Tractor work pricing per hour

[Sprinklerman]

Yea, no way to swing that here. I can ocasionally push to $100/hr on some commercial accounts. Or sometimes it factors out at a high $/hr when applying my minimum charge.....but the average job, no way. And certainly not with a BX and a 4' mower. That setup around here.....and how productive it would be, you'd be looking at the $40/hr range.

My L3400 and 6' mower was a $60/hr machine

Prices are definatly regional .The cost of living in my area isnt cheap . I charge $ 95 an hour to do service work on Lawn sprinkler systems and I am not the most expensive . My equipment is a shovel .

 

[Redlands Okie]

LD1 has some good numbers and info on the cost breakdown. Travel times, wear and damaged equipment etc all has to be allowed for. And as many have said I also think you need to give the customer a price.
Personally I allow $35 a hour as minimum expense to run my Kubota L3560 and thats with me doing the maintence. Plus my wages, plus the insurance, truck trailor and what all as has been pointed out. My figure in mind is $80 hour minimum when calculating the price total to give the customer. Been averaging well over that so far.
I do have a nice set up with a full set of 3 hydraulics in back and the front end loader hydraulics have a diverter valve so I can run that front or back for a total of 4 in the back when needed with the 3 point grader blade. My point is that with the setup there is next to no wasted time climbing up and down or otherwise adjusting equipment. So there is no way to financially charge by the hour and compete with someone’s prices that is hand adjusting their attachments and wasting time and charging money to do so. Thus the bid by the job pricing.
Your probably going to mess up a few times until you get a bit of experience at pricing but it will work out if you learn from your mistakes

P.S. to keep it short I will say that so far my number one type of work that COST the most due to damaged equipment or whatnot is bush hogging. It’s hard to see everything in advance and what you miss can result in a bit more overhead cost in your operations.

 

[PILOON]

First off moving equipment to a work site is generally 1 hour of your working rate.(often wavered for big jobs)
Now a $25k tractor costs just as much to repair as a $150k trackhoe with the only savings being fuel but the man operating still gets the (or should) wages.
So while a big tracked excavator is billed at , say, $140/hr a small tractor is probably fairly priced out at $80 or so/hr.(or more) bearing in mind the smaller machine can and probably will break more easily as the client will ask for the impossible.

I hired out my small tractor over the years usually charging close to $75/hr but mainly for delicate work that bigger machines could not do. (like spreading topsoil around a new construction or grading a drive.) and that generally as part of a larger contract that I was involved in.
For tougher jobs I'd get the client to rent a trackhoe that I'd operate at my usual hourly rates.

Remember that it takes as much labor at same rates to repair a big machine as the small ones. (and often even more) the only advantage is the weight of the components.
The smaller the machine the easier it is to break it!

Now of course mowing grass is a whole different ball of wax.

Flat rate, forget it, unless U really know the terrain. Clients will always claim that there are no rocks, stumps or old fence wire.

 

[LD1]

First off moving equipment to a work site is generally 1 hour of your working rate.(often wavered for big jobs)
Now a $25k tractor costs just as much to repair as a $150k trackhoe with the only savings being fuel but the man operating still gets the (or should) wages.
So while a big tracked excavator is billed at , say, $140/hr a small tractor is probably fairly priced out at $80 or so/hr.(or more) bearing in mind the smaller machine can and probably will break more easily as the client will ask for the impossible.

I dont believe that the $150k trackhoe and a 25k tractor are in the same ballpark at all on repairs and maintenance.

Typically trackhoes have really expensive hoses and fittings being that they are 4 or 6 wire stuff to handle the 5000psi.
They hold alot more oils, and filters are alot larger
Lots more grease points
Under carriage stuff, etc

Guys around here with ~20t excavators are in the $150/hr range.
Me and my tractor are $75/hr

And when it comes to digging, they are twice the cost per hour....but about 10x more productive

 

[DieselBound]

I think there's some incomplete information on what constitutes repairs.

There is, labor rates, and then there's parts fluids.

