How To Make LOTS of Money With Your Tractor

Want to make money with your sub compact tractor? Tractor Time with Tim has some tips to help you and make the customer happy at the same time!
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[@PollardGeorge]

I've found it's best to have a written contract, stating the scope of work to be done and the price. If the customer wants work done outside the original scope, write a change order stating the additional work to be done and the customer cost. If you decide that you don't need to charge for the additional work, write a "no-cost" change order, stating the additional work to be done and that the original price stands. Get the customer's signature on the contract and any change orders. Having things in writing slows problems when it comes time to get paid for your work.

[@danielsharon524]

Always good to let the customer know in writing that they're getting something for nothing. Otherwise, it's forgotten.

[@ronniewilliz153]

The job I'm at now has had so many revisions. Lol there is like 10 years of work lol so revisions are gonna happen. But paper trail is the best old school way imo.

[@bekabeka71]

It’s very popular to do contact tractor work in Ireland and Uk. In fact it’s been like that for generations

[@Arfonfree]

Very true. These days I would add this: before going out to do the estimate, go to google maps (or map website of your choice) and print out an image of the property. Then mark the work on the map to show as accurately as possible exactly what work is going to be done. Anything to make sure you're on the same page as the customer and both parties understand which page it is.

[@dougdorrer4622]

Allways add a no liability and hold harmless provisions for anything underground that is not known by the owner or contractor.

[@aaronstestlab]

I'm a CPA who's primary experience has been with several general contractors. I can tell that without a doubt, the biggest thing they struggle with is estimating. So many variable and often low margins means it's really easy to mess up and get yourself underwater.

[@lilredcummins]

Tim, this should be required watching for contracting 101. The concepts and methods you are describing apply to almost any type of work that people are willing to pay for. I use roughly the same principals in repairing small gas equipment, E.g. lawnmowers, snow blowers, string trimmers, etc. It has worked for me for 40+ years.

[@justinwright6611]

Under promise. Over deliver.

[@Navigator777777]

100%

[@nohand322]

Good Video Tim. I had a lawyer years ago that told me that " If It wasn't wrote down , It' didn't happen ".. for a contract. From that day on. I write everything down and go over it with the customer before starting projects . It save a lot of Headaches

[@Kcolby47]

Your sound explanation makes great sense, and follows the “Golden Rule” when dealing with folks. “Under promise and over deliver” is not only a satisfying experience for the both parties, it builds trust, promotes future business, and extends positive word-of-mouth advertising. Very well done Tim. (Nice try Katriel :-) Blessings.

[@dantabler9301]

Over deliver, only way to fly, I always try to do a little extra, or at least offer to do. Leaves the customers with a good feeling and oftentimes leads to additional billable work

[@in-oq3sx]

I thought the Golden Rule was he has the gold makes the rules.

[@mdrubelhossin9517]

O ok o opp Prospero o

[@blowinshtup6553]

as a customer, i completely agree, I can’t stand it when they quote by the hour. I don’t feel like babysitting adults to make sure they are actually doing the job and not hosing me on the hours sitting under tree watching YT videos. If it’s still the only option and I’m not available to be around, they’d better come in the quoted hours or they will never get called back for the next job and never getting any referrals, for sure. been there, done that.

[@judyhildebrant8803]

I do 50-70 tilling only jobs per year and have never quoted an hourly rate to the customer. You have provided excellent reasons for not doing so. The hourly rate does not answer the basic customer question of “how much will it cost?” -Larry in Salem, OR

[@1989Falkor]

How do you charge for tilling? Sq feet?

[@joshuabridges315]

Absolute wisdom! I only purchased my gently used 2015 1025R about a week ago. I'd always wanted a small John Deere all the way back to the 455. Recently, I had a shoulder injury that took away my ability to ride my motorcycle safely so I sold it and bought the tractor as my replacement "toy". It's my first very first tractor and me being me, I've sought out all the information and tips I can get my hands on to help my new hobby. I've watched countless TTwT videos and couldn't be happier with your content. It never even occurred to me that I could make money with it working for others. But after watching you, I might give it a shot. Thank you for your informative and very amusing videos!

[@scottwydra6365]

As a customer in the past not knowing how long the job would take but having full confidence in the person operating the machine I haven’t had issues paying by the hour and a separate trip charge. I felt this gave us both a way out and was fair to the person doing the work.

[@drbrickner]

I did consulting work for many years. Estimating and communicating with the customer was problematic. I hated “time and materials (cost plus) contracts. These contracts demonstrate that the customer really doesn’t know what they want. In such cases, I would formulate a “statement of work” verbal for small jobs and formal for big jobs. The customer agrees and work begins and we avoid all the insufferable meetings while the customer, or agent, stews about the project content. A clear understanding of work scope is key to customer relations.

[@ccswede]

Who cleans and polishes the equipment? That John Deere behind you is spotless and sparkling. Good job Tim and Christi .

