Just wondering what kind of hourly rates there are around. We were at $85 an hour for the #12 for our township work. Just got outbid with a rate of $56.50/hr for a 1995 770 JD, with no fuel surcharge! Just cant get that math to work out with my pencil. Has to be able to run at a loss?
There's always somebody out there that doesn't know his costs, and thinks he's gonna get rich undercutting everybody. He'll run till he's out of money; then another idiot will get his machine, and start it over again. I'll leave my grader in the yard before I run for less than $85, maybe $80 for a good customer w/ a lot of work to do.
I figure $125 for our 12G non prevailing add $35 for prevailing, the guy is stupid @ $ 56
Got some more info. Found out is a big farmer. Figure he is doing it for a tax write off.
A tax write-off is of no value if direct operating expenses exceed the revenue, so I don't think that is the reason. He just misfigured, and substantially at that. Fuel alone will be $30 to $38 per hour, add another $11.53 per hour for a $10 operator with FICA and no other benefits, add some for oil, grease, cutting edges and other consumables, and mobilization costs to get each day started. There is nothing left for even a minor breakdown, and he hasn't even touched depreciation on the machine or cost of capital, or profit. Just sit tight, you will get this job back next year if not before.
Plus a few thousand a year for insurance. I try to get 80 an hour for my old 120. I know alot of the township work was going for 75-85 an hour and the guys were running Cat 140Gs