OP
hosejockey2002
Gold Member
I box bladed it and wheel rolled it (drove up and down it with my truck to compact it).
New tractor business
- Thread starter hosejockey2002
- Start date
- Views: 9916
My machine may be a little larger, but believe me there's lots of things your machine can do that mine can't. I've already got into a bit of a problem on one job because of the weight issue, but I'm sure your machine wouldv'e worked great.
As far as driveways go, it sounds like you're off to a great start with a real satisfied customer. I wouldn't be surprised if some of his neighbors give you a call wanting you to fix their driveways.
I've also learned a lot about marketing from lawnsite.com, plowsite.com and arboristsite.com. All three sites have forums that discuss general business issues such as marketing and are full of information and ideas.
One other thing you'll want to spend some time on is learning about gravel road construction. Knowing the proper way to construct and maintain a gravel road can be the difference between a good road (happy customer) and a constant nightmare (unhappy customer). I've spent the last 7 years as a state biologist working with foresters and timber companies on issues involving forest roads and their impacts to fish and there's a lot to know. The science seems to be changing some, but it's not impossible to learn and improve on. I could talk about it for hours and hours, but email me if you ever have questions and I'll try and help you out.
As far as driveways go, it sounds like you're off to a great start with a real satisfied customer. I wouldn't be surprised if some of his neighbors give you a call wanting you to fix their driveways.
I've also learned a lot about marketing from lawnsite.com, plowsite.com and arboristsite.com. All three sites have forums that discuss general business issues such as marketing and are full of information and ideas.
One other thing you'll want to spend some time on is learning about gravel road construction. Knowing the proper way to construct and maintain a gravel road can be the difference between a good road (happy customer) and a constant nightmare (unhappy customer). I've spent the last 7 years as a state biologist working with foresters and timber companies on issues involving forest roads and their impacts to fish and there's a lot to know. The science seems to be changing some, but it's not impossible to learn and improve on. I could talk about it for hours and hours, but email me if you ever have questions and I'll try and help you out.
I Recently have been doing jobs in my neighborhood. My advertising consisted of spreading some horse manure on the side of the road and tilling it in really good to make it look like potting mix. I parked my tractor in the middle of it with a little sign that said "Quality tilling and tractor work" with my phone number. I think having a good-looking tractor helps also.
When I do my jobs, I really spend a lot of time making them look really good and I get lots of referrals. I tend to charge a lot ($65 per hour) and have not had any difficulty getting lots of good work.
It is amazing that doing all the little things like taking a broom to jobs to sweep up the mud from your tires buy you good advertising. I have had several customers refer me to their neighbors on that alone.
So far, this little tractor job has been really profitable, and fun.
Cameron
When I do my jobs, I really spend a lot of time making them look really good and I get lots of referrals. I tend to charge a lot ($65 per hour) and have not had any difficulty getting lots of good work.
It is amazing that doing all the little things like taking a broom to jobs to sweep up the mud from your tires buy you good advertising. I have had several customers refer me to their neighbors on that alone.
So far, this little tractor job has been really profitable, and fun.
Cameron
JBX
Bronze Member
Hi Roy,
My side business using my BX2200 Kubota is totally different from your set-up but you decide if it might work for you.
I bought some used barrels and made a barrel train and hire out for parties, school festivals and parades and such.
I still have my day job, but weekends are busy with bookings.
Check out my web site at jigglebug.com.
Steve
My side business using my BX2200 Kubota is totally different from your set-up but you decide if it might work for you.
I bought some used barrels and made a barrel train and hire out for parties, school festivals and parades and such.
I still have my day job, but weekends are busy with bookings.
Check out my web site at jigglebug.com.
Steve
Anonymous Poster
Epic Contributor
- Joined
- Sep 27, 2005
- Messages
- 29,678
Thinking about rates to charge???
My BX2000 is on order. Plan to run a part time business to help pay for the equipment. Trying to figure out what rates to charge has me puzzled.
Plan to match rental rates plus a little, but like with post hole digging, rate is $35 for three hours..... Take out travel tiime for the rentals, etc. But if the auger goes in the ground, should be able to punch a post hole every 5 minutes......