[@TractorTimewithTim]

Christy and Katriel spent a few minutes on it.

[@TriggerTravels]

Having worked in he diesel repair field...This is absolutely the way to go about things. The customer will hear the lowest number you say. Quote by the job, not the hour. This isn't like working at Wal-Mart. Great video Tim

[@bartonmd]

I've found this to be the case with most anything, not just tractor work. Sometimes you eat a little bit of time, but you also don't have mad customers because of what they see as overcharging, and if you do a good job quickly, you don't have a mad customer who feels cheated if you don't charge them less. You just have to be very clear when the inevitable "scope creep" happens, that "I can do that, but that wasn't in my original quote and it'll cost extra."

[@gadawgs8911]

Great advice. When I 1st started doing tractor work I would quote the hourly rate. After a few jobs I found out that wasn't gonna cut it for the amount of work it takes to do specific jobs,not including loading,strapping down tractor,drive time and unstrapping and unloading at the job. I have started pricing the job by a few factors like difficulty of the job, how much of the work is gonna be more strenuous on my equipment loading and unloading and drive time to and from the job etc. I've seen this is much more profitable and the customers are more happy with an estimated total price than just an hourly price.

[@BrianPhillipsRC]

Very helpful tips. I bid professionally for my own work all the time, but when we get specs, the customer assumes accuracy of specs ;) I assume you remember this from your software days - and NOT fondly - LOL ;)

[@RockhillfarmYT]

I agree that it’s better to bid the entire job rather than giving an hourly rate. Look forward to future videos on the topic

[@thomasstephens4954]

Thanks for the tips. Just yesterday I was asked how much this mowing job would cost. I'm enjoying making money with my tractors.

[@bobcatsmith246]

Hello Tim, When I first got my skid steer loader my neighbor wanted too hire me to clean out some old stumps in a fence row. We never talked about price or how long it would take to finish the job. When I was done with the job I printed up an invoice. It had my hourly rate and how many hours of running time for the loader. He would sometimes come too talk to me a few times a day. I added up the time we talked, if it added up to two hours I noted that he was not being charged for any down time. The only time I changed for down time is if it was a machine break down. Love the video's keep up the good work and god bless and stay safe.

[@KUBBI7488]

Great advice!!! Customers also don’t understand how much maintenance will it cost to tractor or skid loader!!! I knew nothing as well till I bought my tractor!

[@mr.gtmsworld2494]

This makes sense ‼️ I’ve been quoting job at $60 per hour and the customer and I are not always happy afterwards. Thanks for the information!👌🏻

[@mikecioka1180]

This is so true. I quote a customer for 500 and even that it was hatd work and one blade of my triller got broken, it toke me less yhan 5 hours and the customer gave me an additional 200$. He was helping me with picking up the rocks too.

[@raulhogland7309]

My contact states clearly they they warrant the property to be free of hazards that can damage my tractor and that they will pay $150/hr downtime up to $300. At which time I usually have to load it up and leave. But if they forget to mention some hidden hole they have to pay to have a tow truck winch me out.

[@DeeplyDrivenOutdoors]

Great explanation. I almost never quote by the hour. On top of what you said, the customer may feel like they have to micromanage your time if they are paying you by the hour and an hourly rate leaves room for people to doubt that you're using the time efficiently. Quoting a lump sum eliminates that doubt.

[@michaelmccaffrey2731]

That's a great point. If a machine needs a minor on site repair, some customers may be counting the minutes

[@charlesrobinson150]

As a customer of a service provider( such as yard work, carpenter or plumber), I prefer a job quote figure rather than a cost per hour. This allow me to decide if I can afford the work needed or do I need to adjust the scope of the work before we start. As you point out this normally makes the customer happy and the service provider also. No one like surprises when it comes time to pay the bill. Thanks for the excellent video.

[@glumpy10]

Spot on Tim, basic Sales. What so FEW people in small business just don't get is that price for MOST people is NOT the most important thing. They think it is, customer don't. They want someone they can trust, someone that they believe will do a quality Job and most importantly, someone they LIKE! If they are dead set price Conscious, YOU don't want them as a customer because they will want their pound of flesh, Bitch about every single detail and then probably try to short pay you anyway. First thing I learnt even before I got into my own business was you DO NOT want every customer that comes along. Some the best thing you can do with is run as fast as you can from. Everyone in my industry had price lists for certain packages. First thing I stopped. When people rang me for a Price I said sure, let me find out the details of what you want so I can give you an accurate estimate. Might talk to them for 20 Min. building rapport and showing I was interested. I'd ask about details they never even thought of that showed them I knew my stuff because no one else ever spoke to them long enough to find out or ask. Others in my game said I was talking to them way too long. My booking rate was around 74% of people I spoke to. People that said I was talking to them too long were lucky to get a 1/4 of that. I asked the customer what they wanted, not what I wanted to give them. When I gave them a price, they couldn't run off and compare it to someone else hourly rate or Package because the estimate they got was exactly what they wanted. Plus, I was the guy that really seemed interested in helping them and giving them what they wanted, not just taking their money. SO many people when we got together would tell me, they were just there to pay the money. They had already made the purchasing decision on the phone when they spoke to me and that was it. I REGULARLY over quoted and then under charged. You know what sort of customer satisfaction that Builds? You know how many paid me the Full price AND tips because they thought I deserved the full quote amount? You have any idea how many referrals I got? I was THE guy for entire extended families. They told me the job, was I available , Booked and then asked how much? Best thing anyone can do going into business of their own is learn sales and marketing as well as advertising. Plenty of info on the net, plenty of basic seminars. Best investment of time and money a person going into their own business can make.

