How do you advertise? I've got to figure out a different market....

[Welder Dave]

It's not easy for a 1 person company. You have do the jobs you have, visit potential jobs and create an estimate or quote, answer the phone and schedule everything so your customers are happy. If you get bad weather really throws a loop in things. New customers want you ASAP but you have to finish the previous jobs before you can get to the new ones. My dad gave me some good advice. He said to concentrate on the jobs you have and not the jobs you may or may not get. It's also OK if you lose a job or to say no to a job.

 

[fastline]

I’m one of those “word of mouth guys” you mentioned, but I’m going to throw in my 2 cents worth anyways. I’m a small one man show with a backhoe, dozer, ctl, mini ex and single axle dump truck. FWIW I’m completely covered up with work and also near the top end of the price scale for our area, but it has taken nearly 15yrs to get there. A few things I’ve found that will make for a profitable construction/excavation business:

- Do premium quality work and charge accordingly. Along with that cater to higher end clients, FB or craigslist is not where you find them

- Sell the finished product, not the equipment or service (don’t advertise as ‘backhoe work’ or ‘skid steer service’.)

-I personally bid every job, and look at every job in person before giving a price. I find it much more lucrative and rewarding than doing hourly work.

- Once you set a price stick to it, even if you lose money. Next time you’ll do better at bidding. The only exception to this is adding a rock clause or if additional work is added.

- When you’re on site up-sell other services or potential projects the customer may be interested in. They may not know all of your capabilities/services, or if that ‘problem area’ could even be fixed.

- Often times the way to make the most money with equipment is by using it to support the entire construction project. Instead of just doing the dirt work for a barn, I’ll clear the land, build the pad, mill the lumber on site, build the barn, maybe do some fencing, etc etc. Vertical integration.

-Use versatile and easy to move equipment. Anytime your moving equipment you’re losing money, make it as easy as possible. On small jobs I’ll load up my ctl and mini excavator on the trailer, throw the extra buckets for the mini, and a set of forks and grapple for the ctl in the bed of the dump truck. Now in one trip I have everything I need on site to do an extremely wide variety of work. On slightly larger jobs I often team up the backhoe with the dozer, again a combo that can do almost anything.

Hope some of this helps.

I think you and I are similar. Other than having to use certain words to avoid the bots on FB, I have never put myself out there as just a hole digger. My job is to suit the need, whatever that is. At least with my backyard customers, they don't know a dozer from a backhoe, they just want a job done. Most of them accept my cheapest option which is rough grade with the hoe rather than more money to get other toys/equipment onsite.

I also learned in our other businesses that just trying to be the cheapest is NOT the right path. I am not even wired like that. I want to do my best and improve on every job, usually wasting more time than I should. I usually can be found on a job just standing there for 30min making a mental plan. I find that it really helps!

And I do agree with the contract pricing and that is how I try to do business. I have never went to ask for a bump, even when I should have. Last pond we ran into a huge trash pit with car parts! I decided to track out about 50 buckets of crap to put in the dirty piles. I figure it cost me about 3hrs. I just ate it as the customer was otherwise very happy.

I know what you are saying about the customers but I am very curious what you recommend to find them? Literally no one else I know is either in this space or cares.

 

[fastline]

If you could find a couple contractors like CM that might sub out smaller jobs or could refer small jobs they hear off to you is worth looking into. If you do good work your name will get around. The last thing you want is to have a larger contractor upset with you because they referred a job and the customer wasn't happy with your work. A lot of jobs go out on a tender too. Gov't. jobs for sure. Find out how to get your name on the tender list and you'll be sent the details of the job and asked if you wish to submit a bid. Jobs like demolition are often put out for tender. I'm sure there must be some excavation type jobs too.

Good points there! In the MFG industries, we call them sub tiers but I think you are more referring to handing off work rather than subbing? Either way, it is probably smart to try to make those contacts. I need to do some thinking there. I have talked to a few guys just in general convo and they pipe right up when they hear where I used to work and what I did. The respect is there! It's also known that we ran a right ship, put safety first, and ran good equipment.

I would say there there hasn't really been a time I'm aware of that my quality was ever lacking, it was more about the speed. I always put quality ahead of speed. I had to go fix someone's 7 figure mistake with RPC where the other foreman got in a hurry and had his numbers all jacked up and came into the drain box feet off in elevation. No, you don't get to go back and fudge the last section like that didn't happen. On that job, of course I was under the gun as they were bleeding money, but I was told my extra effort saved them a ton by recovering every single pipe section. It was one of those deals where I had a team, I told them I had an idea for a recovery tool, and the fab man came to hook me up.