Plan to go about $50 an hour for tilling/mowing/loader work.
Any thoughts.
Thanks.
My BX2000 is on order. Plan to run a part time business to help pay for the equipment. Trying to figure out what rates to charge has me puzzled.
Plan to match rental rates plus a little, but like with post hole digging, rate is $35 for three hours..... Take out travel tiime for the rentals, etc. But if the auger goes in the ground, should be able to punch a post hole every 5 minutes......
Plan to go about $50 an hour for tilling/mowing/loader work.
Any thoughts.
Thanks.
Anonymous Poster
Epic Contributor
- Joined
- Sep 27, 2005
- Messages
- 29,678
Re: Thinking about rates to charge???
Just be aware that Kubota doesn't market the BX series tractors as "contractor" machines. It's certainly capable of a lot, but it's still primarily aimed at homeowner use.
One other thing...insurance. Liability insurance specifically. You need it if you plan on hiring yourself out, and it's not necessarily inexpensive. Talk to an insurance agent that specializes in business insurance to get the facts on that before you get started. Also check your local jurisdiction for their rules about part-time businesses like you intend to pursue. You may or may not need some kind of license, depending on where you live.
I'm not saying all this to throw rain on your parade, just to be sure you dot all your tees and cross all your eyes...<G>
Just be aware that Kubota doesn't market the BX series tractors as "contractor" machines. It's certainly capable of a lot, but it's still primarily aimed at homeowner use.
One other thing...insurance. Liability insurance specifically. You need it if you plan on hiring yourself out, and it's not necessarily inexpensive. Talk to an insurance agent that specializes in business insurance to get the facts on that before you get started. Also check your local jurisdiction for their rules about part-time businesses like you intend to pursue. You may or may not need some kind of license, depending on where you live.
I'm not saying all this to throw rain on your parade, just to be sure you dot all your tees and cross all your eyes...<G>
Anonymous Poster
Epic Contributor
- Joined
- Sep 27, 2005
- Messages
- 29,678
Thanks Jim
You raise good points!
I'm checking on Liability Ins now and OUCH--best price so far is $1200 a year for it (and it covers loss of equipment) PLUS my insurance on my truck to pull the trailer goes up $600 a year, OUCH OUCH.
I figure if I can work it 150-200 hrs a year, it helps to cover the cost of equipment and tosses me a few bucks.
License in this city is $20 a year, so no pain there.
I used to field test equipment for Hesston Corp (20 yrs ago), so I'm familiar with how to treat and not treat equipment.
Looking forward to playing with the new toys. Thanks for the replies.
Ron
You raise good points!
I'm checking on Liability Ins now and OUCH--best price so far is $1200 a year for it (and it covers loss of equipment) PLUS my insurance on my truck to pull the trailer goes up $600 a year, OUCH OUCH.
I figure if I can work it 150-200 hrs a year, it helps to cover the cost of equipment and tosses me a few bucks.
License in this city is $20 a year, so no pain there.
I used to field test equipment for Hesston Corp (20 yrs ago), so I'm familiar with how to treat and not treat equipment.
Looking forward to playing with the new toys. Thanks for the replies.
Ron
icat
Gold Member
Re: Thinking about rates to charge???
Well, that question's a can of worms! But let me see if I can get the lid put back on. We're gonna start by looking at something we call MLB (Material, Labor, and Burden).
First, how much is your time worth? You can start by determining what you earn an hour at your regular job. Then decide how much you'd need to "earn" to show up for work on a Saturday. For instance, let's say you earn $10 an hour working at your everyday job (it's just a number - don't panic). The boss comes up and wants to know if you'll come in on Saturday and work this next weekend. In most companies you'll get time and a half for the Saturday work - that's $15 an hour. Is that enough to make you want to come in?
If not, then what's your time worth? How much would you need to make to work on Saturday? That figure needs to be your profit. For numbers sake lets say the dollar figure you want is $20 an hour. By golly, for $20 an hour you'll head on in to the sweat shop and do some work. But wait, that's what you need to be able to spend out of the money you earn. Not what you should charge. You've got overhead and it's gonna eat up a bunch of that money. Let's look at a typical 3 hour job.
