fair profits

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luvthetrobag

ArboristSite Member
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What do you guys consider a minimum fair profit for a days work. 1 climber 3 groundguys 250 brush b. chipper f 350 chip truck and a f 250 for wood.
 

That is highly likely the stupidest thing I have seen and i have had the internet for years.

As far as profit is concerned, I would say 1 climber for 1 day should equal about 8 x $75 hr and the 3 ground guys IF 1 climber can kept them busy enough to be efficient, 45-$60 an hr so 24 x $50 means that crew should be grossing $1800 a day which should be easily $800 or more after just basic labor costs. Minus overhead you would be closer to $700 in my mind but once again, every market varies.
 
What do you guys consider a minimum fair profit for a days work. 1 climber 3 groundguys 250 brush b. chipper f 350 chip truck and a f 250 for wood.


Shouldn’t this thread be in business? Hey move it down there and I’ll post, I have some thoughts, but this really doesn’t belong up here.
 
Why don't you ask the guys over at Exxon/Mobil what they consider "fair profit"
If we coud get away with what they are we would all be rich. Its funny that know one really gets a bid for medical or law services. their rates are all pretty similar and they make a good living without having to here things like knock off 300 from that kidney transplant and ill go with you dr smith or take care of my divorce for a grand and you got it.
 
Sorry, I think the guy in the Tree Tech video is funny.

Seriously with the size of your trucks it is hard to cut and haul $1800 worth of trees in an 8 hour day. Around here anyways. We are STUPID COMPETITIVE around here.

With a F250, F350 and a chipper. Plus two guys on the ground you should be able to pocket 500 a day(average) I would think. and if you do the math, working 200 days a year, that is 100K if you can stay busy. Better than most folks make in a year.
 
LOL, one of my best days I cut 24 live pines (many of them notch and drop), had two groundies dragging brush to the woods (out of sight, out of mind as agreed upon by the customer), had a pulp wood crew come in and haul the sticks I had cut and waiting on them and gave them a $50 tip for coming that day. In addition to this I had 3 hardwoods to put on the ground. Had to climb and piece out 2 of the hardwoods but I left all the wood for the home owner. Did this in 8 ours with 2 groundies for $2200. Didn't haul a thing, paid my groundies $100 a piece + $50 tip for the pulp wooders. I figured with gas, lunch and beer I pocketed $1800 in 8 hours that day and didn't haul a thing.

Don't let anybody tell you what your worth. Think big and think smart! ;)
 
I hear ya tree md. I love those days. Nothing like paying your guys and acting like it was a normal day, then going home to the recliner and opening the hunting catalog, or whatever you are into.

But from a business standpoint, you need to establish an average and try to maintain it so you can better judge how you are doing. As your business gets bigger that daily average should go up.

There is no better feeling in this world than clearing a couple grand in a regular day. Makes you wonder about these poor schlups in a cubicle who look at us like we are alky construction workers. If they only knew.
 
LOL, funny you should mention hunting catalog, I'm a bowhunting fanatic. I've got a new Bowtech Guardian on it's way to me from TX and just ordered sights, rest and quiver for it last week. I can look out my window right now and see the 4200 acre hunting lease I hunt. Heading out later to change the SD card in my trail cam and see what kind of pictures I've got! :D
 
LOL, funny you should mention hunting catalog, I'm a bowhunting fanatic. I've got a new Bowtech Guardian on it's way to me from TX and just ordered sights, rest and quiver for it last week. I can look out my window right now and see the 4200 acre hunting lease I hunt. Heading out later to change the SD card in my trail cam and see what kind of pictures I've got! :D
You got one less buck :laugh: and thanks
 
LOL, funny you should mention hunting catalog, I'm a bowhunting fanatic. I've got a new Bowtech Guardian on it's way to me from TX and just ordered sights, rest and quiver for it last week. I can look out my window right now and see the 4200 acre hunting lease I hunt. Heading out later to change the SD card in my trail cam and see what kind of pictures I've got! :D

LOL, I have found the trail cams piss me off more than anything. They will model for the camera but when I get out there they send their little sister in first to check it out.

We have some pics somewhere of a bear playing with the camera. That was pretty funny. Found it laying on the ground about ten feet from the tree.

I hunt with a club, we have about 2000 acres in sussex, va. We run dogs during gun season. It is the only way to get it done around here. I would like to see some of those guys on TV who say dogs are bad and it isnt hunting try and kill a deer around here.

That is where my fair profits go, Oh and my new Power Stroke Diesel.
 
They will model for the camera but when I get out there they send their little sister in first to check it out.

Little sister tastes better then big brother who has been feeding in the swamp for several years. But that is way off topic.

I too like the 200 day rule for budgeting. 5*52=260 figure holidays, weather, vacation, breakdown and sick days and your close to and you are lose to 215.

If you figure that you will average 4 days per week with 50 weeks you are right at 200, with a two week vacation.

So now what do you want to make net-net which accountant language for after tax net income.

if you are starting out and 50k is a realistic goal, then $250 per day profit will get you to your worst case. When figuring what you need to make per day to get there, ensure that you take all payroll costs in the math; Unemployment, W/C insurance, other insurances, fuel, a maintenance budget, and a tool replacement budget.

The when you figure that out, look to see how many production hours you average. Most companies really only get 6-7 actual production hours, very few can get all travel slack time figured into the price of the work. I.e. the crew shows up at 8, roll out at 8:30 and spend .5 hrs on the road, and so on. You pay the guys for 8 hrs and get paid for 6 on average, then you may pay one motivated person OT for saw maintenance and things like that that make you wonder where it is all going.

So your daily average payroll cost divided by 6 is what the labor rate should be in your budget.

Lastly, if you bid a job for 10 hrs during peak season, you may want to figure the OT in there so that job will pay for it, otherwise tweak the weekly average cost for peak so that the OT is paid for out of the billable ours, not profit.
 

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