Is $300 to much for mowing 20 acres?

[Farmwithjunk]

Of course, there are people in business who run around with no commercial vehicle insurance, no business liability insurance, never pay a penny of tax(nor do they intend to), myriads of variables and their prices reflect it. And their pricing brings the area price market way down in some cases. They charge 1980 prices, when someone doing everything correct is having to charge current 2006 prices just to stay in business and keep up with inflation. I compete with this type every day. Of course, in many cases their quality and reliability may not be up to par, which is sometimes a factor.
I never try and compete with a basement bargain type business. I wont get out of the bed for that type of work. Don't want to work for that type of customer. Do one job for $1000 for a decent profit or 10 jobs for $1000 and lose your rear---but you HAVE done a lot of work. I guess someone could brag about being very busy! Thats not my cup of tea. Volume won't get a business anywhere if it is going in the hole everytime. It will tell on it in a couple of years. Some people just never understand business basics.
Today I talked to some painters doing an inside job on a house selling for $325,000. They were bragging about doing the work for half the amount normal painters are charging. They told me painters charged way too much for their work. One of the two said, "of course, we are having to paint it again because the owner wanted to slightly darken the color." I asked if they were charging any more and the reply was "No, we are just repainting it to make him (the owner of the house) happy" Then they replied "The owner asked us if we wanted cash." They were doing the job for 1/4 the normal rate. I am sure they took cash---as in no taxes would be paid on their earnings. The painters said they were full time.
This reminded me of other types of people wanting/trying to run a business. I learned a long time ago, you cannot rationalize with this type of person because they will NEVER understand business basics 101----they think they know everything and are not willing to learn anything.

Curt

I work for a general contractor. I've watched several "competitors" come and go. Most follow the "stay up to date" mindset that says they have to charge "2006 prices" to stay in business. You do in a sense, but keeping a little "1980" in the back of your mind doesn't hurt a bit. Better yet, a little "1930" thinking goes one better. That isn't exclusive to construction work.

I recently bid out mowing of 100+ acres of land that's in a trust belonging to my wifes family. I got bids that ran the gammit from dirt cheap, through reasonable, all the way to obscene. The mowing contractor that got the job was 50% cheaper than several, and only 15% higher than one without insurance and who I suspect didn't pay taxes on his income. My point? There are people who play throug the system and still hold p[rices down to where their customers aren't driven to the poor farm every time they have work done.

It's been a "trend" of sorts in this country over the last few decades to pay higher prices for services based on having "cutting edge technology" applied to low technology jobs. How's that relate to mowing weeds? I'm old enough to recall when it wasn't the norm to see contractors roll up on a mowing job with a new truck loaded with bells and whistles, pulling a decked out trailer, hauling a tractor that's loaded with every feature on the option list. Out climbs 2 guys in uniforms that look like they just stepped out of a magazine. One has a laptop in his hands. They were emloyed by a large "commercial landscape" contractor.

I watched that EXACT scenario take form yesterday afternoon while my wife and I ate dinner. They were mowing a lot next to the restaraunt where we ate. As we left, I asked the guy who was "supervising" how much they charge for a job like they were doing. I about fainted when I heard his reply. They were getting $775 to mow TWO ACRES. They were at the site for less than an hour.

That is absolutely INSANE. A well insured, tax paying, low overhead contractor could get rich mowing lots like that for a third of that price in our area. Their customers in turn wouldn't have to loot the coffers of THEIR customers to cover the cost. This "Pay whatever the cost and pass it on" mentality is what is driving business out of this country.

In spite of what is todays "way", image ISN'T everything. If I'm paying to have my 2 acres cut, I don't care how sharp the graphics are on the door of the truck that hauled the tractor there. I couldn't care any less how crisp the crease is on the operators uniform pants. And I don't care if my bill is generated by a new laptop or a hand written scrap of paper. I want to keep some of MY money and have the job done at a reasonable price.

To make big bucks on a short-term basis you charge every red cent you can. To stay in business long-term, you stay lean and mean.

