One of my closest friends has all kinds of nice equipment and makes a good living for himself. Unless it's for a good friend or family member he won't take his machines / trucks out for less than $800 per day. That's only for his 555 NH backhoe, 550 JD track loader, LS180 skid steer w/ w/o harley rake, or 55B? Volvo. Truck doesn't see much action for that price either. Lowest he'll go on his 160 Volvo is $1,200 per day... and it had better be SEVERAL days of work to see that price. Anywho, this thread isn't about that particular friend. This thread is about another person which is food for thought. This is an American guy, early 30's. He has a 410? Kubota FEL, a brand new 9,500 lb Kubota excavator w/ thumb, and a little 23 hp Kubota tractor. Also has an 82? Ford F700 dump truck... old highway truck w/ man cab and 9' dump body. This guy will bring out any piece of equipment for $300 per day without any troubles... regardless of travel time. For example, $300 might get you one day (a day is anywhere from 8 -10 hrs on site) the mini-x, dump truck, and him (operator). Another day for the same price you might get the FEL, dump truck, and him. If material needs to be trucked off site... it's the same price... unless he has to pay to get rid of it. Thoughts?
I am with the first guy. $1000 a day is what I like. I use to work for $600 a day and had all the work I could handle. Now I find no matter what I charge I have more work then I can handle. My best day ever was 10 hours for a litlte under $6500. The guy that is charging $300 will learn that all he is doing is working for someone else and using up his investment. That $300 a day is a good wage for running someone elses equipment here.
What's a slice of apple pie and a glass of milk cost in Alaska these days?
The guy working for $300 per day must have never really figured out the cost of doing buisiness, and therefore will probably be out of buisiness before long if he dont change his ways. In the meantime, he will hurt the reputable contractors who are charging a fair price. I hope he realizes this in time. If he knows the rates that others charge, why would he be so much cheaper? A few dollars less is one thing, but working for 30% of what the competition is working for is financial suicide.
The complete pie is about $15.00 and a glas of milk 10 oz at a restrant is $1.50 cheep gas is $3.15/gal and diesel is $3.09. Round trip airfare from Juneau to Seattle is someware around $800 and a fery ticket with a car out of bellingham, WA, last time I checked was $1300 plus a ticket for the driver. I just shiped a Mobil M9 street sweeper from Seattle by barge and it cost me $2000. to ship it back would cost $2700. Everything has to be shiped in by air or barge. We are not served by any roads so to git here you have to eather come by boat, fly or birth cannal. avarge rent for 3 bedroom house is someware around $1300 and that is if you can get it. Finding a place to live is the hardest thing to do. Finding work is the easest. Been self employed I like 1 or 2 day jobs. That is ware I make the most money and I do not get board on them. Which meens I have to find a new job almost every day and I have not been out of work for over 30 years. This town will work you around the clock if you let it. I will be working all night tonight and have a ful days work for tomarrow. For every job I finish there are 5 more waiting to take there place. The weather here has a lot to do with the lack of people wanting to work as we get over 270 days of rain a year. Sorry about hyjacking the thread. Dwan
The bad thing about telling him he needs to charge more is the goverment can come after you for fixing prices. I have seen it happen here with snowplowers.
Some areas like my own you'd never see say a backhoe move for over $500 a day,the population here just won't pay it. If I charged $800/day for equipment I'd be bankrupt pretty fast.
I understand that in different areas, the rates will vary by a lot. My comment was based on the assumption that these two operators were relatively close to each other. If this is the case, then I satand by what I said, as it is evident by the 1st example that people will pay the higher rates. Competition is good, and it creates fair rates and better service, but to work for 30% of what the competition is charging is just not good buisiness.
I'm with Dwan on pricing. I work my 8000lb excavator all day every day for $1000 per day +- depending on work (10 hour day). If I'm on a job for a while then I can cut a small break, but with fuel at $3/gallon, insurance just jumped again, repair parts are through the roof, I need to make a living and not be working for free. on edit, I should note, you have to have down days for maintenance, trips for parts, shopwork etc... You have to make money while your working to pay for the downtime. In my small town, one guy I know has a slightly smaller machine (my old one that I sold him) and he will work for less than 1/2 what I work for. But the folks who are hiring me tend to want quality work, done right, by a certified contractor. I was told last week my price of 7k for a septic at a local camp that I have done work for for years was too high. I explained to him I can't do it cheaper and handed him a copy of the plans and suggested he shop around, reminding him that I will not correct someone elses screw-ups if it fails next year. Yesterday I met with a new customer who wants to hire my machine for 3-4 weeks to restore an old "cottage" back to what it once was in the late 1800's (pics to follow). He had no quams about hiring me by the hour, plus materials. He wants someone he can work with and will be flexible. I know there are other contractors in the area who would love to do it, but I doubt that all but one or two could do what he wants done. Find a niche, capitilize on it, the business will come. My father always said, "if no one complains you're price is too high, you're too cheap."
$1000 for a 10 hour day is not that unreasonable in my opinion. I was asked to price a new home excavation 30x40 fairly basic,I'd rent a 20 ton machine and throw out $1000/day and bid it $3000.Guy calls back and said no thank you I've hired another guy who's excavator is $80/hr I said no worries and ended the phone call.On Friday I drove by his home and noticed a Deere 200 sitting there and shook my head and laughed.
that's approx $6.75 a yard if you have a 2' overdig, and if the hole is 8' deep. here, you'll get it done for half of that on a daily basis. i'd never hire myself out by the hour unless it was repair work with a lot of unknowns. why should i rent me and my 210 hyundai out at $150 hr...."going rate here"...........when i can cycle at least 3 times a min. with a 1 yd. bucket. @ $3.25 per yard? 180 yds an hr. @ $3.25 = $585.00 per hour.
Shoot I can burn better then 150 bucks of fuel anymore working a decent size machine 10 hours a day. For 300 bucks why roll out of bed. Darn insurance, fuel parts etc are so high these days aint worth it. YOu dont have to make a killin but you got to make a profit, everyone does.
Out of guilt I gave the guy a $100 per day pay raise. He's not complaining. It now costs me $400 per day up to 10 hrs on site, and $200 per half day.