# Custom rates for 09



## kfarm_EC_IL (Aug 5, 2008)

What are your thoughts on pricing for the coming baling season.

I'm thinking on trying to leave pricing at 08 levels and test the market. We had a lot of balers come out of the wood work last year and not a good year to get going with the weather we had. So I'm not sure if the competition will be there. As probably everyone has we have been able to get fuel much cheaper. This will definately help our bottom line.

Does anyone plan on lowering their custom rates?

Thanks for your input
Mark


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## Lazy J (Jul 18, 2008)

We raised out rates last year due to increased Diesel fuel costs. My gut feel is that we will retrace a little but not completely.

I have thought of taking Hay Wilson's advice and working on an hourly rate, but the market around here just won't react positively to that, even if it is a cost savings they still want to know "how much is that an acre/bale" without having to do simple division in their heads.

For the first time we will be publishing our rates in our brochure. This will help us keep the rates consistent and will allow our customers to know our rates without having to call every time.

Jim


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## swmnhay (Jun 13, 2008)

Fuel is down but it's the only thing.New machinery really jumped in price,twine&net are higher than last yr,Ins & labor are a little higher every yr.The prices should come down with steel and crude going down eventually.


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## hayray (Feb 23, 2009)

I raised my custom prices last season and lost all my custom business, although I only had one custom client but it was a $15,000/ year account. I was doing mostly small squares for her and raised my price from $1.90/bale to $2.25/small square put in a bale basket and they hauled the baskets to the barn. I had done custom work for her for about 15 years. Some other guy who;s dad bought him a bunch of equipment did it for about nothing. Anyways, it worked out good because I basically had to take a pay cut to stop doing my own hay. I made alot more money getting my own acreage done and picking some more up. Of course easy to do when not much of your business is custom work. Those of you that do mainly custom work will have a hard choice to make.


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## chh (Jul 30, 2008)

I plan on being about the same rate as last year for custom work.


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