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Saronville NE | Have done custom work for years, started when I was 14 with my first baler, still do hay, now also plant, fertilize, haul hay etc. It is a very fineline to walk to make any money. Will be upfront, you cant do custom work with junk or old equipment, downtime will lose your customers and repairs unless able to do almost all by yourself, will keep you broke. Have been in it long nuff now, we have the same consistent customer base yr in and yr out that helps a lot, but costs have gone up so much since we started the rates we get now, don't make the money we did when we started. I get chastised on another forum page on here for trading balers like we do, learned we just instantly trade at 10k bales, the extra upkeep after that is so close to a new payment a yr, it just doesn't make sense, and if run too long, then its the same as buying new outright, then you cant afford the payment either, gotten in a program now, it took us yrs to get their, but farther ahead this way. Other thing is have to cover acres to make it work, if I cant avg say 3500 bales a yr (round) I might as well quit, it wont make payments, repairs, fuel, insurance, taxs, PT hired help, net wrap,depreciation, etc etc, the money looks good on paper but in the end, it is costing that to make money.
As others have said, and finding this out more every yr, you gotta charge, if not making money it isn't worth doing, equipment costs a lot to keep up and it costs a lot to trade, so you have to charge, if somebody wants to undercut you, that's fine, you take the loss in acres and either move on or quit of not making any money. Im too the point now though, if 'I have to run night and day to be able to make it work, screw it, it aint worth it, their is more to life then working 24 hrs a day. Talked to a fellow custom guy this spring, farms fairly big and does ALOT of custom work, says it is normal for him to not go home for 3-4 days and not see his kids, life isn't worth that, he said sure is good cashflow and keeps me in good equipment, it is good cashflow, but if I have to 3500-4k acres of custom and my own 2k+ acres, of fertilizn and planting with 1 16r outfit and run 24 hrs a day and not see my kids, IDC if I don't run new equipment, it isn't worth that.
Honestly if you don't have the equipment or are not in the need of updating something presently and can get by without custom to help pay for it, Id pry just stay away from it, it is a viscious circle once started. Pay more attention to your cows and other things and in the end you will pry make just as much money or more. Lets just say on my end another 320 a came my way, and could add another 100 head of feeder cattle, Id guit tomorrow, Id work less, and make more money. | |
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Is There Any Money In Custom Work?