Anyway, great idea on larger outfits, but they rarely want to talk to me. Usually I just find the operators that 'want a job'.....lol Me too man....me too.....

 

[Welder Dave]

CM said he will sub out certain aspects of a job and marks it up 17%. He recently used a tree service who is also on this forum. It all depends on what equipment or skill set is needed.

 

[MG84]

I know what you are saying about the customers but I am very curious what you recommend to find them? Literally no one else I know is either in this space or cares.

Depending on how fast you are trying to grow the business you may have to advertise in the beginning. I’ve been full time in this business since 2007, but actually started around 2000. Back then it was just a side job (I was in HS), and most of the work was for neighbors, friends and family. Only advertising was some business cards I had made and word of mouth from good quality work. Business was slow, but that didn’t matter back then, I was building my name and reputation and also reinvesting in the business.

Fast forward to 2007 I had recently graduated from college and also got my contractors license. I had a small customer base already but not enough to make a living on. On top of that, 2008 hit and the bottom fell out of the market. I still remember I only brought in $17k that first year and we were barely scraping by. I had to start getting a bigger (much bigger) customer base if I was going to survive.

My ‘advertising’ if you can even call it that was very simple. I got new business cards made (double sided, glossy, full color, heavy card stock), made some tri-fold brochures and made a website. I made sure everything was top of the line and something you might get from a multi-million dollar company. Now that I had something to give to prospective customers with my info and a showcase of my work it was just a matter of getting the word out. I’d leave my business cards and brochures at every farm store, gas station bulletin board, supply house etc in the three county area we cover. Next was just good ol fashion salesmanship.

Anytime I was on a job I’d see if the neighbors needed any work done “while I was there.” If I saw a job site left with a poor quality job done I’d stop in and offer to fix/clean up/make right. Driving down the road I’d see farms or properties with ‘problem areas’ that others had tried to fix and failed at, often washed out driveways, gullies, erosion problems etc. I’d stop in and talk to someone or just leave a card/brochure and a note. Also as I mentioned before, when on a job up-sell whatever you can.

With all that being said, to be a good salesman first and foremost you need to be courteous, professional, knowledgeable and have a tidy appearance. You can’t be pushy, instead of coming across like you are looking for work, you need to appear almost as if you don’t need the work but are offering them this service to help them out. And that really is the big thing, you need to sell your services as a solution to a problem, and that you are the one that can make it happen. The saying ‘Fake it until you make it’ actually has some truth to it.

 

[thepumpguysc]

That’s almost EXACTLY how I started..& it’s STILL working today..
Just yesterday I got calls from NC, Tenn and NY.. How the he!! they’re getting my phone number is beyond me.. lol
I don’t mind 1 bit because it’s work.. but it still freaks me out..
Do u have any idea how many fuel shops there are between those States and mine.?? & they’re CALLING ME.

 

[CM1995]

- Anytime your moving equipment you’re losing money, make it as easy as possible.

We charge for mobilization as part of our bid. Typical job is 3 mob's and I list it as a line item. It's not a money maker by any means with labor factored in but it's not a loss either.

 

[Welder Dave]

That’s almost EXACTLY how I started..& it’s STILL working today..
Just yesterday I got calls from NC, Tenn and NY.. How the he!! they’re getting my phone number is beyond me.. lol
I don’t mind 1 bit because it’s work.. but it still freaks me out..
Do u have any idea how many fuel shops there are between those States and mine.?? & they’re CALLING ME.

You are the pump king for good reason. You should have merchandise like hats and tee shirts with cool graphics. People would be glad to advertise for you even though you don't need it. This forum probably gets you a bunch of work.

 

[thepumpguysc]

Yes it has Dave..& I thank each and every one of you.!!!

 

[Welder Dave]

You've helped countless people including me save a lot of money. I'm sure if I would have asked one of the shops here about my leaking cover plate they would have told me I need the pump rebuilt. You knew exactly what little parts I needed. I had to buy a kit for $67cad. to get $5 worth of the parts I needed but it was a lot cheaper than having to go to a shop. My mechanic friend knew exactly how the throttle linkage came apart and had it fixed in about 10 minutes.

