I have a b3200 fel mmm bh and would like to know what i should charge people for running it I'm new to making profit with my machine but not a new operator. thanks
how much should i charge?
- Thread starter simplemartin
- Start date
It all depends on a huge number of things as to what price to charge for a job. I've been runing a landscape biz on the side for about 12 years and I've done numerious odd jobs and I've priced accordingly to the job at hand. If its a small job and I'm in and out in no time, I charge less then I would on a job that takes a day or so to complete. Sometime's I have to juggle numbers around and lower my labor rate just to be able to land the job and earn some kind of money. Before you take the leap into making any kind of money with your tractor check into becoming licensed and insured first.
Eric gave you some good advice. It would probably help you if you can search local ads in your area, and get a feel for what others are charging. That might not be easy to do, unless they have flat rates and advertise them. I have watched craigslist in our area, out of curiosity, and have seen some ads for tilling and bushhogging- that kind of stuff will clue you in. Also, you probably should figure the minimum that you will need to fuel and load the tractor, haul it to the site, work, and bring it home. In other words, how much do you need to make to make it worth it? In my field, floor covering, I would shoot to make a certain amount per day- sometimes I made that, sometimes I fell short, but it gave me an amount to judge by. I could break it down to a per hour rate, so that I could judge whether to charge a customer by the square foot, or by the hour- which one was more suitable for the work at hand. There is no use working for free- you need to know how much you need to make, to make it feasible. I would imagine that the type of work is immaterial- the hours on the tractor are. All excavating contractors that I know of charge per hour- time and materials. You also need to look into liability insurance, and check with your vehicle insurer- my insurance company requires that I have commercial insurance on my truck if I use it at all for floorcovering.
Thanks Eric,
I've already got general liability insurance working on getting licensed can you give me rough estimates on digging water lines, small koi ponds, footings, tree stumps.... my plan is 50 dollar haul fee up to 30 miles 1.50 per mile more and 40.00 flat rate per hour with a 3 hour minimum. is that decent do you think
I've already got general liability insurance working on getting licensed can you give me rough estimates on digging water lines, small koi ponds, footings, tree stumps.... my plan is 50 dollar haul fee up to 30 miles 1.50 per mile more and 40.00 flat rate per hour with a 3 hour minimum. is that decent do you think
Generally you dont charge a customer to haul your toys and equipment to a job site. The only time you get to charge mileage and a fee for traveling is if you are hauling material to a job site in your own truck. Years ago the general rule of thumb to price out a job was you figure up the cost of materials and multiply that by 3. The materials X's 3 give's you your labor rate. If a job requires $1,200 in material then you'd bid the job out to $3,600. So therefore you'd get to profit $2,400.
Now in TODAYS world thats a little bit different, you'd be luck if you can charge a labor rate for the same cost of the material. Like I said before each job requires different pricing. The above formula I just mentiond works well in most cases. As far as digging footings and alot of tractor run time then yeah an hourly rate would come into play. Anywhere from 60-85 bucks an hour depending on equipment size.
Now in TODAYS world thats a little bit different, you'd be luck if you can charge a labor rate for the same cost of the material. Like I said before each job requires different pricing. The above formula I just mentiond works well in most cases. As far as digging footings and alot of tractor run time then yeah an hourly rate would come into play. Anywhere from 60-85 bucks an hour depending on equipment size.
my materials is gas in my truck and diesel in the b3200 for a 4 hour job that would be about 55 bucks so i would bid it at 165.00?
Kubota_Man
Member
Equipment
BX24, Rear blade, Front blade, Snowblower, 54" MMM, Box scraper, Landscape rake
In my area it is generally acceptable to hava flat rate plus a fuel surcharge for greater distances for delivery and return of equiptment to the site if it needs a trailer. Tools that fit in your truck would be exempt.
Friends and family rates don't include any of thease fees. Usually that is covered by whatever is cold in the fridge.
Also in my area that would include any rental (rental companies have you coming and going) equiptment you would have delivered or picked up to complete a job.
However I am not in your area so I can not guess what is the norm in your location.
Friends and family rates don't include any of thease fees. Usually that is covered by whatever is cold in the fridge.
Also in my area that would include any rental (rental companies have you coming and going) equiptment you would have delivered or picked up to complete a job.
However I am not in your area so I can not guess what is the norm in your location.
Fuel expenses and travel time is kinda your own problem. You have to bid a job with enough money to have that already figured in. To me if your doing a job for 4 hours worth of work chances are its close to home and your not going to use up that much fuel in your truck and tractor to begin with. Seldom to people travel all over creation to do such a short quick job and spend less then half a day at the job site. Generally what I do for smaller jobs that are a quick in and out. I'll charge the customer the same as what it would cost them if they had to go rent a tractor to do it on their own. Which for me that has worked out quite well in the past.
I normally try to average $50 per hr. If the job is close to home I really don't worry to much about travel time unless it's a hard place to get into.
I did a job a few weeks ago that I couldn't help but charge for at least one way travel time. It was 1 1/2 hrs away which put me at 3 hrs total driving to get there and back. I just started my time when I pulled out and stopped when the job was over. Customer was happy so that was that.
