TLB Service = Money Maker or Headache?

[sunstardude]

Thinking of getting an L45 or L47 and hiring out my tractor services, ie. digging, trenching, mowing, tilling, grading, clearing, etc. Would obtain contractors license, bond and insurance. In general, is this a money making idea, or a real headache? Ps. I'm getting a TLB anyway to develop a small RV park on my own property.

 

[RickB]

Get quotes for the insurance, bond and license. You will know a lot more than you do now, or will learn from the experts here.

Buying the machine will probably be the cheap part.

 

[Industrial Toys]

Much depends on how much competition there is in that marketplace and how much they charge. I was watching a You Tube video the other day about a young kid with a million or so in gross sales in the landscaping business. He started when he was eleven and makes his money upselling "everything".

There are constantly newcomers under cutting him and he just provides quality and stays firm in his pricing. Tough business!

 

[jeff9366]

You posted a nearly identical thread 11/05/2016 and had twelve replies.

What has changed?

In three months you have had time to do ample research in Bend, Oregon.

 

[sunstardude]

Sorry, Jeff9366.. my old thread was geared around an ag tractor. I thought this new thread was an entirely different discussion geared toward TLB, specifically the addition of a backhoe. But feel free to delete either or both of these threads. I don't want to muddy up the forum with dumb questions. :ashamed:

 

[Hersheyfarm]

You need to be upfront in advertising. The l47 and 45 are really too small for general tlb work. It takes much longer for ditch work, espeacially in hard ground or rocky ground. I use an m59 for my plumbing business and it's a bit small. The wear and tear really show on these smaller tlb's. But there is no doubt they can fill a niche.

 

[RickB]

Sorry, Jeff9366.. my old thread was geared around an ag tractor. I thought this new thread was an entirely different discussion geared toward TLB, specifically the addition of a backhoe. But feel free to delete either or both of these threads. I don't want to muddy up the forum with dumb questions. :ashamed:

Just went back and read that old thread. With few exceptions, all responses then apply now.
If you havent looked into your fixed costs from local providers and regulatory agencies, you are wasting bandwidth here. Adding the option of working below grade (backhoe) will increase your insurance costs significantly. I honestly don't know what kind of answers you are fishing for, you have a bunch of straightforward thoughtful responses that apparently aren't what you want to hear.

 

[Code54]

The market in your area is really the wild card. Seems a lot of people around us think $50 an hr for TLB work is really high. Once you figure the cost of the machine, insurance, maintenance, transportation, fuel, your labor, etc there is no money in it at that price. Bid by the job and shoot for the jobs that are too small for a big company and too much for a homeowner to do himself easily.

 

[300UGUY]

You will also need a pretty big truck and trailer to move it. Most guys also have a dump truck, so you can move matieral around.

 

[tractchores]

I used to have a neighbor who did this. He was able to make a living at it. The key for him is he developed relationships with a bunch of local contractors who would sub work to him. That way he didn't need nearly as much overhead and he could just show up and do the work. Given the smaller size of the machine he specialized in working in tight spaces where a bigger machine isn't practical. I don't know your area, but I think that may be a good angle to take a look at. I want to say he was getting $200 - $250 an hour, which paid him, his insurance, fuel, maintenance etc. That obviously varies hugely with your specific location.

 

[Hersheyfarm]

I used to have a neighbor who did this. He was able to make a living at it. The key for him is he developed relationships with a bunch of local contractors who would sub work to him. That way he didn't need nearly as much overhead and he could just show up and do the work. Given the smaller size of the machine he specialized in working in tight spaces where a bigger machine isn't practical. I don't know your area, but I think that may be a good angle to take a look at. I want to say he was getting $200 - $250 an hour, which paid him, his insurance, fuel, maintenance etc. That obviously varies hugely with your specific location.

200? For a mini? I need those kind of customers.

 

[TSO]

The market in your area is really the wild card. Seems a lot of people around us think $50 an hr for TLB work is really high. Once you figure the cost of the machine, insurance, maintenance, transportation, fuel, your labor, etc there is no money in it at that price. Bid by the job and shoot for the jobs that are too small for a big company and too much for a homeowner to do himself easily.