Clearly, the parts and fluids for the more expensive, construction-grade equipment is going to be more.

As to rates, I'd have to think that they'd also be higher for construction-grade equipment. Seems that the facilities and tools needed to work on larger equipment is going to be more costly, which requires higher labor rates to cover. And, the available mechanics would also seem to be more scarce, which also means higher rates (because their pay is likely going to be higher- figure in more schooling/training).

Not sure that anyone can dig down far enough to account for all the beans. Getting close is where you want to start and then monitor actual expenses and adjust (one should always be adjusting).

 

[4570Man]

I think there's some incomplete information on what constitutes repairs.

There is, labor rates, and then there's parts fluids.

Clearly, the parts and fluids for the more expensive, construction-grade equipment is going to be more.

As to rates, I'd have to think that they'd also be higher for construction-grade equipment. Seems that the facilities and tools needed to work on larger equipment is going to be more costly, which requires higher labor rates to cover. And, the available mechanics would also seem to be more scarce, which also means higher rates (because their pay is likely going to be higher- figure in more schooling/training).

Not sure that anyone can dig down far enough to account for all the beans. Getting close is where you want to start and then monitor actual expenses and adjust (one should always be adjusting).

Big equipment cost more to operate no if ands or buts about it. You could probably scrap your tractor cheaper than a high dollar repair on a big piece of equipment.

 

[DieselBound]

A neighbor has an old International articulating tractor/backhoe, an industrial-grade machine. Blew out the rear boom cylinder. Seal kit alone was $750.

I was kind of trying to point out that I didn't think that the labor rates would be the same (for the reasons I stated); but, yes, overall operating costs are absolutely more expensive on larger equipment.

 

[TheMan419]

I think there's some incomplete information on what constitutes repairs.

There is, labor rates, and then there's parts fluids.

Clearly, the parts and fluids for the more expensive, construction-grade equipment is going to be more.

As to rates, I'd have to think that they'd also be higher for construction-grade equipment. Seems that the facilities and tools needed to work on larger equipment is going to be more costly, which requires higher labor rates to cover. And, the available mechanics would also seem to be more scarce, which also means higher rates (because their pay is likely going to be higher- figure in more schooling/training).

Not sure that anyone can dig down far enough to account for all the beans. Getting close is where you want to start and then monitor actual expenses and adjust (one should always be adjusting).

Absolutely the equipment needed to repair a smaller tractor is different. I had the dealer come out and do my 100 hr oil change. 25 hp machine, smallest one they make. They sent a HUGE truck. Turns out that guy came to do my oil change and then was on the way to repair some LARGE piece of farm equipment. I was told that the "trip" charge for me would be $x, and that is what they charged. I am sure that they thought was they would send a pick up truck or smaller truck to my job, but I happened to be on their way to a larger job.

In any event the guy that came out was a very experienced guy. I am sure his hourly pay was much more than what was actually needed to do my job. Again they honored the price they quoted me because it was not my fault this guy came out.

My point is that certainly you want a more experienced guy working on a bigger more complex repair. They make more money so the shop has to charge more to cover their wages.

 

[MESSMAKER]

I do work by the hour all the time. I get $50-75 per hour depending on the job. I have done jobs up to $700 at this rate. No worse feeling than being on the tractor for an hour or even two more than you calculated and thinking about the safety of the hourly rate. If I quote by the job, I add about 20% just in case so on most jobs it ends up costing the customer more.

 

[LD1]

I do work by the hour all the time. I get $50-75 per hour depending on the job. I have done jobs up to $700 at this rate. No worse feeling than being on the tractor for an hour or even two more than you calculated and thinking about the safety of the hourly rate. If I quote by the job, I add about 20% just in case so on most jobs it ends up costing the customer more.

Just curious.....

How do you handle customers when....

You tell them $75/hr.......and they ask "well how long do you think it will take you?

And how do you handle a customer if you estimated it taking you 4 hours.....so they are thinking $300......and it actually takes you 6 hrs ($450). Do you ever have them question that? Or say "I though you said it would take 4 hours....I only have $300"?