What do Y'all charge ?

[Hay Dude]

Since I stopped thinking “hourly” mentality many years ago, and switched to “job” mentality for estimating, I have made much more money.
And I have been working for the same people for decades. None seemed to notice or care.

Its really the same thing, you are calculating how long it will take you to do, adding expenses, overhead, profit, whatever and coming up with a number.
It’s really nobody’s business what you make per hour.

I might still charge by the hour for very simple things, like weed whacking for example, but I still try to charge by the job with that, too.

 

[spruce Deere]

Old topic, Many discussions, So many variables.

Me, Usually price by job. Have not done much commercial/custom tractor work for a while now. Looking at things currently, $80/hour and north looks ALMOST right for a 40hp and under.... Almost.

Use to be a couple of posters years ago, farmwithjunk and Lonecowboy. One more cranky than the other and I believe that one left tbn under there own persuasion... But they both did commercial work with larger tractors and had lots of points few consider. Like commercial insurance for transport of equipment or self employment stuff, inspections on equipment for being weed and seed free.

Working your tractor for real profit requires more than most realize.

 

[paulsharvey]

Quick dirty approach is pay the machine something like $50-75/hour (really should look at the true cost, including fuel, depreciation, reserves for replacement, transport costs, ect) and then your wage on top of that, keeping in mind you need 33% more than you think to support your Uncle. Also, you don't want to be paying yourself just a normal wage that an employer wourtipld pay you, you need to be compensated for your risk as the business owner. It wouldn't be unreasonable at all to pay the tractor $50/hr and yourself $50/hr; for a $100/hr fee. I prefer a 3 hr/min charge to cover transport rather than doing door to door charge at hourly rate.

 

[paulsharvey]

Wow, seeing some of these rates makes me believe I live in the wrong country for sure. I could barley make $70 per hour with a $220,000 dump truck, LOL

To my surprise though, I have made $60/hour a couple times rebuilding water front retaining walls for locals with my little Kubota. I didn't ask that, but they insisted because they liked the fact I could get in over their manicured lawns without making a mess.

For years, the lease truck dump trucks, with a driver, and all the liability, was far cheaper then running company owned dump trucks. Get done, sign the truck and driver out; he has a break down, sign him out, ect. The biggest reason to run a couple company trucks/drivers is to be able to have them available.

 

[paulsharvey]

Most small contractors, with employees, are gonna target $1000/day over and above employee labor, material. ect. You don't open a business to make $250/day; and your not actively making money every day of the week; got to have maintenance time, weather days, go backs, ect.

 

[Lineman North Florida]

Tractor work/bushhogging is dog eat dog around my area, there will be a dozen new ones every year that will be out of business by next year because they want work so bad that they under bid everybody else to the point that they aren't really making any money, all seems to go well until they tear up something and it takes far more than what they made to fix it and then by next year they are out of business , usually no business license, no liability insurance , etc so they work basically for beer money but it doesn't last long.

 

[paulsharvey]

Tractor work/bushhogging is dog eat dog around my area, there will be a dozen new ones every year that will be out of business by next year because they want work so bad that they under bid everybody else to the point that they aren't really making any money, all seems to go well until they tear up something and it takes far more than what they made to fix it and then by next year they are out of business , usually no business license, no liability insurance , etc so they work basically for beer money but it doesn't last long.

I've seen guys advertising as low as $35/hour for bushhogging....

So, let's say a quality operator, nowadays, probably $30/hr, plus labor burden, plus profit; you really need to charge $50/hr for the butt in the seat, whether that's your butt or not; and then; let's say $600 payment on the machine, operator, operating 28 hrs/month; we need $21.50/hr to pay the machine; now we need fuel; at around $8.50/hr; and 1% of the purchase price of the equipment, in repairs/maintenance per month, or another $600/month or $21.50/hr.

So, our total, Before profit, for a $60k machine, operating 28 hrs/month; we need $101.50/hr. Sure, those prices drop somewhat if we are running 54 hours/month; But only down to $80.0/hr. If we run this machine for 120 hours/month; we are at $68.50/hour; before transport or profit.

Where we can change the numbers are
A: decreased operator cost; ie cheap labor;
B: operate a lot of hours
C: improve fuel efficiency
D: decrease purchase/financing costs; without decreasing life span below 5-6 years


That 1% of purchase price per month in maintenance seems like a reasonable number, but it surely fluctuates based on work type

So; if you are the operator, figure your wages in there; $0.80/mile to transport to and from job; you got to be in the $68-110/hr range to be making money with a new machine. If your OK making $15/hr, and have a 1972 Ford 4000; maybe your doing OK at $40/hr, but I wouldn't....

Edit: When I say making money, I'm taking about clearing at least $30/hour profit/pay for yourself.

 

[Hay Dude]

If you own a typical one man construction, property maintenance company, with several machines & trucks, you better be making over $1,000 per day, or you are losing money. $1,500 is what I shoot for.
You might not know it, but you are probably losing money working for under $1,000/day.

On edit: I wouldn’t have been saying this 10 years ago. Its just that input prices, like fuel, parts and insurance have gone up so much, it can’t be helped.

 

[Hay Dude]

I actually have a higher success rate bidding work when I am on the higher end. Many customers think a contractor doesn’t know what he’s talking about when the bid is really low. They’re afraid he’s forgotten something and won’t be able to complete the job.

 

[paulsharvey]

Oh, I forgot to throw out there; contractor A might be $120/hr and Conteactor B might be $90/hr. Doesn't mean A is more money than B. If A is running 8 ft bushhog and B is running 6 foot.

Lump Sum bid (or per acre or whatever); you still should have a $/hr rate, and transport rate figured up; then you can look at a job, and say; 12 acres of mowing, 18 miles each way; 5.2 hrs mowing; then you can do a quick visit; quote $490 for the job. That doesn't mean you share the info with customer or competitors. You very well might look at it, as I need $885/day; and then break it down to a half day is $442.50 and a full day is $885; and if you finish in 6, good on you.

Another big factor that affects everything; is this what keeps you feed/housed? Are you going personally bankrupt if you do not bring in $5k/month in Profit; or is this a side hustle, and a couple days at $885 is bonus money?

Also, as Hay Dude pointed out, sitting equipment isn't free; so, when you start running this as a business, with 2 or 3 machines, a transport vehicle, ect; your needing to kinda price things a bit different.