What is a fair price to charge for tracktor/backhoe work?

[atgreene]

I have a small excavation business. Fully insured (Inland Marine Insurance for foundations, septics, roads etc...) and all the necessary permits as well as several certificates (erosion control certified).

So, as to price. My mini excavator I bill out at $115 per hour, $75 delivery/trucking charge to get it there. I usually charge a minimum of 4 hours, unless I'm in the area. A mini ex is obviously faster, and your skill level/equipment features will also factor into the price. Thumbs, quick couplers with a variety of buckets etc... add to the price, as well as other equipment such as compactors, rakes, pumps etc...

Whatever you do, if you are looking to get into business, don't be a low baller.

 

[LBrown59]

Whatever you do, if you are looking to get into business, don't be a low baller.

---W
------H
---------Y

 

[davitk]

I can't believe I am responding to this, but these businesses usually run by word-of-mouth advertising, you don't wanna be known as that cheap guy.....

 

[atgreene]

Exactly. If you need to lowball to get work, you probably will have the reputation of being just the cheap guy, never getting the good customers and the good jobs and you'll always have to do a half baked job as there isn't enough money to do it right. People don't want cheap, they want quality and reliability, and are willing to pay for it. It's part of the service. Lowballers do just enough to get by, and their jobs show it. Have some pride in what you do.

 

[Egon]

lowball to get work

How does apply to bid work??

 

[davitk]

Price. Service. Quality.


Pick two, you can't have all three. I you are the low Price guy, you have to drop either the Service or the Quality element from the package. Long after the sweetness of the bargain is gone, the bitterness of the poor Service or Quality remains.

If you choose to become known as 'cheap guy' in the beginning, good luck changing customers perceptions of your company in the future.

 

[Bedlam]

LOL OMG that hit it right on the head. goodness,so frustrating to work for free or 5 bucks an hour and have to deal with that.

Always remember when doing any work.

Add 10% if they watch
Add 20% for family
Add 30% for in-laws.
Add 200% for mother in laws.

And if you don't get the job! So what!

Frank

 

[C.G.S.]

If you in fact provide service ,quality and a reasonable price nether to high or to low that is about as good as it gets. All I can say is you need to make money that is why your doing the work. I can sit at home and make nothing rather then work for less then nothing. Reputations work both way, like they say " You can shear a sheep many times but you can only skin him once. A reputation for crappy work, poor service and high price is the reputation that is hardest to get away from. Low price for work that is not done right or too slowly is no bargin ether. Your reputation is worth more then anyone job and subject to ever job you do.

 

[davitk]

If you in fact provide service ,quality and a reasonable price nether to high or to low that is about as good as it gets. All I can say is you need to make money that is why your doing the work. I can sit at home and make nothing rather then work for less then nothing. Reputations work both way, like they say " You can shear a sheep many times but you can only skin him once. A reputation for crappy work, poor service and high price is the reputation that is hardest to get away from. Low price for work that is not done right or too slowly is no bargin ether. Your reputation is worth more then anyone job and subject to ever job you do.

Like I said, you can't have all three. If you have a "reasonable" price, you can only give "reasonable" service or "reasonable" quality; You become known as the guy who does OK work for a reasonable price.

As far as making money goes, no doubt if you're not making any you won't be in business long (unless you wife has a great job that pays all the bills , that sometimes happens)

 

[tlbuser]

I can't believe I am responding to this, but these businesses usually run by word-of-mouth advertising, you don't wanna be known as that cheap guy.....

HELLO, word of mouth advertising can be better than anything bought and paid for.

Like I said, you can't have all three. If you have a "reasonable" price, you can only give "reasonable" service or "reasonable" quality; You become known as the guy who does OK work for a reasonable price.

Hmmm, and which part of the equation dictates that? There is no reason any company can't offer reasonable rates, good customer service and good quality. Unless they don't want to.