pricing in the Northwest

[mulchoregon]

Hey there again everyone,
I am putting the final touches on the financial part of my business plan and just wanted to get some feed back before it is set in stone. Some of my competitors in the nearer area charge anywhere from $125-$150. There are only a few machines around and they are almost souly skidsteer driven. I plan on purchasing a Fecon FTX140. I have a lot of friends in the forestry business and electical and gas as well. Would I be off base to be charging $200 an hour due to machine cost and higher production rate? In my figures that would be the number to have some cushion. Thanks for the thoughts.

-MulchOregon

 

[LoneCowboy]

My suggestion is that you not charge by the hour, but by the job.
People don't understand
all they hear is $120/hour vs $200/hour
They don't hear more than twice as fast.

Plus, i've found people like a set price. It will cost this much. They don't feel l ike they have to watch you to make sure you are really working for them. (hey, at $2 or $3 a minute, you aren't even getting off that thing to use the bathroom) But a set price, it makes them happy.

figure out how fast you can do an acre (or a 1000 square feet) and then just multiply that out.

 

[mulchoregon]

Thanks Lonecowboy I appreciate the advice. I never put that into full perspective before.

 

[mulchoregon]

Does anyone on this forum have any experience with the FTX140 I would realisticly like to know how much land this machine can cover in an hour. There is only one ftx140 in Oregon and it is for private ranch use. Any info on coverage per hour and professional pros and cons would be greatly appreciated.

-Mulch

 

[DirtyWorks]

Once again Cowboy is dead on! Definately come out better with customer and your bottom line. When I price by the job, I make @25% more money and customer is happy. Only trouble with that is that every job is diferent. You will have to site visit every job = time spent not mulching. By the hour is good sometimes also cause some customers want just knocked down and some want fine final product. Good thing bout by the job is you say when enough is enough. some customers can be tough. just don't over sell youself at first and everybody wins. Hope this dosent confuse you

 

[Robbie Hegwood]

Hey Mulch. The post above a dead on. It's harder to bid by the job but better money that way. Hourly rate is the safest route, customer wants more add hours. It will come with time, I'm still learning whole job bidding.

You have to charge atleast 200.00 per hour for a tractor of that size. Hauling cost, hourly operating cost, upkeep will eat you alive any cheaper.

I demoed a rayco 130, same thing, and its a strong tractor. A little different approach than a skid w/head. It will tear the ground up so keep that in mind. Also the weight is a factor when hauling. @15k+ a ton and trailer will not do.
But it will definitly clear some brush and woods. But for the price it is alot of tractor and will survive the mulching environment well.

Robbie

 

[mulchoregon]

Wow! Thanks for the input guys. That has helped a ton. I just solidified a contract with a Department of Forestry guy and possibly two forestry brokers. They all wanted to know approx the hourly cost, but really what the bottom number was. I can see this might take a little practice. Hey Robbie, I know you have ran the rayco 130, how much can you approx. take down an hour in vegetation. Or can anyone lend any more input on the use of the ftx 140 or rayco machine.

Thanks again all,

MulchOregon

 

[Haoleguy]

I had a land clearing guy with a Fecon head mulch down some brush for me last year that I cleared from 6 acres. He charged $100/hr hour because he could not estimate the time versus volume. When he is asked to clear land himself he charges $4200/acre and that include taking down trees.

 

[mulchoregon]

Thanks Haoleguy,
Does anyone else besides Robbie have any more personal experience with the FECON FTX 140? I have done the home work and have demoed the unit but would like to here some from another professional and not a salesman. Thanks as always

-Mulchoregon

 

[jmfox]

What is the list price for the FTX140?

jmf

 

[mulchoregon]

The dealer quoted me $160,00 with winch and extra set of teeth.

 

[cbturf]

I just found your thread Oregon. I gave $151,800 for my FTX-140 with no winch and no extra teeth. This dude has some power and you will most likely break teeth before you wear them out so I keep a dozen or so in the truck at all times. I get $200/hour here in Middle Tennessee if I go hourly. I usually charge by tha acre though. The 140 will outperform the RC100 more than 2 to 1.

 

[Kendall69]

I lay it all on the table for the customer - I’m not trying to hide anything.

I say it’s so much an hour, I can do this amount in an hour give or take, and I come up with that figure, by my labor at so much an hour plus machine cost per hour.

I find customers appreciate laying it all out so they understand. We here know about machine cost etc. But the customer doesn’t know the equipment cost 60k, and someone has to make payments on that.

Quoting a flat charge customers just don’t get it - why does it cost soo much.

If you quote by the hour, lets say $200.00 per hour the customer figures “wow, you get $200.00 per hour” - they don’t realize the machine is priced in that.

Sorry to say, buy I have to lay it out like I’m talking to a two year old, but they “get it” that way, and buy because of it.

It makes more sense to them when you explain the cost of fuel, machine rental/payment, insurance maintenance etc. Is included in the “machine” price, you can see the light bulb go on.

In the conversation I get to explain smaller machine cost less, but takes more time, bigger machine cost more, but takes less time etc. Then you can explain whichever way you go it’s still going to cost you x amount.

 

[jmfox]

If it is $200 per hour for a driver and machine worth $60k, what price would you expect the guys with an RTX, valued at 3 times that, should get?

On the average, how long does it usually take you to clear an acre?

jmf

 

[cbturf]

Let me explain myself a little better. I do not charge by the hour for standing material, I bill by the acre for that stuff. If I am grinding a slash pile I go hourly because you never know what you will find or exactly what is in the pile. What if you give a flat fee for a pile that looks like a bunch of 2 in cedar and when you get in you find 12 in oak. Someone asked how long does an acre take...who knows...I have done 10 acres in the past week and each one was different. I have done an acre in as little as one hour when I had blackberries and 1 inch locust, but last week one acre took all day when I was grinding 10 inch hardwood in a "rock garden" broke six teeth in one day. I am assuming that most of you guys are self employed or soon to be when you get your machines so you have either learned already or soon will learn that every situation is unique. If I give any advice at all it would be to be prepared to both eat your hat on a loss and feel guilty for over bidding a job. I did that just two weeks ago, bid $2500 for some grinding that took me two hours. I need the money but I need the sleep worse and gave them a pretty steep discount. The ploy worked because of my honesty I will be working for the guy in the future.

 

[jmfox]

I need the money but I need the sleep worse and gave them a pretty steep discount. The ploy worked because of my honesty I will be working for the guy in the future.

An honest days work has many rewards. That's my experience.

jmf

 

[DirtyWorks]

I bill by the acre for that stuff.

What do yall get per acre, average?and yes I know that they are all different, but that is one of the FAQ that we get everyday!