So where does the money go. Well, right off the bat you've got tractor fuel costs. Figure a gallon per hour as a minimum so we need to add $1.50 per hour to the "bill". 3 Hour job - $4.50 total. You'll also need to determine how far you have to drive to get the fuel and the time it takes. Let's say the corner gas station has diesel so you're not out much - maybe fifteen minutes to run down, fill the yellow can, and get back to the tractor. So, at $20 an hour that's an additional $5 of your time - add it in as well. Then of course, you have to get the tractor to the work location. So you load the CUT on the trailer and it takes 20 minutes to tie everything down. That's another $6.67 on the bill.
Tractor's loaded up and you're ready to roll. Customer is 10 miles across town and you can make it there in 20 minutes. Add another $6.67 to the bill. You drive the 10 miles to the customers location and you use your own truck. IRS says that's worth around 37 cents a mile. So we'll add another $3.70 to the total.
Ok, we're at the customers and ready to unload the tractor. Let's say unloading is easier as we don't have to do anything but unhook and drive off - 10 minutes max. Add another $3.33 to the bill. Now we're ready to mow.
Let's say the job is 3 hours. So our fuel costs are $4.50 for the tractor. But wait, didn't that tractor cost some big bucks. I know mine was right at $20,000. We need to include time here as well. We can make this a bit easier by simply matching the rate the local rental yard would charge for the same tractor. Let's say that rate is $35 an hour. So we need to add $105 to the bill for tractor time.
And don't forget, after the "work" is done we still need to get home. So add time for putting the tractor on the trailer at the job site (15 minutes), driving home (20 minutes), and putting up the tractor back up (25 minutes - includes a quick rinse off). So the total "home run" is another hour at $20 plus $3.70 for use of the truck on the return leg.
So, where are we at?
55 minutes to load, fuel, and drive to job site - $18.34
10 minutes to unload tractor at job site - $3.33
3 Hours of your time on site - $60
3 Hours tractor time (covers use of tractor and maintenance) - $105
1 Hour drive home and put up tractor - $20
Fuel cost tractor - $4.50
Truck IRS cost - $7.40
Total bill to customer $218.57 or $72.85 per hour. That's what you REALLY need to charge to make $20 an hour. If you only charge $50 an hour then your actually loosing $2.85 an hour on your cost alone. /forums/images/graemlins/crazy.gif
Well, that question's a can of worms! But let me see if I can get the lid put back on. We're gonna start by looking at something we call MLB (Material, Labor, and Burden).
First, how much is your time worth? You can start by determining what you earn an hour at your regular job. Then decide how much you'd need to "earn" to show up for work on a Saturday. For instance, let's say you earn $10 an hour working at your everyday job (it's just a number - don't panic). The boss comes up and wants to know if you'll come in on Saturday and work this next weekend. In most companies you'll get time and a half for the Saturday work - that's $15 an hour. Is that enough to make you want to come in?
If not, then what's your time worth? How much would you need to make to work on Saturday? That figure needs to be your profit. For numbers sake lets say the dollar figure you want is $20 an hour. By golly, for $20 an hour you'll head on in to the sweat shop and do some work. But wait, that's what you need to be able to spend out of the money you earn. Not what you should charge. You've got overhead and it's gonna eat up a bunch of that money. Let's look at a typical 3 hour job.
So where does the money go. Well, right off the bat you've got tractor fuel costs. Figure a gallon per hour as a minimum so we need to add $1.50 per hour to the "bill". 3 Hour job - $4.50 total. You'll also need to determine how far you have to drive to get the fuel and the time it takes. Let's say the corner gas station has diesel so you're not out much - maybe fifteen minutes to run down, fill the yellow can, and get back to the tractor. So, at $20 an hour that's an additional $5 of your time - add it in as well. Then of course, you have to get the tractor to the work location. So you load the CUT on the trailer and it takes 20 minutes to tie everything down. That's another $6.67 on the bill.