[@malcolmcavalier7849]

Happy customers are your best advertisement.

[@crazyfarmer2564]

I just did a septic job, tree, and a spring development over the weekend all 3 jobs took less time then I thought but I still charged to quote I priced them. They were happy and didn't complain about it being so expensive but I paid for all the materials out of my pocket before I did the job. Thanks Tim. Great video.

[@miker3174]

I dumped a load of sand for a customer over 12 years ago. I had to split the load up and made 5 piles all over the back yard so they didn't have to bring the front end loader on the low boy. I guess when time came for payment and the tractor guy to spread it they didn't like the price of that. They still have 5 piles of sand sitting in their backyard! It's growing weeds and probably trees by now LOL. It wasn't easy dumping it most of it was off camber and had to reposition alot to not be leaning my truck, I wouldn't doubt if my tire tracks are still there.

[@FD-E-St-Fire]

You have to show confidence in your estimating while talking to the customer that goes a long way, and yes stick with the estimate given. If the project turns less profit it will be a lesson learned

[@simpleman4196]

I agree I have always done work the same way I know my hourly rate and I just figured how long it will take to do the job. I have never given my hourly rate out

[@aaronburford5701]

Great point, great customer service strategies, I see why you are successful! Thanks for sharing!

[@freddypatterson8653]

O-My, it's like you read my brain when giving tips on doing bidding here. Before retiring from my backhoe business I did the same as you to the letter. Some jobs must be done by the hour and I hated this for the same reasons as you. I would also suggest when working by the job, study the customers, cover your rear and be careful of those who seem never to be happy no matter how well you work.

[@cogentdynamics]

As a small business owner of over 20 years, I know you are offering sage advice.

[@oilyragsgarage7200]

Sharing this video with my neighbour with a backhoe, he needs to see this. Made the same mistakes myself, thanks for the great video.

[@kenjett2434]

This is sound advice but back when I use to do commercial dozer work I had a slightly different way. I had a small JD 350 and did mostly driveways, road building and some land scaping. When a customer called me or in most cases show up at one of my jobs. First question always asked how much you charge an hour? Well at that time I got $35 hrs for me and my dozer that counted my time if I was operating dozer or doing something off the machine. That often got me more work because from that my goal was to get asked to do an estimate. I spent my life on heavy equipment and I was very good at knowing how long it would take me to do a job. This is the most important part of being a professional and get you more noticed than the things mentioned. The one thing I did have was a minimum hire time that was 5 hours and I had a equipment moving charge if I had to travel more than 20 miles. So for those small jobs if it only took 3 hours they know up front they had to pay for 5. This often meant they would find another little something to do to get their value and that made them and me happy. If a job was only 5 hours that was enough to make me profitable for a full day. That was good seasonal work and when I didn't have any dozer work I ran my own timber business to keep busy.

[@louiedavis3138]

You are blessed with wisdom ,gracious manner and exceptional knowledge. I thank God for your advice.

[@harryballzack]

Bid a job once for $1k. Guy was thrilled. Said others were double that. Did the work in half the time I expected and told him $500. He got mad and said I’m not earning my potential. I told him. Life is not about $ but being honest with yourself and treating others with respect. He paid me and the jobs rolled in based on word of mouth. Made more money that summer with a side hustle than my regular job.

[@chiefkyle1098]

I use to work for a sleazy guy that would tell customer "our minimum is $75". All the customer heard was "$75". We have NEVER bulled someone the minimum. So when I would bill them $150 to they would and angry and say, "your boss said it would be $75". When customers ask me how much I say, "I charge $150 flat rate for this job, regardless how long it takes." If the work is done in 1 hour, they are even happier.

[@brentflora8965]

A VERY interesting point, you made. Your hourly rate is ONLY a mental fraction of the equation, interesting! The only catch 22 is how well you know the area of the job! Is it sand or hard clay? Are there rocks, roots or pipelines in the vicinity?

[@CharleyMcGee]

Hi, Tim! I think this may be the first time I've had a different experience than you. I find that laying out an hourly rate works EXCEPTIONALLY well for me. But there are some additional steps that I take to ensure the customer stays happy. For example, I take pictures of my hour meter at the start and end of the project. So, if the machine isn't running, I'm not charging. Additionally, I make a point of stopping at about the halfway point to gauge progress with the customer.

