Just bought a mini digger how best to structure pricing, UK

[jasonf]

So I bought a JCB 1.5t full cab (good for wet weather). It was a bargain for what it is, took a well experienced friend and he thought I could happily list it now for 10k.

So I've been doing gardening work as self employed and this is a step up and out of that kind of work. I'm hoping for site work at some point, subby or such.

So my intention initially is just keep it to domestic work as I would need machine tickets (booking now) for site work.

Just bought public liability (1m) and Plant insurance (Up to 10k).

I'm semi rural and live outside a moderate sized town. Happy to travel but here is my issue:

I want to advertise for domestic work and keep the price low so I can establish myself while also keeping in mind the site work if it came about will need to be priced differently. I know some site jobs for mini diggers can command £500 a day.

I'm thinking to hire the machine by itself £80pd with myself £200pd and charge X amount per running hour to cover fuel.

Anyway, please weigh in with any advice it's all appreciated I'm sure other than on going running costs there's things I'm not thinking about.

Tia

 

[outtathebox]

@jasonf Seems low. If I could get someone in my area to spend a day on my property with machinery for $300 I would do it in a heartbeat. A lot of people seem to charge a flat fee just to get the equipment on site and go from there. Also, consider what a tool rental company would charge for the customer to pick up the machinery or have it delivered. I wouldn't let anyone else use the equipment either.

 

[jasonf]

@outtathebox You're right I need to call them.. most advertise through Facebook and they all play on words a bit. My friend just showed me an AD saying "See I can get a digger and a guy for 100 per day".. took a look at the ad and it showed a range of diggers and said call for a quote. I'm sure that would be micro digger and you pick up for 100 without a guy. I'd like to just be honest and say I want X for the machine and X for me plus X fuel per machine hour clocked. I think I'd limit my pool of interest if I don't offer machine only hire. It's a risk I know.

 

[johnnyboy1998]

@jasonf We would the backhoe at Lowe's for $120 a day before insurance

 

[bmh3d]

@jasonf That's way too low. You could get that for a half a day.

 

[jasonf]

@bmh3d See this is my thinking but I don't have tickets to go on a job site so I can do general private property work with it. I would charge 200 a day for a private household with myself included as driver. People would be pushed to pay that here but then I'm thinking if I advertise that will I pigeon hole myself into a low ball figure for site work, there's a 50+ housing development down the road and I'm eyeing that up for potential work.

 

[ulfhednar]

@jasonf How much did it cost and how much is the maintenance

 

[jasonf]

@ulfhednar Bought for £6000 ($7500usd) which was a steal for the price, she ain't a big machine. I guess general greasing, tracks will need replacing at some point, usual engine oil, hydraulic oil, pump, rams, seals. I'd hope to spend less than 1000 per year.

 

[ulfhednar]

@jasonf I was thinking of buying those tiny Chinese ones here in Canada for about $13k CAD or so for 1.2T brand new and renting them out.

Just didn't know if it is worth it.

 

[jasonf]

@ulfhednar So I bought this but there's loads of rows of unbranded diggers for sale new for 10k. Yeah I thought about it but they're not selling here. Especially with the weather as they don't have cabs.

 

[ulfhednar]

@jasonf That's pretty good deal for under 10k

 

[jasonf]

@ulfhednar Not my trailer or pickup .. I live in Wales so it rains every other day. Definitely an amazing buy.. 2 years ago I was thinking about a worse machine than that for 12k. It came up the other night and my partner helped me out to buy it. Good woman .. He said he had 30 calls in the past hour and that's exactly what the other guy said so I didn't doubt it. £200 transfer and I think I've done the right thing.

I wouldn't bother with the Chinese ones, they were always an option but I don't know. I think it's because in this area they're not a tried and tested option. They could be great but just lack confidence and worry about parts

 

[ulfhednar]

@jasonf How much did it cost and how much is the maintenance

 

[ulfhednar]

@jasonf How much did it cost and how much is the maintenance

 

[risenart]

@jasonf Mobilization fee- cast to transport equipment, includes gas and wear and tear on vehicle and trailer to get there, throw at least 100 profit on top.

Rest depends on T&M or hard bid.

You must charge the mobilization fee though. It should be around 100 + 1.25( cost per mile for vehicle) + 1.25 ( cost per mile trailer).

Also trip charge ( at least what I call it), hour minimum for showing up