 

[LoneCowboy]

I never try and compete with a basement bargain type business. I wont get out of the bed for that type of work. Don't want to work for that type of customer. Do one job for $1000 for a decent profit or 10 jobs for $1000 and lose your rear---but you HAVE done a lot of work. I guess someone could brag about being very busy! Thats not my cup of tea. Volume won't get a business anywhere if it is going in the hole everytime. It will tell on it in a couple of years. Some people just never understand business basics.
Curt

Well said.
Exactly.
I can sit on my tail and watch TV and make no money, I don't need to work hard to do it.

 

[Farmwithjunk]

Here in Northeast Texas, tell someone you would charge a $1000 to mow their 20 acres and they'll laugh at you.....

Exactly.

From mowing a pasture to building a bridge, contracting work is basically the same in any field. You can rip people blind for a while, but the market is limited with regards to people gullible enough to pay ridiculous prices. When times get tough, (and they do from time to time) the ones who operate with the logic they can charge double and do half the work are the ones who you see listed in the classifieds.......having bankruptcy sales.

I work for the biggest general contractor in my home state. They've been in business since the Civil War. I joined on almost 30 years ago. We stay swamped with work because of several reasons, but primarily because we give our customers a bargain. The best work possible at the lowest price possible.We hear our competitors making ridiculous claims like they won't try to compete with us. Truth is, they CAN'T compete with us. Our ability to operate lean and efficient allows us to stay busy. That in turn allows us the steady income to have the resourses and capital to go after any jobs we want. The guys with big fat payrolls, high overhead due to loans on new equipment, and high prices due to the need to make a months wages on a days work just can't hack it against a well run, efficient business.

Why pay double for the same job?

Why do a job for double, get just that one job, and let your competitor build a strong customer base with the jobs you let get away?

It's bad business to be the absolute cheapest in your arena just for the sake of being the cheapest. It's just as bad (maybe worse) to be the highest just to keep from having to work as much. Some people let their short term ideas kill off their long term security.

 

[lawn_king]

Last call for me in this thread. $1000. for the job is the fair price, as i said, i would do it for $800, but it's worth $1000. If you think that is an extreme price, you have never lived in new england! I'm not trying to start any wars her'e, i have been honest from the get go on this! If you can do this for $300. and make a profit, god luv ya!

 

[Charlesaf3]

To back up lawn King, tractor work is $100 an hour around me. Delivery usually charged at the same rate.

But land around here is 200K an acre, minimum buildable lot 3 acres. Welcome to Massachusetts (its a lot cheaper in the west of the state - about as expensive as it comes in the cape & islands)

 

[curt1]

There are many variables when mowing/brush cutting. How rough the land is, how much junk is in it, is it brush clearing or just cutting grass, sloped terrrain, etc.. $500 might be a fair price in my area if the job is close, the land is fairly level, no trash, no brush/only grass and has been cut on a regular basis.
But the price would go way up if it were very rough ground, trash everywhere and lots of brush (small tree) clearing and/or sloped terrain and/or had not been cut in two or three years . Its often hard to judge someone else's situation.

Curt

 

[Michealfj]

Before I retired from USDA our contract rate for bushhogging was $20.00/acre. That was four years ago. Tell the guy he's getting a "steal of a deal". If he doesn't want to pay $300.00, he can cut it himself.

 

[Gatorboy]

To back up lawn King, tractor work is $100 an hour around me. Delivery usually charged at the same rate.

Ok, so 3 hours to mow it and 1.5 hours travel. That comes to $450.

 

[Glowplug]

FarmwithJunk--You are so right. Approximately 3 years ago my wife and I were contracting out our new home we were planning to build. Most of the general contractors had really fancy offices, multiple staff, including even their own architects and interior designers. We just wanted to build a well-constructed nice home without all the fluff. We went with a small private contractor who worked out of a junked up garage, no sign, not even a fax machine or computer. We ended up building a better constructed home than all the other contractors had bid and at a fraction of the price! When someone asks who built our home and we tell them they just have a puzzled look on their face. Sure, nobody may have heard of this guy because he doesn't advertise or have a fancy office but he sure did one heck of a job. Sad thing is that most people nowadays would think that he would do a poor job when they don't see the pretty office or advertisements on TV. Often you can get more than you pay for if it is done right.

 

[Glowplug]

Very funny signature Gatorboy. I actually get it.