My Rant about the Competition - Mulching & Dirt Work Pricing

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  • Опубликовано: 25 дек 2024

Комментарии • 72

  • @JackofHaulTrades
    @JackofHaulTrades 10 месяцев назад +5

    Just found your channel brother. Great video 💪💪 I'm new to equipment work and I 100% agree with you people will work for nothing which is wild

  • @zx6rkawi09
    @zx6rkawi09 10 месяцев назад +2

    This kind of video is needed because the people doing it cheap probably dont understand the business. Helping them understand where they mess up will only help you in keeping rates inline with cost. I also own a trucking business and the best advice i got was a guy explaining rates and how to price a load. I was above industry rates before talking to him after im at triple that now. Some new guys just need help and wisdom and the whole industry benifits. I have a mulching company 2

    • @DigginDownSouth65
      @DigginDownSouth65  10 месяцев назад +1

      Thanks! I appreciate that viewpoint, and that’s where I sit with it also. If I can help promote some wisdom in the industry it benefits everyone!

  • @timbradeen8459
    @timbradeen8459 3 дня назад

    Sure you can go up in price but what happens is you get known as the expensive guy and the good work gets given to the guys just under you. They build their businesses stronger while you sit. There is definitely a balancing act on pricing in this world. It requires spending a little more time with the client and offering a few easy add ons that help them feel they are getting a good deal. This has helped me. Been doing this since 2011 and as soon as you think you get things figured out stuff changes. Also if you don't own your stuff outright you are at risk at any point. Own your stuff. I know it's not easy but it's a hell of alot easier if you own your equipment outright. You will beable to operate at 1k a day. Good luck fellas!

  • @brettoberry3586
    @brettoberry3586 3 месяца назад +7

    That other contractor won't be in business long. Stick to your plan... You're pricing isn't the problem. The other guy who is running cheap isn't putting anything away for when a big problem happens. WHEN it does he won't know how to get out because what he is making won't cover expenses then, and it's a death spiral for the business after that happens. New subscriber... Good content!

  • @Thehelpfulcontractor
    @Thehelpfulcontractor 3 месяца назад

    You’ve got a new subscriber here, 👍🏻👍🏻
    I appreciate this video and listening to your rant. It definitely seems like you and I have a lot in common when it comes to pricing and our philosophy of business.
    I plan to watch more of your videos to hopefully learn more about mulching and land clearing.
    I’ve been a general contractor for over 22 years and I’ve almost always ran
    the equipment on my projects and I’ve loved it.
    I’m hoping to learn more about the mulching business so I’ll be watching more of your videos. I appreciate what you’ve put out to keep it up. 👍🏻👍🏻

  • @RUDYR-y4s
    @RUDYR-y4s 4 месяца назад +1

    good video. you are 100% correct. you get what you pay for. And yes your workers are a reflection of the boss. You know your worth so keep it up.

  • @hoytballard5504
    @hoytballard5504 21 час назад

    Market is too saturated. Unfortunately it’s hard to sell service when everything is based on price. One thing to consider in your pricing is what would it cost to even rent the type of machine you are using. Then add the cost of transportation, labor, and profit. Also biggest drawback is all the added time of running around giving free estimates only to be told “I’ve gotten someone cheaper”.

  • @DauphinIslandALTours
    @DauphinIslandALTours 10 месяцев назад +2

    Thats cool you're talking about pricing. If you are priced lower... tell everyone. Show you do quality work and can save customers thousands. If you are on the high side... explain why. You have an escavator payment, bulldozer payment, and skid steer payment. Labor. Materials. Does your competition have three equipment options? Probably not. When you explain pricing customers understand. The companies that cant explain why... something's wrong. I only talk about pricing if a customer comes up to me and tells me about the high quotes and the quote she went with. The lowest quote doesn't always mean lower quality. Right now lots of companies have been slack on work for months. They are pricing their jobs to get off the couch. Doesnt mean they are poor quality. They could be newer in the business. All about who you know... and how many people you know.