[@TractorTimewithTim]

So you charge by ‘tractor hours’. Hmm. I’d go broke that way! :-)

[@CharleyMcGee]

@@TractorTimewithTim We should compare notes some time

[@joelhenderson5404]

Hey Tim this about the best advise I've heard in a long time .God bless.

[@GizmoTucker]

There should almost never be a risk if bid correctly. EXCLUSIONS are a must in a cost figure. Never give a customer a cost on the spot. Rookie mistake. Equipment/tractor does not make an operator. Bad operator = bigger customer cost, usually low profit and bad customer relations.

[@johndeeremaster]

So when do you give the price to complete job

[@GizmoTucker]

​@@johndeeremaster Just to be clear, I haven't done projects for pay in many years. It's like you can't charge enough to make it worth the time and effort. With small machines the dead end road is very short. When I did the "minimum" amount was made clear to the customer at the start (4 hours). The first time I got burned I was driving home and realized I forgot a cost or two or three, from that point on I normally would give pricing the next day, not two days or three days, the next day, you can't screw with people they don't like it, I don't. Some jobs require different pieces of equipment, chainsaw, drill... exc, they cost you money, include them. Some jobs require two or more trips back to complete, that costs you money, include them. A project requires time and effort the second you get involved. Note the work to be done, and always list exclusions. On bigger projects half down, other half at completion makes for a good day. I'll stop rambling now. LOL

[@danielsharon524]

Just starting out, I was considering quoting an hourly rate "Not To Exceed (NTE)" which put the risk on me if it took longer or shorter than I'd expected but you have me rethinking that strategy. Thanks!

[@scottfeatherstone7156]

Very helpful, thanks Tim

[@BradMyers]

Good video. I'm enjoying the Q&A with the insurance agent and gaining knowledge on what I should be asking my agent.

[@littleblue4x4]

Great video! After doing a few jobs this year I was realizing quoting the job left a much happier customer than when I gave an hourly rate, and this helped identify those factors and will improve future bids and customer satisfaction. Thanks for making these videos!

[@jodyuo22]

Hey @Maine-ly Tractors can you please tell me what steps should I take for starting up a tractor leasing/renting company I have a tractor at home just sitting idle and I’ve been thinking of putting it to work but I don’t know how since i have no knowledge in that field and also I should mention that I personally don’t know how to work the tractor (so I’m I was just thinking of Lessing or renting it) but have no idea how to start! Can you please suggest or give me some advice as to how I should go about starting it small? Thank you

[@kenjett2434]

@@jodyuo22 that is a very bad idea renting or leasing your machine will not end well. The person renting it will never respect your machine and often abuse and trash it. Sure you can charge a customer for any damages but you lose time while getting it fixed. This also devalues the machine for any resale. It's best to learn to operate it yourself and make more money doing so. Start small learning basic operations and just increase your ability as you feel comfortable. I started as a teenager operating a dozer working part time for a oil company. I said one day I would like to learn to run it and boss said there it sits. So I jumped on it figured out what all the levers and button did and started grading road. It wasn't pretty at first but over time I got pretty good with it and from that became a heavy equipment operator.

[@FloridaDeere]

So true Tim, thinking of it from the customer's point of view. They are buying a service, they need some level of clarity and comfort to move forward, way open-ended prices and time frames will not win them over. But experience is the best teacher and as a new tractor owner, sometimes you just have to take the hit on pricing and call it "Tractor Tuition".

[@earlyriser8998]

To prove Tim's point; I had to trim 5 big oak trees up to 8-10 feet above the ground. In the summer here and I don't have the fancy equipment needed, just a chain saw and a small chipper. This would take me at least 2 days of hot exhausting work. Hired the right company with a crew and proper equipment (small tractor grapple, pole saws, (and good backs)), and they were done in less than 2 hours. I was happy with the initial estimate of $800 which seemed fair for the work and happy to pay the full amount because they were quick, cleaned up well, worked well with me on the trimming, did a good job on the actual trimming, etc. If they had given me an hourly rate of $500/hour i would have panicked as my expectations were it would take hours to do this based on previous trim jobs with other people and my own experience. I would have gone immediately to 'how long will it take' and 'whoa nellie' this could be $1000's of dollars. Giving me a fixed cost was the opposite reaction....i thought the job would take hours based on previous jobs and my own experience. If they would do it for a fixed $800 then that was going to be a fair price and limit the impact to my pocket book and the risk the job would costs $1000's. I happily accepted the initial offer.

[@MrChristopoop]

Great way to look at it. I think as one post stated above, change orders need to be added to a written project order. My wife always sees new “opportunities” when we have something done (or even when I jumó on tractor and do something) it could be a worthwhile change and really good, or it could be a pain Olin the butt, not make much difference and really inconvenience the contractor. If I were them I would lay the law out in those right from the beginning. Tel me what you want up front as close to the end result details as you can get as I will make every change or addition there after as a change order and may add to price accordingly depending on what it is. One issue I see the lack of handy man services (good ones anyway) where you have jobs that are not big money makers but are beyond the scope of a homeowner to accomplish. I do way more around the house than I would have dreamed when I was younger , but still find projects where I need a hand or won’t touch because I do not have the required skill to do it correctly. Wife loves to try to get those added into big jobs.

