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TreeHouser
Joined
Feb 26, 2012
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999
Location
Eastern PA
So I just started a small tree company. My buddy started one as well and we plan on contracting each other out. We are talking about paying each other 25-30 dollars an hour, but what I am having a hard time figuring is what additional fee is fair for the use of his truck and chipper when he works for me, and also for my truck and trailer when I work for him. It's a small bandit 90 but it's not taking much above 7 inches, and it's a lot slower than the kind of chippers we are used to working with. I mention this because the slower his chipper is the more I'm gonna end up paying him per hour. Anyone have some advise on this matter?
 
Good luck with the new venture.

I suggest keeping both of you accurate records of your dealings, so neither feels short changed. Renegotiate the price as you get more info on the production/ value, just as you would with any other contractor. Make the plan not to step on each others' toes by agreeing on starting times for jobs and being punctual. Agree in advance on who gets the jobs of the neighbors who need something, or if you will both freely bid on them, or plan to work them together, as possible. Don't do each other favors, do it strictly business with all terms agreed to, in advance. Keep the favors out of the jobsite.

One guy that I saw as friendly, sorta competition, swore he put in a pretty full day once when it was 4 hours, tops, on a crane job. He was late getting there, and had to get out early to go to court (surprise), leaving me short handed while paying $200/ hour. Owes me $1000, going on 2 years, long ago written off by me. No contract. Hand shake kinda thing. Once burned, twice shy.

If you're in the same market area, its gonna be a tough one. If you've got a family to feed, you don't have to share all your secrets. Even if you don't, you don't.
 
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  • #5
I've been working with him for two years now. I'd rather contract out someone I know and trust then some random guy. what I'm looking for is advise on how much to pay someone not who to work with.
 
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  • #7
I can rent a bigger better chipper for $400/day. but that's a lot to shell out right now. $50 a day doesn't sound like much but if I use his chipper twice a week that's $400 a month which is plenty to go towards maintenance.
 
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  • #8
MasterBlaster said:
Why don't you team up as one company?
Click to expand...

He didn't want to. that's how a lot of tree guy's do it that he know's and It's less of a commitment I suppose. also we both worked for the same company and I think he was worried it would look really bad us starting a company together.
 
I would want at least $150 per day to deliver my chipper and return it from the jobsite, for use, potential damage, wear and tear, etc.

plus fuel.

add'l for hauling/ disposal of chips.
 
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  • #10
SouthSoundTree said:
I would want at least $150 per day to deliver my chipper and return it from the jobsite, for use, potential damage, wear and tear, etc.

plus fuel.

add'l for hauling/ disposal of chips.
Click to expand...
I geuss that's not bad in the world of renting equipment. Money is always a sensitive issue. I just wanna make sure things are fair for the both of us. I certainly want to pay him more than the crap we were used to making. what to you other business owners pay your guys hourly if you don't mind me asking?
 
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  • #12
SouthSoundTree said:
Please specify for what skills you're asking about. What does he bring to the table?
Click to expand...

cert.arborist, Plant healthcare, He has been climbing for 6 years, does everything from planting to removals. and he has a stake body dump with chipper. My property is the dump site.
 
PM sent.

He's bring a good bit of equipment if he's also bringing a dump truck,not a PU to tow. At least $200-250 for a full day of chipper/ truck. He's probably packing his own good supply of saws/ climbing/ rigging gear, I suspect. If he's using his gear, too, then probably around $250-300/ day plus equipment. If he can put serious wood on the ground, maybe more.

You might have him give you a bid on a job, rather than a hourly/ day rate, but this would mean him going to each job you want to sub-contract to him.

Personally, bringing the necessary rigging for most jobs (no GRCS/ Hobbs/ big LD, just large and medium porty, and BMS Belay spool, and the ability to cut and lower my own stuff), fully insured, I'd be looking to sub at $50/ hour for me alone, for regular risk work, more for crane work or higher risk work. $400 or so per day for 12 yard truck and chipper. Roughly, $100/ hour gets me, gear, truck and chipper.
 
Sean has guven you alot of great advice. As to a partnership, I think Seperate businesses is the better way to go. You don't want to be married to the guy and in a partnership, you will. $400 a month? Thats payments on your own chipper that you can use every day.
 
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  • #16
sotc said:
$400 a month? Thats payments on your own chipper that you can use every day.
Click to expand...
ain't that the truth. If this guy doesnt have a cheap enough price mabye I'd be better off financing my own chipper. just gotta make sure thoes jobs are comming in.
 
Page said:
So I just started a small tree company. My buddy started one as well and we plan on contracting each other out. We are talking about paying each other 25-30 dollars an hour, but what I am having a hard time figuring is what additional fee is fair for the use of his truck and chipper when he works for me, and also for my truck and trailer when I work for him. It's a small bandit 90 but it's not taking much above 7 inches, and it's a lot slower than the kind of chippers we are used to working with. I mention this because the slower his chipper is the more I'm gonna end up paying him per hour. Anyone have some advise on this matter?
Click to expand...

Sorry no help on how much to pay him but goodluck on the new business. If you need any help on bigger jobs give me a call. We have our own knuckleboom now so we can def help you out on the bigger jobs you get.
 
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  • #24
Bodean said:
Buy your own chipper if you own your own company.

Like sotc said. That could be a bandit 250.
Click to expand...

yeah I definately will buy a chipper. when I say I started a company what I really meant was I registered the name and filled out some tax forms. I don't quite have the capital to buy all the goods yet. all in due time.
 
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