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How much should I expect???

Discussion in 'Bidding & Estimating' started by plowwithdodge, Sep 28, 2012.

  1. plowwithdodge

    plowwithdodge Junior Member
    Messages: 27

    Looking for a little help. I am a sub-contractor for a pretty large company in my area, (NJ) and this year I want to add some more equipment. I know rates are different from region to region so I guess I am looking for a ballpark figure.

    What hourly rate would you pay for a tractor with a 16 foot push box?
    (machine would be used on 4 commercial lots next door to each other)

    Just curious if the rate I was given is low?
  2. jmac5058

    jmac5058 Senior Member
    Messages: 431

    I think your asking this question bassackwards , whats the rate and we will tell you if it sounds reasonable. Not ball park.
  3. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

    I THINK I read from a few guys from NJ on here that an hourly rate for a loader with box is around $250 in your area... we couldnt get that up here but it seems life in good in jersey!...LOL
  4. snowman55

    snowman55 PlowSite.com Addict
    Messages: 1,071

    you need to figure out your variables. biggest reason for price difference among different regions is how many hours you can bill a machine in a year. labor/fuel should account for 40-50/hr depending on machine. For easy math lets say:

    1) a loader cost you $10,000 / yr for dep, maintenance, ins. if you bill 100 hrs you need $100/hr to cover the loader, $40-$50 / hr for labor & fuel, plus any and all over head the business has (typically 30% of gross revenue) $40/hr, plus profit margin 10-20% $20-$40/hr=$200-$230 hr.

    2) same loader cost $10,000, you bill 400 hrs, now you cover you loader cost at $25 / hr, labor fuel $40-$50 hr, overhead $20-$25 hr, profit $10-$20/ hr. lowering your hourly cost to $95-$120/hr

    This is not the whole story or real numbers but I see N.J. gets 2-28" annual average. Buffalo gets 100" I bet hourly rates in these two locations differ close to my example.

    Main reason for price difference is same region has to due to the other variables such as:
    your overhead, labor costs, and desired profit margin.

    Oh yeah and honesty. alot of low ball hourly guys make up for their low price by padding the amount of billed hours. I have seen guys bill 40 hours in a day for 1 peice of equipment.
  5. plowwithdodge

    plowwithdodge Junior Member
    Messages: 27

    Thank you for your input. In my evaluation, I have considered much of the information you have included. I am 1099 guy covered under company's liability insurance, so I deducted taxes as well as the fuel, operator for my truck that I normally run for company (I would run tractor), and extras (ie. regular insurance and other expenditures).

    I have not gotten a final number from the company, to date, as they are still figuring out their properties, but the inital offer was around $125 per hour. Which honestly, would not even be worth me starting the machine up. The properties are big retail stores that would take, with one truck on each site as per contract, 8+ hours to clear.

    As far as number of events and amount of snow, I am usually on the higher end of average because of my location. Not sure where you were going with the last comment, but personally I am very honest, legal, and commercially tagged and insured--just a little late on inspection. This is a second source of income that is why I am covered under the company's insurance.

    Any further input on the price is greatly appreciated thanks!!!
  6. SullivanSeptic

    SullivanSeptic PlowSite Veteran
    Messages: 3,422

    120 is low for that size machine /pusher. Im not in your area but i would say 150 hour. Depends on the amount of hours you will get. Also consider what the lot will take with trucks. If its 8 hours like you say, then your machine might cut that down to 4 hours. Therefore your machine is worth what two trucks get.