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Discussion in 'Heavy Equipment & Pavement' started by icex, May 5, 2011.

  1. icex

    icex LawnSite Senior Member
    from WV
    Messages: 389

    Just a question, how in the hell can someone make it trying to hire 4-5 employees running equipment for $55 a hour (two machines at once for $55 a hour)?

    A job im on right now the guy told me today that before I started this job that a competitor of mine came in trying to get the job with two machines at $55 a hour.

    I mean seriously, how do they even stay afloat with 4 guys working with him and fuel so high?..
  2. bobw

    bobw LawnSite Senior Member
    Messages: 807

    The easy answer is that they aren't trying to stay afloat for the long term. Sometimes they just need cashflow to keep the lights on until there is good paying work. And, sometimes, they don't realize that they're bleeding to death financially at that rate until the bank takes their machines.
  3. ccstrebe

    ccstrebe LawnSite Senior Member
    Messages: 579

    Robbing Peter to pay Paul, it is a viscious cycle and as long as you stay away from doing that and they don't, then they will either go belly up or become a non-factor as your competition because typically the and service becomes very bad when when doing work for cashflow.

    Your goal should be to give the very best price you can for a quality job and you will be the last man standing.
  4. blowerman

    blowerman LawnSite Member
    Messages: 70

    Sometimes they know the numbers real well and run a lean operation! Everyones numbers are different.
  5. bobcat_ron

    bobcat_ron LawnSite Fanatic
    Messages: 10,137

    It starts with siphoning the competitor's diesel tanks when they aren't looking.
  6. treemover

    treemover LawnSite Senior Member
    Messages: 422

    This is one of those guys that do it.....idiots
  7. allinearth

    allinearth LawnSite Senior Member
    Messages: 614

    And when their equipment breaks down, they don't have the money to fix it.:hammerhead:
  8. meets1

    meets1 LawnSite Gold Member
    Messages: 3,855

    Being lean, knowing numbers heck I think I am lean and know numbers. But its a joke what some work is going for in my area as well. I a better off at shop/home with family and letting machine's sit than spin my wheels for nothing.

    I ask one guy yesterday how the H he is doing it - he told all he is doing now is bidding to keep the lights on in the shop.

    I figure, if that machine is sitting - therefore not taking fuel, not putting 20-50 hours on a week - that machine should last that much longer for me in the long run.
  9. stuvecorp

    stuvecorp LawnSite Fanatic
    Messages: 5,246

    I got no hate for a guy trying to survive. Lets be honest clients don't have the money. I'm working for numbers I would have laughed at years ago just trying to survive another week or month.
  10. icex

    icex LawnSite Senior Member
    from WV
    Messages: 389

    I think my pricing is fair at $65 a hour for the excavator, skid steer and $85/hour for a JD 120D. Not bad, is it?

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