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Contracts for per push/per inch or Hourly

Discussion in 'Business Fundamentals' started by tjlands, Dec 14, 2006.

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Do you charge Per push/per inch or hourly

  1. Per push/Per inch

    17 vote(s)
    85.0%
  2. Hourly

    3 vote(s)
    15.0%
  1. tjlands

    tjlands Senior Member
    Messages: 575

    I don't start many discussions but I would like to see why people still charge by the hour for plowing. I have been wrong but I think pricing your plowing by the hour penalizes you for having State of the Art equipment and top operators. The only thing I would ever charge hourly(and I do) would be loader work. No Yelling:nono:
     
  2. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,857

    While there is a place for hourly on very large contracts, I believe, I think the biggest reason for hourly pricing is because a lot of contractors are not comfortable estimating their time for service and this way, they at the very least get their per hour price. So unless your hourly rate is off, you can't really lose money. You can't make anymore either, but at least you have a guaranteed minimum.

    You are absolutely correct on the equipment. No incentive to ever be efficient. Might as well put a bunch of guys out there with shovels.
     
  3. Superior L & L

    Superior L & L PlowSite Veteran
    from MI
    Messages: 3,039

    For sure ! nothing else to say