side business using new tractor

[fishman]

I have been reading posts on this website for the past 6 months, but just got around to registering about a month ago. I must say that everyone here seems to have a positive, helpful attitude. This board is great!
On to my question, which probably belongs in a generic tractor thread. I have been looking at the prices for some of these tractors and way-hey, they're high! A 3010 with loader for 17,500! A very capable machine, but house payment, truck payment, you know, etc. So: Do many of you do contract work on the side to help pay for your machine? Is this feasible? I know some of you use your tractors every day to bring home the bacon, but I can't do that. I'm talking about driveway grading/dirt leveling/shredding on the weekends or after work on occasion. For anyone that is doing this: What kind of hourly rates do you charge, and what kind of advertising do you do? Have you been able to make your monthly payments or an actual profit? What kind of pitfalls might one encounter?
This may be an off-the-wall question, but I know that if it is, everyone here will respond with all of the grace and tact they have in the past. Thanks in advance for your input.

 

[Thomas]

John,
I found out once people know you have a tractor they well seek you out.

I would suggest some insurance also good contract if your going to be in the side business....protect yourself!!

Today tractors aren't a toy anymore,more like and investment.

Thomas..NH /w3tcompact/icons/wink.gif

 

[Bird]

fishman, I think it depends to a great extent on where you live, i.e., what's the population in your area of folks without tractors who need that kind of work done. I'm not far from you (Navarro Mills Lake) and I do just a tiny bit of paying work for other folks; not enough to even think about paying for a tractor, because most of the people in my area have their own tractors, plus there's lots of folks who own tractors looking for jobs to do with them. So, what little work I do with my B2710, I only charge $20 to $25 an hour (about the same as they could rent the equipment to do it themselves). Awhile back, I was in Ft. Worth and talked to a guy who had just paid $75 to get 3 acres mowed, so maybe if you're close enough to a larger town, you might make a profit at it, but not within 20 miles of me.

Bird

 

[RobertN]

Hey Bird,
What are rental prices like in your neck of the woods? Here in N. Calif, going rate for a B2710 is $225/day, 8 hours. Most are a minimum at that.

RobertN in Shingle Springs Calif

 

[gordon]

The thing you have to figure out what kind of market is out there for tractor work. The next thing the hourly rate in your area. In Birds post he mentioned that $75 for three acres of brush hogging. In this area you would have so much work you couldn't cut it all. So go figure. Here is a link of a discussion awhile back about charges. http://www.tractorbynet.com/cgi-bin/compact/showthreaded.pl?Cat=&Board=construction&Number=1342&page=&view=&sb=&vc=1#Post1342 might head you in the right direction. Do you already have experience running a tractor???

But first and foremost if you do get a tractor and charge for work don't and I repeat DON'T leave your property without insurance!!! You don't want some knucklehead ending up with what you have worked so hard to get.
Good luck
Gordon

 

[Billc]

Fishman, good to have you apart of the board. And yes tractors are expensive...whether they are new or used.

I guess I qualify as someone who hires out but not lots. I pick and choose my jobs based on what I'm doing at my place. We bought this place a little over a year ago, and are turning it into a small, nice horse ranch that will have some cows as well. Anyway, if I am doing something at my place that I truely hate doing, you can bet I'll take the tractor job!

I sold Electrolux vacuums for 19 years door-to-door. I wasn't the type of saleman you saw at your door once, sold something, and then you never saw me again. Rather, I worked the same areas over and over. I wanted everyone to know me, know what I did, and know that I'd give them great service after the sale. I do my tractor work the same way.

As for price I charge $30/hr. That is about the going rate for this area. If you ask around you'll find the going rate in your area.

I've noticed more and more fellas are charging a "destination" fee. In other words a customer is being charged $30 just for you showing up to do the work. Personally I think this is crap. I have some rent houses, they require normal maintenance. My regular plummer moved away. I called a new fella whom I heard was good. When I got his bill he had tacked on $25 as a "destination" charge. This really burned me. I never used him again. Yes, he made $25 exta off me, but he lost a lot of money in the process. So I don't charge a "destination" charge.

Another little exta I see happening is a 2 or 3 hour minimum. In other words, for someone to show up to work for you they have to do at least 2 or 3 hours work. I don't do this either. Most of the time the work they hire me for takes seveal hours. Plus, most customers always find other things they needed done. In the end I usually end up working at least half a day or more.

Most of the work I've been hired to do this year is either brush cutting work, or establishing/maintaining a pasture. The pasture work can be disking, plugging, seeding, fertilizing, or spraying. I've also done some loader work; moving a pile of dirt and smoothing it, getting rid of a pile of rocks, regrading, etc.

