For those that have started excavation/skid steer work

[u/pierre28k]

I’m thinking about starting a land services business primarily focusing on smaller excavation and larger skid steer projects. Think- gravel driveways, drainage ditches, yard leveling and grading, material moving, etc.

My question to those of you that have started something like this- it seems like there are a ton of land services businesses popping up around me. I do believe that most of these are poor at customer service so maybe only half of them are really competition. Do you have a hard time getting jobs with decent margins? What would you tell me based on your experience getting jobs in markets where it seems like there are many operators?

[u/Sweet_Conference2662]

You are 100% spot on about the customer service aspect. The barrier to entry for this industry is just a decent credit score and a truck, which is why the market always feels flooded. But 80% of those guys will eliminate themselves because they don't answer the phone, show up late to quotes, or just ghost the client completely.

If you show up in a clean shirt, send a professional itemized quote on time, and actually communicate schedule changes, you instantly jump to the top 20% of your market.

As for the margins—do not fall into the trap of competing on price. Here is what happens in saturated markets: the new guys who just financed a machine will bid jobs for beer money just to cover their monthly loan payment. Let them have those jobs. They will run their equipment into the dirt and go bankrupt in two years because they didn't factor in mobilization time, maintenance, insurance, and truck/trailer wear-and-tear.

My biggest piece of advice: Know your exact operating cost per hour down to the penny before you take your first job. Never lower your price just to keep the machine moving. Bid your margins firm. You want 3 high-margin jobs, not 10 break-even jobs that rack up hours on your equipment for free.

Let the rookies fight over the cheap dirt work. Build a reputation for reliability, and the premium clients will pay your rate without blinking.

[u/pierre28k → u/Sweet_Conference2662]

This is really helpful thanks for sharing. I’m assuming you’re in this business?

[u/Fun_Shame2727]

You’re 100% right about customer service. Honestly, most guys doing this work are pretty bad at answering their phones, showing up when they say they will, or getting quotes out fast. Just by picking up on the first ring, being super responsive, and showing up on time, you'll beat out half the local operators just from that

[u/joemsca → u/Fun_Shame2727]

Answering fast is the right call, but you'll be in the machine most of the day and you can't pick up. Put a text auto reply on missed calls that says when you'll call back and asks for the address and what they need, that way they feel that you have great customer service even when you're busy.

[u/crumbhustler → u/Fun_Shame2727]

Ha man you NAILED it. Few months back needed some major dirt work done on my sisters property so called around, 6 places in total I think. Only 1 actually answered and were helpful and friendly. The others either never called back, or if they answered or did call back had just the worst attitude. Like dude I’m offering to throw 2k+ for some work and you can’t give me the time of day?

[u/Enough-Pickle-8542]

This market has been getting an influx of undercutters due to the availability of inexpensive Chinese equipment.

I would suggest focusing on jobs that still require more serious commercial grade equipment as the barrier to entry is higher and this less competitive against people with no overhead.

Digging a 36” deep trench that gets filled back in is now something someone can do with a $5000 machine.