Home Forums Hunting & Shooting Hunter's Campfire Figuring out operating cost for a piece of machinery??

It's Handbook 46.....

If you can't figure out how to open it,Then the math inside is also well over your pay-grade...

An aptitude test would likely show you best suited as a concrete truck driver, until the road rage sets in again about the 2nd week.

Best of luck.

Takes all of about 10 seconds.....

Caltrans Equipment rates.
Link takes you to CalTrans Equiment rates. Based on my experience, take 15% off these rates, and these rates are very close to cost of ownership. Rates are for fueled and maintained equipment, Operator not included.

misc Equipment

As Kubota's are not commonly used in highway work, rates are posted in "Misc Equipment", link above.

Add 15% to these rates, plus operator cost. (wage + 25% for payroll taxes, + 25% OHP), to get you an operated rate.

Sorry men, it just sat there with a blank screen for me. Maybe I didn't wait long enough. Why is everything personal with you guys over a simple computer problem?

What's the model number of the tractor? The hourly direct wage of the operator?

Lease with a basic maintenance contract! You'll come out ahead of ownership!! Think $ , not equipment!

Kubota KX 040-4

I'm the operator so wage is whatever I can charge minus expense of running.

No listing for the 040-4, but using a comparable rated piece, the Cat 304E CR is $31.36 per hour. depreciated, fueled and maintained.

I think $100-$130 would be in the ballpark per hour. Maybe more.....with a 3 hour minimum.

That would take at least a tenth grade education!

Case construction equipment web site has cost of ownership calculator you can click on . I doubt #8000 minis vary that much in cost of ownership.

The short answer is it depends. It sounds like you are going to operate it if not in add an hourly labor component.

Kubota should be able to give you a reasonable hourly operating cost estimate, most of the majors can and do. This is a good starting place, now consider how hard you are going to work the machine. As one poster noted digging soft soil on flat ground is a lot different than walking over steep rocky ground and then scraping soil off of rock. The tougher the application the more you would add over and above the manufacturers estimate.

The next consideration is how long are you keeping it? The last time I looked at this in detail the best model was to sell the unit just before the second re-life. For clarity, for me a re-life is done on a unit between 18,000 and 25,000 hours. This a full refit including but not limited to engine, tranny, diff's, hydraulic pump, and on an excavator the assembly that the cab, motor, and bucket rotate on off the drive chassis. For 966 class machine this is usually about 120k if your trade in units are not totally pooched. Just about to do a 930 and we are figuring about 150k. Work this cost back into your hourly operating cost for the Kubota.

Example for over the life of a machine:

150k divided by 45000 hours = $3.33
500k purchase price divided by operating hours 500,000 divided by 45,000hours = $11.11
Fuel at 12 litres per hour a $.80/litre. $9.60/hour fuel
Oil changes every 2000 hours $300 $.15/hour
etc

Just add it up and you will get a number. Then add what your labor is worth and then add a profit component for yourself (at least 10%)

Hope this helps.

Hell, don't forget transportation to and from each job site, that's got to be figured up front even before starting on the other!

Phil

How's this sound to you guys-

$100 mobilization cost- most projects within 15 mile radius of shop, $125 an hour man and machine, half day minimum, so-

$600 for half day, $1100 all day, includes any available attachments not just buckets, everything's on site ready to use. Multi-day projects at reduced rates due to mobilization cost savings, value of staying in one spot.

8 hrs on site is a good long day by the time you load and transport both ways. Doesn't include time to run the business, bid other work, billings, go to the post office, bank, gather supplies and fuel, etc. That usually happens evenings, and short days.

Make sure you have some damn good insurance... hitting one fiber-optic cable can ruin someone real quick!

Phil

Or better yet, call before you dig and have them mark things...

Put the monkey on someone else's back.

That's well to do, but doesn't cover you in a law suit!

Suits even if equipment is leased out, will still come back on everyone involved, and cost, even if not found liable!

Phil

This would be the correct way!

Sounds like a good start, but I don't know anyone who gives multi hour discounts. Every hour on the machine costs you the same.