Started a New Stump Grinding Business.... Sheeeesh!

[ropensaddle]

When I started out 7 years ago doing machine work I quickly realized that I could not make it while doing work for other companies. I soon came up with my own product line that was automotive related which expanded to 35-40 items over 3-4 years. All parts were similar in features which greatly helped on production. I sold to a handful of wholesalers and retailers. My largest customer quite often ordered enough parts to keep us busy for 2-3 weeks at a time. A couple times that would be 2 months of work piled on top of everybody else. Without having a few nice contracts and small orders to fill in the cracks I would have never made it as far as I had. Some customers weren't worth the time of stuffing a UPS box so I would direct them to order from one of my larger wholesalers. They didn't like that, but the small orders just didn't generate profit. Basically like grinding one stump for some cheapskate. We did a project with our largest customer. I basically lost 300 hours of prototype and machine time as the project got canceled. Also played games with their accounts payable a few times. This was 1 year ago and the sign of the end for me. Being automotive related I also predicted gas going up a good $.75 would kill my market. It sure did.

This is not the best time for small biz for sure I have not profited greatly
and may be wasting my time but am in too deep to quit and pay for
the rest of my life. I must make it work and even if it means working
and not profiting much I still call the shots and don't have to put up
with some privileged young corporate punk calling the shots.

 

[masterarbor]

Startin' out is always hard. Hang in there and try to learn your lessons once. When you get a feel for how much stuff costs, you'll feel more confident getting what they're worth. Find a tree service that doesn't do stumps and try to get their account. Rope n' saddle is right though, big machines are what you're bidding against and it's hard to be competitive when it takes you 1 1/2 hours to do a 15" pear stump. Good luck!

 

[Treeinnovator]

when you approached the other tree businesses, did you offer them a % for each customer referral. sometimes that will make them more motivated to refer you instead of telling the customer to goto the yellow pages.

 

[OLD CHIPMONK]

I agree with Rope , when your buried , you half to work or starve! You mentioned stump teeth as an expense ! Let's look at bearings, belts, hydraulic hoses, gearboxes, bent cutter wheels, pockets, allen bolts, tires, batteries, fuel, oil filters, hydraulic filters, hydraulic oil ,anti-freeze & don't forget about engine breakdowns or repairs ! Also clutch assemblies. I agree with everyone ! Prices are just too low !!! The OLD CHIP spoke up . Oh, don't forget about a good truck to get that stumper from job to job !!! Along with liability insurance & workers comp. ! Old School thinking is still out there !

 

[juststumps]

Fourth job was a 15" bradford pear. This house was 2 miles from where I lived. It took about 1.5 hour total time and I received $70.

why did it take you 1.5 hours to grind out a 15" stump,, with a 352?????
a 15" pear stump, usually will take me longer to get the thing out of the trailer , than the grinding time.....

$100 minimum , if they don't bite ,, WALK !!!! the crap about "SO and SO " , doing it for less ,, my response is ,, WELL CALL THEM ,, YOU GOT YOURSELF A BARGIN !!!! JMHO

 

[Treeinnovator]

Fourth job was a 15" bradford pear. This house was 2 miles from where I lived. It took about 1.5 hour total time and I received $70.

why did it take you 1.5 hours to grind out a 15" stump,, with a 352?????
a 15" pear stump, usually will take me longer to get the thing out of the trailer , than the grinding time.....

$100 minimum , if they don't bite ,, WALK !!!! the crap about "SO and SO " , doing it for less ,, my response is ,, WELL CALL THEM ,, YOU GOT YOURSELF A BARGIN !!!! JMHO

das right. tell them to call those other tree hacks. i've done that and called their bluff. they usually lie to try and get a lower price.

 

[a_lopa]

The tow vehicle,and trailer costs are rarely factored as well.Think of the time in digging and hauling rather than what the next guy will do them for.

 

[davidshumaker]

If you see a market for your service, stick with it. The first year or two you will make mistakes in pricing and learn as you go. Learn from you mistakes. Customers don't know your costs and don't really seem to care. I'm in lawn care and when I first started out, I more or less had to take what I could get. After a couple years when you build your business, you can weed out the people that want work done below your costs. In any start up business, it's necessary to have working capital and living expenses saved for your first years.

 

[echoman8]

Stump Sheeesh!

For what it is worth:

I live in west Texas near Odessa/Midland. The rental for a stump grinder is $100 per day. Local arborists charge $5 per inch diameter (30" stump = $150) plus the rental fee. With this in mind, I price my quotes near but less than my competition.

I have my own grinder (knowing my competition has to rent) and this allows me to bid at a rate that helps my customer and maximizes my return.

Have you checked out your competition very well? How about the rental companies. Have you checked the rate of rental? If you have viable competition, how reliable is he/she/them?

Seems like a minimum per stump (small ones) and $6 per inch diameter (or more) on the larger stumps should allow a good return.

Just some thoughts. Hope they help.

de

 

[BC WetCoast]

We are both from the same state and the competition is friggin
fierce and cheapskates many so I understand his plight.
Factor in it is all friggin rock and then you have it, high
maintenance low ballers etc. You will not compete with
a small machine you need to be able to grind 70 large
stumps per day to come out. My best day was 127 mixed
some 50 inch some five but that was 1270.00 and 100.00
in fuel 1/2 set of teeth= 200.00 and you start to understand
my thinking.

Just curious, what kind of properties would have 70 stumps on them? I work in a large metro area, where the largest stump clusters would be the golf courses and even there I get 20 max.

 

[gr8scott72]

Just curious, what kind of properties would have 70 stumps on them? I work in a large metro area, where the largest stump clusters would be the golf courses and even there I get 20 max.

