how to charge for tractor work

lblair · Jun 2, 2002

I got my trailor and am ready to expand from doing free work for the neighbors to doing side side jobs with my tractor. I ran a add in our local paper that will be out next week. How do you charge people? Flat rate hourly or per job. I hope to get some work for all my attachments. Mowing,Brush cutting,post hole digging and tilling. My neighbors are all very impressed with the work i have saved them. I just tilled up for a neighbor for their paver block patio. Good use for a tiller. The job took about an hour and he did flip me a 20.00. That was good. Then he said can you remove about 4 inches of top soil from it for another 10 i said sure. Any ideas will be great. Thanks people, Larry. and by the way i live in upstate NY to help with any quote ideas.

wroughtn_harv · Jun 2, 2002

I'm sure there is a forumla. But there is a couple of things to keep in mind.

1. That machine has only so many hours of use. Every one you do for friends and neighbors is one less that you have left.

2. When you replace or repair that tractor how many are going to pony up to help with the bill?

3. A form of respect is to pay the going rate to your friend just like you would a professional. So find out the going rate and charge that. If you do it for less you're sabotaging real people doing real work's livlihood. If they're a good friend and you barter your tractor work for their computer assistance or carpentry then that's something else.

4. When you feel bad about having to charge for having fun keep in mind how bad you'll feel if your playing breaks something on their property and they expect you to pay for it's repair. Pick up some liability insurance, it ain't much. About the cost of catching a rock and tossing it through a windshield with your brush hog I'd guess.

Mark_in_NH · Jun 2, 2002

When I use my tractor for business purposes I charge $45 per hr. with a 1 hour minimum.
I arrived at my hourly rate using a very simple method.
I know what an hour of My Time is worth, at present that amount is $20.00, with a 1 hr. minimum. This is the rate that I charge all clients.
Now this rate only gets them Me, my honesty & integrity, basic hand tools & lite power tools and hopefully some intelligance & common sense. It does not include larger power equipment, like mowers and expensive blowers and tractors etc.
I also figure that my tractor with FEL and / or backhoe is capable of doing ALOT more work then I can, so it is going to demand a higher hourly rate then I. at this present time, that rate is $25.00 per hour w/ 1 hr. minimum.

Mark stopped doing favors a long time ago !!!!
To many of the recipiants of those favors would call to say thank you, while sitting on the beach in the carribian, drinking something fruity with a little umbrella in it. Or driving by in the new car. All the while I'm schelleping away doing them Favors. Ah,Ah ! not any more, you want marks time, you must buy it.
I still don't get to the Carribian, but I have built a fairly succesfull business with my greedy little philosophy.

lblair · Jun 2, 2002

Lots of good points...Thanks

lblair · Jun 2, 2002

I tell friends i needed to charge alittle and they look at you like your nuts! Well if ya got to charge just let me use it and ill do the work...yeah right. I dont leave a 15 plus thousand dollar piece of equipment and attachments anyplace for use. Some times people make me wonder. Thanks for the input Larry

gordon · Jun 2, 2002

I guess the hardest thing is just starting out. Because you did it for free before and that is what they always will expect. But all of my friends know that I pay insurance and also have to pay for the equipment I run, it's not given to me. So They might bat their eyes at first but they will soon be used to it. My friends know that nothing if free unless it's an emergency or something of that nature. I have my tractor for one reason to make money with it and they all know it so they also know not to expect to get the freebee.

First and foremost get some insurance, don't leave home without it. Or else they will end up with your tractor and you with nothing.

As far as charging see what the going rate is in your area. It varies quite a bit around the nation. Some areas 60 an hour for bush hogging other areas only 20 an hour. So see what your local market will bear and go from there.

Oh and when you get the jokers that say joe shome will do it for 15 an hour so why is your price so high take a second and explain to them why. Because you carry insurance because you have decent equipment and with that equipment will actually save them money because it will get that same job done alot quicker than joe shome. If after explaining to them they still want to argue your hourly rate, tell them at this time you can't lower your rate and it would be in their best interest to get joe to do it.

Good luck and get some insurance before you leave the yard
Gordon

Steelfan · Jun 2, 2002

Larry,
We all know the worst people to work for are friends, and relatives. I've been approached by no less than 15 people to do work for them. Right now I've got a great excuse, no trailer to haul my tractor. Two people in the local area asked, one relative, and one friend. I'll do some small stuff for them, but the money invested in my tractor was mine. So unless they treat me right, the tractor stays in the shed. Remember bad things happen quick, and they always cost money. And I'll never loan my tractor to anyone. Good Luck Kent

Tags · Jun 2, 2002

lblair,
I have two ways to charge for machine work:day rate and hourly rate.For a day rate I usually figure it based on a 10 hour day,that way if you finish in 6 hours you still make a good buck and that covers the times you worked for 11 hours,if people balk at this then tell them you can do it for an hourly rate with a half day minimum,the only problem with by the hour work is that you will run into people that litterally use a stopwatch when you are working and it can cause an uncomfortable experience,I usually try to stick with the day rate.Check around and see what people are charging in your area and go from there,and like it was said by someone else,get some insurance first or your tractor could become somebody elses /w3tcompact/icons/wink.gif

MossRoad · Jun 2, 2002

This is a good post. I do some volunteer work for the little league. They have insurance for equipment that is volunteered. I am also getting contractor’s insurance, even though I am not a contractor and never charge friends or relatives. Why? Because contractor’s insurance is cheap and covers my rear end.

rancar · Jun 2, 2002

Larry,

I too live in upstate New York. For the past 16 years I had been paying some bush hoggers anywhere from $40-50 per hour to do bush hog work. This I believe is the general going rate. If you get into BH work and other projects that require project planning on your part (like digging trenches for water lines or septic or laying a patio), you may want to charge a bit more. Your customers would be paying you not only for use of your machine but your skills as well...and you deserve to be paid the extra amount.

Bob