He's not drastically underbidding the jobs by any means. Think about it like this, BIG companies have no problem paying BIG prices to get jobs done, but small companies/individuals can't pay BIG prices to get small jobs done. The end result is that there is a nich market that currently is not being taken care of around here. He has quoted several BIG jobs using a rental machine for a couple of realtors who need land cleared, and has them coming up in the next month or so. In the meantime he has been getting calls left and right to do an acre or two here, a quarter acre there, etc, etc, that he can't feasibly do because of the cost of a rental unit. As a result he has lost those jobs because he can't do them and the larger companies don't want to mess with them to begin with. One of the most common comments he has heard from the people who have called is that they can't believe he has even called them back because the 'others' they called never did. Granted he has had one or two that had very unrealistic ideas on how much it cost to do a job (ie- like $1400, all inclusive, to do 7 acres of heavy brush, and small trees. The best we've been able to figure things is about an acre a day on average for the jobs he has looked at so far. Most have no problem with $1400 to do an acre, but when the rental machine is running you $800 plus a day, then add in the cost of diesel, rain delays, etc, etc, etc, it's simply not feasible to rent a machine for a job of less than severel acres. Granted he want's the BIG jobs, but the little guy side of things is the side of the market he wants to corner.....and based on what I've seen and heard it can be quite lucrative, but only with your own machine, and no monthly payments eating up your profits......
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