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Is Your Excavation Pricing Bleeding Profit?

Is Your Excavation Pricing Bleeding Profit?

July 03, 20256 min read

Here’s the Summer Strategy to Fix It

If you’re like most excavation contractors we talk to, you’ve probably had that moment lately where you step back, wipe the sweat off your brow, and think:

“Why am I working so hard, but my bank account doesn’t show it?”

We get it. You’re not alone. Summer 2025 has made pricing feel like a gamble. You quote a job, think you’re in the clear, and then—boom. Fuel prices go up. Your supplier adds a delivery fee. A rock the size of a small car shows up right where you were planning to dig.

At Excavation Marketing Pros, we’re not a huge firm, but we work with excavation and septic contractors every day. And we’re obsessed with helping you price your work right—so you can protect your profit, win the right jobs, and keep your crews busy without feeling like you’re losing money on every bid.

It’s about sharing what’s working right now so you can stop the profit bleed and grow stronger this summer.

Why Excavation Pricing Feels Like a Gamble Right Now

Let’s call out the elephant in the room. Pricing excavation jobs in summer 2025 feels harder than ever.

Fuel costs keep jumping — One week diesel is $3.50 a gallon. Next, it’s $4.10. That’s real money when you’re running machines and hauling equipment.

Suppliers are charging more — Materials, pipe, gravel, septic tanks, delivery fees — everything seems to cost more this summer.

Jobs are taking longer — Heat slows down your crew. Equipment overheats. Sites are drier, dustier, and harder on your machines.

Customers compare you to the lowest bidder — And you know that low bidder probably isn’t pricing for the real costs.

All of this makes it easy to underprice — without even realizing it — because you’re trying to stay competitive. But when you do, you’re working hard for little to no profit.

The Real Reasons Contractors Bleed Profit in Summer

Most excavation contractors we work with aren’t losing money because they don’t know what they’re doing. They’re losing money because they’re stuck in habits that no longer work in today’s market.

Here’s what we see:

Bidding based on last year’s costs — But your costs aren’t what they were last year. Not even close.

Not pricing for the “hidden extras” — Machine wear. Fuel spikes. Added travel time. Rental fees for that extra piece of equipment.

Giving away work to win the job — A little extra grading. Moving a few boulders. Fixing a drainage issue “while we’re here.” It adds up.

Not adjusting bids often enough — Summer prices move fast. If you’re quoting the same way all season, you’re probably undercharging.


Hidden Summer Costs That Sneak Up On You

Let’s break this down with some real examples. Here’s where contractors are seeing their profit leak this summer:

 Fuel price hikes — A 60-cent increase per gallon on a 100-gallon job = $60 gone. Do five of those in a week, and that’s $300 out of your pocket.

 Higher material delivery fees — Your supplier is busier, too. They’re charging more to drop off what you need.

 Equipment wear and tear — Dry, dusty conditions = filters clog faster. Heat = more downtime for machine cool-downs.

 Slow crews — It’s not their fault. When it’s 95 degrees, everyone slows down. That eight-hour job can stretch to ten or twelve.

 Unplanned rental costs — Hit rock? Need a breaker? That’s a cost that needs to be covered.


The Summer 2025 Excavation Pricing Strategy That Works

So, how do you stop the bleed? How do you price so you’re fair to your client—but not working for free?

Here’s the strategy we help contractors use.

1️⃣ Know Your Real Costs First

Don’t guess. Before you bid, figure out:

  • Fuel cost for the job (including hauling machines)

  • Equipment wear (filters, tires, oil — yes, these add up)

  • Labor (including time lost to heat)

  • Rentals (if the job might need one)

  • Delivery charges for materials

Write it down. If you don’t, you’re guessing — and guesses don’t protect profit.


2️⃣ Add a Smart Summer Buffer

At Excavation Marketing Pros, we tell our clients:
Add
10-15% buffer on summer bids for:

  • Fuel spikes

  • Supplier fees

  • Slowdowns

  • Unplanned minor extras

That’s not padding — that’s protection. It keeps you from losing money on a job because of something out of your control.


3️⃣ Be Upfront About Scope and Extras

Don’t be afraid to spell out what your price includes — and what it doesn’t.

You can say:
“This bid covers excavation of 1,200 sq ft, up to X ft depth, and removal of debris. If rock is hit or extra grading is requested, that would be additional.”

That way, you’re not the bad guy when you need to charge for extras. You’re just being clear.


4️⃣ Update Pricing Every Week

Summer prices move. If you’re quoting off numbers you pulled three weeks ago, you’re probably behind.

Review your costs every 7-10 days.
Adjust your bid sheet or calculator.
Talk to your suppliers weekly.

The best contractors we work with win jobs and protect profit by staying on top of costs — not just guessing what’s fair.


How to Raise Your Price Without Losing the Job

Here’s what most contractors fear:

“If I price it higher, the homeowner will go with the cheaper guy.”

But here’s the truth:
Homeowners want value, not just the lowest price.

👉 Show your value: Explain your price covers the real cost to do the job right, safely, and on schedule.

👉 Give options: Offer ways to adjust the scope if they need to hit a budget (e.g., skip that extra grading for now).

👉 Be confident: If your price is fair and covers the real work, stand by it. People trust pros who know their value.


Simple Tools to Help You Price Right

You don’t need fancy software. Just keep it simple and consistent.

Fuel apps (like GasBuddy) — Track local fuel price trends.

Supplier check-ins — Call once a week and ask: “What’s changed on materials or delivery fees?”

Cost tracker sheet — Even a basic spreadsheet that lists fuel, materials, rental costs keeps you sharp.

Job notes — Write down any unexpected costs on every job. Use that info to price the next one smarter.


When to Hold Firm, When to Negotiate

👉 Hold firm when:

  • You’ve explained your pricing clearly.

  • The client is asking for more without wanting to pay more.

  • The job has risks you priced for (bad access, tricky dig, rocky soil).

👉 Negotiate smart when:

  • The client is willing to change scope.

  • You can shift timing to help their budget (e.g., a discount for a flexible schedule).


Final Thoughts: Stop the Bleed, Build the Profit

Summer 2025 is tough — but you can protect your pricing.

Know your costs.
Price for the real world.
Communicate clearly.
Adjust often.

You’ll do more than stop the profit bleed — you’ll build a business that lasts.

At Excavation Marketing Pros, this is what we help contractors do every day. No gimmicks. No fluff. Just strategies that work.

👉 If you’re ready to tighten up your pricing and grow stronger this summer, let’s chat. We’re here to help.


excavation pricing strategies 2025 summer excavation cost tips excavation contractor bid mistakeshow to price excavation jobs profitably
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Scott Andreasen

Scott Andreasen, runs Excavation Marketing Pros. An excavation contractor marketing firm specializing in helping excavation contractors to grow their businesses.

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