why are clearing rates so low?

Discussion in 'Heavy Equipment & Pavement' started by PTSolutions, Feb 23, 2014.

  1. stuvecorp

    stuvecorp LawnSite Fanatic
    Posts: 5,214

    Because clearing jobs are smash and grab.

    As for low prices, I've heard its typically $1000 an acre here...
     
  2. JeffH1

    JeffH1 LawnSite Member
    Posts: 85

    Sounds like a tough gig. Like others said, if you're going to bid, bid a price where you are comfortable with and make it profitable for you. If you lose, you lose. Make it worth your time.

    Where are you in Ohio?
     
  3. PTSolutions

    PTSolutions LawnSite Silver Member
    from OH
    Posts: 2,328

    Update: Winning bid was $21,xxx submitted by a tree services company. If I was positive I could get the two pieces of equipment I needed in time for this job my bid was going to be $20,500. This was ~4.5 acres of clearing.

    I drove by there to see if they made any progress. Nothing was cut yet and only saw these two machines. 299d with tree shear and this forestry equipped lgp dozer. Both had stickers on them for a lumber company, so the tree service company sub'd out the clearing.

    [​IMG]
     
  4. easy-lift guy

    easy-lift guy LawnSite Gold Member
    Posts: 3,376

    Obviously involving the tree services company was the key. Sometimes it is better to make some money from a job and grow into expanding your business over time and as capital becomes available. You will have other chances in the future.
    easy-lift guy
     
  5. NEUSWEDE

    NEUSWEDE LawnSite Bronze Member
    from Maine
    Posts: 1,147

    Geez up here the timber guys pay the land owners for clearing! I had a logging company look at clearing 4 acres of pine they said worse case it would cost me $2500 if they couldn't make enough money but said on 4 acres they would probably pay me $2500-5000.
    Seems like you psyched yourself out on the bidding worrying about what others were going to bid when the bid ended up being much higher. I learned a long time ago to focus on what my company is doing and not what others are. Plenty of work to go around for all!
     
  6. P.Services

    P.Services LawnSite Fanatic
    Posts: 6,322

    doesnt seem cheap to me. Its all in your head. Should have bid on it.
     
  7. DLONGLANDSCAPING

    DLONGLANDSCAPING LawnSite Bronze Member
    Posts: 1,418

    you dont have to be the cheapest and i understand that you couldnt get equipment by the deadline, but for 20k thats a decent margin. You could have rented for a week, lined up trucks to load and take away, and rented a 12" chipper for a couple days. The way i see it, winter work is tree work. If you cant make money landscaping when it is snowing, why not cut some trees down and start some cash flow.

    We did a 6 acre job last year for 23k and it was mid summer and it got muddy. We could burn all brush onsite and hauled all logs off site and dropped off at one of my buddies log mills in the thumb area of Michigan.

    I had 5,600 dollars of expenses over a 4 day, 36 hour period. There was a couple huge walnut trees but other than that it was 20-30 footers and a lot of brush.

    I guess i would have bid on that no matter what if i was you. Who cares if you came in higher than you thought the competition was.... which obviously was higher than you expected. I read the whole thread and actually got a stomach ache that you passed that up from not having the right equipment.
     
  8. DLONGLANDSCAPING

    DLONGLANDSCAPING LawnSite Bronze Member
    Posts: 1,418

    those expenses were all paid by the logs i dropped off at my buddies property. He made them into fancy 12 foot long tables that he sells for 15k-20k.
     
  9. AEL

    AEL LawnSite Bronze Member
    Posts: 1,724

    Not too bad, with 2 x 20-25 tonne hoes in that type of material you should be able to do 2 acres per day, 2 days to grind , plus removal of the mulch. I am assuming that they must have some value in the body wood.
     
  10. PTSolutions

    PTSolutions LawnSite Silver Member
    from OH
    Posts: 2,328

    Apparently you don't like to read properly. When talking to a few companies (who weren't bidding this) is where I kept hearing the low rates. If I had the equipment to do this I would have bid my 20,500 regardless of what I thought the other guys were going to come in at.
     

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