  • @Greatday68
    @Greatday68 4 месяца назад +3

    I've delt with customers telling me that they had gotten a lower price before. And I wonder if the customer is lying just to get a better deal, or if the other contractor with a lower price even has insurance or does quality work. Maybe the other contractor is new and is trying to build his business and is offering lower prices just to get their name out there. Maybe the competitor isn't basing his price thinking of his or the company's future ie. rain delays, replacement of tools and equipment, maintenance, inflation.
    So when a customer tells me some other person quoted them a cheaper price, I say well I can't come down, this is what I charge for this kind of job and then I leave. I know what I'm worth. and will never lower that. The only discounts I give are military, senior citizen, repeat customer, and a discount on future jobs if the customer recommends me to a future customer and I get that job.

  • @randypannell1541
    @randypannell1541 6 дней назад

    I've been running in the same problems in my area, they will low ball just to get the job. You have to know your price. I've lost many jobs this year due to this problem. It is just ruining the market around here.

  • @teveler
    @teveler 2 месяца назад

    Sounds to me like you are doing a good job at fair prices. My son just started the same sort of work down here on north central Florida. I have been helping him the best I can (Mostly on the bookkeeping and web side). I really don't understand how people undercut him.... Also getting in with the builders down here is a pain. Unfortunately I would bet a lot of the people undercutting the bidding is uninsured people doing fly by night crap with even worse equipment. I will give you a great example. I would in Fasteners/Safety/Hardware - All industrial. I had someone come in my shop asking for fasteners to put a 2 inch receiver mount (conversion) on a factory bumper to haul a tri-axel dump trailer.... Wait... On a late 90's F150. I refused the sale. Good on all your folks doing the right thing.

  • @Backwoods251
    @Backwoods251 10 месяцев назад +1

    Like the old saying goes sometimes you get what you pay for. Don't expect same quality if it's done cheaper.

    • @DigginDownSouth65
      @DigginDownSouth65  10 месяцев назад +1

      I know that saying… not sure everyone else does though! 😂

  • @t3hamazingman
    @t3hamazingman Месяц назад

    Just broke into the industry. I base all my jobs at day rates and I tell my customers that, if the job is smaller than a day I will tell them its not going to take me all day, but with my overhead, I cant go lower than my day rate unless I can line up 2 half day jobs in a day and run them both that day so they both win by getting my half-day rate with moves. ATM im @ $1600/day for my brush hog and $2700/ day for the forestry mulcher without moves. I always give veterans, farmers, first responders, teachers, and hospital staff a break on pricing(usually eating the moves and coming down on price 10-15%). But I agree with you you gotta know your price and when to walk away otherwise if everything doesn't go perfectly you could be paying the customer to do the job before you even take the chains off the machine at the job site. I had a job that was a little over a half day but thank god I charged my day rate and the customer understood where I was coming from with my pricing because 10 minutes after leaving the shop my truck went into limp mode (ended up being water in the diesel) and that cost me about an hour of frustration.

  • @terrencegroves7191
    @terrencegroves7191 2 дня назад

    I’m with you if I can’t bill out 1,000 a day I’m not doing it most of these 2 to 3 hundred a day guys arnt doing quality work experience it everyday

  • @shealattus4371
    @shealattus4371 Месяц назад

    I run into the same problem where I’m at. I’m right at your daily rate and have a minimum. But there are some guys that do poor jobs and are cheap. Yet they still keep getting work. I pride myself on the quality of work I do. But Ive figured out 99% of customers don’t care what the end result is. All they care about is price.