Around here, that many stumps comes from a home owner that had some land cleared. I ground for 7 straight hours for one such home owner. He had stumps spread ALL over his property.

I'm working on two other bids right now, one is about 100 stumps and the other is 60-70. Both are big, private properties kind of on the outskirts of town.

I just did a job today in a small residential place and it was over 30 stumps. In all, that job took about 4 hours.

 

[BC WetCoast]

Fourth job was a 15" bradford pear. This house was 2 miles from where I lived. It took about 1.5 hour total time and I received $70.

why did it take you 1.5 hours to grind out a 15" stump,, with a 352?????
a 15" pear stump, usually will take me longer to get the thing out of the trailer , than the grinding time.....

$100 minimum , if they don't bite ,, WALK !!!! the crap about "SO and SO " , doing it for less ,, my response is ,, WELL CALL THEM ,, YOU GOT YOURSELF A BARGIN !!!! JMHO

I agree, 1.5 hrs to grind a 15" stump with a 352??? A 352 isn't as powerful as Rope's machine, but still should only take 5-10 min of actual grinding. Sounds like he needs to learn how to grind (and sharpen teeth).

Assuming it's easy access, 1/2 hour from the time pull up to the curb, to the time I leave. Including raking it neat, blowing the grass and talking to the customer. Of course, the price had already been agreed to by the sales rep. As an employee, all I do is grind.

 

[ropensaddle]

Just curious, what kind of properties would have 70 stumps on them? I work in a large metro area, where the largest stump clusters would be the golf courses and even there I get 20 max.

Yes Golf courses I grind for 8 of them and they usually
have fifty each minimum. I also grind in rural areas where loggers
have cut in peoples yards one such customer had 95 and another 57!
I am working on getting a contract with power and water treatment and
municipalities to do theirs! The bids are competitive to say the least and
I would not recommend bidding unless you have 60+ hp.

 

[OLD CHIPMONK]

Rope- Old Buddy, it looks like you've found a new niche ! Sell the tree equipment & branch out with the Stump Grinder. Looks as though you need to buy a 2 nd. machine & let your wife run it. You two would make a good grinding team. The sky would be the limit on potential earnings. Just a thought!

 

[ropensaddle]

Rope- Old Buddy, it looks like you've found a new niche ! Sell the tree equipment & branch out with the Stump Grinder. Looks as though you need to buy a 2 nd. machine & let your wife run it. You two would make a good grinding team. The sky would be the limit on potential earnings. Just a thought!

Nah, hell I like misery, I would be lost if I did not have some impossible
nasty tree to do every now and then
Even though stumpin is easy it gets old after a few days straight and
I need a break and fresh air without dust flying but then again I am
done with these contracts got thirty to do soon time to go sell some mo!

 

[gr8scott72]

I ended up doing 5 jobs today for a total of $740! (Started the day with only 2 jobs lined up.) I was gone for 10 hours but that included the hour long stop at the tire store for them to put high pressure valve stems on the trailer tires I just bought from them. One was already flat. (Had to change it this morning too.)

I actually only put 3 hours exactly on "Babe" so that averages out to over $246 per machine hour.

I turned a $100 stump into $250 by grinding the wrong stump. lol I was given directions that weren't so clear and I was more than half way done with an almost 40 inch diameter oak stump when the customer comes out and says that is not his stump. I ended up finishing that stump and then did the one I was supposed to do. Then I asked the owner of the stump, humbly, for some money and even offered to do one other that was out there for even less ($100) than I had quoted the original stump ($150). She said that if I'd do the other stump she'd go ahead and give me the $150. The stump I was supposed to do wasn't as big and I got $100 from the original customer.

I've been VERY busy this week with a good pile of cash to show for it. Have one job lined up for tomorrow and will try to turn it into several jobs. Got this job from one of those signs that treemandan hates so much.

Now if I could just do something about my truck drinking up all my profit. It drained one whole 20 gal tank TODAY!! 7.5 MPG stinks. Anyone want to buy a F-250 with the 460 V8?

 

[OLD CHIPMONK]

Thanks for your honesty Rope ! It just seemed like that was the direction you were headin. I personally would like to be totally retired but my investments took a nosedive. The economy is crazy . Just keep on working for the time being.

 

[ropensaddle]

Thanks for your honesty Rope ! It just seemed like that was the direction you were headin. I personally would like to be totally retired but my investments took a nosedive. The economy is crazy . Just keep on working for the time being.

I can only hope for a retirement, the economy has really made me grateful
to have work as, sometimes I don't! Feast or famine if ya know what I mean?

 

[Treemann]

Stump Biz

I have had really good time with my Stump biz. I have been doing it for 15 years and doing fine. You need a good diesel 50 horse self propelled and you can bid over the phone. Have a minimum $85 for the first stump and then charge 15 to 50 for the next ones. I spend more time driving to the job than running the machine. I average about 1000 per week on the books. I keep my teeth sharp and I don't sweat it when I charge too little. The longer you stay in business, the more the people and companies come to you. You can't judge the biz in the first year or two. Just do a good job and the client list will grow.

 

[TimberMcPherson]

You mainly need only 1 thing to make good money from stump grinding (or treework or anything for that matter)

The right quality and quantity of clients


You can have a super slick set up with all the gear and do a wonderful job but if the clients arent wanting to pay for it, your toast.

I think some guys on this site dont relise how good they have it where they are, and some are struggling to make it worth while, and some are just struggling to make it at all.

Im fortunate where I am, but I need to get a high % of quotes to keep busy, and dispite this I manage to do quite well........so far.