Billing Rate Question

[skinnyd]

I just completed my first year owning a tree company and want to check to see what an industry standard for billing is. I try to estimate around $120-$150 per hour for normal tree trimming and removal. My bids are given per job, not hourly and I only use this to formulate a price.

To give you an idea of my company, I have an asphlund bucket truck, a chipper truck, and 2 chippers. I will usually have myself and 2 employees working at $13 per hour. All company operations are on the up and up. Taxes and workers comp are paid. Last year's Net Income was $115,000.

I'd like to get an idea how other people bid jobs.

Thanks for your replies to my first post on this forum.View attachment 169725

 

[PinnaclePete]

Looks like you're about half what you need to be with that equipment and overhead. Good luck.

 

[imagineero]

Looks like you're about half what you need to be with that equipment and overhead. Good luck.

+1

I'd be looking at minimum $1500/day for that sort of gear. We're charging out $2k~$2500/day for a 5 man crew with a 10" chipper and truck, 2 climbers. No bucket truck, but we do have a medium sized stump grinder. Can do 5 or 6 good sized trees in a day as long as they are on the same site with climbing, chipping and grinding.

 

[ozzy42]

Looks like you're about half what you need to be with that equipment and overhead. Good luck.

+1

I'd be looking at minimum $1500/day for that sort of gear. We're charging out $2k~$2500/day for a 5 man crew with a 10" chipper and truck, 2 climbers. No bucket truck, but we do have a medium sized stump grinder. Can do 5 or 6 good sized trees in a day as long as they are on the same site with climbing, chipping and grinding.

+1
+1

I do better than that most of the time with my little dinky operation,TK,TRL,Climbing/rigging gear,and a 252 and one helper.

OP is either not paying himself ,,,or not paying the truck.That kind of $$ ain't enough for both.

 

[alpineman]

I would agree with the other posts. With your equipment, I would want a lot more money for that equipment. Question, why do you have that much equipment at this time and point in your business. If you just have two other guys, then you have an entire setup just sitting at home every day??!! You should sell one of your setups or at least one of your chippers and buy a stump grinder or something else that can start making you some more money. Just my two cents worth!

 

[Bigus Termitius]

Congrats on the biz and welcome to the site.

Not enough information to be sure. I think you're maybe a bit low sometimes, but you seemed to have had a good year....must be doing something right. Every area can be a bit different. Even so, I'm figuring that, with two other guys, you're not using everything at once, right? Second chipper is a spare? Only using one truck at a time mostly?

For Example:

I have a Ford Super Duty that is taking the place of my old Chevy one ton this year, but I'll keep the old truck as a backup, or a spider lift pulling wood hauler. I'll probably still have it when I get my bucket. I'm also in the market for a second chipper in order to have one for a backup. If your equipment is paid for, it's not really hurting anything for it to wait in the wing sometimes. I'd rather be able to breakdown and swap equipment and make chips while the sun shines, than be down on a nice day, only to fix it in time for the rain to shut me out. I would love to have a grinder and whatnot, but I can’t afford to give up this advantage. I don't have alot of stump grinding anyway, I’d rather have a loader first.

I'm also looking at having some more part-time help this year, including a climber. If I have to split forces for any reason, I have the flexibility to do so. It gives me a little room to grow too.

The only extra costs for me are plates and insurance, but the pros still far outweigh the cons in this scenario. And I suppose, overall, that whether the equipment is in use or not, each job is billed to cover what is required to accomplish the task and each piece of equipment will give and take accordingly.

The only time that I would go a great deal higher than my average would be when employing more specialized equipment and techniques. I have a local hackmaster low balling me with an old crane, and I laughed when I found out. I'm sure it's quite a bit faster, but, me personally, my rates would be somewhat higher per hour for that. And thus, if he did raise them, he still might be able to beat my removal time and price, but not by as much as he is now. It will catch him eventually.

I win some, and lose some with my basic rates. As a result, oddly enough, I usually get those I want to work for, and can't get the ones I don't want to work for.

BTW, there are some great threads on bidding that you might search on this site if this thread doesn't take off.

 

[JNGWC&Tree]

I think w/ your equipment you are probably not making much for your time effort and struggle. Debt free or not on the gear makes a big difference. Not owing on equipment has kept me fed this winter. And glad to hear you pay all your taxes, wish more of my competition did, as it's like working against a handicap. Never compromise integrity!

 

[ducaticorse]

I would agree with the other posts. With your equipment, I would want a lot more money for that equipment. Question, why do you have that much equipment at this time and point in your business. If you just have two other guys, then you have an entire setup just sitting at home every day??!! You should sell one of your setups or at least one of your chippers and buy a stump grinder or something else that can start making you some more money. Just my two cents worth!

I don't think it's too much equipment to be just starting out. Perhaps sell a chipper, but I agree with what he's got otherwise, as long as he didn't get assraped on the original costs/paid cash, or has no problem with payments.