One thing to be aware of is the fact that you need the attachments to do the work. Several times I've agreed to do a job, had to buy an attachment to complete the task, and made no where close to what I spent. But, the next time I am called on for a similar job I'll have the right attachment. Figure I'll come out way ahead in the end.

Another thing to remember is getting your tractor to the job sight. If I'm doing work for someone and they are 5 or 6 miles away, I'll drive my tractor to the job sight. If they are further I put the tractor on the trailer. You may want to check on trailer prices if you don't already have one. Also you need something to pull that loaded trailer.

As to advertising, in Georgia we have a farm paper that comes out once a week and is put out by the Sec. of Ag. It is free to advertise in, and is sent out to those you ask for it free. (Your tax dollars at work). That is the only place I advertise. The rest of the work comes from word of mouth. I learned a long time ago if you have a good product, charge a fair price, show up on time, and do more and better that what you said you would, you'll have more work than you can handle.

You may want to advertise in your local paper, and put out some small signs at buisy corners around your house, put up business cards at local stores, etc. This is sure to get you some work.

Pitfalls? You are cutting an over grown pasture and "find" a large rock. You take on a job, and half way through you realize you don't have a clue what you are doing...this usually involves buying a new attachment or two. You tell someone it will take 3 hours to do a job, but it takes 6 hours instead.

This is probably a lot more than you wanted to know, but hope it helps.

Bill Cook

 

[john4nh]

Gordon pretty good post and good link to read. I have been in the business (part time since i was kid installing septics) I now do not install septic (county regs or getting goofy) But i continue to mow box blade and operate case 580. For the case (bachoe I generally try not to move it for less then 500 a day being an 8 to 10 hour day. On my mowing Its tricky bidding because if you contract on lots as i do they may only take an hour to do one or less. ( I try and take my time) So right now Iam getting 125 a lot. Its a little high but you have to make it worth your while. The other thing to remember is that at least for me I have a 20 foot goose neck with two 7000pound axles and it ways guessing around 3 to 4 thousand pounds. takes about ann hour on average to hook up and get tractor maybe change implements load tie down. Also check all the darned tires on truck trailor and tractor. Also if you are any hting like me and want your equipment to last I grease before every job if its an all day job. Not to lead you to believe I dont any other time but between oil changes it may be 3 months and if your gonna work it you need to grease it. My point is If you do not bid correctly you end up working 1 to 2 hours for free, sure you can charge travel time but how about when you come back and do the above mentioned work in reverse? I can not see working for free. Theres money to be made, but if no one turns your bids down your to darned cheap!!!!

About advertising, I used to make my own signs. Iam now in the process of ording the vinyl signs. They look more professional and besides i hate to paint. I just purchased a stump grinder so I will be getting these new signs to show this new service I have. Also business cards are a most. I think I got 1000 for like $26. Also where ever you work you need a sign with your number. Some people will not stop to talk to you, they would wheter call.

I hope this helps, sorry so long..

 

[john4nh]

Mr. cook good post. But your belief that a (destination charge) is crap is off base. How can you justify putting your tractor on the road for 5 to 6 miles for free? Have you heard those tires dont last long on asphalt? What iam trying to say is your putting lots of wear and tear on your-self on your machine for nothing. Meaning money, Iam sure like my self and others you enjoy the work, for that iam sure its hard to put a price on that. But for those of us who are trying to make a payment, mentality like that hurts us. ALso when you stated buying new attachment(s) to finish a job, I agree thats a good way to upgrade equipment. But I have to disaree whole heartedly with you learning how to operate your equipment on my clock. Its like calling that plumber and letting him learn how to fix your plumbing while your paying him. I bet you would never call that guy back for sure...

I hope you do not take this wrong just trying to show you the otherside of the coin...

 

[Bird]

RobertN, I think everything is higher in California. The nearest equipment rental place to me rents John Deere and a tractor with 5' brush hog is $160 a day (8 hours on the meter) plus $10 if you need their trailer to haul it on. Last year my brother rented a Case dozer (forgot what model) from them for $320 a day and they delivered and picked it up (20+ miles each way). There are a couple of brothers in the area who have some big Cats, big trucks and trailers, etc. and they dig stock ponds, etc. for $60 an hour and they are really good and fast at what they do.

Bird

 

[fishman]

Thanks to all who have replied so far. Bill Cook. . . You obviously have been through this before, thanks for your insight. Insurance is something I had thought of, but I don't really know what is needed. Is the umbrella policy on your home enough? I wouldn't think so. What coverage do some of you have, and about how much did it cost? Sorry for all the questions, but everyone is just so darned helpful here.