 

[GODSDOZER]

mobilization is not a loss, If I move a D9 or Excavator or small dozer or whatever, that is always calculated into my bid along with a %15 add on. I don't pay to go do customers work.

 

[MG84]

We charge for mobilization as part of our bid. Typical job is 3 mob's and I list it as a line item. It's not a money maker by any means with labor factored in but it's not a loss either.

mobilization is not a loss, If I move a D9 or Excavator or small dozer or whatever, that is always calculated into my bid along with a %15 add on. I don't pay to go do customers work.

Yall are completely correct and I do figure that in to an estimate, especially if its any distance. However, in my mind, trucks and trucking are a necessary evil to make the business go. They are simply there to keep the machines earning money. As a one man show I try to minimize the time I spend in the trucks. I know this may be a backwards way of thinking but it helps me be more productive.

 

[GODSDOZER]

I sold all my hauling trucks about 12 years ago. I contract all hauling out. Got tired of insurance, DOT, maintenance and repair, DPS roadside inspections ect. Much more productive for me to have it moved by someone else.

 

[CM1995]

Cheaper for us to hire out the mob's as well. We'll move the small stuff just can't justify a lowboy.

 

[materthegreater]

It's funny how some guys just like being in a truck. I was talking to a guy the other day that hauls all his customers driveway material with his one ton. Said he had a job coming that would take 50 loads. I would go crazy doing that. I don't mind picking up a load or three with my six wheeler but I'm not interested in spending that much time in the truck. There are some instances when it's better to do my own trucking for the timing works out, or if I need to get it into tight places or off road.

 

[GODSDOZER]

Here in east Texas, here are some round numbers for my contract hauling.

Cat D9 or D8 within 50 miles..........$1500-$1700
Cat D6 .........................................$900
Cat D5..........................................$700
Komatsu 200.................................$900

I did the math for my company (one man operation, sometimes a operator/helper) and it pays to just contract out. Granted, my jobs are usually 3 weeks, to 3 months or longer. If the customer allows me to leave the machine on their property until I have a job for it, its only a 1 time move in fee, if not, I charge both ways. Usually, I have another job to move too.


It pays to contract it out.

 

[Welder Dave]

Those rates seem a little high to me. If it's only 10 miles or so will they give you a little better deal?

 

[fastline]

Here in east Texas, here are some round numbers for my contract hauling.

Cat D9 or D8 within 50 miles..........$1500-$1700
Cat D6 .........................................$900
Cat D5..........................................$700
Komatsu 200.................................$900

I did the math for my company (one man operation, sometimes a operator/helper) and it pays to just contract out. Granted, my jobs are usually 3 weeks, to 3 months or longer. If the customer allows me to leave the machine on their property until I have a job for it, its only a 1 time move in fee, if not, I charge both ways. Usually, I have another job to move too.


It pays to contract it out.

Good God man! I feel like I am getting a bargain! Granted I don't have a D9 to scoot around. Probably why I still pay for mobs and try to schedule things in groups or areas.

I know someone mentioned about me 'still' paying to have my equipment moved but I have looked into it strongly and unless I keep wheels spinning on a rig, the government has set it all up so I will lose every time. Apparently there is too much money in scamming the trucking industry with fees. This is before you consider the tires, insurance, maint, fuel, etc, etc. Not to mention that $80k used low boy I would need. Just NONE of it could make sense in what I do right now.

Appreciate all the comments so far. Some are very helpful and some are just things I don't want to realize but should. Probably the biggest issues I face right now is having full capacity to move dirt any real distance because it will take more than equipment, it will take another human, and I just don't trust people anymore. I have not been able to justify a dump truck, but I did try to buy a huge broken haul truck local, which is a weird find around here. That deal flat lined though.

 

[MG84]

Appreciate all the comments so far. Some are very helpful and some are just things I don't want to realize but should. Probably the biggest issues I face right now is having full capacity to move dirt any real distance because it will take more than equipment, it will take another human, and I just don't trust people anymore. I have not been able to justify a dump truck, but I did try to buy a huge broken haul truck local, which is a weird find around here. That deal flat lined though.

If building ponds is your thing and you want to do it by yourself you need a scraper. Either self propelled or pull type, it’s the only efficient way for one man to do that type of work.

 

[AzIron]

1500 to move a d8 an hour away is a bargin just having my 220 excavator usually costs me minimum of 700 bucks a d8 is a lot more machine

I guess location really matters