Trying to scale up my pricing

[rustyshakelford]

I agree with LD1 on it. Size of mower is tricky. I run a 15' or 8'. I try get the same price for either. I bid by the job too. Just to load my tractor is a minimum of $250 though. If I'm mowing for my neighbor, I'll charge him 20 per acre which works out to a little over 100 per hour with the batwing. With the 7' mower it was 30 per hr and my fuel bill was more than double. Get on Craigslist or kiji?? And see what everyone is charging and go from there. Thinking you can double your price by going to an 8' mower would be a slap to the face to any customer I think. They didn't ask you to get that tractor and you won't be twice as fast.

Brett

 

[BossTractor]

I agree with LD1 on it. Size of mower is tricky. I run a 15' or 8'. I try get the same price for either. I bid by the job too. Just to load my tractor is a minimum of $250 though. If I'm mowing for my neighbor, I'll charge him 20 per acre which works out to a little over 100 per hour with the batwing. With the 7' mower it was 30 per hr and my fuel bill was more than double. Get on Craigslist or kiji?? And see what everyone is charging and go from there. Thinking you can double your price by going to an 8' mower would be a slap to the face to any customer I think. They didn't ask you to get that tractor and you won't be twice as fast.

Brett

It's not that I want to double my price. It's just I don't want to make less money per job cause I get it done faster. I'll just go to bidding jobs and go for the same dollar amount I would with the smaller set up but just get it done faster to allow more time in the day for more jobs.

There's no one else within an hour of here that advertises mowing with a tractor. So nothing to compare to. Unless I got into oilfield contracts. That I could bill out $150/hr all day long.

Pricing between my location and yours is a little different. Cause machine, fuel, and maintenance costs are much higher due to exchange rate. My 3032e and RC2060 cost me $30,000. Quick google search and I found a Texan dealer advertising a 3032e with loader, rc2048, box blade, and 18ft trailer for $24,000

Diesel prices are $1.02/L or $3.85/gal

 

[LD1]

I agree with LD1 on it. Size of mower is tricky. I run a 15' or 8'. I try get the same price for either. I bid by the job too. Just to load my tractor is a minimum of $250 though. If I'm mowing for my neighbor, I'll charge him 20 per acre which works out to a little over 100 per hour with the batwing. With the 7' mower it was 30 per hr and my fuel bill was more than double. Get on Craigslist or kiji?? And see what everyone is charging and go from there. Thinking you can double your price by going to an 8' mower would be a slap to the face to any customer I think. They didn't ask you to get that tractor and you won't be twice as fast.

Brett

I didnt take it as doubling his price.

He was wanting to double his hourly rate. (similar to you getting $100/hr with batwing vs $30/hr with the 7' for your neighbor.)

I know my posts have been long winded. But its not a simple question with a simple answer.

Bottom line......upgrading equipment makes you have to charge the customer more at the end of the day, it is a mistake. (per JOB, obviously you will be faster and charge more per hr)

The customer doesnt care if you are living in comfort in a cab with AC and air ride seat, or suffering in the heat and workout of the steering with an 8n......they only care what is gonna be cheaper to get the field mowed. Which is why pricing hourly is not the way to go.

Mower A charges $150/hr
Mower B charges $40/hr..

Obviously mower B looks better in the ad. And probably gets more business as a result.

But mower B is on old 30HP iron and mowing 1 acre per hour.
Mower A is modern and big mower mowing 4 acres per hour.

So the customer with a 4 acre job......The $150/hr guy is gonna charge $150. The $40/hr is gonna charge $10 more.

You gotta be able to work on a per job basis, and NOT charge more than if you had smaller equipment with less overhead. If you can make numbers work, its not a good business decision as it will cost you jobs and customers in the long run.

When I first started, it was an L3400 tractor and 6' mower. I upgraded 18 months ago to a MX5100 and 8' twin. I have many repeat customers. My price to them didnt change.

What changed is how I was bidding (by the job ofcourse). But instead of a $60/hr target from drive to drive, its now $75. Works out perfect. A job that would have taken me 5hrs ($300), now takes me 4hrs ($300).