[@gotdeeres]

I never quote an hourly rate!! I always give a project cost. I always give a written scope of work which includes what I expect. Anything outside of this plan, may be extra.

[@northeasterndirtandpropert7974]

I very rarely quote by the hour.You can't load equipment,drive to a job,come home and unload for short/small hourly jobs.I do lots of half day small excavating jobs that none of the bigger guys can or will touch,and everything is flat rate based.If your're quoting by the hour,you're generally leaving money on the table.

[@debbieschmidt9316]

I’d be the one hiring someone and I really appreciate your explanation of how to set your pricing. If someone tried to give me an hourly rate, I’ll listen closely and ask for a realistic job cost, plus what problems might come up and possible cost. Thanks!!

[@artillerybuff2000]

Good advice overall. Once you have an adequate number of hours working the equipment in various tasks, the estimating should become easier and more accurate. As a professional mechanic I could tell you exactly how long it would take to R&R an engine or transmission and rebuild it, and if you couldn't beat the flat rate manuals then you weren't much of a mechanic...

[@HankinsExcavating]

Tim you are spot on!! I might add in our area for instance most of the customers that ask for a quote have already decided for us to do the work. The "word of mouth" has normally preceded the appointment with the customer. Weather a blessing or a curse 90% of my buisness stems from that. We live in a small community . Nice vid Tim!!!

[@TractorTimewithTim]

Yes, I have had same experience.

[@davidwagner5338]

I agree with your opinion. I brought my truck in for some work that I wanted done on it to a big chain company, and they quoted me 3 hours to get the work done, which I agreed to have the work done. It took them 1 hour and 15 minutes , and when I went to pay, I was charged for the full 3 hours, which I wasn't happy about. Long story short, corporate told me they were charging for the full 3 hours, and I never went back to them for work again. If they would have quoted by the job and not the hour, I'm sure I would still be a customer.

[@dirthog2185]

There is sound advice in this video. I too, stopped offering by the hour work to the customer. I found the more you have to explain the less likely you are to land the job. I pretty much know what it takes for me to make a profit for the routine services I offer and charge accordingly.

[@chrisspence3216]

1000 a day plus fuel . Any project works every time then just add days as customer adds more to the project . Fill up truck transfer and Machines send pic to customer of fuel receipt On way to job .

[@trosk994]

Couldn’t agree more Tim! I always figure what it’s gonna take, what I wanna make and add 10% I’ve never had a complaint yet. If it takes longer you eat it but most of the time it goes quicker than expected and you make more money and the customer it happy it went well and is done. I started years ago hourly and you just don’t make money like you do with fixed pricing. Couldn’t have said it better myself!

[@daves2960]

Sure don't what to get caught piddling! Very good information presented here that needs consideration. Well organized and understandable. Looking forward to continuing this topic.

[@gwolf7716]

Pretty much my best case for not quoting an hourly rate. If I need to take a break for a call or to get a drink that’s what I’ll do. Plus, I’ll nearly always do a little purposeful piddling that may look like lollygagging to a customer.

[@josephsierra7295]

Hey Tim..I have often thought about charging for work I do for others. But have backed off when I put pencil to paper and see what I need to get for the job. I don't feel I have the experience and efficiency to warrant those costs. So I just end up doing them as favors. Although helping others is very personally satisfying, I have found it takes its toll on the machine, costs me consumables, my time and something I hadn't thought much about... puts the liability on me. I have to rethink my approach. Thanks for sharing!

[@paulmartin8212]

I just bought a 1025RTLB with 60" mower. I hear what you are saying. Look at it this way you are gaining experience and any new job or skill is a good thing. My son in law and I had a blast last evening digging out some stumps with the 1025R. We did get them all out and feel we better know the limits of the machine. Also I think we have a better understanding of the controls as neither of us had back hoe experience.We are getting better! LOL

[@raulhogland7309]

This is because we don’t really value our services. We too often think in terms of an hourly wage instead of of value provided. I average $250/hr with my mowers and loaders. I have a 6’ wide flail mower on my Ventrac ($8500) I can mow some acres in about 35 minutes some hills with trees are so steep take longer and I make more money per hour because I charged $700 for that 1/2 acre. The customer was glad to pay it because of the only alternative was a small army with weed eaters on the hill all day which he neither had the time or equipment to do OR the inclination to hire that many people. He thought it was 2 acres. I have apps on my phone that tell me owners name and acreage. Another that measures area and distance. Add that to my experience and equipment and I can quickly quote a per acre price or a flat price whichever seems better

[@jameszink4957]

Thanks...doing a little research for my retirement in a few years with my BX 23s

[@victorfile3342]

I tilled gardens back in 80' and 90', I charged by Square Foot. This really work good then fall till was Free.

