Tractor work prices in and around Houston, Tx

[dswinnerjr]

Hello everyone! I was hoping ya'll can give me some input as to prices for tractor work here in southeast Texas. I have a 5105 with fel, bb, and 6' shredder that I will be using in a part time business - just starting. I already have an ad coming out but think I will charge somewhere between $30 - 40 per acre for mowing and $50 and hour for dirt work. Does this sound reasonable? Thanks.

 

[BRUSHTAMERS]

Probably will start another flame war , but will give it a shot anyhow. Gained some real practical experience in the real world in the last five years. I'd have been dust without an accountant. She only charges me $300 and has probably saved me at least 2/3 s in taxes and other costs over the five years that I operated my first tractor. The new tractor isn't as fuel efficiant as the lower H.P. tractor was, and I've also found that it won't mow any faster, because it'll go over the ground only so fast, and still do the job neatly. My customers want a neat job of mowing, and they get it. I'm at $ 75 an hour this year, and have quit apologizing about the prices. As a commercial venture, or even a side job, I wouldn't dream of not having a million dollar policy for accidents with tractor or truck. Found a pretty good National insurance Company, that is about a third cheaper than the regional Co. that was representing me.Fuel is not going to get cheaper,but am going to let the warranty expire before trying biodiesel, or alternative fuel, unless the dealer or manufacturer as willing to help out with any warranty issues, and any problems with starting the machine on alternitive fiel. Never been South of I-10, at least in TX, so don't know the brush down that way, but have seen other posts that indicate that brush does grow there, and does pretty well at that.

 

[JoeinTX]

ds, this has been haggled over as much as anything else on this board.

It's all subjective. I, with an 8N and appropriate equipment, thought $25-30 hour was good for shredding or light dirt work. The revelations I had here and elsewhere were eye-opening as other experiences and feedback came in.

Yes, area has a part to play in it. But, ultimately, it's what your time and wear-and-tear is worth to you. It does no good to you to go out and work for a loss just to "get work" which doesn't pay for itself in the end. I quit doing much custom work not long after I began due to my primary job, but if asked, I quote $50/hr for any type of work with a 2 hour minimum for anything.

This is realistic, it seperates the sustainable jobs from those which are not, and it seperates the reasonable from the unreasonable. If they don't like it, you shouldn't worry much. So much of the work you will be called for is on property recently purchased and of which little may be known by the new owners. They want it cut but aren't sure what is lying in wait for you. Cables....wire....stumps...old wells....rocks...

Also, insurance is huge. I took out $100K in business liability (which really isn't anything) to start. The odd junction box or water meter can add up in addition to any flinging debris you may have which can create damage.

So, just MHO, you are starting out dangerously too low. Take it up to no less than $50/hr and seriously consider $75/hr.

The jobs you take will help pay and the ones that balk very likely aren't worth messing with.....

 

[dswinnerjr]

Thanks JoeinTx, I am just having a hard time deciding on prices. Where does one get insurance from? I have not even looked for that, mistake on my part.

 

[Buckeye_Jim]

Hello everyone! I was hoping ya'll can give me some input as to prices for tractor work here in southeast Texas. I have a 5105 with fel, bb, and 6' shredder that I will be using in a part time business - just starting. I already have an ad coming out but think I will charge somewhere between $30 - 40 per acre for mowing and $50 and hour for dirt work. Does this sound reasonable? Thanks.

I will try to list out the items you should be charging for.
1) The interest on your capital investment, if you had the same money invested somewhere else, what would be your return?
2) Your self employement taxes, you have more expenses than if you were an employee of someone else
3) Your expenses for the tractor, includes setasides for funding replacement and repairs, includes your time for daily lubes, it includes fuel, depreciation, etc.
4) a fair wage for your self given your skill level
5) Business overhead, licenses, insurance, any other non tractor expense that you would not have it you were not in business
6) a fair profit for the risk you are taking

Hope this helps,

Jim

 

[RobJ]

I knew some guys that wanted to semi retire and mow the power line easements around east Texas. i don't know what it pays but there are a bunch of them. The tractors have very HD mowers and usually some homemade cages and guards around everything. The tractors are usually a little rough around the paint areas.

Good Luck,
Rob

 

[Mike120]

Going rate out here seems to be about $50 an acre for mowing. I've never heard any hourly rates, I doubt many people would be interested anyway. Don't forget your time to haul the tractor to/from job, load/unload, etc. and the cost of the signs that seem to be on every telephone/power post in this area.

Good Luck

Mike

 

[JoeinTX]

"Where does one get insurance from? I have not even looked for that, mistake on my part..."


Most insurance agencies offer some type of business insurance. I just rang up a few local offices and got some quotes.......it seems like the $100K/y runs around $25-30 a month.

 

[dswinnerjr]

Wow! I really appreciate everyones input. I have an ad coming out tomorrow so I need to get the insurance right away. I will keep everyone posted on how this is going to work out for me. Thanks again everyone.

