Pricing and Business Plan

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Holliwood

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Joined
Jan 29, 2007
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8
Looking for some help creating my business plan. Also wondering how to set my pricing, by the hour or by the Job ? I'm in Canada 6% tax. Whats the going rate ? Do you charge mileage, or a drop fee ?
 

farmboy55

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Aug 16, 2006
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324
Holliwood how's it going? You asked so here's my 2 bit's, been out here playing in the dirt off & on for 30 yr's. It all comes down to the market/area your in. Here I get 65 to 75 hr for my 853 with attachments. Some are done by the job. After you have a little seat time and know how much wrk you can do, the best money is by the job. I suggest getting the phone book out and call some people up that are in the buss. already like you are going to hire them and see what the average rate is. dennis
 

Holliwood

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Jan 29, 2007
Messages
8
Holliwood how's it going? You asked so here's my 2 bit's, been out here playing in the dirt off & on for 30 yr's. It all comes down to the market/area your in. Here I get 65 to 75 hr for my 853 with attachments. Some are done by the job. After you have a little seat time and know how much wrk you can do, the best money is by the job. I suggest getting the phone book out and call some people up that are in the buss. already like you are going to hire them and see what the average rate is. dennis
Ya I think your right. I've asked a round a little and I don't think you can get much under $85 hr depending on the attachment being used. And what to people charge for milage, or do you just add it to the per hour rate. I was thinking around 30-40 cents a Km even if it's only one way. Am I out to lunch ?
 

nobull1

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Jan 4, 2007
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196
Ya I think your right. I've asked a round a little and I don't think you can get much under $85 hr depending on the attachment being used. And what to people charge for milage, or do you just add it to the per hour rate. I was thinking around 30-40 cents a Km even if it's only one way. Am I out to lunch ?
A lot of the people in our area charge their going rate from the time the machine leaves their yard until the job is done(at the customers location). In the end it will be the competitors that decide how much you will charge though, if you want to be competitive.
 

farmboy55

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Aug 16, 2006
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324
A lot of the people in our area charge their going rate from the time the machine leaves their yard until the job is done(at the customers location). In the end it will be the competitors that decide how much you will charge though, if you want to be competitive.
Forgot to mention, most around here have a 3 hr minimum charge. But we are starting to go to a diff. way with the price of fuel & ins.. example instead of 3 hr @ 65. per = 195. for any wrk under 3hrs. Now 1st two hrs (or less) 100. ea minimun of 2hrs, then the rest of the day is bill at 65. per hr 590. for a 8 hr day Most of the wrk is 15 min. to the job frm home here. dennis
 

Holliwood

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Joined
Jan 29, 2007
Messages
8
Forgot to mention, most around here have a 3 hr minimum charge. But we are starting to go to a diff. way with the price of fuel & ins.. example instead of 3 hr @ 65. per = 195. for any wrk under 3hrs. Now 1st two hrs (or less) 100. ea minimun of 2hrs, then the rest of the day is bill at 65. per hr 590. for a 8 hr day Most of the wrk is 15 min. to the job frm home here. dennis
Now this is the kind of info I was looking for thanks you for the input.
 

frank123

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Nov 17, 2006
Messages
59
If I may ask where are you located? dennis
Around here (rural Minnesota), $65 to 70 / hr is typical, $85 for a CTL. A lot of guys are at or around that $200 minimum. Haven't heard of many charging mileage specifically, just start charging when you leave. More commonly, job pricing or bidding is used, as people here seem to like to know what they're going to pay and how you compare to the next guy. Unfortunately there seems to be a big difference what you get for your money depending who you hire. I look at that as an opportunity. Do good work and what you said you'd do, and pretty soon your reputation is getting you more work than your price.
 