[@jakem.6359]

Great advice.....also when you write up your bill(or estimate)....kind of "minimize" itemizing everything.

[@swampmule1074]

I guess I need to step it up a little. I usually give them a bid and tell them if it goes quicker than expected Ill change by my hourly rate. I don't tell them my hourly rate it depends on what kind of work I'm doing and how hard it is on my equipment. It does cost me a little but seeing how excited they get when I tell them it went well we are under budget is worth it to me most of the time.

[@michaelmccaffrey2731]

A written estimate, for the projected scope of work and disclosure of what could cause additional cost. Such as: this estimate does not include additional material, overtime hours, prevailing wage, change order, additional equipment etc. Bid jobs invite additional work such as favors.

[@stevek4449]

Great job Tim! Looking forward to more videos along this subject line😀

[@planeanddirtsimple]

Enjoyed it. Like the scripture at the end. I would like to see more YT folks doing that. Have a blessed day!

[@TractorTimewithTim]

Welcome to our channel!

[@jesseamaya4594]

I think it's worth telling my first experience working on my own for a customer here. I had just purchased my zero turn and was looking to put it to work to try to make it pay for itself. Unfortunately my first job ended up being about 3 ares of seriously overgrown grass/weeds, i had quoted $80.00 and the job took me 2 days. I stuck by my original $80.00 quote because that IS what I quoted but have not taken another mowing job since. I know when I do work for somebody either I will set a price and stick to it or tell them to pay me what they think it's worth. (more common when I just have to use what I know). I should have a 1025 in about 3 weeks, I'm lucky in that I work for a JD dealership so I can do the setup myself so will save some money there. That being said I already have some work for it, One is rewiring and burying some conduit and another is some light tree removal and mowing that was just too much for the zero turn. TLDR I know but I REALLY want to express my appreciation for your insight on how to price jobs where both the customer is happy and myself as the operator doesn't go broke. It pays to remember that a happy client will tell 10 others while an unhappy client will tell 100 others and at great length.

[@nekoroms]

Damn solid advice.. As a potential customer i dont care about hourly rates and extra fees for this and that. If its 300 squirrelskin project I'm happy to even maybe pay a tad more than the project was worth even when everything is smooth sailing and done as promised and faster than discussed.. Here's the 300 squirrelskins to a job well done. Simple and effective pricing is worth something to me. Its the "making my too big project for me" simple an easy for me with some monetary contribution was just the thing i needed as the customer.

[@jasonmckee5030]

Well said Tim! I own a small excavation business and I don't like to price most jobs by the hour. Now, some, yes I do price per hour such as land clearing and as you know, there is a list. This is an awesome video for someone trying to get started and "they" should consider your advice. I also do some tractor work as well and I agree with your thoughts. Thanks 👍

[@jodyuo22]

@jasonMcKee How did you get started ? I have a tractor at home just sitting idle I don’t know how to use it personally But I wanna start to rent/lease it Can you give me some suggestions or advice?

[@randykurtz3014]

When I first got my tractor I had visions of using it to make extra money. I soon figured out people around here are way to cheap to make it worth my while.

[@FishFind3000]

They about everyone everywhere

[@nrosario]

That is also my situation as. People just don't seem to understand the cost/value, they expect everything to be dirt-cheap.

[@gwolf7716]

Those purse string sure get loosened after pushing a wheel barrel or swinging a chainsaw for a few hours.

[@MattN03]

@@gwolf7716 the problem is there is always someone willing to do a job for nearly nothing. That's why i don't mow to many yards and instead try to do a few more jobs with my tractor. There aren't nearly as many people with tractors as there are zero turns.

[@dcgregorya5434]

Always be professional and the work will come in. People who are cheap today change their mind tomorrow after they've done a few jobs themselves. Even in the poorest areas people still value their time more than yours.

[@CPLBSS88]

Under promise, over deliver... enjoy endless praises and booming business.

[@vacone1]

All good advice. Keep in mind, your backlog of work, the next 3 days weather, and your travel time and expense. Use your ears, if there is some horror story the potential client feels the need to tell you what a victim he is, figure your time for reestablishing his faith in contractors. Figure the job, then double it, better to walk away than compete with an experienced payer with penalties. I spent 45 years bidding for work, You will sometimes make some, break even, and lose some. When all said and done, make a living, and be able to afford to upgrade every 3000 hours and pay for repairs. Keep your equipment clean and trucks with good tires.

[@timraber6575]

I recently had a new septic system installed in my back yard. The contractor looked at the job, and quoted me the price. The water table around my home is high, so when the plastic tanks went in, the hole filled with water and tanks floated. The project went from two days to three. More hardware was needed to keep the tanks in the ground till they could be back filled, so the price changed. With some discussion we solved the problem, and the project was completed. The price on the project came up, but I understood. Customers and contractors must work together to have a successful out come.

