Help with costing please...

[Ty Korrigan]

Hello,

Our local council have asked us to quote to grind out all the local stumps.

That, I estimate is 4 days, 2 men, one to drive the machine and one to prepare site and sweep up etc.

I'm looking at how to cost the machine in.

It is a 27hp Bandit sidewinder.

I estimate 4litres per hour.

The teeth may last a day, may last 2...I know this cost.

However, How much should I allow for the machine per hour?

Do I divide its purchase cost by the number of likely life hours?

Say £7000/1000hours =£7 per hour...

Thanks in advance

Ty

[Le Sanglier]

Hi Ty,

Mick here down in the Charente, Seeing as you will pay half of your profit in cotisations.

i would charge €560 per day plus TVA.

Your teeth should last longer than a day, depending on the rock you encounter.

I saw you lost the other grinding job, were you competing against a tractor mounted grinder?

[Ty Korrigan]

Hello Mike,

I only know I am winning small but profitable jobs and losing the big ones.

I calculate that I need to charge my machine out at no less than €26 per hour plus my variable wage. I am going to charge us both out at €120 each as we really want to get in with our commune.

Stupidly low pricing but at least we may get a foot in the door.

I have a mate, another expat trading as arboculture who charges out himself and machine at €350 with his ouvrier at €150.

I believe it worthwhile to work as a team on this as one can clearing the stumps with a pick and take turns grinding.

I have counted up the possible hours required for the 200 stumps in all.

173 are a Thuyia hedge which I estimate as 12hrs or 4min per stump.

All the others are street stumps or in local parks.

Some are really very large but quite soft...I hope.

Ty

[Le Sanglier]

A machine like that will murder thuja, they are the easiest, as for getting a foot in the door, when you start low they expect you to stay that way, remember how much the government takes! don't let the small customer who pays well subsidise the larger one, who will wait 6 weeks to pay and screw you where they can.

anyway good luck, Mick

[jetemp]

When costing your machine you should really be adding a finance figure in. Doesnt matter wether its financed or not if its your own cash it could be sat somewhere earning you money.

 

I would usually work on a depreciation figure instead of total cost divided by total hours as the machine will still have a value left when your finished with it. Would look at a depreciation of 20% of reducing value.

 

James

[Ty Korrigan]

Update...

The big pop dismantle + grinding job I lost to a very large local company.

From a source close to my 'lost' client.

The winning firms price was bizzarely low.

I put it down to more efficient machinery.

During the course of the work they turned round and told the client that 'evacuation de dechets ne pas compris' in other words, removing the

arisings was a further charge not included in the original quote!

The stumps which where also priced chuffing low, have not been done as they underpriced the job and can't get a contractor to grind them out for the peanuts they will pay a subby.

In short, my detailed quote was bested by a vague and false one.

The client has been quoted as saying they regret their choice in hindsight.

Ah...I'm reassured about my own estimating in the light of this.

Ty

[phirow]

Sign of the times! Council jobs are great but you have to know the person. Under these hard times the tree officer might have left or pushed you then get a none arb / tree person left in charge they then go for the glory of KEEPING DOWN THE COSTS!

Contact the man and offer to grind the stumps direct make him your friend!!!!

[easy-lift guy]

Sounds like the Client got just what they payed for. Maybe they will learn from this what you all ready know. I believe your pricing strategy of going low with your bids may have a chance to bite you in the arse if your not careful. Other pricing suggestions posted here maybe in combination will better fine tune future bids. Remember "Like trees some clients need more training than others". Good Hunting.

elg