and people understand then.

Every area is different for what you can charge and get away with it. Check around with some other guys doing that type of work in your area. Just call their ads and ask them. They don't have to know your the competition! /forums/images/graemlins/wink.gif

 

[xxxsandman]

I read everyone's comments so far. Some of you aren't considering what your own time is worth, the operator of the machine. Your also not consdering the support equipment required to get it there and back home. Your going to need a truck and trailer. They might cost more money then your tractor does! It takes time to hook it all up and load your tractor. Your going to burn gas or diesel in the truck, could be more then your tractor.

A pretty accurate "FAIR" way of charging is $1 per horse power hour for most equipment. Got a 40HP tractor, it would be $40 per working hour. I would also have a 1 hour min per load/unload. So if you have to load it on a trailer to move lots, that lot would be $40, even if it took 30min, assuming you had a 40hp tractor.

The reason I and others believe this way of charging is best is it covers all cost better. A 40 HP tractor cost you more then a 20HP tractor. A 40hp tractor burns more diesel then a 20HP tractor. A 40hp tractor can do more work faster then a 20HP tractor "pull a bigger brush hog and/or go faster".

Sometimes you will have to adjust the $1 per horsepower hour average up or down slightly according to your area, the job or the piece of equipment being used.

Another good way of making sure your price is inline for your area is check to see what a very close piece of equipment can be rented for. If you are only doing a few hours work per day, get their half day rate and divide it by how many hours you could work it (3 or so). Add on diesel and whatever you want to make for your time.

If you aren't doing anything but mowing, then you can come up with a by the acre or square foot charge. Then you can quote a flat fee for that job, if you know the size of the lots. Some people would rather know exactly how much it's going to cost. With mowing that's pretty easy/safe to determine if you know the size and type of land you are mowing.

 

[DirtHauler]

I too am fairly new at this game and have been "playing" with numbers but after getting "nosey" with the competition, I've been charging $80 haul-in and $45 hr. which has been working out OK so far. Haul-in covers wear-n-tear, fuel, loading/unloading etc. Others charge $100 to $125 haul-in and from $55 to $75 hr.
Rental companys will rent you a tractor/mower, you pick it up (wear-n-tear on your pick up etc., your time) and the clock starts ticking from the time you pick it up. No way to get it your self? well, they will gladly deliver it for you and pick it up ------ for a fee! or they will even rent you a trailer to haul it (more money) then there's the "damage" fee (if any), cleaning (if needed) and fuel.
I have people asking me for estimates all the time, but being how that most jobs are the "first" time and that there are no jobs that are on "flat" land with no obstacles (every job is different) the best I can do is "guesstamate". When I do the job, I keep record of how long it took, approx acreage/lot size etc. That way I know the next time I do that job I'll know how long it took also if I come across a simular job that the owner wants a price on, I'll have a better idea but I almost always add at least an hour to it just in case and if I beat that extra hour time, it makes the owner happy cause he's saved $45 ! /forums/images/graemlins/wink.gif
So, over time and experiance you'll be able to adjust your rate according to lot/acreage size.