Stump Grinder Math

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Ok here's simple math
Hourly rate=customer price!

I tell all my callers that want a bid, that guys that charge by the inch or work by the stump are taking you for a ride !
I work by the hour
I'll give you honest work for honest pay and do it better than ANY one!
That tactic works well and I grind a ton of stumps
 
In my area, if I would tell the customers I charge 140$+/hr, they would call me crazy before they kick me off their lawn.

That they pay 140/hr in the end doesn't matter. If I charge by the inch, they cannot compare it with their personal hourly rate, which is for sure much less as they don't have an expensive maintance of a stumper, but they can compare me with competitors.

@066blaster, don't buy it, 18hp is way too weak and as it has a new engine the rest of the machine has lots of hours.
 
First of all, you don't tell them on the phone your rate per hour. You go out and look at the stump, and give them a price. Secondly, it isn't 140 for you per hour, half or more of that is the hourly rate of the equipment...if they bulk at that you tell them he machine new is more expensive than their car.

Sometimes I tell them up front, that they can go rent machine, and do it themselves. But they will spend all day doing what I'll take me an hour.

People pay 75 plus and hour for mechanics, plumbers, electricians etc...and don't bat and eye. Our equipment is just as expensive as theirs...and our risk is higher.

If you save up stumps, make sure they are willing to wait.



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I do the same as "climbhightree". If they don't like my price,I always suggest they might do it themselves. I quote them the current rental rate at Home Depot, and at the only rental house near here that rents grinders. I do it in a nice helpful way, not snotty. I usually get the job after that.
Jeff
 
When customers ask you for your hourly rate be very positive and matter of fact an change the subject and ask them how many stumps they have? And sell them on how many stumps you can cut and of what size per hour.
Most customer jobs are an hour or two.
If you think ALL of your customers know every detail about your business or your competitions you are giving them too much credit! Most of the time they just want to feel that they are dealing with a professional who has their needs in mind! They want to pay for and receive a quality service.
2 things to remember
'Cost is only a factor in the absence of value'
You don't need to do all the work in town, you only need to do that which pays well, and furthers your goals and longevity of your business!
 
I try to bid the job to make an hourly rate I need. By the inch would be tough way too many species of trees and soil conditions, slope Oaks in sand go fast and are easy on equipment. cottonwoods and maples take a long time because of surface roots and root crowns. grinding in rocks gets expensive quick. Quoting hourly rates wouldn't work for me either. I have a carlton 8018 and rayco RG100 both very fast machines. That said, I'd get hung up on every time if I said $250/hour. Most people would rather pay $100/ hour to hire someone with a 252vermeer vs 250/hour for an 8018 even though in the end the 250/ would be a lot cheaper.
 
Moe that's why I said when they ask the hourly rate change the subject by selling them on how much you can do in an hour and if they pressure you for a number state "it will probably be less than _____
they hear the word less than and then they hear a number that usually satisfy a them even though you've told them nothing concrete before they respond ask them for their address and tell them when you'll be there.
Being able to finish the deal is as important as making your phone ring.
Give it a try ! It works very well for everyone I've convinced to do it
 
by the hr. with a min show rate. folks are happy even with the min charge when it takes me longer to unload and load than to grind the stump. if there is a big chance that i'm going to knock some carbide off i let them know a head of time and charge per bit lost. pretty good at judging how long it's going to take me . and if i have to travel more than 20 miles i charge a one way travel fee. and if it's over the phone bid and it's not what was subscribed the price get's changed accordingly. and some times it is to the customers benefit. it's not rocket science when you know your machine and get some stumps under your belt. easy money in my book.
 
My advertizing states I will give a price over the phone. I try not to spend time looking at and bidding the easy jobs. The way I look at it, even if I leave a few bucks on the table, it will not equal what it costs me driving to the job and then getting into a long conversation. Of course larger jobs have to be looked at but, I have my machine with me. When they say when can you start? I say, "How about right now" It saves alot of driving.
I have given people the option of by the hour on large or non-typical situations. It works out sometimes, alot of times they do not want to even consider it. Sometimes I think they are unable to trust that someone they just met, is going to actually work hard AND do what they say they are going to do.
 