By the way, I have a 5105 with 521 FEL, 6' Mower, and BB. Not much right now but I will try to use it for now.

Thanks again ya'll.

 

[BRUSHTAMERS]

Hadn't thought about the fact that some customers don't require a huge insurance policy, but when I started up, was looking at commercial, corporate, and government customers. The minimum for these folks is a million dollar policy. I take jobs on a regular basis that are smaller than an acre, down to about a 1/4 acre minimum, but lump the smaller jobs together when I can, will share haul in costs for a group of homeowners in same area, but everyone pays a one hour minimum charge for mowing. Am running under the assumption that a "shredder in TX' is what we call "brush hog" or rotary mower with heavy blades in the N.W., able to cut up to about 3" stuff without major damage, at least most of the time. Any specific questions about startup, feel free to send me a P.M. Sidey

 

[JoeinTX]

Yes, a "shredder" here is a rotary mower.

A mower is something you use to cut your lawn and a "brush hog" is a generic variation of the Bush Hog brand......kind of like drinking a "coke" even though it may be a Pepsi or Dr. Pepper or making "xeroxes" when your just making paper copies.

As for the insurance, I started years ago thinking I wanted to tackle larger commercial properties especially empty lots/tracts owned by real estate companies. I learned a little about the insurance requirements then, but, ultimately decided against these large jobs because of money and time and the out-and-out hassle I ran into trying to actually get in touch with someone who could okay the deal. Maybe there's a secret, I dont' know, but it was mre more baloney that I wanted for a side business. I utlimately decided to just work as I wanted and get a smaller policy more reflective of what physical damage I might do on a private lot, i.e. tearing up a fence or slinging the odd rock/wood chunk through a window or similar and it was easy as pie.

 

[Farmwithjunk]

I'm not anywhere near Texas, so I don't know the "going rates" down your way. I've taken on mowing quite a bit of property this coming summer for an "asset managment group" that handles estate property and/or properties owned by elderly who are stuck in a nursing home. By doing it this way, I'm only dealing with one "customer". We've already done some business. I finish the job, call in my time, and a check appears in my mailbox in 2 to 3 days. Can't beat it with a stick

My insurance is written as a rider on my farm policy. 1 mil liability coverage cost is right at $350 a year that way. In todays sue-happy environment, I wonder if that's enough.

Any time I've ever done side work with my equipment, the biggest drain on my intended profits has usually been hauling/transportation cost. Your time must include something to cover that.

I've ran in to a few people that want "fixed price" numbers, but most will go with the hourly rates.

Don't try to get EVERY job you look at. Some will throw up a red flag on first sight. Stay away from those. ("Bad karma" with the customer, junked up property that will damage your equipment, and/or conditions you just don't like.) Let your competitor have them. People that tend to gripe and complain before you even start automatically get bumped off my short list. Make certain of what your lien rights are should you get someone who won't pay. (That happens more nowdays than ever before)

In time, you'll be able to build a client list that will keep you busy and will pay on time.

Here in rural Kentucky, should you ask $50 an acre for mowing weeds, you'll spend a LOT of time waiting for the phone to ring. $50 to $55 PER HOUR is acceptable. (assuming you can mow 2 or 3 acres per hour)

 

[JoeinTX]

"I'm not anywhere near Texas, so I don't know the "going rates" down your way. I've taken on mowing quite a bit of property this coming summer for an "asset managment group" that handles estate property and/or properties owned by elderly who are stuck in a nursing home. By doing it this way, I'm only dealing with one "customer". We've already done some business. I finish the job, call in my time, and a check appears in my mailbox in 2 to 3 days. Can't beat it with a stick..."


That does sound great and similar to what I was looking to do. How did you go about actually speaking with the property manager or ?-ever handled making such an agreement? That was a problem I had when I could never speak to anyone who was "the guy" to see.....

 

[Farmwithjunk]

"I'm not anywhere near Texas, so I don't know the "going rates" down your way. I've taken on mowing quite a bit of property this coming summer for an "asset managment group" that handles estate property and/or properties owned by elderly who are stuck in a nursing home. By doing it this way, I'm only dealing with one "customer". We've already done some business. I finish the job, call in my time, and a check appears in my mailbox in 2 to 3 days. Can't beat it with a stick..."


That does sound great and similar to what I was looking to do. How did you go about actually speaking with the property manager or ?-ever handled making such an agreement? That was a problem I had when I could never speak to anyone who was "the guy" to see.....

It all came about quite by accident. I wasn't looking for business. A friend came to me, looking for someone to recommend for mowing her mothers property. The mother is in an assisted living home. She had to sign over her property and holdings to the managment group because of an internal squabble in the family. (court ordered) I agreed to mow this place. (less than 60 acres) My friend passed along my name . When the managment group contacted me, they asked about doing more work. At that point, we sat down and thrashed out an agreement. My son and I will split the work. This one just fell in my lap.

 

[JoeinTX]

Nice......