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Old 11-26-2011, 12:48 AM
Cat_246B Cat_246B is offline
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What do you charge for running a skid steer?

Hi, I'm new to this site and I was wondering if you charge by the hour or by the day, and what your minimum number of hours are when you use a Skidsteer? I'm just getting into the business and will be renting a machine, and was wondering if you add the price of the rental to the total price? It will be about $200 a day to rent it. Any advice would be very helpful.
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Old 11-26-2011, 10:12 AM
AWJ Services AWJ Services is offline
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Quote:
Originally Posted by Cat_246B View Post
Hi, I'm new to this site and I was wondering if you charge by the hour or by the day, and what your minimum number of hours are when you use a Skidsteer? I'm just getting into the business and will be renting a machine, and was wondering if you add the price of the rental to the total price? It will be about $200 a day to rent it. Any advice would be very helpful.
I had an old timer tell me one time "You cannot get what you do not ask for"

Charge as much as your market will stand.

With that being said add your costs together first (That means everything) for the day, then add your labor costs and finally add your profit.

With a rental charging by the hour will be tough.
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Old 11-26-2011, 12:40 PM
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ksss ksss is offline
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Originally Posted by AWJ Services View Post
I had an old timer tell me one time "You cannot get what you do not ask for"

Charge as much as your market will stand.

With that being said add your costs together first (That means everything) for the day, then add your labor costs and finally add your profit.

With a rental charging by the hour will be tough.
You can get a better rate by renting the skid steer a month at a time (assuming you have enough work). Continually running back and forth to the rental store costs money as well. They usually cut a break or a longer term rental.
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Old 11-26-2011, 03:11 PM
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YellowDogSVC YellowDogSVC is offline
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don't forget to add up your insurance, the fuel you will have to replace in the skid steer, your time picking up and delivering the machine, and how long the job will take (your time). You need to figure out what you need to make per hour or day to cover all the costs above. After you subtract out your taxes, your overhead like insurance, rental, etc., what you are left with is your profit. It would be tough to figure that by the hour though after many years, I know what my hourly rate needs to be per type of machine (high flow vs low flow) (expensive to operate vs. inexpensive to operate ie., no moving parts). That took awhile to figure out. I wouldn't just go into business without getting your sales tax permits, insurance, etc., lined up and those costs can be broken down to the month or day if necessary to add to your per day charge if you decide on that. Don't forget your fuel hauling. It may take you a few trips back and forth to get an idea of what to account for there so KSSS's recommendation of a monthly rental would be better.
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Old 11-26-2011, 03:43 PM
Cat_246B Cat_246B is offline
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Thanks for the information. I was wondering what the insurance is for? Is it to cover the machine if it gets damaged? And would I have to get a business license to run the machine? You have helped me a lot and gave me more things to think about that I never would have thought of.
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Old 11-26-2011, 05:09 PM
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jequigle jequigle is offline
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First you should have a business license to run any kind of business unless your where you live doesn't require one. Second you should have insurance to cover yourself for any liability issues. If you don't and you mess up and get sued, you could lose everything you have.
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Old 11-26-2011, 06:26 PM
Cat_246B Cat_246B is offline
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How Hard and expensive is it to get a business license, and how much do you guys pay for insurance? I would like to get started in February of next year and do you think after I rent for a while, I should buy a machine if I get a lot of business? Thanks for the advice.
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Old 11-26-2011, 07:03 PM
AWJ Services AWJ Services is offline
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Originally Posted by jequigle View Post
First you should have a business license to run any kind of business unless your where you live doesn't require one. Second you should have insurance to cover yourself for any liability issues. If you don't and you mess up and get sued, you could lose everything you have.
A buisness license is only so that the county can tax you. It serves no purpose other than that.

The most important thing is to meet all state regulations and have insurance. If the state requires a license then you need to get it.
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Old 11-26-2011, 08:20 PM
Cat_246B Cat_246B is offline
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What is liability insurance and how much does it cost a year. Is it for an accident like, hitting a fence or cutting a water line? You guys have been a great help to me. sorry for all of the questions.
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Old 11-26-2011, 09:07 PM
Cat_246B Cat_246B is offline
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What is liability insurance and how much does it cost a year. Is it for an accident like, hitting a fence or cutting a water line? You guys have been a great help to me. sorry for all of the questions.
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