My advertizing states I will give a price over the phone. I try not to spend time looking at and bidding the easy jobs. The way I look at it, even if I leave a few bucks on the table, it will not equal what it costs me driving to the job and then getting into a long conversation. Of course larger jobs have to be looked at but, I have my machine with me. When they say when can you start? I say, "How about right now" It saves alot of driving.
I have given people the option of by the hour on large or non-typical situations. It works out sometimes, alot of times they do not want to even consider it. Sometimes I think they are unable to trust that someone they just met, is going to actually work hard AND do what they say they are going to do.

You are absolutely right, people down here are so used to contractors not showing up that they act surprised when they see me actually showing
up when I said I would, did a job Friday where the guy did not show up, easy 250 too.......

Bob....:givebeer:
 
My advertizing states I will give a price over the phone. I try not to spend time looking at and bidding the easy jobs. The way I look at it, even if I leave a few bucks on the table, it will not equal what it costs me driving to the job and then getting into a long conversation. Of course larger jobs have to be looked at but, I have my machine with me. When they say when can you start? I say, "How about right now" It saves alot of driving.
I have given people the option of by the hour on large or non-typical situations. It works out sometimes, alot of times they do not want to even consider it. Sometimes I think they are unable to trust that someone they just met, is going to actually work hard AND do what they say they are going to do.
Trust is an issue here. Unfortunatly there are a few yahoo's running around with stump grinders and bucket trucks that have burned people and make it harder for honest, hard working buisnesses to gain the trust of customers.
 
Speaking of stump grinders...does anyone here have any experience with PTO stump grinders? Something like the Woods model? I think its the Sc-50. I clear pastures for ranchers and keep the big wood for my firewood business and a few guys have asked me if I grind the stumps so they can get the shredder in there to mow out the little stuff. The last guy had over 1000 oaks so if I was going to even think about doing something like this I would need something heavy duty. I already have a tractor and I've seen a few YouTube videos and they seem pretty quick. Is this something worth getting or what?
 
Speaking of stump grinders...does anyone here have any experience with PTO stump grinders? Something like the Woods model? I think its the Sc-50. I clear pastures for ranchers and keep the big wood for my firewood business and a few guys have asked me if I grind the stumps so they can get the shredder in there to mow out the little stuff. The last guy had over 1000 oaks so if I was going to even think about doing something like this I would need something heavy duty. I already have a tractor and I've seen a few YouTube videos and they seem pretty quick. Is this something worth getting or what?

I had a shaver sc25 on a 44hp Kubota years ago, the first grinder I owned, I think the woods is the same thing painted
a different color, it tore up the pto but was covered by warranty after a fight with Kubota, the sc50 is the bigger one
and will need a lot of hp to operate, I don't know what your tractor hp is but u would need at least 65-75 minimum in
my opinion, the sc25 would not do the job that my bandit does but was nice to do field jobs with as it is quicker
to get around with, u might also look at the miller pto grinders and other makes b4 u make a decision....if the field
stumps are a year or two old they will go quick, fresh cut that is another story....hope this helps..

Bob.....:givebeer:
 
It's mostly standing dead when they are cut. But all post oaks, which never seem to rot away. I have three tractors 36 hp, 80 hp, and 125 hp that have a 540 pto, so I have that covered. I would go with the biggest grinder for sure. Most of my stumps are smaller than 24". Thanks for the input.
 
The problem is in our area the inch method would have you at home watching tv.
I bid a job yesterday with 28 pines on three acres, average 20". That would be a $1700 job @ $3 an inch. Never happen here. my bid - $600 . If i'm lucky, I'm in and out in 6 hours.
I know other areas will support that rate, $285 per hour... not here.
$100 a run hour will not keep you in business with any profit. I charge $2 an inch which would make this a $1120 job and would take around 3 hours. I'm in a metro area and am very competitive with competition. It takes a lot of money to keep equipment running.... just saying.
 
$100 a run hour will not keep you in business with any profit. I charge $2 an inch which would make this a $1120 job and would take around 3 hours. I'm in a metro area and am very competitive with competition. It takes a lot of money to keep equipment running.... just saying.

I guess I need to move LOL....

Bob......:givebeer:
 
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