There was a little discussion about bidding jobs that came about in the thread I posted about getting a loader. I've been meaning to start this thread since then but have been busy until now.
When I bid jobs, I look at it and figure out how many hours it's going to take to complete the job and then multiply by the appropriate work rate. We have a rate for stump grinding, travel for outside of our normal service area, consulting, general labor, etc. I asked about possibly raising our rates to cover the added expense of having the loader on the job and several people said to keep the bid of the job the same but I will get it done faster because of the loader, thus making more per hour. That will work for now since I am used to bidding jobs without having a loader but what happens when I start reducing the hours needed because of the loader? Then the job bid will go down and I'll make less per hour because I'm more efficient..... That probably made no sense at all.... I guess I am wondering how you all bid jobs. Do you just look at a tree and say that's a $500 tree in this market so that's what I'll bid? We are still trying to figure out how to adjust our prices, if we're even going to. It's too early for us to know how the loader will change our productivity.
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