  • @rongrey2110
    @rongrey2110 Месяц назад

    I was charged $1850 per acre to clear(20) 3-5 inch loblolly pine and brush on level ground, thought that was steep. Renting one was about $6k a month

  • @anthony8278
    @anthony8278 5 месяцев назад +3

    Day rate in northeast most charge 2500-3000$ a day

  • @TigerLandworks
    @TigerLandworks 9 месяцев назад +1

    I can understand your frustration but don't let it get the best of you. There are two problems with your story, first the owner, second the other contractor. A good client is not going to start haggling price before you even get the job. That is a clear red flag in my book. Not getting the job is in your favor because these are the clients who will do their best to renegotiate after your finished. The other contractor is already on his way out of business he just doesn't know it yet. Too many contractors are not businessmen. The moment you hang your sign on the side of your truck you are a businessman in the contracting business. Its not the other way around.
    You said it best know your operating cost and stay with them. You can't go wrong. Great video!👍

  • @makoachandler182
    @makoachandler182 3 дня назад

    3 acres for $600🤦‍♂️. I would have said $600 an acre and I would have felt like I was cutting myself short. Im experiencing the same thing rn. I’m in Georgia and sometimes I get underbid by half. Its all good though. When the good customers call it all evens out.

  • @Brushworksco
    @Brushworksco 3 месяца назад +1

    Competing on price is always a race to the bottom. Compete on quality of service. Answer the phone, show up on time, over communicate.

  • @robhartshorn6823
    @robhartshorn6823 5 месяцев назад

    I'm thinking about starting a brush clearing business in Oregon. I'm about 30 miles east of Portland. I have a Takeuchi TB260 and I have been looking at mulching heads for it to clear some of my property. I'm also thinking about buying a skid steer because I need one for lots of things around my property, and if I bought a disk mucher for it I could do just about everything.
    I have my own business already so I have some free time to start up another business. Just not sure how much demand there is for this type of work and if it makes financial sense. I want to do it to make money, not play around. It gives me hope when I see videos like yours. I thought I might just start doing jobs with the excavator mulcher and see how it goes. I like your channel, I wish I was as articulate as you.

    • @DigginDownSouth65
      @DigginDownSouth65  5 месяцев назад

      Well thank you very much! I feel like I’m not nearly as articulate as I should be to make YT videos! 😂 I had a disc mulcher before the Cimaf, it’s quick production, but doesn’t leave a fine finished product. I’d say it really depends on the market. I’d start the easiest and cheapest way possible and it if takes off then run with it. It’s a rough day mulching 8 hours mulch less 1-2 weeks straight mulching, turns from enjoyment into work real quick! Good luck with it!! 😊

  • @carplazallccarplazallc5076
    @carplazallccarplazallc5076 5 месяцев назад

    Hey brother, soon price cuts will be the new normal. 5 years from now it will be higher than it is now. Just make it through the dip that’s coming. Best wishes my man! By the way I’m seeing the same thing over here in Florence S.C.

    • @DigginDownSouth65
      @DigginDownSouth65  5 месяцев назад

      Thank you! I’ve been hearing people talk about dip for the past 3 years. I’ve definitely seen it in the mulching world, but I’m trying to specialize in a couple different markets right now and utilize the mulcher as an additional tool and not the main service. If there is a bad dip, hopefully I won’t feel it as bad as if I only had 1 service line.

  • @yancymcvay
    @yancymcvay 10 месяцев назад +1

    Had a lady ask for a quote on a bushhogging job. It was a pretty straight forward job, not a whole lot of tress, but the ground was pretty bad, holes, roots what have ya. told her the price and she acted like I was trying to rip her off! She proceeded to tell me that she could get so and so with heavy equipment for just a little bit more than that. I should have gotten so and so number and subcontracted him at that price!! Need to go by there and see if anything got done!!

    • @DigginDownSouth65
      @DigginDownSouth65  10 месяцев назад +2

      I understand the frustration! Definitely go back and check it! I find most quotes like that stay un-completed!