[@ATR-42]

totally agree. Unfortunately, there are a lot of unreasonable people out there who do not see this way ^^

[@brianhillis3701]

All buried tanks should be strapped down if ground water could possibly be high even on occasion. Your contractor was trying to do this cheap and you fell for it. Cheap bids are often full of shortcuts shoddy materials and poor workmanship. If you get multiple quotes you need to ensure you are comparing the same scope. I have worked with many contractors and been one. There is a reason for a low price.

[@timraber6575]

@@brianhillis3701 it was not a cheap job. This contractor did a great job. It was during a rainy time here in Kentucky, my old system was over 40 years old and my commodes were bubbling. We used two sets of tie downs on each tank, and the project was a success. I had priced it about ten years ago and it was expensive then. I have a big back yard that has a rise of over 2 feet rise behind my house. I elected to put the new field bed in that area. So that added a pump to get the effluent to the field bed. I didn’t want to cheap out. I did not get cheated…….

[@DMAX-ed7pq]

Never give price in person unless it’s something very basic. I like to put on paper all my material and overhead for the job, though we own our equipment and trailers you too incorporate that into the proposal and any speciality attachment. If you didn’t have any of this you would need to rent thus pricing needs to be soaked into the bid. After we crunch all the overhead numbers, risk assessments if their are any to consider when performing the job I begin to work my profit numbers. We don’t have a formula for this it’s all based on years of experience as all sites conditions vary. We bid per job, provide scope of work and that gets sent to customer with their signed acknowledgment before moving on.

[@Frontpagefab]

I followed this approach when I had a Landscaping business. Always worked well.

[@madtater5948]

thanks for sharing this video this is a great topic I think what you're saying makes great sense, the bottom line is people want to know what exactly is going to cost. I always try to whittle down the contractor's price sometimes sometimes it works

[@dantabler9301]

Awesome video, thank you. I’ve been very successful utilizing that strategy. I always have a certificate of insurance and my business license on hand, which separates me from the non-professionals. I once ran an add grinding stumps, $30 per stump, 12” max diameter, $100 minimum charge. What a home run that was.Stump grinding is my highest revenue per hour. The other guys all spent 20-30k for a single purpose machine. The only time I quote by the hour is for a job I really don’t want. $100 per hour is an absolute minimum. They often times don’t realize the time it takes to configure the tractor for their project and the huge amount of time maintaining the equipment. Looks like you could start another business detailing tractors 👍👍😀 Please keep up the great work you guys are doing

[@maxlimit18]

I used this method in my painting business. Spot on. Good video.

[@robryals]

Spoken like a true ex-Software Engineer, under-promise and over-deliver wins every time !

[@Shredxcam22]

Weird because many major companys have been doing the under deliver and charge for DLC or a reoccurring support on a broken product.

[@Jacob-zd4gj]

I have found that most of the time the customer doesn't really care about the price as long as you're confident or sound confident on your bid. PR is very important so be upfront and honest and what could or could not happen. Bad or rocky soil take forever or sod loamy soil can go super fast. About 70% of my jobs the customer says hey since you're here can you do this or that, and if it's something small or quick I just do it and it makes a customer for life but yet I've still made good money on the rest of the project. Make them feel like they're getting a good deal.

[@danielslater4602]

Thank you Tim. Have been looking for more of this type of content from you.

[@daviddewilde8041]

Hello, Very true, it works like that in Europe too. Cheers from Belgium.

[@robertesposito9871]

I don’t know where your at but I love your work ethic

[@williamdonovan8187]

Be sure you realize that in some states giving a fixed price bid over a certain amount can require a license. This may require training, tests, bonds, etc.

[@misterb1080]

Agree 100%. I’ve been on both sides and what you said works.

[@briancarpenter8297]

Good tips Tim! I haven't done tractor work yet, but I've always quoted projects by the project rather than by the hour. Customers always want a fixed price to budget with. It's always best to under promise and over deliver. I used to build a lot of basement/garage storage solutions and I would quote a price per square foot, and I could be half the cost of commercial shelving options and still make a profit, including labor and delivery.

[@stephanpetranker8994]

Great video - thank you. There are times that I partner with customer to take on risk. Here is what I mean. Let’s say my fee is 100 an hour, and I think the job will take an hour. I tell the customer he can pay me by the hour, or pay me a job rate of 200. If the job take me more than two hours, then rather client makes out. I find that most clients prefer to pay more for the job, but have a guaranteed cost. The better defined the risks/smaller the job, the more likely I am to offer the deal. The more complex and risky the job, the more I move toward an hourly rate.

[@kriptick1]

Most definitely a helpful video. As I’m usually doing lawn care or brush removal or occasionally bush hogging for people.

