excavation business/hrs per week charged out

Discussion in 'Landscape Architecture and Design' started by propwash, Jan 25, 2005.

  1. propwash

    propwash LawnSite Member
    Posts: 5

    Hello all. I have been reading your posts regarding hourly rates. Do any of you veterans in the business have an average of chargeable hours per week for a one man operation doing small jobs with a 10,000 excavator that can be used to figure annual profits and or losses. My best guess is that a person would do well to average 30 chargeable hours a week doing small jobs. I noticed some of you have a minimum charge. Has experience shown that a lot of the smaller jobs last less than an hour so that the minimum rate charged is a money maker. When I say a week I am talking about 6 ten hour days of actual work but as you know you can't charge for all of it. Thanks in advance for your replies. Kevin
     
  2. D Felix

    D Felix LawnSite Bronze Member
    Posts: 1,898

    If you are actually out on a job for 6 days out of 7, you should be able to charge more than 30 hours, IMHO.

    Even if every day brings about a new job, you should be able to charge for at least 7-8 hours. If the hoe is running, so should the meter. If you are on-site, keep track of time, that should all be billable, unless you show up earlier than told.

    Now, if you are in the office doing paperwork for one of those days for 10 hours, then, no, that's probably not billable and needs to be factored in on your charges.

    I think what I've seen, and makes the most sense to me, is a minimum charge, a 1/2-day charge, and a full-day charge. Basically you just want to make sure that you will at least make some profit every time you pull out of the driveway.


    Dan
     
  3. propwash

    propwash LawnSite Member
    Posts: 5

    Thanks for your input Dan. I am trying to put together a realistic business plan before taking the plunge. I previously owned and operated a marine dealership for 11 years and I know first hand the amount of hours worked and charged out differ greatly. I guess the figure I am looking for is the percentage of time a person would spend per week moving eqipment, scouting jobs, doing office work, unforseen repairs, fuel up and grease machine, dealing with customers and I'm sure there are jobs that don't go quite as planned where you have to eat some time. I started doing excavation with and old International back hoe as a hobby and caught the bug. I now go on sunday rides in a Komatsu pc 40 and get paid to do so most of the time. If I turn my hobby into my job I want to make sure it pays well. Thanks again for your input. Kevin
     
  4. D Felix

    D Felix LawnSite Bronze Member
    Posts: 1,898

    The more I think about it, the more I think you may have been a little closer than I was with your original estimate.... You will probably spend a fair amount of time chasing down work, at least in the beginning. Though, you probably need to set aside a certain time of day for doing this, most likely in the evenings.

    You might re-post this question in the heavy equipment forum to see what input you might get there. I know ksss might be able to give some input. I'd tell you to PM him, but your PM's won't be available to you for a while.


    Dan
     
  5. brentsawyer

    brentsawyer LawnSite Senior Member
    Posts: 663

    Industry standards shoot for greater than 80%. If you get to 90, you're kicking along.
     
  6. propwash

    propwash LawnSite Member
    Posts: 5

    Thanks guys. Thats some fuel for thought. I did post my question on the starting out in business board and got some good feed back there as well.

    Kevin
     

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