operating cost???

[xcmark]

I work in construction but doing electrical work and own a skid steer you see in my avitar. My question is how much can you charge to run your equipment and be fair to the person your working for but still make money and cover maintance cost for the machine. I dont expect to get rich but it would be nice to pay the bills if you know where I am coming from.

 

[Lil' Puss]

3 X operators hourly wage. Adjust as necessary for bidding, marketing & overhead, etc. You always want to take home more than the machine does.

 

[Hammer & Nails]

I drive more nails than move dirt. So I dont get in on much bidding skidloader labor. I just kind of based my rate off of the larger machines, like dozers and such. Like a percentage of sorts. So is that the wrong path or should i sit down and pencil out expenses. With what your saying i am about 2/3 of what i should be, but i dont want to over charge like xcmark said. Do you adjust with the price of fuel or are you high enough that that is not a factor?

 

[Deeretime]

Figure it out for your self bud simple math gives you oporating cost, figure bare minimum op cost and add 15%

 

[Lil' Puss]

I charge $60.00/hr, which is about $30.00 to $40.00 hr. under everyone else. All I do is move dirt though. My time starts when I get there, after I'm off loaded. I don't charge for load out, mileage, or travel time. I take home ~$20.00/hr. Taxes, expenses come off the other end.

 

[CM1995]

or should i sit down and pencil out expenses.

That's a good place to start...:cool2

 

[slipfitter]

If you are doing this to make money, the price to make money. A great book for all the 1-2 man small shops is by Ellen Rohr called "how much do I charge?"

It's basic small business 101.

Here is a thought to ponder:

If it cost's you $100 an hour to operate your equipment, how fair are you being to yourself and your family by only charging $90?

Don't get hung up on the $ amount, but think about the premise. No successful business operates at a perpetual loss.

 

[bill5362]

I charge $60.00/hr, which is about $30.00 to $40.00 hr. under everyone else. All I do is move dirt though. My time starts when I get there, after I'm off loaded. I don't charge for load out, mileage, or travel time. I take home ~$20.00/hr. Taxes, expenses come off the other end.

I don't think you are making that much, since you are counting loading and travel time. There is a reason everyone else is $30.00 to $40.00 and hour more, do you have any workers, workers comp???

I figure an average of how much material I can move in a hour, how much fuel I will consume, what my support equipment cost to operate, to get my hourly rate. Here are some of my rates, and these machines have a four hour minimum, and take an hour for moving the equipment. If I have to move with a lowboy and get a permit then I charge a 8 hour minimum. Bill

Bobcat T300 with bucket $85.00 per hour
Bobcat 442 $85.00 per hour
Bobcat T300 with carbide cutter $250.00 per hour.

 

[maxamillion67]

You have to look at what others with simular equipment are charging in your area and be with in reason with them. In my area I am charging $75.00 per hour and travel time, others are about $70.00 to $85.00 per hour. Figure out what insurance, fuel at $3.50 a gallon, wages and repairs cost. Your cost are $30.00 per hour or more to run your machine. I took a tire in to get it repaired on my skid steer and they charged me $30.00 for the repair.

 

[CM1995]

Everyone has hit the high points - fuel, maintenance, insurance, wages and repairs but have left out one of the largest operating costs - the cost of the machine. A hunk of yellow/orange/white scrap iron costs money to purchase, whether you pay cash or finance and you need to get a return on that investment of more than just a good wage for yourself.

Even if your machine is paid for and you don't have a monthly "love" note in the mailbox, this hunk of scrap iron depreciates every minute of every day, so you need to also include that as an operating cost as well (even if you own it "out right" or it's financed).

Oh BTW, we didn't touch the subject of "office" overhead, business licenses, taxes, etc. Even if you do your own billing, accounting and tax preparation, you still have time, a lot of time, involved in those tasks as well, that need to be included in your operating cost.

 

[lgammon]

add truck and trailer also, with a skid you are spending 20-40 grand on a good truck and another 8-10 grand on a good trailer. and these don't last that long. 10 years and they are gone. so 50 grand every 10 years is 5 grand in just replacment costs. almost 500 a month, that works out to 25 dollars a day, for every working day a year. you have to bill travel!!

