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Hourly Pricing

Discussion in 'Bidding & Estimating' started by snowbrothers101, Aug 7, 2009.

  1. snowbrothers101

    snowbrothers101 Senior Member
    Messages: 154

    I own a loader with 14 foot box plow, a 2 ton dump truck and a bob cat. I have an opportunity to bid a location using an hourly rate. Since I own my own equipment, should my rates be different then someone who has to rent their equipment? What is a standard hourly rate for that kind of equipment for snow plowing?
  2. Ne1

    Ne1 Senior Member
    Messages: 370

    Rates are going to vary greatly depending on your location, overhead etc... You need to figure out what prices your maket will bring and then go from there.
  3. Brant'sLawnCare

    Brant'sLawnCare PlowSite.com Addict
    Messages: 1,748

    You really have to figure out what it costs you to run them. Fuel consumption, labor, depreciation and profit should all be in your figuring. Oh, and overhead too of course. Around here they go for super cheap on hourly bids. About half or 1/3 of what I've seen other guys figure on here.
  4. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    If someone is going to juice the hours the 'rate' becomes irrelevant. It seems that anyone lowballing a job has an "angle", or gets his money on the back end. Around here a loader should fetch you $120-E$140 an hour, s/s-$75-$95 an hour and a small dump truck $75 an hour. Ive heard of guys getting more, and some getting less. It all depends what your market will bear and who your client is.
  5. Brant'sLawnCare

    Brant'sLawnCare PlowSite.com Addict
    Messages: 1,748

    Yeah that's very true. But I am honest and don't do that, which means I can't bid competitively against those that do. But that's ok. I'd rather make money the honest way.
  6. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    You have to include your equipment cost. Fuel, repairs, insurance, etc. If I was bidding it, i would also have to include the rental costs on top of those things. This makes your bid cheaper.

    But if your machine is not paid for, you need to charge for fuel, repairs, insurance, & payment cost, which would put you closer to what someone would charge for a rental.

    If your machine is paid for, some will say that you should include a "replacement cost". That would be the money you charge for this machine, put it in the bank, and when it breaks you would have that money to buy a new machine. I don't agree. If the machine is paid for, you can lower your hourly rate, because your over head is lower, there by getting you more bids.

    Good Luck
  7. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    So what happens when you gets lots of bids at the "my equipment is paid for" rate and you have to buy another piece of equipment to keep up?:dizzy:
  8. digit

    digit Member
    Messages: 94

    Like others said you need to figure all you related costs and the time you will spent checking the properties when you don't get any equipment hours. I would figure the rental rate or close to it even if you own it. It should be your benefit that you own the equipment and sooner or later it will need to be replaced. If you don't charge enough now and you need to replace it then you will be the guy that has to up the price to make the payments.
  9. deicepro

    deicepro PlowSite.com Addict
    Messages: 1,124

    Like everyone else said, you need to figure out what it costs you to operate per hour.
    Don't short yourself just to put the machine to work, you will go backwards.
  10. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    The easy answer is that you bid that piece of equipment out at the "I have a payment rate". Or you pay cash for it with the profit from all the bids you had before that required you to buy a new piece of equipment.
  11. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    Thats better QP. Even though your equipment may be paid off, doesnt necessarily put you in a position to 'discount' your rates to the point you've *****d the job-theres always repairs, maintenance and replacement costs. :drinkup:
  12. Ditchdiggin

    Ditchdiggin Member
    Messages: 31

    Just curious... QP, were you the guy that had a contract with a municipality for your "heavy equipment" if needed at like $11 per hour? If so there must be no payment, no operator, no fuel and no overhead.