So whats my reason for upgrading when I am only making the same money but with more expensive equipment?
1. I enjoy a smoother ride with larger tires
2. HST is much more pleasant to operate all day vs clutching and shifting
3. Some of the larger jobs, like 20+ acres, I can actually do in 1 day vs 2, so I am saving the second days worth of drive time
4. I can line more jobs up in a single day. (I usually only mow 1 day a week. Cause with day job + spending time with family, dont want to mow on all of my off days).

 

[BossTractor]

I didnt take it as doubling his price.

He was wanting to double his hourly rate. (similar to you getting $100/hr with batwing vs $30/hr with the 7' for your neighbor.)

I know my posts have been long winded. But its not a simple question with a simple answer.

Bottom line......upgrading equipment makes you have to charge the customer more at the end of the day, it is a mistake. (per JOB, obviously you will be faster and charge more per hr)

The customer doesnt care if you are living in comfort in a cab with AC and air ride seat, or suffering in the heat and workout of the steering with an 8n......they only care what is gonna be cheaper to get the field mowed. Which is why pricing hourly is not the way to go.

Mower A charges $150/hr
Mower B charges $40/hr..

Obviously mower B looks better in the ad. And probably gets more business as a result.

But mower B is on old 30HP iron and mowing 1 acre per hour.
Mower A is modern and big mower mowing 4 acres per hour.

So the customer with a 4 acre job......The $150/hr guy is gonna charge $150. The $40/hr is gonna charge $10 more.

You gotta be able to work on a per job basis, and NOT charge more than if you had smaller equipment with less overhead. If you can make numbers work, its not a good business decision as it will cost you jobs and customers in the long run.

When I first started, it was an L3400 tractor and 6' mower. I upgraded 18 months ago to a MX5100 and 8' twin. I have many repeat customers. My price to them didnt change.

What changed is how I was bidding (by the job ofcourse). But instead of a $60/hr target from drive to drive, its now $75. Works out perfect. A job that would have taken me 5hrs ($300), now takes me 4hrs ($300).

So whats my reason for upgrading when I am only making the same money but with more expensive equipment?
1. I enjoy a smoother ride with larger tires
2. HST is much more pleasant to operate all day vs clutching and shifting
3. Some of the larger jobs, like 20+ acres, I can actually do in 1 day vs 2, so I am saving the second days worth of drive time
4. I can line more jobs up in a single day. (I usually only mow 1 day a week. Cause with day job + spending time with family, dont want to mow on all of my off days).

Thanks for all the input. I will just go to a price per job pricing next season

Ideally I want the larger tractor for haying. Have 80 acres between myself and inlaws to put up. Also have a few good customers that will let me hay there land instead of charging to mow it. With our current hay conditions and pricing that would put me at around $250/ac gross Per cut for squares in field. 2 cuts a year.

 

[MESSMAKER]

Tilling is just something you do till the grass gets going in the spring. You can't make much money due to the limited price you will be able to charge and the limited window of opportunity. I do a few just to stay busy. It does help to get your name out there. When it comes to pricing your mowing jobs I have had better luck charging a sliding scale due to the condition of the lot and then mow it by the hour.You can set a second mow price after you have mowed it once because the second mow is always easier and quicker. I get $50-$75 per hour with a five foot mower. I think you are about right for travel. You have to charge for it unless it is very close. I have found that repairs are the bugaboo in the mowing business. I do a lot myself, but the big repairs add up quick and if you do this enough, stuff will break.

 

[sandman2234]

I have an old JD2555 and got a chance to buy an Orange M7040 with some equipment included. The seller told me he was getting out of the business because his ONE customer was selling out to developers. A month later, he sent me an email, told me they wanted to mow it "one last time", so I asked him what he charged and how long did it take. He said it was just under 100 acres of open land, takes about 30 hours to do with the 8 foot mower, and less with the batwing. So...I told the customer I would mow it for $50 an hour...and somebody under bid me at $2000. (I have problems bidding on land I haven't seen, and he needed a price "now"!! I told him it would be $100 for both tractors, (so I could get it done in one weekend.
I called the property owner after the fact, just to see how long it took the other guy, and he said 35 hours. Mowing with a 7 foot mower. I asked him if he wished he had used me, and he said he was "scared of an hourly rate". I told him that I knew what he paid the guy I bought the mower from, and would not have charged more than he did, even if I had to eat a little of my time.
Point being, most people are scared of hourly rates, like LD1 said...want to know how much is the bottom line.
I should have gotten the address and drove down there, but my hours at my regular job were the same as the hours the land owner was available. (Land Manager). I wanted the job simply as a fast influx of cash because I had just depleted all my spare cash buying all that stuff and Momma wasn't real happy. Would have made her happier to see me turn that much of a profit that quickly. I don't need to mow for a living, but I have a Church property I mow which I have done for almost 14 years. I have a newer tractor now that I can play on and not worry if the JD2555 is going to die before I get done. (Been a great tractor, but it showing it's age)
Win some, loose some, some get rained out.
David from jax