  • @nickeckemoff7631
    @nickeckemoff7631 Месяц назад

    Same problem I see. Lots of people with equipement and zero business sense...they think they're making money, but don't know basic math. The risk/liablilty you take hauling and operating expensive equipement by itself is huge forget how much work you get done after you show up. Along with wear and tear, people don't consider this and end up getting killed in deperation. They're trading their equipement wearing out for money...almost working for free after they realize they can't sell it for anything near what they paid. I started doing work for 750 per day and 400 minimum, but then increased to 1200 per day, 500 minimum... I notice no change in getting work (grading, fixing driveways, minor clearing mostly)...people either going to be able to afford whatever you ask and are happy they found someone, or they can't afford paying you anything. I also started charging for estimates...end up wasting time with 50% of them...if somone unwilling to pay for an estimate, I guarantee they're wasting your time. I never regret over charging, but rather under charging realizing it takes longer than expected. End of the day, this type of work is a rat race against dumb people with toys they want to play with unfortunately.

  • @Orbsaladin
    @Orbsaladin Месяц назад

    You get what you pay for. I wouldn't trust someone who underbids to have pride in their work.

  • @ericreddish90
    @ericreddish90 Месяц назад

    You get what you pay for. Cheaper is not good, it comes with problems that shows later.

  • @Mountaintoptractor
    @Mountaintoptractor 4 месяца назад

    One thing to keep in mind...stating the obvious, but sometimes it's that simple. You work 4 days for 1k ea. I work 2 days for 2k ea. It's the same ammount of money, remember not everyone is your customer and the person that gets every job isn't pricing appropriately. You should focus on perfection and going the extra mile more then doing more hours for less, careful when discounting larger projects, the complaints you will receive will not come from your large jobs, they will come from the small quick jobs

  • @CountryMileGarage
    @CountryMileGarage 5 месяцев назад +1

    It starts with debt how much do you have vs the other guy

    • @DigginDownSouth65
      @DigginDownSouth65  4 месяца назад +1

      I'm not sure I agree with that. Higher debt would definitely make staying afloat more difficult and require more money coming in but there's an operational cost to even paid off equipment that should take into account a replacement value. Why sink 80K into a machine to run it for next to nothing and have it worn out in 3K hours leaving you without the 80K to replace it. Operating below a calculated standard is essentially just giving money to your customers instead of them giving money to you for your time and equipment.

    • @CountryMileGarage
      @CountryMileGarage 4 месяца назад

      ​​@@DigginDownSouth65 thanks for the response been operating paid for for 15 years and you'll have a completely different look on everything you just stated

    • @DigginDownSouth65
      @DigginDownSouth65  4 месяца назад

      @CountryMileGarage that’s awesome! I hope all mine last that long!

  • @Nicktexas_
    @Nicktexas_ 3 месяца назад

    I need to get out of El Paso and charge 6000 for three days of work that’s wild

  • @terrylutke
    @terrylutke 6 месяцев назад +5

    These days contractors might be getting a little too comfortable tossing around fat margin quotes. Better be ready to sharpen pencils for when the good times end. Lots of your customers could soon be looking to spend less and will gladly accept prices from lower cost contractors. My advice would be to reduce debt and other overhead so you have room to better compete for tight budget business.

    • @DigginDownSouth65
      @DigginDownSouth65  5 месяцев назад +6

      I’m all for sharpening the pencil, but some of these prices are go broke then go home kind of pricing! 😂

    • @terrylutke
      @terrylutke 5 месяцев назад +1

      @@DigginDownSouth65 Underpriced competition is always a factor. I guess my point would be to avoid the temptation to bulk up equipment fleets with shiny new equipment, and fat payment books.

    • @DigginDownSouth65
      @DigginDownSouth65  5 месяцев назад +2

      @@terrylutke that makes a lot of sense! …I just added a ton of new equipment.. 😂 but I didn’t opt for the shiny expensive pieces. Hopefully it won’t bite me!

