Mulching SLOOOWWW anyone?

[Landwise]

The mulching business around here seems to have dried up. The big boys and their big toys around here have started working for $300 and $400 per acre, which is KILLING me. Are the rest of you staying pretty busy or what?

I can't afford to work for that, so I can't compete with them. It used to be that the guys with the Prentices and Hydroaxes and such were getting $750 to $1200 per acre, and they were so busy that they wouldn't move on anything smaller than 50 acres, unless they just happened to be in the area.

I was just cutting on a 30 acre peice. We were only going to cut about 7 acres out in the middle, then let the customer do his walking around. We were contracted to do 7 at $500 per. We finished the 7, and he called me and said he wanted to do the rest, but a company with a Fecon FTX440 would do it for $350 per and have it done in 1 to 2 days....

How do you compete with that? If it wasn't for my 080 excavator and my small dump truck, i would be in a lot of trouble right now...

 

[Eagleview]

As i have mentioned before , people are in trouble and are concentrating on paying off their credit cards , the house and keeping the kids fed and clothed . A bit of scrub down the back of their paddock will just have too wait . With the price of fuel , food , interest rates and inflation people are simply spent . They have been trying to make ends meet using credit cards to pay overdue house loans and fuel etc . When one is maxed out they simply fill in the form that is sitting in their mailbox and get another . They now not only owe big time on the house but also big time on the cards . I think we are all going to be in deep doodoo soon and i now regret spending money on my excavator as it's not even a good looking garden ornament .

 

[yellowdogsvc]

Things have slowed down and there will always be those who undercut and work for free. They can't last long at that rate. If they break something on a $350 acre, they will have an expensive day.
I haven't cut my rates and get about 1 or 2 in 10 bids but my quality has stayed up AND I will offer just a wee bit more for my customers. I would seek those who want quality over quantity. How nice can a $350 Acre look? I guess if you want the "bomb went off" look but if I was hiring someone I would want quality..but that's just me.

 

[Renze]

I guess if you want the "bomb went off" look but if I was hiring someone I would want quality..but that's just me.

I have a friend in Finland who is contracting round bale wrapped silage. He turned up his prices, lost one old nagging customer who said he was too expensive, but gained 2 other large customers, because they saw and heard about the quality of the work he delivered.

 

[atgreene]

Everything today has to be sold on quality. Anybody can make a widget, your widget needs to walk talk and cry on command.

I hesitated in buying a large excavator, as I saw so many guys running around doing foundations and septics that they were stepping all over themselves. I stayed mini and concentrated on the niche market, erosion control, steep driveways, difficult septics, and thus far it seems to be working. I do the jobs no one else wants and have a huge customer list that calls me for everything from 1 yard of loam to complete erosion jobs in sensative areas.

The problem your having is the big guys have slowed down and are grabing your bread and butter. Until it gets real bad and a few drop out, you need to concentrate on a niche in the market and make yourself the "go-to-guy" for that niche.

 

[LoneCowboy]

Look, I don't know mulching, but I know business.
and larger equipment is simply a LOT more efficient and they can price you out of anything that simply isn't too small for them to get into.

It costs so much to do one acre (transport, drive out there, unload, etc, etc, etc)
But it doesn't cost that much more to do 2 acres.
And 10 acres, well, you can stay there for a day or two, lot better and the price per acre is less.

what if my machine, which costs 10/20% more but I can go twice as fast and we are bidding on a 1/2/3 day job?

I can undercut you by 40% and still make more money than you.

Something to think about.

and yes, business is all slow and payments seem to be getting mighty slow too.

 

[kmdigital]

Weren't there a number of posts a year ago about people contemplating taking out BIG loans and getting into this business? I remember trying to disuade one of them from taking on a lot of debt to start a new business, in which he didn't even have any customers yet, and if I recall he was convinced that it was the best thing to do. And a number of other people told him the same thing. I don't recall if went and bought one, but I suspect he probably did. And is now probably wishing like heck he wouldn't have.

 

[Robert_in_NY]

Weren't there a number of posts a year ago about people contemplating taking out BIG loans and getting into this business? I remember trying to disuade one of them from taking on a lot of debt to start a new business, in which he didn't even have any customers yet, and if I recall he was convinced that it was the best thing to do. And a number of other people told him the same thing. I don't recall if went and bought one, but I suspect he probably did. And is now probably wishing like heck he wouldn't have.

Some times people will do what they want to do regardless to if it makes sense to others. I was told I was stupid to want to get into farming but I did anyways because I love it. If I didn't jump in when I did I would still be going thru the motions working construction. I enjoy construction work but not as an everyday job where as I love farming every day. I still can't live on just the farm alone (well, I could but not the lifestyle I want to provide for my daughter). I know there are a lot of other people like me who could make a lot more money doing something they don't like but what fun is that. Just don't burn any bridges and if things get tough you can always fall back on your previous job (or similar) to get thru hard times. But I will always encourage others to do what they enjoy as long as they can do so without hurting their family in the process.

As for the mulching business, things are slow in just about every business right now. The hay market has taken a hit also as the high hay and feed prices have made a lot of the small horse farms sell off their horses. I lost a lot of my smaller customers and have to rely on my bigger customers now as well as look at other markets (custom work)

 

[QwikDraw]

Weren't there a number of posts a year ago about people contemplating taking out BIG loans and getting into this business? I remember trying to disuade one of them from taking on a lot of debt to start a new business, in which he didn't even have any customers yet, and if I recall he was convinced that it was the best thing to do. And a number of other people told him the same thing. I don't recall if went and bought one, but I suspect he probably did. And is now probably wishing like heck he wouldn't have.

Does that make you feel better KMloser saying "I told you so" ??
If I was that guy and you were standing in front of me I'd knock your front teeth out! but of course you are hidding behing your computer throwing stones...
People take chances, it's better than standing by and saying I should have.

I've got about 2 weeks ahead of me and a 6 week job signed. In July I had 3 weeks of down time, just a few small jobs. I'm doing some ROW mowing that I will need to add a tractor and 15' batwing to the fleet, looking now.

Hang in there Landwise...jobs seem to come by when you least expect them.

 

[Robert_in_NY]

If I was that guy and you were standing in front of me I'd knock your front teeth out!

So tell me how you really feel