Holliwood

Member
Joined
Jan 29, 2007
Messages
8
Around here (rural Minnesota), $65 to 70 / hr is typical, $85 for a CTL. A lot of guys are at or around that $200 minimum. Haven't heard of many charging mileage specifically, just start charging when you leave. More commonly, job pricing or bidding is used, as people here seem to like to know what they're going to pay and how you compare to the next guy. Unfortunately there seems to be a big difference what you get for your money depending who you hire. I look at that as an opportunity. Do good work and what you said you'd do, and pretty soon your reputation is getting you more work than your price.
Hey thanks for the input guy's.
 

skidsteer.ca

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Joined
Jan 20, 2006
Messages
3,853
That is the best thing REPUTATION. Around here if your on the job when you say you will be is 80% and if you can do a good job your pretty much in the click .
I charge 65/hr for general work and 75/hr for brush mowing. Add 10.00 if its a a part day.
At times I charge for travel if its a over 30 km 1 way,
Our area is on the quite side for work this last year or so, but I would take into account things are booming where you are.
Ken
 

Eric

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Joined
Jan 19, 2005
Messages
169
I charge 65/hr for general work and 75/hr for brush mowing. Add 10.00 if its a a part day.
At times I charge for travel if its a over 30 km 1 way,
Our area is on the quite side for work this last year or so, but I would take into account things are booming where you are.
Ken
It realy depends on what market you are in. Im in California and we charge $100 per hour and a 4 hour minimum, $110 per hour if we use the 10 Wheeler dump truck, and $135 per hour for the bobcat with a hydraulic breaker. If the job is more than 30 minutes away, we charge for the one way travel time.
You realy need to figure out what your costs are to run your business effectively with an acceptable profit. Your competitor may be charging $55 per hour. Maybe his costs are way lower than yours. Do you see his books??? Maybe he pays himself $15 per hour and doesnt have insurance, parking his equipment at his moms house rent free, driving a truck his uncle gave him (no payments), running an old beat up machine he payed $4000 for. Who knows!
Getting your competions pricing is a good stepping stone but you need to figure what its gonna cost you.
I know I charge more than most of my competitors but I build value into what I bring.
Im on time, proffesional, speak english, have insurance, know what Im doing and dont need to be baby sat by my customer, have a wide range of attachments, carry a laser level at all times, clean up after myself, will stay late to finish the job, always have a 10 Wheel dump truck, can rent and run any special equipment to get the job done safely and quickly, etc.
I call this building value. Unlike if you hire Pedro the wonder slug.
 

perry

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Aug 22, 2006
Messages
869
It realy depends on what market you are in. Im in California and we charge $100 per hour and a 4 hour minimum, $110 per hour if we use the 10 Wheeler dump truck, and $135 per hour for the bobcat with a hydraulic breaker. If the job is more than 30 minutes away, we charge for the one way travel time.
You realy need to figure out what your costs are to run your business effectively with an acceptable profit. Your competitor may be charging $55 per hour. Maybe his costs are way lower than yours. Do you see his books??? Maybe he pays himself $15 per hour and doesnt have insurance, parking his equipment at his moms house rent free, driving a truck his uncle gave him (no payments), running an old beat up machine he payed $4000 for. Who knows!
Getting your competions pricing is a good stepping stone but you need to figure what its gonna cost you.
I know I charge more than most of my competitors but I build value into what I bring.
Im on time, proffesional, speak english, have insurance, know what Im doing and dont need to be baby sat by my customer, have a wide range of attachments, carry a laser level at all times, clean up after myself, will stay late to finish the job, always have a 10 Wheel dump truck, can rent and run any special equipment to get the job done safely and quickly, etc.
I call this building value. Unlike if you hire Pedro the wonder slug.
Frank123 and farmboy55 could not have said it better...
1. Be there when you say your going to be there...
2. Do what you say your going to do...
When I started, I looked in the local yellow pages (3) and found not one advertisement for skid steer services or, bobcat services.
I hired a student to fold, address and mail an introducton letter to all the construction compaines in the three city area I reside. It works...........
 