 

[nzpatch]

I dont think getting work by being the cheepest by far does anyone any good, not the guy working for nothing or the guy charging the right money to run a earthmoving machine. the guy going broke only takes work away from the ones charging the rate to be able to replace there gear and make a living. I try to be on the same money as the others ,but keep a eye on all costs like the fuel cost changes,
to be at the right price and let the quality of my work and severice set me apart from the rest. All gear cost more than you think if you look at lifetime of machine costs and put that back to a hourly rate.

 

[T200]

I move dirt and haul materials on the side. I'm a correction officer by proffession but would rather be in the dirt than behind the walls any day. I charge $75 an hour to run the skid steer. I charge delivery much like a rental company. This pays for the fuel for the truck and covers trailer tires, brakes etc. I am more expensive than other people in my city and still get the work. I get it because of quality, professionalism and by sticking behind my work. If someone doesn't want to pay the price I charge. I tell them to get someone else. More often than not. I end up there anyway. Fixing the other guys problems. Lol

 

[CSaley]

here in NJ guys charge $125-160 to just stack snow in parking lots..

 

[dvcochran]

I base my price on many factors. Since all my equpment is paid for I have very little overhead compared to rental companies and those who have much higher operating costs. That said, I am often "cheaper" than the next guy. I also base my cost on what I am doing. If it is just general clean up, only requiring a machine and an operator I charge $45/hr portal to portal. If it is grade work or ditching/drainage or something requiring a finish tolerance I charge $65/hr plus my normal labor rate for however many workers are required to do the work. Again portal to portal. However, since most of the larger jobs are view and bid or preferably spec and bid, you better know how to bid your work.

 

[DGODGR]

Lets be clear about this. I have most all of my equipment paid for as well. In reality that does not lower my over head. Unless, of course I am going to run those machines into the ground and not replace them. One must also consider the useful life of a machine (they don't last forever), decide how many hours you will use your current machine before you replace it, and use this information to determine how much money, per hour, will go toward MACHINE REPLACEMENT. Once you are buying your machines with cash (not financing them anymore) then you will be very competative as you will no longer have to add the payments into the cost of doing business.

 

[Colorado Digger]

10-4 to that. i am in the same boat. over the payments. i just owe on my 210lx and x2. everything is paid.
we are under 100 on the 300's and over 100 on the 435's.
regards. cd

 

[KSSS]

I am not sure it much matters if your machine is paid off or not. If it isn't well you got a payment to make so you better be making money, but if it is paid off you need to either pay for upkeep (which gets more expensive as the hours tick by on the meter) or you need to be able to replace the machine. Either way you need to make money. There is less pressure when you don't have a coupon book, but reality is it does not change the dynamics much at least to me. I am not charging any less to run the machines that are paid off.

I believe you need to learn what your costs are, and then compare what your rate is/will be with the going rate in your area. It really doesnt matter what guys charge across the State or across the country, its interesting, but you need to be competetive with those in your immediate area. If your a good operator there is no sense in leaving money on the table, charge the going rate in your area. Undercutting the market makes you unpopular with other contractors and foolish for not charging what your market will allow. I don't often get refered for having the lowest rates, actually I cant remember ever hearing that from a customer. I do hear, "he is not cheap, but its done right". I am good with that.

 

[J Olender]

Hi all, I understand knowing your operating costs, it's an absolute must but, you must know what (your) market will bare. This can be tough to find out and sometimes vague. Note: Please advise best way to attain this info!!
If you charge $85. pr hr and most of your competitors charge $75. you need to keep that in mind. Someone told me once, if your machine is running, you need to be charging for it. Last of all, undercutting is terrible for all of us. But I know I've done it. It's easy to get desperate. If we can maintain some kind of industry standard, the buyers will maybe do less shopping! I cost what it cost.
Thanks for all the insight and advise in this thread.
J

 

[J Olender]

I forgot to add this. http://www.olenderstightspot.com/