Going skid rate

Discussion in 'Heavy Equipment & Pavement' started by Schrock Lawns, Jan 23, 2013.

  1. KrayzKajun

    KrayzKajun LawnSite Fanatic
    Posts: 10,742

    Yur gunna go out and buy a skid for one job. Why not rent and charge accordingly.
    Posted via Mobile Device
     
  2. Schrock Lawns

    Schrock Lawns LawnSite Senior Member
    Posts: 944

    im notbuying it for one job but if i dont get this job i wont buy one the tracked machine i would rent runs me 500 a day from my cat rental place with the harley rake i would need i would get a used skid and my payment could be 600 a month it makes more sinse to me to buy and i have other jobs i could use it for also
     
  3. AEL

    AEL LawnSite Bronze Member
    Posts: 1,724

    I give you lots of credit for being 14 and starting your own business. We need more young people like you, solid word of advice is to borrow the least amount of money when starting your business until you have the clientele, and work schedule to support you. It is much easier to make it through a slow slump in your business when you dont have large payments to make every month. My advise would be dont buy a machine until you have a large enough yearly rental bill to justify it, save your money and try to buy something mabee a little older and pay for it cash, or at least most of it.

    Best of luck, and keep us updated.
     
  4. alldayrj

    alldayrj LawnSite Gold Member
    Posts: 3,768

    Easy way to do it is the rental rate for the particular machine plus the operator divided by hours. Always have a minimum.

    Ps you(your dad) will kill yourself with that machine on a trailer. I would be surprised if the dealer even lets you pick it up
    Posted via Mobile Device
     
  5. Schrock Lawns

    Schrock Lawns LawnSite Senior Member
    Posts: 944

    One of my friends who's got a 250 said he'd help me out towing it until I got a bigger truck so that's not a problem now
    Posted via Mobile Device
     
  6. knox gsl

    knox gsl LawnSite Platinum Member
    Posts: 4,940

    Does your friend have the proper DOT endorsements?
    Posted via Mobile Device
     
  7. Marek

    Marek LawnSite Bronze Member
    Posts: 1,385

    What numbers are they quoting you on the 259 and what options ?
     
  8. Schrock Lawns

    Schrock Lawns LawnSite Senior Member
    Posts: 944

    He only quoted me a 279 new with cab ac heat and the power tach thing and a gp bucket it was 70 and some change the 259 he only quoted me a used one with 800 hours and cab for 40k but with the same options as the 279 I think te 259 is 55-60 ish
    Posted via Mobile Device
     
  9. SVA_Concrete

    SVA_Concrete LawnSite Senior Member
    Posts: 467

    I intend this post to be polite.

    Spend your 40K on education, at minimum English lessons. That will make you far more money than a skiddy bopper will.

    I rented equipment for the first year and half of my business, at the year end i discovered that i was spending 25K per year on rentals. That made my decision fairly easy to purchase.

    I purchased used/slightly used. Now I have a Deere CTL 322, and 50D, I paid around 50K for the pair.

    Renting equipment will also force you to keep your price where it SHOULD be, when guys purchase, they end up cutting their price to get the job. They think that because the equipment is only costing ~600 per month, rather than ~250 per day. Now what about maintenance, insurance, and repairs?

    You mention plowing snow, don't count on snow to make your payments in Hampton Roads. Snow tears equipment up, especially a CTL. I have one, I know.

    I understand you are home schooled, I was as well. How do you plan on working that machine enough to pay for it when you have school? Using it on your land will not make you money.

    Work ethic is great! Drive is great! Grow slow and profitably.

    Caution you not to make a purchasing decision ever based on emotion.
     
  10. jmacd

    jmacd LawnSite Member
    Posts: 210

    Good post SVA. Just wondering how a 14 year old can get 40k to 70k dollars to buy a skid steer?

    Most adults can't get that kind of credit. If he does have that kind of assets maybe he should look into spending it on a something other than a brand new skid steer.

    Unless he is very wealthy and that kind of money is nothing to him or his family. If this is the case than get a good education, good schools are $40,000 per year.

    Working with your hands can be tough when you get older.
     
    Last edited: Jan 24, 2013

Share This Page