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Tractor Talk Discussion Forum

Charge for Equipment Move?

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37 chief

03-18-2005 22:40:03




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I do a lot of mowing, and most of the jobs are under five miles from home. I started a job that will a 16 hour job. It is 45 minutes each way. Would it be a bad business practice to charge for a move? I can't do it for this job, but for future long distance jobs.Stan




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Matt from CT

03-20-2005 05:14:42




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 Re: Charge for Equipment Move? in reply to 37 chief, 03-18-2005 22:40:03  
For those who say build it into the rates...

So you're saying you charge people more just because they're close to you?

After all, if you build travel expense into the rate, and you charge the same rate to all, I'd think those nearest to you who are most likely to hire you on the most regular basis...are the ones you're screwing the most.

Set seperate rates, people get pissed "That SOB only charge Joe $xx when he charged me $yy!"

I'm in the camp...one hourly rate for the work, surcharge for travel time as necessary.

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Mac

03-20-2005 09:10:04




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 Re: Charge for Equipment Move? in reply to Matt from CT, 03-20-2005 05:14:42  
I don't go with 4hr min, but I figurew in what I need to do to make it worth while. I don't feel right getting 4hrs for 2ac. Flat rate? I advertise "most jobs" XX/hr and explain why it's more if that's the case. You can get beat badly doing trashy cutting for a standard rate. I've even refused a quite a few until they clean it up. Even then I charge extra for the surprises I know they'll leave me.
(Found a nice anvil the hard way last summer.)

"That SOB only charge Joe $xx when he charged me $yy!"

Same people who'll get mad that you charge travel time. Same people who'll drive out at lunch and complain what's taking so long while your under the hog cutting that ball of barbwire out they didn't tell you about. There's no pleasing some people, and I'd rather not deal with them.

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kyhayman

03-19-2005 10:40:18




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 Re: Charge for Equipment Move? in reply to 37 chief, 03-18-2005 22:40:03  
My standard quote is XXX $ per hour, 4 hour minimum, meter starts when I leave the last job, stops when I park finished at your job. I'm a 'take it or leave it' guy. When I started having a minimum I was the first to do it in ag in this market. Lost several potential customers that year but over half of them wound up calling me mid season needing something (usually hay rolling; normally with the cheaper operator broken down or drunk in the field on Sunday afternoon with rain coming). I am far from the cheapest operator, probably 2-3rd most expensive. Irony is, all of the expensive operators are turning business away. My guiding principles on custom work, that I tell all potential clients, I will be there when I say I will (even if I have to hire a subcontractor at a loss), my equipment will work as it should (even if I have to rent or buy an item), and the operator will be sane, sober, and professional.

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VaTom

03-19-2005 16:19:52




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 Re: Charge for Equipment Move? in reply to kyhayman, 03-19-2005 10:40:18  
There you go. My billing is minimum 8 hrs, time on the ground less travel time. If the job takes less, I suggest they find something else they might want me to do. No? Fine, I'll leave. To load the trailer and travel takes me long enough that it doesn't make sense to bill less than 8 hrs.

Seems my competition is primarily rental equipment, which isn't much competition after the first go round. I don't get complaints. Trying to bill for mileage is a rat's nest, attracting complaints. Better to be up front about needing to get enough for the day, or not go.

The equipment dealers have found my billing highly amusing. What they're thinking is that a couple more bucks/hr would buy much larger machines. That's got nothing to do with anything. The deal is between the customer and me. I get happy repeat customers and I'm well-paid. That's what it's all about.

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Mydeere

03-19-2005 07:37:28




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 Re: Charge for Equipment Move? in reply to 37 chief, 03-18-2005 22:40:03  
It's not unheard of to charge for equipment moves. As a matter of fact its normal practise around here. Normally its the excavating contractors and crane operators who charge for equipment moves but the same could be applied to a field mowing business as well. It cost money to move your equipment, why should you be expected to absorb that cost just to go to work? As others have mentioned, you could do one of three things. Either charge a seperate rate for the equipment moves (the way its done here), build it into your hourly rate, or eat the cost which is essentially money out of your pocket. There is no sense going to work at a loss. You might as well stay home and shoot pool.

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john in la

03-19-2005 06:54:00




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 Re: Charge for Equipment Move? in reply to 37 chief, 03-18-2005 22:40:03  
You really need to be charging for mileage out side your set area. Every body does it. Does not matter if it is tractor work; fixing your roof or what ever. Try calling the A/C man from the next big town over and see if he will drive to your town for free. You loose some business this way because someone else lives closer but that is the way it goes.

Around here it is done this way..... ..... ...
We have a set distance we will go with no mileage charge. Lets say 10 miles. (yours may be different as to where you are to most of your work) Any thing over 10 miles we charge XX per mile. You need to give a little on this so you would just eat a few miles. Say it was 12 miles. Its better to say you charge for over 10 miles but then say I will let it go for you since it was not much over. In other words you quote over 10 miles but really only start to charge if it is over 15 miles but if it was 20 miles you charge the whole amount. Hope that makes sense.

I did a job for a guy that lives in my area one time. He liked the work and was happy with the amount. His brother then needed some work but only problem he lives a extra 30 miles away plus I would have to cross a $10 toll bridge. I quoted him a price and he wanted to know why it was more than his brother had to pay. I told him mileage and tolls. And if he did not like my price he could always get somebody more local.

