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Tractor Talk Discussion Forum

What to charge per hour??

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Keith H

05-25-2005 22:42:01

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I have L3010 Kubota with a rotary mower, post hole digger, tiller etc etc. I am going to semi-retire and have liability insurance lined up. What do I charge per hour for small jobs? I have tried to find out from others but there seems to be a wide spread in charges. I seems to me a person needs 15 to 20 dollars per hour for their time and the same for the equipment for a minimum. I realize that can vary for different areas. $30 to 50 per hour?

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Wayne in TX

05-27-2005 08:11:48

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Re: What to charge per hour?? in reply to Keith H, 05-25-2005 22:42:01

I always approach it from the price end what is the allowable "price" then I try to control my "cost" to match that price. The allowable price in my area is about $50.00 an hour min 2 hours or 20 dollars an acre. For me to make money I couldn't use the latest equipment and had to concentrate on slightly larger jobs with bigger equipment. I haven't had much luck in being competetive by using a cost build-up model because frankly my customers don't care about my cost only the price that I and others charge. I have been successfull in selling some up-lifts to basic mowing such as trimming, site clean-up/leveling, seed bed prep, building site levelling etc. I realize that I am not answering your question just telling you my approach.

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dhermesc

05-26-2005 09:38:53

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Re: What to charge per hour?? in reply to Keith H, 05-25-2005 22:42:01

One word of caution - make sure you locate utilites before you dig!!!!! !!!! Local dozer operator cut through a fiber optics cable while pushing up a waterway - Ma Bell was threatening to sue for over a $100K until they found out their cable was on THE WRONG SIDE OF THE ROAD!!! Disrupted service to over 20,000 people for a couple days.

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txgrn

05-26-2005 05:02:07

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Re: What to charge per hour?? in reply to Keith H, 05-25-2005 22:42:01

I think the minimum is in order to cover your setup/travel time. Would estimate that time and adjust the min accordingly. Would not include it as part of the work, as you had to work to get there. Cash is great or a state with stiff hot check laws. Course if this is a hobby sort of thing, money is not your primary motive and you could be more lenient; like including the setup in the job.....but that doesn't pay your fuel bill for getting to and from the site.

Your numbers of $15-20 x 2 sound good to me. If the person doesn't like it they can go and rent the equipment and do it themselves..... you can't rent anything for less than $150 per day and that doesn't account for pu/del (time and money), figuring out how to get the equipment off the trailer, figuring out how to to operate it, engines that don't start, lack of familiarization with the equipment's capabilities, a trencher for example that has no blade and you have to cover the trench by hand, in the case of a water line, a 20' trailer to go and get the pipe, and on and on.

Mark

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Midwest redneck

05-26-2005 02:21:20

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Re: What to charge per hour?? in reply to Keith H, 05-25-2005 22:42:01

I just paid $150 for 9 post holes dug by a guy with a skidsteer. The price is $15/hole and $150 minimum. Normally it goes like this: $30 to show up + $30-40/hour for the work. (try to always be paid in cash) Most people are honest but there is that 10% that will %crew you. You may want to get hooked up with a local trucker for dirt/sand/gravel deliveries. the liablilty insurance will be based off of your sales, and it also reflects what type of work you are doing if you are excavating like with a backhoe then the insurance goes up a lot.

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edchainsaw

05-26-2005 18:34:28

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Re: What to charge per hour?? in reply to Midwest redneck, 05-26-2005 02:21:20

USDA says mowing is $5/acre... thats all!

and where did they get that?

anyway... I charged $13/hr to rake hay and $25/hr to mow hay last year...

and had lots of complaints.. but to rent a tractor to do those jobs ... $30/hr around here.
.
of bI charged $8/bale for big bales and people said I was charging to much--- when my baler broke we had hay down and tried to rent one...$14/bale to rent one.....

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