I think I work too cheap.

[TRA]

If you are on a new $30,000 tractor that will be considered wore out at 4,000 hours, that alone is $7.5 an hour. Grease, oil, hydraulic fluid, filters, tires are probably around $1000 for every 500 hours (guess) so now you are at $9.50 an hour.

Fuel use is probably 2 gallons per hour? Maybe a bit more? Say $7 an hour?

So now you are at $16.50 an hour. I guess we have not touched on insurance and such. Also opportunity cost of the $30,000 purchase, which is negated by the 0% financing deals but otherwise could be significant.

And if you break a part, you have to pay for it. You damage someone’s property, you pay. You get hurt. You pay.

 

[sgtboz]

This is a great way to allocate costs. I've never bought a new tractor for my brush hog/dirt work business but this really adds a helpful perspective in the analysis.

 

[tillerman]

I rototill gardens, lawns, foodplots, beaches and I do it all by the job. 95% of my time estimates are very close. There are times though when I don't guess right and I'm a bit high or low. It doesn't matter, I stick with my quote. Last year I did
200 jobs and it worked out to $200 per hour on the tractor hour meter. Keep in mind that doesn't count travel or loading and unloading. I really love my work