    • @louskunt9798
      @louskunt9798 5 месяцев назад +1

      @@DigginDownSouth65you have the right mindset. NEVER race to zero with the “cheap” competition. ✌️

    • @TrevorDaniels-tq8kt
      @TrevorDaniels-tq8kt 5 месяцев назад +1

      There's no such thing as tight budget business your either making money or your not tight budget business is working for wages you don't work for wages after you've bought a half a million worth of equipment

  • @ryanchaloux360
    @ryanchaloux360 4 месяца назад

    I'm able to do the job less than the competition because I don't have the overhead most guys do. So I'm able to transfer affordable work to the customer

    • @DigginDownSouth65
      @DigginDownSouth65  4 месяца назад +2

      What additional overhead are you thinking of? While I do have an office and staff, typically when I calculate my operational costs, especially for mulching, it consists only of the repair and replacement cost of the machine, mulcher, truck, trailer, and miscellaneous tools. Even paid off equipment should be working with a replacement cost in mind. I'm interested to know if you have put a dollar figure to your hourly operational costs.

  • @LB199-fj5ho
    @LB199-fj5ho 10 месяцев назад +3

    $1600 was also my price.. 2 years ago. Go up

    • @DigginDownSouth65
      @DigginDownSouth65  10 месяцев назад

      Wish I could!

    • @LB199-fj5ho
      @LB199-fj5ho 10 месяцев назад

      You can. Just start bidding half your jobs higher. I’m 2-2.3k a day in Louisiana. Dedicated getting 2.7-3k. Both 8hr minimums

    • @DigginDownSouth65
      @DigginDownSouth65  10 месяцев назад

      @@LB199-fj5ho I’ve got guys advertising for $905 a day here in South Alabama. It’s pretty well turned into lawn care! I try to price everything out by the job vs day rate.

    • @LB199-fj5ho
      @LB199-fj5ho 10 месяцев назад

      Damn.. that’s rough. Idk how anyone can make anything under 1800

  • @tjruff17
    @tjruff17 5 месяцев назад +1

    That $1k/day dude ain’t got leather seats and sunroof!

  • @jejoko
    @jejoko 5 месяцев назад +1

    Bro you really need to learn how to cut expenses and work on your own equipment. Those hydraulic lines can be reman for $100 to $150 and you can replace it yourself.
    Many operators think the need heavy equipment and feel like they need to bulldoze thru every job.
    I have light equipment and get the job done and at a good rate. I don't even have a big skidstreer.
    Finding the right attachments and being smart about using them.
    Having systems in place, finding ways and processes to work smarter.
    Learn to weld and turn wrenchs and buy used quality equipment.
    Don't overpay for warranties and services and give yourself a raise and open more opportunities for yourself by living within your lowest budget and not over spending or splurging thinking you deserve it because "you work so hard"

    • @DigginDownSouth65
      @DigginDownSouth65  4 месяца назад

      My local hydraulic shops will not put a new fitting on an old hose, I assume that's what you're talking about with Re-manned hoses? I'm not sure I would want a Re-manned 6 wire anyways...
      I fully agree with you about doing a lot of your own maintenance and repairs, I tend to do the majority of mine, but I do have a couple of good mechanics that I can call in when my skills and patience are exceeded! lol

  • @MrAllmotorB
    @MrAllmotorB 3 месяца назад

    Honestly, I would be fine with the customer talking about low bids. Let the customer take the low bid give them your card and say well in my past you get what you pay for there’s no way you can stop it being control of the low bids guys like that won’t be around forever, no way is he posting or advertising pictures leaving stumps behind

    • @DigginDownSouth65
      @DigginDownSouth65  3 месяца назад

      Absolutely agree! No way they’re advertising pictures of shoddy work.
      I also like to hear my competitors pricing to help me keep a finger on the pulse of the market!

  • @grownnotflown2
    @grownnotflown2 4 месяца назад

    No you don't get paid for travel time. Your first error is thinking that hourly is the way to bid a job

    • @DigginDownSouth65
      @DigginDownSouth65  4 месяца назад

      Fully agree! I prefer job pricing or day rate when necessary.