Tractor's loaded up and you're ready to roll. Customer is 10 miles across town and you can make it there in 20 minutes. Add another $6.67 to the bill. You drive the 10 miles to the customers location and you use your own truck. IRS says that's worth around 37 cents a mile. So we'll add another $3.70 to the total.
Ok, we're at the customers and ready to unload the tractor. Let's say unloading is easier as we don't have to do anything but unhook and drive off - 10 minutes max. Add another $3.33 to the bill. Now we're ready to mow.
Let's say the job is 3 hours. So our fuel costs are $4.50 for the tractor. But wait, didn't that tractor cost some big bucks. I know mine was right at $20,000. We need to include time here as well. We can make this a bit easier by simply matching the rate the local rental yard would charge for the same tractor. Let's say that rate is $35 an hour. So we need to add $105 to the bill for tractor time.
And don't forget, after the "work" is done we still need to get home. So add time for putting the tractor on the trailer at the job site (15 minutes), driving home (20 minutes), and putting up the tractor back up (25 minutes - includes a quick rinse off). So the total "home run" is another hour at $20 plus $3.70 for use of the truck on the return leg.
So, where are we at?
55 minutes to load, fuel, and drive to job site - $18.34
10 minutes to unload tractor at job site - $3.33
3 Hours of your time on site - $60
3 Hours tractor time (covers use of tractor and maintenance) - $105
1 Hour drive home and put up tractor - $20
Fuel cost tractor - $4.50
Truck IRS cost - $7.40
Total bill to customer $218.57 or $72.85 per hour. That's what you REALLY need to charge to make $20 an hour. If you only charge $50 an hour then your actually loosing $2.85 an hour on your cost alone. /forums/images/graemlins/crazy.gif
Anonymous Poster
Epic Contributor
- Joined
- Sep 27, 2005
- Messages
- 29,678
Good inputs Keith!
Don't dispute your numbers at all. I'll have $14K in the equipment, and our town is 10 minutes max side to side, so that will lower the numbers some. I figure on getting fuel, etc on my own time (eating the cost as it were).
I'm just not sure how many jobs I can get if I price myself too high. Don't want to lose $$, but my main goal is to pay for the equipment and make a little. I figure I'll have to stay close to rental prices or won't get enough jobs.
Thanks for the well thought out post!
Ron
Don't dispute your numbers at all. I'll have $14K in the equipment, and our town is 10 minutes max side to side, so that will lower the numbers some. I figure on getting fuel, etc on my own time (eating the cost as it were).
I'm just not sure how many jobs I can get if I price myself too high. Don't want to lose $$, but my main goal is to pay for the equipment and make a little. I figure I'll have to stay close to rental prices or won't get enough jobs.
Thanks for the well thought out post!
Ron
Rick Jay
Platinum Member
- Joined
- Apr 6, 2000
- Messages
- 763
- Tractor
- Kubota B2910, also Honda HT3813 with mower and front blade.
Re: Thinking about rates to charge???
icat,
Hmmm, very detailed analysis. Just one question. Did you forget about self-employment tax, federal and state income taxes plus the costs for the insurance? Probably other things too, but I'm not self-employed. I believe if you're going to try to deduct the expenses of your equipment, vehicle and trailer, insurance et al, you'll have to claim the income...and that means taxes.
Of course, you can claim just enough income to cover your expenses /forums/images/graemlins/grin.gif, but I think you can only do that for a limited time. /forums/images/graemlins/frown.gif
It's beginning to sound like working overtime on Saturday for the $15/hour might not be such a bad way to go after all. /forums/images/graemlins/crazy.gif
~Rick
icat,
Hmmm, very detailed analysis. Just one question. Did you forget about self-employment tax, federal and state income taxes plus the costs for the insurance? Probably other things too, but I'm not self-employed. I believe if you're going to try to deduct the expenses of your equipment, vehicle and trailer, insurance et al, you'll have to claim the income...and that means taxes.
Of course, you can claim just enough income to cover your expenses /forums/images/graemlins/grin.gif, but I think you can only do that for a limited time. /forums/images/graemlins/frown.gif
It's beginning to sound like working overtime on Saturday for the $15/hour might not be such a bad way to go after all. /forums/images/graemlins/crazy.gif
~Rick