Mowing Things I Learned my First Day of Contract Mowing

[Ledgemere Farm]

1. Make sure you take the gas cap out of the cupholder and put it back on the tank after refueling.

2. Make sure you take your cell phone out of your pocket and put it in the cab of your truck before you hit it with the mower.

3. Make sure you call your wife and tell her you won't be home for supper.

 

[RonR]

I did my first contract dirt moving a couple weeks ago.

I learned really THINK through how long it will take. I worked for less than minimum wage...........barely covered my costs..... /forums/images/graemlins/frown.gif

But it was fun..........

My future estimates will be more accurate. Think they call that "LURNIN'"

Ron

 

[KiotiJohn]

</font><font color="blue" class="small">( My future estimates will be more accurate. Think they call that "LURNIN'"Ron )</font>
I've found it best to just quote an hourly price with an "estimate" of how long it will take, but not a promise. John

 

[Cliff_Johns]

[quoteI've found it best to just quote an hourly price with an "estimate" of how long it will take, but not a promise. John )</font>

So do you usually charge them for a bit less time than you actually take so they feel like you gave them a deal? It would seem that otherwise, everytime you stoped to get a drink of water, they would be looking out the window and saying "that drink just cost me two bucks."

Cliff

 

[RonR]

Cliff, that's one reason I planned to give a $ estimate. I want to stay safe, and for me that means stopping and getting a drink, get off the tractor, and stay alert. The last thing I want to do is get hurt or "nick" someone's house with a FEL.

I've found people ask "what do you charge?" when they call, so I tell them about $50 an hour, but I'll estimate it and give them a fixed cost when I come look at the job.

If the job takes a lot less than what I expected, I'd discount it. I think it all will work out in the end.

On this recent job I underbid, on the statement I listed "move and level dirt in yard - $80; harrowing/seed bed prep - $0". I did that to keep the person from telling her buddies "I got this all done for $80."

When I hire someone, I want to know the total cost and not have to worry the break times or time spent walking back to the truck, etc.

Ron

 

[JDgreen227]

John has a good method....I do part time contract work and I work for a flat rate of $25 an hour. When asked to give an estimate for projects I base it on that fee and because I don't take breaks or goof around on the worksite my clients are very happy to pay me that rate. There have been several jobs where I exceeded the estimated time but because of my working habits there is never any problem being paid for the extra hours I need to put in.

If you do good work and don't mess around there should be no reason to charge a client for less time than you actually put in on a job.

 

[dlabrie]

I charge by the Hobbs,clock hour and because the clock doesn't run full tilt unless you are at PTO speed, the customer gets a bill for less time than I was there. They always are very happy about that.

 

[SPIKER]

This is something I had/have been thinking about for the future. some of the concerns I have are as follows and I would like oppinions on these from you al;l experianced folk too.

1. time it takes to transport tractor/ equipment form Home to jobsite, (charge flat rate for time or mileage? or not at all?)

2. insurance for property damage costs of you damage something of theirs, hit a car/well head ect? Normally my farm insurance does not cover anything off my property or if I'm doing commercial work for anyone on / or off my property. ( use of tractor for growing or produce/animal husbandry is not commercial according to my insurance guy, but going to the neighbors and getting $ for mowing HIS land is commercial, but mowing his land and bailing it for MY use is not as it is for ME.) go figure? (not to mention if a blade flew off and hit someone or thing you would be liable)

4. do you charge for different rates for equipment, for a PTO vs ground engauging item? brush hog vs box blade cost more or less?

5. fuel costs on top of it or built into price of it? as brush hogging will use more fuel than box blading ect.

6. estimating time needed, if you figure 2 hrs run time, but time to hook up trailer load tractor & equipment go there unload set up and work is 3+ hrs then have to load & come home... do you estimate in all that or just on a PER hr of work?

ok anyhow just a few things I've been thinking about that others MAY or MAY NOT have thought about.

Mar M /forums/images/graemlins/confused.gif

 

[Ledgemere Farm]

I don't tell the cust it's going to be an hourly rate. I figure how many hours I am going to need to pack up, haul it, do the work and get back. That comes out to about $45/hour. I don't have any trouble selling myself at that rate. I also have insurance and mandatory workman's comp. That gets included in the price to equal $45/hour. You also need to figure in taxes. In Maine, you need to claim anything over $200. I also work for the phone Co. My hourly rate is about half that which I charge for contract work, but the Telco pays all my ins and supplies me w/a vehicle. Take that away, and figure it out. It comes to about $45/hour. Anything less than that, and you are ripping yourself off. /forums/images/graemlins/tongue.gif

 

[755inNY]

Certainly all of those things. You have to cover your expenses otherwise you will be losing money doing these jobs.

The diffucult part is understanding what your expenses are; Fuel, maintenance, depreciation (don't forget the truck and trailer used for transport), insurance, taxes, etc. and allocating them to an hourly rate.

Then you can add in what you need for your time including transport time.

What you end up charging your customers depends on whether you are depending on this work to make a living or just to help offset the cost of ownership or maybe something in between.

If you are trying to make a living, all the expenses must be considered and included and you must get a reasonable amount for your time. If you are just offsetting your cost of ownership then you may be willing to absorb some of the expenses, or portions of the expenses. You may be willing to get little for your time or not include some of your time (e.g. transport) because your labor is being used to help pay for your equipment.

There isn't an absolute answer or "one-size-fits-all" equation. I will say that, as a customer, I much prefer to get a price for the job as opposed to an hourly rate. I think that goes for most people. They can understand and evaluate a price. It is hard to evaluate an hourly rate.

Jeff