Like INDY says if you are not making money you just as soon stay home and watch TV. Only difference is I like Law and Order reruns better than Andy G.

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dr.sportster

03-19-2005 06:36:02




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 Re: Charge for Equipment Move? in reply to 37 chief, 03-18-2005 22:40:03  
Forty-five minutes isnt a bad travel time.Customers dont want to hear travel time.In the case of cranes any crane you call has it so thats the standard.I would "hide" it in the original price if you can stay competive with the local guys cost.An old boss had the philosophy"if you cant get your price its better to stay home and rot" Of course the guy that said that got most of his work from a rich cousin.When asked to cut fat out of a bid he would say"theres no fat in it get somebody else" My philosophy has become "do what you gotta do to eat"Which means be careful how you bid.There is a picture of a hobo that has the caption "I was the low bidder on every job"

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redrev

03-19-2005 06:22:51




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 Re: Charge for Equipment Move? in reply to 37 chief, 03-18-2005 22:40:03  
Charge, but do it "up front"! My furnace man won't even come and look at the furnace for less than 50 bucks! I've met a few cheapskates in my day, they never change. Only an idiot doesn't know it cost to move equipment!



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Mike M

03-19-2005 05:55:25




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 Re: Charge for Equipment Move? in reply to 37 chief, 03-18-2005 22:40:03  
Like Indy said: you have to make money or you may as well stay home.Just make sure they know what you decide up front. Sometimes it still doesn't matter they will still try to chisel you down. I once worked with a fellow that was going to have an above ground pool put up. He was going to rent a skidsteer to dig out his shale bank to get it about level before they started,I think it was going to cost $300.00 for rent and thought it would take all day. I overheard him complaining about this and said I'd bring the tractor and loader down and do it for half that. I have a JD 4020 with a 158 loader and a 8 foot wide bucket and from past use I knew I could fill that large bucket fast in shale and move alot of dirt fast.Well about 2 hours later I was all done he couldn't believe I did it so fast and didn't want to pay $150.00 like we agreed on. He did pay up in full. P.S. I may have mentioned that I would be able to fill it back in faster since it was loosened up ?

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Ronnie L.

03-19-2005 05:34:06




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 Re: Charge for Equipment Move? in reply to 37 chief, 03-18-2005 22:40:03  
I charge from the time I leave for the job and quit charging as soon as job is completed. I have done so for many years and never received a complaint.



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Mac

03-19-2005 05:02:57




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 Re: Charge for Equipment Move? in reply to 37 chief, 03-18-2005 22:40:03  
Just figuer it in to your hr rate at reduced rate. Charge your time and fuel worth over your normal operating area and divide by # of hours job will take. $5/hr extra should cover it.



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thurlow

03-19-2005 04:32:28




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 Re: Charge for Equipment Move? in reply to 37 chief, 03-18-2005 22:40:03  
I agree with the other guys; don't think the idea will fly with your customers. Only ones I'm aware of (locally) who do that are the large crane guys; they get $300-500 an hour and time starts when they leave their yard.



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Nebraska Cowman

03-19-2005 03:51:33




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 Re: Charge for Equipment Move? in reply to 37 chief, 03-18-2005 22:40:03  
Yes, It is bad business to charge exra for road time. It is also bad business to charge for the extra hours you are on the road. (the customer knows how long you were there and only expects to pay for that time) Always round your hours DOWN and charge enough per hour to cover your butt. If a job is too far from home or too small, just say so.



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Indydirtfarmer

03-19-2005 03:40:07




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 Re: Charge for Equipment Move? in reply to 37 chief, 03-18-2005 22:40:03  
I do a lot of bush hogging too. I found that most of my customers don't want to pay a "penalty" because I live too far from their mowing site. With fuel, trucks, tires insurance, ect, being so expensive, I needed a way to recoup some of that cost. Here's what I did this year.

My "base rate" was $60 an hour. This summer, it's $75 an hour for the first 2 hours, then $60 for any time AFTER that. Any jobs OVER 25 miles from home are billed $1 per mile (one way) beyond that 25 miles. Since MOST of my work is with-in that 25 mile range, the increased cost of the first 2 hours covers most of my cost of moving (over what's already included in my "base rate")

I'm also telling all my customers that should fuel continue to rise in cost, expect a rate increase from me.

If I don't have the opportunity to make a buck, I'm staying home and watching Andy Griffith re-runs..... .

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paul

03-18-2005 23:39:27




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 Re: Charge for Equipment Move? in reply to 37 chief, 03-18-2005 22:40:03  
Perhaps you can incorporate the time it takes to drive one way into your 'time billed' for a job. I've heard of that done. Or some such.

--->Paul



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tire_guy

03-19-2005 14:03:44




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 Re: Charge for Equipment Move? in reply to paul, 03-18-2005 23:39:27  
When I am doing on the farm tire service I found that if I just used one price service call then that wasn't really fair to the local guys or I was giving away a lot of window time. It wasn't much a problem until a competitor quit 25 miles away and I started getting calls from his customers. I am still not happy with the system I use but I lowered my service call price and started using a mileage line at 50 cents per mile one way for everyone. It really isn't enough but it gives me something for a 30 mile drive one way. I never have had anyone complain about the mileage charge, price of tires-yes but mileage-no. I like it when I do on the road calls for trucking companies. It starts at the time I leave the shop until I return with a 2 hour minumn.

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