My tractor is used as a side business. Not to make money, just to help pay for the tractor.
My expenses include:
a rider on my homeowners policy for the tractor $300/yr
Bond coverage for $6000 $200/yr
Liability ins $300,000 $450/yr
Ins for truck and trailer $700/yr
Business Lic. $100/yr
Business loan for truck, trailer, tractor, inplement $700/month
Fuel, maint, misc expenses ??????????
Sales tax 8.2%
In Washington state all of the above are required to run a business legally. Most people do this under the table, but I am a man of integrity and do things legally.
My price is based on these expenses and local rental rates. I am about $8/hr more than the rental rate but includes fuel, insurance and an operator. And that is since I raised my rates. My cost covers expenses working about 25 hours a month.
So the bottom line is until recently and for repeat customers $40/hr until 2005. New customers $50/hr. Industrial customers (Higher likelyhood of ins use) $60/hr. I use these rates for 6' brushhog, 67"tiller, 9.5' BH, FEL work, etc. If I rent equipment the customer pays for it on top of my normal rate. Others doing similar work but usually with older/smaller equipment, no ins, no bonding, no lic, totally under the table charge between $35/hr to 65$/hr. I charge for hauling one way and have a minimum of 1.5 hour charge.
I would only charge by the hour if you do start doing alot of work, If it is only this one job agree on a price after the first time through.
Beware, even very nice people will take advantage of you if you don't give them a price you expect to be paid.
Sorry for babbling on, I have put alot of thought and effort into my pricing and like to help if I can.