[@netherlyfarm2528]

Good explanation Tim. I'm a Diesel Technology instructor and run my own Diesel shop and do alot of custom bush hogging on my off time. I tell my students if ya wanna starve charge by the hour bjt if ya wanna make some good money charge by the job. The customer isnt worried about how long it takes but what the end result is and what there gonna pay. Ive found that customers love pictures and updates on the project as well showing them why they are paying you this said amount of money. I run a 5075E john Deere as well. Have dual rear wheels on it for the bush hogging i do here in the Eastern Ky hills. Also have a TS performance tuner on it adds 30% power and 15% fuel savings. More power= get the job done quicker and burn less fuel.

[@TractorTimewithTim]

Wanna help me with a TS performance tuner? Sounds like fun!

[@netherlyfarm2528]

@@TractorTimewithTim be glad to help. Its a simple plug and play tuner. It pig tails between the rail pressure sensor and tractor harness. It also doesn't leave a foot print on the computer so it will not void warranty. The part # is 4110108 and you can check it out at tsperformanceofficial.com ive had this one tuner on two different tractors. If ya trade ya tractor in just remove it and install on your new tractor as long as it has the 2.9L engine.

[@EronIler]

I outsell my competition by having insurance. If in a competitive situation I always point out that I am fully insured because so many are not. It puts the customer on notice that an issue could be a legal issue for them.

[@philsmock4943]

That was a very informative and down to earth video. Thanks for sharing your thoughts and ideas.

[@tsmith3928]

Thanks Tim! I considering getting into this type of work as a side gig and wondered about your approach in developing estimates. This makes a lot of sense!

[@BobsOutdoorActivities]

Very helpful. Especially when dealing with family or friends that want to pay you.....

[@chuckman2219]

In my field (automotive repair) most places have gotten away from a posted hourly "door rate" or shop rate" that was always on a sign somewhere in the customer areas. Although some states still require this... Menu pricing and variable labor rates are now the norm, although tech pay is still hourly and based on "flat rate" for his income. Flat rate pays 3.8 hours to do a water pump and he can do it in 2.6, then he still gets paid the 3.8.

[@clevelandfarm2163]

In the automotive repair business we do not charge by the “hour anymore is the price per job because if you quote hours and you finish early you can get sued for fraud

[@OTTO_Man]

When it comes to Bush hogging and tilling I charge a flat rate to show up and provide 1 hour of work. This equates to 3 hours of my time. Then a hourly rate for every additional hour. I have a good idea of how long it should take, so estimating is ez. But some people like to do it in stages. The way I price makes it simple for the customer. They call & say hey I want you to come and bush hog for 'X' amont of time on this date, because they know my advertised rates. Or they may ask if I can do it in 'X' hours because they only have 'X' to spend. Sometimes I know how long it'll take and it's more than they want to spend by 100-150 dollars so I cut em deal. That typically gets me referrals!

[@ChristopherFarms]

Thanks for the umbrella insurance info. I have an umbrella policy and remember it being that way but it was great to hear the reminder of how it works!

[@danielmeyer403]

Good food for thought. How do you factor in "back at the shop equipment prep" in your estimates? We charge for road time here as everything is usually a long drive away. We also charge a fuel surcharge as it shouldn't cost us money to get the job. Haven't had any complaints to this date ....knock on wood. You can spend a lot of time prepping equipment for a job, and that includes when you get back to the shop.

[@TractorTimewithTim]

Use fixed rate…then you don’t have to confuse customer with all of that detail.

[@bkb5668]

Hello, what about tractor size?? For example I have a 70hp tractor with loader and third function so I can use a grapple or auger or any of my skidsteer implements. What I do is charge hourly and leave the hours open ended especially when I field mow. Some jobs are just to hard to bid the way you are talking about. I have mowed a field that took four times as long to cut from one year to the next. Depends on what job I suppose. My rates change depending on how much labor is involved too. $125.00 hr. For field mowing up to $200.00 hr. for saw and brush work ,burning 🔥. Most people see what a 70hp tractor or 90hp skidsteer can accomplish in a day that they don't feel shorted or overcharged in any way. Thanks for the videos!!! P.S. I also have a 2hr. minimum charge.

[@TractorTimewithTim]

You missed the point…don’t charge ‘per hour’.

[@bkb5668]

@@TractorTimewithTim I think you missed my point, don't tether yourself to a certain amount of hours, let the customer know that this is my hourly rate and I will work until the job is done. My jobs are huge and my customers are usually large ranches with a huge amount of work involved and larger sums of money involved. I do not think you and I working on the same size jobs and bidding is much more complicated with the work I do. I own a ranch (about a section and a half in Montana)so I have a better idea of the type and scope of work to be done than most. Some of the jobs I do are weeks long and there is no way of knowing if you will be done a few days early or a few longer. What I won't do is lose a few days earnings because someone wants a definite time line. I also do not depend on my tractor or skidsteer side work for my living so I can pick and choose the jobs I want to do. Thanks for your videos.

[@GriffithsFfestiniog]

Very calm clear advice, simply laid out in an honest and profession stance, enjoyed your thoughts!