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Old 12-23-2013, 10:09 AM
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RedSox4Life RedSox4Life is online now
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Justifying a mini skid?

Hey all,

So I've decided a mini skid would fit my operation very well. I have a whole slew of reasons I could go into but it comes down to getting jobs done quicker, and making our lives easier. The problem I'm having is whether or not it makes sense financially. I'm going to share my math, I would appreciate all your thoughts and opinion.

Right now I'm charging $50 per man hour for a guy and a wheelbarrow.
$75 per hour seems to me like the most I could get away with charging for a man and one of these little machines.
So that nets me $25 per hour from this machine.
At about $20k purchase price, that would mean 800 hours before I hit the break even point, and that's not including maintenance and repairs.

I expect to put a max of 200 hours on this thing per year......so I'm looking at 4 years (at least) before I start making money off it.

So I guess my question would be......,is there other value in having this machine other than as a money maker?
Less physical labor, easier transportation, speed up jobs therefore I can do more work in a day? Etc etc

Would love to hear what you guys think about this

Thanks
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Old 12-23-2013, 10:59 AM
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Cant you buy a nice used one for half the price?
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Old 12-23-2013, 11:10 AM
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RedSox4Life RedSox4Life is online now
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That may end up being an option. I have a dealer I do a lot of business with close by that sellsthe Thomas brand, so I would prefer a new, warrantied machine from a dealer I have a good relationship with. But then it's back to whether that's more important than the financial decision or not.
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Old 12-23-2013, 11:37 AM
larryinalabama larryinalabama is online now
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Not to be disrespectful in anyway whatsoever, but from what you posted it wouoldnt make any sense, heres why.

At 50$ per hour for a wheel barrow would be 200$ for a 4 hour job, that job with equiptment would take 2 hours and at 75$ would be 150$ and you left 50$ on the table.

I would look for a good deal on a decient used one, or even rent one on occasion when needed. They are great little machines if you need to get to tight spaces.
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Old 12-23-2013, 12:27 PM
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Quote:
Originally Posted by larryinalabama View Post
Not to be disrespectful in anyway whatsoever, but from what you posted it wouoldnt make any sense, heres why.

At 50$ per hour for a wheel barrow would be 200$ for a 4 hour job, that job with equiptment would take 2 hours and at 75$ would be 150$ and you left 50$ on the table.

I would look for a good deal on a decient used one, or even rent one on occasion when needed. They are great little machines if you need to get to tight spaces.
No disrespect taken, this is why I asked the question.

Couple things about what you said.....
A) I'm not sure this machine could double a persons production. I understand in some circumstances it could, but for what I would be using it for I doubt it. You would know better than I, does it double your production?

B) My customers understand when they hire me they are paying for my insurance, taxes etc.....and that's why I have to charge the $50 per hour for just a guy and a wheelbarrel. Adding this machine would not double all my costs, therefore I can't really justify doubling what I charge. Also, I feel if I did try to get $100 an hour with this machine, I'd price myself out of a lot of jobs. I know guys around here doing dirt work with a full sized skid steer for $85 an hour.

Renting one is not really an option for me.....as the main reason I'm looking to buy one is for the convenience factor. Rental is not convenient for me.
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Old 12-23-2013, 12:28 PM
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Regarding the tool cat.....it just wouldn't fit the need I have like mini skid would.
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Old 12-23-2013, 01:54 PM
larryinalabama larryinalabama is online now
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Quote:
Originally Posted by RedSox4Life View Post
No disrespect taken, this is why I asked the question.

Couple things about what you said.....
A) I'm not sure this machine could double a persons production. I understand in some circumstances it could, but for what I would be using it for I doubt it. You would know better than I, does it double your production?

B) My customers understand when they hire me they are paying for my insurance, taxes etc.....and that's why I have to charge the $50 per hour for just a guy and a wheelbarrel. Adding this machine would not double all my costs, therefore I can't really justify doubling what I charge. Also, I feel if I did try to get $100 an hour with this machine, I'd price myself out of a lot of jobs. I know guys around here doing dirt work with a full sized skid steer for $85 an hour.

Renting one is not really an option for me.....as the main reason I'm looking to buy one is for the convenience factor. Rental is not convenient for me.
I would think a Dingo could easly do the work of 2 men with a wheelbarrow, likely far more.

Pros of a Dingo are
There able to go where a lawn mower can go
Easy to load and unload
Multiple attachmdents are avaible

Cons of a dingo
Expensive for their size
Resale value is not as good as bigger machines
Attachments are expensive
Very limited on what a 20hp machine can do.

To answer your question, personally I would not spend 20k in your sitituation. plus 20k is the starting point, attachments and buckets are high.
Used may be a good option, 7500 will likely get you a good used machine and may come with a attachment or 2.

A nice 28 to 35hp tractor 3cyl 4wd and front end loader can be had new for around 20k
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Old 12-23-2013, 02:17 PM
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after having a tx425 for 5 years I would question how someone would still be in business without one. it will smoke 2 workers with wheelbarrows, doesn't require workmans comp. never calls in late. the biggest question is what will you have to change in your operation to make the dingo work to full potential. an example would be how do you deal with their low dumping height? possible answers could be a dump trailer, bed insert. they may be small but are definitely game changers.
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  #9  
Old 12-23-2013, 02:46 PM
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Quote:
Originally Posted by tnmtn View Post
after having a tx425 for 5 years I would question how someone would still be in business without one. it will smoke 2 workers with wheelbarrows, doesn't require workmans comp. never calls in late. the biggest question is what will you have to change in your operation to make the dingo work to full potential. an example would be how do you deal with their low dumping height? possible answers could be a dump trailer, bed insert. they may be small but are definitely game changers.
That's very interesting, thanks. The reason I'm so set on a mini skid opposed to a toolcat, full sized skid or tractor is becauseit would fit so seamlessly with my current set up. With a miniskid I can do what I do now, better. Whereas with those other machines I feel wouldn't help me much. They may open up new options for types of jobs I can accept, but that's not what I'm looking to do with this purchase.
I just got off the phone with the bobcat dealer, they have a mt52 with 150~ hours for $15k. That already sounds much better than going new.
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  #10  
Old 12-23-2013, 10:06 PM
AWJ Services AWJ Services is online now
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Quote:
Originally Posted by tnmtn View Post
after having a tx425 for 5 years I would question how someone would still be in business without one. it will smoke 2 workers with wheelbarrows, doesn't require workmans comp. never calls in late. the biggest question is what will you have to change in your operation to make the dingo work to full potential. an example would be how do you deal with their low dumping height? possible answers could be a dump trailer, bed insert. they may be small but are definitely game changers.
Best advice so far.
If I was still landscaping then this would be an absolute must have. Do not worry about it paying for itself if your getting 50 an hour for a guy and a wheel barrow because it will really speed up production.
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