 

[BossTractor]

I have an old JD2555 and got a chance to buy an Orange M7040 with some equipment included. The seller told me he was getting out of the business because his ONE customer was selling out to developers. A month later, he sent me an email, told me they wanted to mow it "one last time", so I asked him what he charged and how long did it take. He said it was just under 100 acres of open land, takes about 30 hours to do with the 8 foot mower, and less with the batwing. So...I told the customer I would mow it for $50 an hour...and somebody under bid me at $2000. (I have problems bidding on land I haven't seen, and he needed a price "now"!! I told him it would be $100 for both tractors, (so I could get it done in one weekend.
I called the property owner after the fact, just to see how long it took the other guy, and he said 35 hours. Mowing with a 7 foot mower. I asked him if he wished he had used me, and he said he was "scared of an hourly rate". I told him that I knew what he paid the guy I bought the mower from, and would not have charged more than he did, even if I had to eat a little of my time.
Point being, most people are scared of hourly rates, like LD1 said...want to know how much is the bottom line.
I should have gotten the address and drove down there, but my hours at my regular job were the same as the hours the land owner was available. (Land Manager). I wanted the job simply as a fast influx of cash because I had just depleted all my spare cash buying all that stuff and Momma wasn't real happy. Would have made her happier to see me turn that much of a profit that quickly. I don't need to mow for a living, but I have a Church property I mow which I have done for almost 14 years. I have a newer tractor now that I can play on and not worry if the JD2555 is going to die before I get done. (Been a great tractor, but it showing it's age)
Win some, loose some, some get rained out.
David from jax

I've bid on 42 jobs this season by the hour. I've cut 40 jobs. All by the hour and everyone has been pleased and happy with the price. I could probably go up to $85/hr without loosing that many jobs. You can't please everyone and don't worry about the people who act like you're price is to high. I feel if you land 75% of your bids your pricing is fair.

 

[LD1]

Lack of competition, and lack of land being bought/sold/developed is probably why you are being so successful.

Its all a regional thing.

I bid 4 acre jobs that are 45 minutes away in the $200 ballpark and have been underbid (or the customer just thinks thats way to high).

But my area is close to a few major metropolitan areas and alot of the city slickers moving out to the country, but have no clue what equipment was needed, or how much maintenance it is to maintain their 10-15 acre plot.

 

[BossTractor]

Lack of competition, and lack of land being bought/sold/developed is probably why you are being so successful.

Its all a regional thing.

I bid 4 acre jobs that are 45 minutes away in the $200 ballpark and have been underbid (or the customer just thinks thats way to high).

But my area is close to a few major metropolitan areas and alot of the city slickers moving out to the country, but have no clue what equipment was needed, or how much maintenance it is to maintain their 10-15 acre plot.

I have 1.5 million people or so with an hour of me. I'm 15 minutes from our provincial capital city. Right in the heart of oil country, middle of the prairies and constant development. There's over 1500 small 3-4 acre acreages in rural subdivisions just in my county alone and many more in the other 3 counties I frequent. That 4 acre job 45 mins away I'd quote them $325 and probably would get it. It's the lack of small tractors for hire that makes it easy.

Skid steers for hire on the other hand are a dime a dozen and guys are starting to under cut and come in at $50/hr.

 

[BossTractor]

Thanks for all the insite LD1

Comparing hourly wages for us in like comparing apples to organges since I'm in canada

Most products our bought and sold between countries with the US dollar. But a dollar here is viewed the same way it is in the US. A dollar is a dollar. It's the value amount you throw at a stripper. But with current exchange it's 21% more for us to purchase a dollar in the states. Plus you add on the "Alberta advantage" and your looking at a 30% inflation. So a $100/hr is probably closer to $75/hr there cause you're dollar gets you more. I will probably delete this thread since I got the information i needed