Pricing Issues
PumperMike 04-27-2009
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Pricing Issues - one of the many reasons the industry is in the condition it is.  Combine this issue with oversaturation of the market by all Pump/Dealer companies and it is easy to see the problem.  Let's take the prior example of a $150.00 footer price. (Mid-Size Boom not line pumps) In some areas this might work IF you had 10-12 footers ready at one location and went from one to the next consecutively. (Economy wise I don't think this is happening too frequently.)  In this area - you do not.  So, to fill up with water - get to the job - set up - pump the footer - wash out and tear down - and move to the next you would be looking at lets say 4 footers in a 10 hour day.  4 footers x $150.00 = $600.00 for the 10 hour day.  Now let's look at some costs.  We have pump insurance, operator's wages, fuel, workmans comp, unemployment, licensing for the pumps, wear and tear as just some of the direct costs of completing the job.  The we have to factor in the wages of all the employees in the company that most certainly contribute to getting the job done but however do not participate in the actual revenue process of pumping the job such as dispatchers, sales men, management, mechanics, etc.  Very important positions however the revenue is created by the operator that is pumping that $150.00 footer.  So then one must take into consideration not only the wages of those - but the unemployment insurance, workmans comp, health insurance, etc.  Then you factor in insurance on any pumps that are sitting - even though they may not be working in the field, they still are required to have insurance on them.  And of course we have the overhead of the buildings and equipment used for maintenance on the pumps.  Not lastly we have the payment for the pumps and any pumps that may be idle.  Perhaps I am wrong but I don't see this type of pricing as generating anything but a small cash flow - but not the type of cash flow that will sustain a company for any length of time.  However, if someone could show me the benefit of this I would gladly look at it.


Many 04-27-2009
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your right,there are way to many fixed costs associated in any business.When one looks at exposure to claims many larger companies have went self insured to reduce costs.

Long ago the big truck companies (ie JB Hunt) figured there equipment produced x amount of miles per day and x amount cost/profit.There was also great advantages to leasing equipment (taxes).When I was young my dad was an excavator outside Chicago,he explained.Kid if you have a couple trucks you will probably make money,up to 50 and a high risk of going broke.He felt that over 50 trucks had the best chance of making it,the good would over ride the bad.That was the 1960's and his thoughts still hold true.

http://www.businessinsurance.com/cgi-bin/article.pl?article_id=25868

I have yet to hear of any other equipment manufacturer (ie cat,john deer,etc) allowing companies getting prefered prices and creative financing that run said equipment.They have always been independant dealers.

There is no logical answer to your question,but I just made a fresh pot of coffee.


eugene 04-27-2009
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i think you missed the part about the customers not paying thier bills, then you spend your time chasing them down pissed off for that few hundred bucks and now you have one less customer. not a good program but thats reality.

PumperMike 04-27-2009
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Eugene,  very good point - so let's add those uncollectable debts in there.  Anything else someone can add?

murf 04-27-2009
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operators taking the meaning "on/off highway" a little too far, site damage where you spend the next 6 months chasing the claim for $ 50, trees that just jump out of nowhere, busses that dont stop .......

bigstick 04-27-2009
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Well Art it seems as though some of the smarter ones who have been destroying the price of pump services for many years are falling by the wayside.  Maybe when all this mess is cleared up we can get back to making money in this industry like we used to.  Karma is a bitch.

biged 04-27-2009
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Art ,I pump but not at 125.00 per footer I done one last week it was 35 yards I got 600.00 with my 32 Meter it only took 3 hours travel and all, tomorrow I have a 25 yard one with my 5/45 Olin its a 1 1/2 hour drive one way it will cost the builder about 600.00, there is no way I would roll out and pump at 125.00 per job. A lot of my customers want a bid price and thats a big  chance so I always come in higher that not bidding.

TooTall 04-27-2009
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 These are the people that have no "business" owning a pump in the first place. I'm guessing they are in 1of 3 boats?

 1st boat, They own a pump that is as old as they are and cost less than their pick up truck and the only overhead they are aware of is the blue yonder?

 2nd boat, They have been handed a pump for zero down with no payments til whenever and lack diploma, g.e.d. or basic math skills so a buckfity sounds like big/easy money?

3rd boat, They dont give a rats ass because their business is half way down the toilet and they're just try'n to keep the lights on and feed the dog? (will work for fuel/food)   


murf 04-27-2009
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Average job price $475??  if the top end is $700+....... bottom end must be $250 or less....

TooTall 04-27-2009
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 According to recent coast guard news, boat#2 sank a couple months ago, boat#3 is taking on water faster than they can pump it out. This leaves boat#1 to watch out for! Now instead of having a pump as old as them now they can sell their Harley and buy nice/newer machines at auction. With the same g.e.d. (none) and the same overhead (blue yonder) any given friday he may do the footing for a hundred and fifty bucks because he actually only needed $100! One fun ticket ($100) is plenty of cash for a friday night. Heck he might can make 3 or 4 hunjed in one day!

 But seriously,  it's going to be interesting to see where alot of these pumps show up? 


Many 04-28-2009
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murf 04-28-2009
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art, have read your post ,"my average 3/4trailer job (tk50 with 100ft of 3" hose) is about $475.00 which can easily go up to $700 or more......"

now this is very simple maths... if your average is 475 and the top end is 700 + then the botom end has to be equal proportion . ie 700-475=225   then 475-225= 250 

top end 700+  average 475    bottom end 250-??????????


murf 04-28-2009
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think what you are trying to say is that a NORMAL days hire is around the 475 mark going up to 700+ , therefore  this is not the "average" which must be considerably higher????


TooTall 04-28-2009
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 We dont need any math, grammar or law of average lessons here fellas. Save it for the guy in boat #1.

 I like your pricing structure for line pumping art. I like the dollar minimum vs. hours and the 100+feet charge. That way you get paid more when you get your ass kicked by 300' of hose. And when you only use fifty feet of hose and still crank out several loads in just a few hours that's a nice bill also. Makes more sense and money for line pumping rather than the usual xxper.hr/$2+per.yd/xxtravel+3hr.min.  


PumpKid_88 05-01-2009
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id have to go with big stick its tru there ppl out there just doin it for nuttin i mean use small guys had it made in the day but theres a few ppl that is goin under us and cutin our prise and doin it for 125 a job and a guy like us doin it for 180 witch is cheep heck wen i started pumpin the pump woodint leave the yard for that kind of money it was 225 flat under 10 yards and a wall that we wood have to walk wood be 300+ now we can even do that and for the boom guys there doin small line work just to git the oil runin in the pump its sad to say but heck the reson we all aint workin is cuz of the ppl doin us rong and thay dont no a dam thing about pumping concrete nor work on the eqt its sad im tellin ya i use to make good money no im sitin at home and wondering what to do with my life now i had it maid till the Spanish ppl that cant even talk English is doin my job and i was born and raised here not tryin to diss on no one just tryin to git my point across