I did a job a few weeks ago that I couldn't help but charge for at least one way travel time. It was 1 1/2 hrs away which put me at 3 hrs total driving to get there and back. I just started my time when I pulled out and stopped when the job was over. Customer was happy so that was that.
"my materials is gas in my truck and diesel in the b3200 for a 4 hour job that would be about 55 bucks"
Simplemartin,
On the surface what you stated above makes sense. However, don't forget to figure in wear and tear on the equipment. That's the biggie as it will bite you down the road and be expensive if you haven't taken it into account.
Heck, just a set of rear tires are pushing $800.... Then there's maint costs, engine rebuild costs, etc.
Also, even if the tractor is newer, you should be figuring in some sort of "break" account. In other words, let's say you're out working and you blow a $300 hydraulic cylinder while doing a $50 job. The job "profit" needs to pay for the break while also still allowing you to continue paying rent or putting food on the table.
Then there's taxes... ugh...
Good luck,
Steve
Simplemartin,
On the surface what you stated above makes sense. However, don't forget to figure in wear and tear on the equipment. That's the biggie as it will bite you down the road and be expensive if you haven't taken it into account.
Heck, just a set of rear tires are pushing $800.... Then there's maint costs, engine rebuild costs, etc.
Also, even if the tractor is newer, you should be figuring in some sort of "break" account. In other words, let's say you're out working and you blow a $300 hydraulic cylinder while doing a $50 job. The job "profit" needs to pay for the break while also still allowing you to continue paying rent or putting food on the table.
Then there's taxes... ugh...
Good luck,
Steve
Well we charge more per hour in terms of a price for a small job than large ones cos your runing around for nothing between them. when you know you 've got a job for a few days theres no running around.
Remember,when the buckets not scratching the wallets not filling!
dave
Remember,when the buckets not scratching the wallets not filling!
dave
I've been charging $65/hour from the time I leave the house for the last couple of years. That's fairly cheap, as I know of guys going for $85 and up. Forget the fuel costs, maintenance, whether you do it yourself or not isn't cheap on these tractors. At $40 an hour, you'll have more work than you will know what to do with! Your time is worth more.
Re: How Much To Charge?
You cannot compete with the poor souls that are simply giving it away. There will always be someone that will undercut you just to churn money---they're not making anything and probably not even breaking even.
Sit down and do the hard work to calculate exactly what it costs you to run your machine for one full day of 8- or 10-hours. Then divide that by the number of hours to obtain hourly rate. Remember to add in your time, expendables ($2 tube of grease adds up, every day), truck-trailer time and operating expense, a proportionate share of that one day toward your next 50/100/200-hour engine oil, hyd oil, filters. Remember too Workman's Comp, vehicle insurance, tractor insurance, liability insurance (when you mow over that gas meter or fall into a forgotten septic tank), local licensure fees.
My bet is you'll find you can't make a dime at $40 per hour.
You may not charge what your bookkeeping tells you is actually needed but you'll at least KNOW what your losing and let that help dictate what size jobs you accept.
Charge flat hourly rate loaded one way from shop. This eliminates confusion explaining to customer all the different line-items on your invoice.
Try this: 50% cash up front for first job for one customer, same customer second job in 12-months accept check after job, same customer third job in 12-months invoice 2% discount net 10. The ones that won't pay won't call.
Along same lines: Upsell your quality. Look neat. Business cards. Answer phone professionally (double check voicemail msg for content). Clean shirt with name on it. Wear personal protective gear (dust mask, earphones, safety glasses). Wash truck and tractor daily or least hose dust off. "Look" business-like and get business. Sell how you'll do a better job than your competition and look like you will. Don't badmouth competitors, just look and be better by selling yourself as 'professional'. Mag sign on truck doors. Sell how you're using best latest equipment therefore less downtime better quality job. Learn to say "Yes" and follow through. Don't make promises you can't keep. Keep every promise. Take all this into account and charge appropriately. Be on time every time. Rehearse a 2-minute introduction of yourself and your service. Tell everybody you see. Everybody. Hand out cards by the hundreds. Be enthusiastic. Don't smoke or chew when meeting with potential customer. Also don't cuss spit or scratch. Act like the professional you are. Heck, wear a nice shirt and tie at first meeting, change to work shirt, do job, change to nice shirt, drive off. Professional! Pride!
Customers will pay extra--read 'above local market for similar'--if they perceive a benefit for doing so. You've just got to explain what the benefit is for hiring you. Emphasize quality and performance and you can charge just about anything you want and be selective as to which customers you'll work for. Call and send a postcard to every customer thanking them for the job the very next day without fail. Make notes and remember facts about your customers (rose garden, kid in school, new puppy). Complement their garden, get a sack of squash, you can't use it all, pass it along to next customer, give credit to source, compliment garden to next customer, create a network that talks about YOU and how GOOD you are. ASK for introduction and references to next customer, ASK if you can use them as reference. On every job find ONE additional thing you can do for the customer--roll trash can to street, roll trash can back to house, move a pile of limbs, air up their car tire (you've got a compressor on board for your flats, right?). Smile smile smile.
