Cutting Acreage for $$$$$$$

[Gatorboy]

I don't believe you can get $50/hour with a 6' mower. If I were to do acreage mowing by the hour, I'd charge $75/hour -- but I've got a 15' flexwing mower -- and can cut 10 acres in about 90 minutes.

 

[mitchdb]

I was kidding on the $50/hour, I'd quit my job if I could make that kind of money cuttin grass.

I guess there is still a lot of factors that I should figure out. I'm not sure how much fuel I would burn in an hour either. I could also do dirt/rock moving with the FEL. Should I charge the same hourly rate for that as I would for cutting? I think I'd be happy with anything over $30/hour but I'm not sure if that's enough to cover all my expenses including maintenance, possible breakage and additional insurance if necessary. I'm sure there are more expenses that I'm not aware of.

 

[Golfgar4]

</font><font color="blue" class="small">( I think I'd be happy with anything over $30/hour but I'm not sure if that's enough to cover all my expenses including maintenance, possible breakage and additional insurance if necessary. I'm sure there are more expenses that I'm not aware of. )</font>

Mitch,

I've been playing around with the exact same scenario that you're talking about. I'll be retiring July of next year, and I was always planning on doing something like this as way to keep busy and maybe make a little extra money.

Now I realize that any costs that I may use today to determine rates may not be the same next year, but you've got to start somewhere.

I'm starting from scratch because I don't own anything right now. I'm basing my estimates on probably a 30 hp (or if I'm lucky a 35hp) tractor with FEL for about $15,000.00 That probably means either a used machine or not one of the top 3 (which is O.K. too!). I'd need a trailer, a truck large enough to properly tow everything, and a minimum 5' or 6' rotary cutter, with a 6' RFM and a PHD as "nice to haves". I've also factored in commercial liability insurance, trailer registration, projected fuel/oil and routine maintenance costs (S.W.A.G.'ed), bond coverage (not sure if it's needed but would rather plan for it and not need it...), and a 15% profit margin. I probably have forgotten something, but hopefully as I proceed, I'll find anything else I need to account for.

I've totaled all of this and then used 1,040 hours of available work time (hey, I'm going to be retired, remember? /forums/images/graemlins/smirk.gif). My hourly rate based on these projections would be something around $46.00 per hour.

Now to be perfectly honest, I believe that my projections, for the most part, are very conservative. I also believe that I may not need everything that I've listed in the begining. So the hourly rate might be a little high. But I don't think by much!

Hope this helpful. I also hope my numbers are high, because I don't know if I could get that around here. One of my problems is that I haven't been able to find anyone who's doing anything similar. But everyone I talk to about it seems to think it's a great idea and I'll be so busy that I'll be turning business away.

We'll see! /forums/images/graemlins/crazy.gif /forums/images/graemlins/grin.gif

 

[mitchdb]

It sure seemed like a really good idea at first but there seems to be a lot of factors that I'm overlooking.

At $46/hour for 1040 hours you'd make $47,840. The profit margin is only 15%??????? That's only $7,176! Yikes! I don't think I could get in 1040 hours a year, that's an average of 20 hours every weekend, every week of the year! I have a full time Monday-Friday job. So I'd actually have to charge more than $46/hour. My fuel/maintenance should be cheaper than yours being as though I would have less seat time but the Insurance and Bond kinda worries me. Did you happen to get any quotes on the insurance and bond? What does it cover? With my luck, I'd end up running over a rock and shooting it through someones window or even worse, hitting someone so I think all the coverage would be very helpful.

Luckily though, I have a Ford Powerstroke that is paid for so that is something that I could take off of expenses! I bought the insurance through John Deere Credit when I bought my 4710, I've never really looked at it so I'm not sure what all it covers. I did get 0% interest on the tractor too!

Good Luck to you and I hope it works out for you. There is nothing better than getting paid for something that you like to do. I go to my property just about every weekend just to do things on my tractor!

-Mitch

 

[Dave___in___CT]

</font><font color="blue" class="small">( ...I'm sure there are more expenses that I'm not aware of. )</font>


Hi...


Couple come to mind...

Recover equipment cost for time used... include all equipment (truck, trailer, implements...) (life expectancy/depreciation/replacement)

Overhead costs... (billing, accounting, tax records/preparation, estimates, travel time & cost, phone bill, electric, office...)