$50/hr is absurdly low for TLB work. Even for a small TLB, I'd expect closer to $150/hr.

However, to the OP, make sure you actually know what you're doing with the machine before you try taking people's money by using it. I would be irritated and frightened if i hired a contractor who barely has an hour of experience using the machine.

 

[check]

$50/hr is absurdly low for TLB work. Even for a small TLB, I'd expect closer to $150/hr. However, to the OP, make sure you actually know what you're doing with the machine before you try taking people's money by using it. I would be irritated and frightened if i hired a contractor who barely has an hour of experience using the machine.

I'll Work for that! Where do I sign? (I'll even bring my own lunch.)

 

[TSO]

I'll Work for that! Where do I sign? (I'll even bring my own lunch.)

It's easy. Start a business, register it with your local and federal governing authority, get appropriate liability and equipment insurance, acquire a business bank account, determine and develop a legitimate and reliable payment intake system, learn how to handle billing and record processing for your business for proper reporting and tax considerations, purchase and build a good, working website, purchase a truck and trailer combination capable of reliably transporting your equipment, make sure your equipment is in good working condition and is capable of the work you hope to do, then learn how to use it in a skilled and proficient manner, learn how to perform most, if not all, of your repairs and maintenance on said equipment (paying for repairs will hinder your ability to earn), learn how to properly bid jobs, develop relationships with local suppliers for material you may need for said jobs, and then begin advertising for said jobs. Build relationships with area contractors and sub yourself out to them... Do good work and establish a solid reputation. Etc etc etc etc

That's how you can sign up to make good money hiring yourself out for machine work. It's simple.

 

[Code54]

$50/hr is absurdly low for TLB work. Even for a small TLB, I'd expect closer to $150/hr.

However, to the OP, make sure you actually know what you're doing with the machine before you try taking people's money by using it. I would be irritated and frightened if i hired a contractor who barely has an hour of experience using the machine.

Don't disagree at all - seems you get a lot of guys with an old beater machine, no insurance, and no work ethic that will take the $50 buck and run so it really hurts the market.

 

[TSO]

Don't disagree at all - seems you get a lot of guys with an old beater machine, no insurance, and no work ethic that will take the $50 buck and run so it really hurts the market.

I agree, it happens here too... Those guys will fizzle out eventually. I've been hired numerous times to fix jobs that "those guys" have performed inadequately. Whenever someone balks at my pricing and says "but what about this guy over here advertising for (some absurdly low amount)..." I tell them to go ahead and hire them, that I'll have no hard feelings, and I'll be here to assist in fixing or completing their job if needed.

 

[Industrial Toys]

Don't forget the costs of jobs you never get paid for!

I have mentioned it before, but if you like equipment, being in a small business allows you to right off equipment and expenses. This can make it worthwhile.

The reality is, that guys that make money in small scale landscaping and earth movers are more your sales types. I knew one guy who didn't own as much as a shovel, rented equipment, hired operators and did very lucrative pond projects for wealthy women! I worked as a "pump man" on such a project.

 

[Code54]

Yep - most are sort of fly by night types. A fellow down the road had a "cheap contractor" expand and repair his gravel driveway. It looked terrible when it was done and I told my wife that will never last. Now a days most of it is on the county road after a rain, is rutted, and generally a big muddy mess. Just because you have a skid steer sure does not mean you are an expert at installing driveways.... This fellow missed the entire concept of drainage.....

 

[mike69440]

Don't forget the costs of jobs you never get paid for!

I have mentioned it before, but if you like equipment, being in a small business allows you to right off equipment and expenses. This can make it worthwhile.

The reality is, that guys that make money in small scale landscaping and earth movers are more your sales types. I knew one guy who didn't own as much as a shovel, rented equipment, hired operators and did very lucrative pond projects for wealthy women! I worked as a "pump man" on such a project.

Yeah , that's the gig. You have to live near a weathy community and offer unique services and artistic landscaping. I had an idea to to eco swiming pools / Pond patios that used water plants as fitration. Stuff like that.

Or if you can get in with being Johny on the stop with large conteractors.

Otherwise insurance, transportation, and the weather will make it a real headache.