If you do this for six months and you're dead serious about being sucessfull, you'll run your competion out of business.
Or you can be like your competitor doesn't return calls, drives dirty drippy truck, smells like old sweat and diesel, stained dirty tee shirt, shows up late or not at all, drinks beer while 'selling' the job, does half-ass job, bitches about how hot is and how he just can't seem to get ahead, has a tractor painted three colors and a semi-wrecked trailer, grinds out a cigarette on the customer's driveway, kicks their dog...you get the idea. And you can do better!
Post back and let us know how your process is working out. Follow these concepts and let us know when you start buying new Orange three times a year and become a small business force in your community.
You cannot compete with the poor souls that are simply giving it away. There will always be someone that will undercut you just to churn money---they're not making anything and probably not even breaking even.
Sit down and do the hard work to calculate exactly what it costs you to run your machine for one full day of 8- or 10-hours. Then divide that by the number of hours to obtain hourly rate. Remember to add in your time, expendables ($2 tube of grease adds up, every day), truck-trailer time and operating expense, a proportionate share of that one day toward your next 50/100/200-hour engine oil, hyd oil, filters. Remember too Workman's Comp, vehicle insurance, tractor insurance, liability insurance (when you mow over that gas meter or fall into a forgotten septic tank), local licensure fees.
My bet is you'll find you can't make a dime at $40 per hour.
You may not charge what your bookkeeping tells you is actually needed but you'll at least KNOW what your losing and let that help dictate what size jobs you accept.
Charge flat hourly rate loaded one way from shop. This eliminates confusion explaining to customer all the different line-items on your invoice.
Try this: 50% cash up front for first job for one customer, same customer second job in 12-months accept check after job, same customer third job in 12-months invoice 2% discount net 10. The ones that won't pay won't call.
Along same lines: Upsell your quality. Look neat. Business cards. Answer phone professionally (double check voicemail msg for content). Clean shirt with name on it. Wear personal protective gear (dust mask, earphones, safety glasses). Wash truck and tractor daily or least hose dust off. "Look" business-like and get business. Sell how you'll do a better job than your competition and look like you will. Don't badmouth competitors, just look and be better by selling yourself as 'professional'. Mag sign on truck doors. Sell how you're using best latest equipment therefore less downtime better quality job. Learn to say "Yes" and follow through. Don't make promises you can't keep. Keep every promise. Take all this into account and charge appropriately. Be on time every time. Rehearse a 2-minute introduction of yourself and your service. Tell everybody you see. Everybody. Hand out cards by the hundreds. Be enthusiastic. Don't smoke or chew when meeting with potential customer. Also don't cuss spit or scratch. Act like the professional you are. Heck, wear a nice shirt and tie at first meeting, change to work shirt, do job, change to nice shirt, drive off. Professional! Pride!
Customers will pay extra--read 'above local market for similar'--if they perceive a benefit for doing so. You've just got to explain what the benefit is for hiring you. Emphasize quality and performance and you can charge just about anything you want and be selective as to which customers you'll work for. Call and send a postcard to every customer thanking them for the job the very next day without fail. Make notes and remember facts about your customers (rose garden, kid in school, new puppy). Complement their garden, get a sack of squash, you can't use it all, pass it along to next customer, give credit to source, compliment garden to next customer, create a network that talks about YOU and how GOOD you are. ASK for introduction and references to next customer, ASK if you can use them as reference. On every job find ONE additional thing you can do for the customer--roll trash can to street, roll trash can back to house, move a pile of limbs, air up their car tire (you've got a compressor on board for your flats, right?). Smile smile smile.
If you do this for six months and you're dead serious about being sucessfull, you'll run your competion out of business.
Or you can be like your competitor doesn't return calls, drives dirty drippy truck, smells like old sweat and diesel, stained dirty tee shirt, shows up late or not at all, drinks beer while 'selling' the job, does half-ass job, bitches about how hot is and how he just can't seem to get ahead, has a tractor painted three colors and a semi-wrecked trailer, grinds out a cigarette on the customer's driveway, kicks their dog...you get the idea. And you can do better!
Post back and let us know how your process is working out. Follow these concepts and let us know when you start buying new Orange three times a year and become a small business force in your community.
Stubbyie,,,10-4, 10-4,,10-4....hit the nail on the head,,excellent advise, above excellent advise
Agreed- excellent advice. You will only go as far as you shoot for. Customers know that respectful, honest ambition will get them a good job. Show that you are ambitious and honest/courteous, and you will have their confidence.
And first impressions are everything. They probably don't know the level of your service or your ability, but they know if you are on time and clean, and if you are a good communicator.
None of it matters, though, if you are working for free.
Wow Stubbyie you could make money giving out advice so though. Every thing Stubbyie said is true. We have a small family roofing business and try to run it like that. Thats how you get referrals and return business. Its the little things that people like also like protecting there plants and yard from damage and cleaning up better than you found it and if you do break something tell them and make it right. Good luck with your business.