Unpaid work...


Dave...

 

[Golfgar4]

</font><font color="blue" class="small">( Did you happen to get any quotes on the insurance and bond? What does it cover? )</font>

I'm using a "general" cost factor for the insurance figure. I've not gotten any official quotes yet. I'm waiting until I'm a little closer, say after the first of the year. It is my understanding that there are two basic types of insurance - Landscapers insurance or contractors insurance. There may be different names for these types, but this is what I've heard them called. Landscapers is the less costly, but generally speaking, is the type that could be purchased for any work that doesn't involve any excavation, such as trenching, post holes, or using a backhoe. In fact, I'm told that just about the first questions an agent will ask if you're talking about insurance for a tractor is "Does it have a backhoe?" /forums/images/graemlins/crazy.gif The contractors type is for a business that will be doing excavations and/or ground penetrating work.

So a guy could save a little on insurance costs if he sticks to just mowing and ground level or above kind of work. Again, I've not officially confirmed this. I expect (hope /forums/images/graemlins/wink.gif) that some guys will jump in and give us their experience with this.

As far as the bond, I don't believe I'd need one in Wisconsin. But I saw someone else mention it for their State, and they quoted a $200.00 fee. I don't know if that is a one time fee, or if it is an annual kind of thing.

I've been going to my State's web site and getting all of the basic information from there. In Wisconsin, I've not found any evidence that there is any kind of required certification or license to do this kind of work. You'd certainly want to check this out through your state.

</font><font color="blue" class="small">( I don't think I could get in 1040 hours a year, that's an average of 20 hours every weekend, every week of the year! )</font>

That's why I'm looking at doing it AFTER I retire! /forums/images/graemlins/smirk.gif

</font><font color="blue" class="small">( Overhead costs... (billing, accounting, tax records/preparation, estimates, travel time & cost, phone bill, electric, office...)
)</font>

Dave,

Certainly those are good points and need to be considered. Other than the tax factors, I'm not too concerned with the rest of this stuff. Since I'll be doing this part time on my own, I'll be handling everything myself out of my house. As much as I do want to be able to make some profit, it will not necessarily be the most important consideration. And that right there might just be the difference in being successful. I should be able to be reasonably selective about jobs I accept, so hopefully, I can avoid the ones that will cost me money versus taking on the ones that will make me money. /forums/images/graemlins/wink.gif

I certainly wouldn't want to be trying this to make a fulltime living by it. /forums/images/graemlins/crazy.gif

 

[mitchdb]

I would love to be able to do this full time. I love anything with a motor, I've been working with tractors and dozers on and off most of my life but never for money. Maybe my attitude would change if I HAD to do it!

I'll definetly check into the Texas rules and regulations for this type of work. I'd hate to get fined or sued! That would sure take the fun out of it!

Thanks again,
Mitch

 

[mitchdb]

Just on paper, I figured I could do 2-1/2 acres an hour. That's figuring 4 mph with a 5' cut (allowing a little overlap with my 6' cutter). I realize this could change drastically with terrain changes but it's a start.

-Mitch

 

[Golfgar4]

</font><font color="blue" class="small">( Just on paper, I figured I could do 2-1/2 acres an hour. )</font>

That sounds about right. There have been some good discussions in past threads about mowing times. Maybe you could do a search and find some. I haven't tried yet.

Another factor that I think needs to be considered is whether you're going to "walk" the area first to look for hidden surprises, especially the first time. Have you thought how you might do that? I've always thought that I'd just slowly drive the area with the tractor and the FEL kept low without mowing first. That should find any big hidden surprises. Of course, you're also increasing your operating costs. But what are you going to do? Walk the whole field? Not very effecient use of your time. /forums/images/graemlins/crazy.gif

 

[Gatorboy]

<font color="blue"> Another factor that I think needs to be considered is whether you're going to "walk" the area first to look for hidden surprises </font>

I think the first time I would tell the owner that I would be cutting it very high, that way you minimize hitting things and can get a feel for the time it will take to cut it regularly.

For large acreages, I think it would be wise to make an agreement to "wing it" (1-time fee) for the first cut, but then after your done, you give the owner a firm quote for doing it in the future.