Are Contractors rates having to go up.

[Kevtherev]

It’s a very tough industry to be in lot of youngsters don’t budget costs correctly sometimes using the farm tractor out a low rates.
Couple of older ones in this area now packed up.
Wouldn’t take much for me to pack the agricultural side up altogether TBH

 

[Kevtherev]

Although I was that youngster starting out from scratch with a tractor I bought out of savings aged 16.

 

[GeorgeK]

Only a matter of time until the inevitable post...

"I pay £15 an hour for hedge trimming (contractor supplies fuel) and not a penny more! List of lads long as my arm falling over each other to do it at that price! Old tractor and trimmer don't cost nothing to run, plenty in the job!"

 

[super4]

Contractor here this week spreading lime. Driver been doing 100hrs a week over summer! Loads of work but struggling to find drivers!

 

[M-J-G]

Only a matter of time until the inevitable post...

"I pay £15 an hour for hedge trimming (contractor supplies fuel) and not a penny more! List of lads long as my arm falling over each other to do it at that price! Old tractor and trimmer don't cost nothing to run, plenty in the job!"

And it's appreciating in value so it's actually paying me just to own it even though a pound buys you f**k all compared to 20 years ago when they bought the tractor

Best thing you can do with clowns who'll do that kind of thing is pimp them out for 20 quid, and make a fiver an hour off their stupidity and that's still too cheap.

 

[Pennine Ploughing]

Which one is that ?

 

[Derrick Hughes]

Dare say everyone has to start at some point , and that requires folk to give them a chance ?

Balance between loyalty and giving them a chance , some just chase cheap

 

[Hfd Cattle]

Yes I expect the contractors to put up their prices . They are running a business as well as me . I would shudder to think what their costs are looking at some of the kit . It's worth a lot to me to have a contractor who will turn up when he says and do a decent job with tidy kit . I certainly don't expect him to running a charity !

 

[Wellytrack]

It’s the work that people don’t see that gets me. You just turn up in the field and folk think you just dropped from the sky.

 

[Derrick Hughes]

It’s the work that people don’t see that gets me. You just turn up in the field and folk think you just dropped from the sky.

You sold your private Jet then

 

[Wellytrack]

You sold your private Jet then

GulfStream or go home.

 

[Cab-over Pete]

I’ve been putting my rate up pence per year when it really should have been pounds. In the last five years I haven’t added anything like what it should have been to stand still if I’m honest with myself.

It has to change I’m afraid, but I know for a fact some customers won’t like it and some rival suppliers will.

In the last few weeks a couple of lads drove over 60 miles to come and spread some lime in east Warwickshire. Good luck to them, if they’re that short of work near home they must be desperate or otherwise making a fortune from it, something which has always eluded me!

 

[Courier]

Now that's interesting
Wages and consumables would put the cost up directly.
But if you believe some on the Tractor cost to change thread, some machines don't depreciate very much at all so I guess there isn't an extra cost there to have to pass on in some cases despite 10 times the capital tied up compared to 20 years ago.

When, as you say, there is ten times the capital tied up then there needs to be ten times the return on that capital proportion of the overall cost of doing the job as well as the extra costs of fuel and other consumables - if you want to throw your own labour in for nothing then that is up to you but not recommended.

 

[Mr Mackay]

My mate works occasionally for a big contractor ,and he was told that to fill the 2 selfpropelled choppers and all the other tractors was costing £6500 in fuel a day ???

 

[Bald Rick]

It’s you lot who don’t pay your contractors on the nail that’ll kill them.
Too many farmers won’t pay until the SFP has landed.

Mind you, a fuel rise from 40ppl to over 80ppl within the last 8 months has to be covered somewhere

 

[balerman]

Although I was that youngster starting out from scratch with a tractor I bought out of savings aged 16.

Problem is no one wants to do it that way anymore.They want to start off with new kit on finance and wonder why they cant make it add up,takes time and hard work to build up a good reputation.Once you get there its easier to increase your rates a bit,which we will have to do now.

 

[B'o'B]

My mate works occasionally for a big contractor ,and he was told that to fill the 2 selfpropelled choppers and all the other tractors was costing £6500 in fuel a day ???

Probably £13,000 a day next year if prices stay where the are now!!!
They must be using at least 12,500L a day to rack up that sort of bill.

 

[M-J-G]

When, as you say, there is ten times the capital tied up then there needs to be ten times the return on that capital proportion of the overall cost of doing the job as well as the extra costs of fuel and other consumables - if you want to throw your own labour in for nothing then that is up to you but not recommended.

To me the only to cost a machine is to gauge it's replacement cost, I don't believe in the whole I got what I paid for it so it cost me nothing theory, particularly when the replacement machine has gone up but 50%.

 

[ollie989898]

Due to the hike in machinery and fuel costs along with the increase price in electricity and the standard of living.We do a small amount of contracting and grain drying and I feel we will have to charge more to make it worthwhile. Thoughts ?

I wouldn't feel guilty putting up your rates. Especially if you are cutting, hauling and drying corn for people. That kind of service doesn't come cheap as anyone will tell you. You are selling your own time and expertise, not just machinery.

If your customers value your time and input then they will carry on paying regardless of what the price is. They surely realise you need to stay in the job too. If you don't feel it is worth it then you can always pull the plug your end and I bet most people on this forum would understand why.

 

[puppet]

140hp tractor with hedgecutter maybe £80k.
2WD Ford 5000 with hedgecutter £15k.

Which outfit has the best margin? Contractor told me it is always the machine on the back which makes the money