lgammon

Active member
Joined
Jan 2, 2007
Messages
29
Frank123 and farmboy55 could not have said it better...
1. Be there when you say your going to be there...
2. Do what you say your going to do...
When I started, I looked in the local yellow pages (3) and found not one advertisement for skid steer services or, bobcat services.
I hired a student to fold, address and mail an introducton letter to all the construction compaines in the three city area I reside. It works...........
dad handed down some advice from one of the third richest men in the area that we live. he worked for him when dad was younger. he said, when you tell a man you are going to do somthing you do it, just be damn carful of what you tell him. now there is alot of wisdom in this i have lost alot of jobs because i tell people the truth up front. if i am not sure how long it will take i tell them and don't give a low ball estamate just to hand them a big bill later. you always look better telling some one 1000-1500 and then when you get done hand them a bill for 900-1100, other than giving them a 2200 bill. be honest, it isn't easy, you will see it cost you jobs and you will never notice the ones you get but it is the only way to last
 

jackreed2005

New member
Joined
Aug 20, 2007
Messages
4
Frank123 and farmboy55 could not have said it better...
1. Be there when you say your going to be there...
2. Do what you say your going to do...
When I started, I looked in the local yellow pages (3) and found not one advertisement for skid steer services or, bobcat services.
I hired a student to fold, address and mail an introducton letter to all the construction compaines in the three city area I reside. It works...........
Perry, was wondering what you put in your intro letter. Im having trouble with getting business, have done everything that I can think of- newspaper, biz cards, flyers, website still not enough business to pay for my equipment.
 

Eric

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Joined
Jan 19, 2005
Messages
169
Perry, was wondering what you put in your intro letter. Im having trouble with getting business, have done everything that I can think of- newspaper, biz cards, flyers, website still not enough business to pay for my equipment.
Go to the job sites and talk with the contractors that could use your service. Be a salesman and sell yourself to them. Tell them what you can do for them and why they should use you. Make it personal and let them know your interested in helping them be more successful by being a team member and that your not afraid to use a shovel if needed. Show that you care about the success of their business.
 

bobcat_ron

Well-known member
Joined
Aug 6, 2007
Messages
334
Go to the job sites and talk with the contractors that could use your service. Be a salesman and sell yourself to them. Tell them what you can do for them and why they should use you. Make it personal and let them know your interested in helping them be more successful by being a team member and that your not afraid to use a shovel if needed. Show that you care about the success of their business.
I charge $65 per hour for the T190, $75 brush wacking, $105-115 for jackhammer depending on severity of the work with a 1 hour minimum. Hauling charges are also added, $50 for anything under 10 minutes travel time, 60 for anywhere under 20 minutes and $70+ for anything over 30 minutes and I have gone as high as $120 for 1 hour drives. Sometimes the customer will give the OK to just add a little extra to the haul charge especially if I'm putting in 8-9 hr days and going back and forth every day for a week. I also will only charge 1 way H/C, if I have to come back a week later, there is no charge, but 2 weeks later, I will charge, my Dad did this and he actually got more repeat business that way. I also make dam sure that when a customer says to start at the given time on the job that I get there 15 minutes ahead of time so that I'm ready to go right on the time given and stop the machine right at the time given that everyone else stops at, then I do the re-fueling and greasing at the end of the day, that way the customer doesn't pay for that.
 

perry

Well-known member
Joined
Aug 22, 2006
Messages
869
I charge $65 per hour for the T190, $75 brush wacking, $105-115 for jackhammer depending on severity of the work with a 1 hour minimum. Hauling charges are also added, $50 for anything under 10 minutes travel time, 60 for anywhere under 20 minutes and $70+ for anything over 30 minutes and I have gone as high as $120 for 1 hour drives. Sometimes the customer will give the OK to just add a little extra to the haul charge especially if I'm putting in 8-9 hr days and going back and forth every day for a week. I also will only charge 1 way H/C, if I have to come back a week later, there is no charge, but 2 weeks later, I will charge, my Dad did this and he actually got more repeat business that way. I also make dam sure that when a customer says to start at the given time on the job that I get there 15 minutes ahead of time so that I'm ready to go right on the time given and stop the machine right at the time given that everyone else stops at, then I do the re-fueling and greasing at the end of the day, that way the customer doesn't pay for that.
Jack, sorry about being late getting back to you....
My introduction letter to construction companies just stated I would appreciate being considered if they get overwhelmed, have an immediate need and services I perform, free estimates, insurance and a few business cards. I've picked up jobs by leaving business cards in convenient stores, hardware stores, nurseries, barber shops and any other business that has a lot of traffic. I always 'ask' if it's ok to leave a few on the counter, I also patronize those businesses.
 

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