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Skid Steer Cost Per Hr. Actual

Discussion in 'Skid Steers' started by brynbaily, Oct 15, 2008.

  1. brynbaily

    brynbaily Well-Known Member

    Joined:
    Sep 28, 2008
    Messages:
    94
    Occupation:
    Equipment Operator
    Location:
    N.E. Ohio
    I'm thinking about putting our personal use skid steer to work (Cat 236B2) and make it earn its keep.
    Does anyone know what the actual cost per hour is without operator just for the machine (tire ware, oil changes, basic ware & tare etc.)?
    I'm also curious about the same for MTL's. I know alot of guys on here have tracked machines and I'd like to see just how much more the difference is.
     
  2. Dwan Hall

    Dwan Hall Senior Member

    Joined:
    Nov 10, 2004
    Messages:
    1,027
    Occupation:
    Self Employed
    Location:
    Juneau, Alaska
    This is what I figure my 975 Bob Cat cost per hour. I have had 3 of them over the last 25 years and 2 of them are still running.

    Fuel 2 gal/hour @ $5.00/gal $10.00/hr.
    tires 1000/hr per set set cost $2000 $2.00/hr.
    oil 12 qt per change .25/hr.
    Grease 1 tube/10 hr .25/hr


    Maintenance ?
    I have replaced 1 seat, a few alternators, and a few batteries in the 7000 hours use of 1 of the machines
    Replaced the motor on one that was rolled over and ran upside down for 3 or 4 minutes with out oil. a few windows, Painted each machine at least once,
    Basicly they have been maintenance free for the hour they have on them. other then oil and lube.

    Hope this helps some.
    I charge between $125 and $150 per hour including operator.
     
  3. JDOFMEMI

    JDOFMEMI Senior Member

    Joined:
    Jan 4, 2007
    Messages:
    3,061
    Location:
    SoCal
    Operating cost is what you see in Dwan's post.
    The tough part is the ownership cost. That includes the payment on the machine, or $$ to go towards another on when that one gets worn out, and things like insurance. You DO have to have insurance to hire out to someone. Add to this the other costs of being in business for a year, then divide by how many hrs you will work in a year.

    Thats the tricky part. If you do it 8 hrs per day, every day, the number will be really low, and if you only work a few hrs a week, that number will be much higher.

    If the rates the pro's use sound high, do some more research to find the true cost of this type of business.

    As far as MTL vs Skid, the tires will run in the $2 to $3 per hr range, while the tracks seem to be in the $10 to $15 per hr range!!!! The MTL's are very productive, but there is a high price in repair and replacement of the u/c.
    I am pretty sure my D-6R has cheaper u/c costs per hr than my 287 MTL
     
  4. brynbaily

    brynbaily Well-Known Member

    Joined:
    Sep 28, 2008
    Messages:
    94
    Occupation:
    Equipment Operator
    Location:
    N.E. Ohio
    I was figuring around $15 hr plus the added owner costs of insurance and everything. We use the machine on our farm so its not like its just sitting there costing us. We both work full time jobs so we would be in the high range of only a few times a week if that. I'm in the IUOE here in Ohio and I have a rough idea of what the company I work for spends on larger machines and its not cheap! I give credit to the small guys out there making it day by day. If it was easy everyone would be doing it right? :beatsme
    Thanks for you input guys.
     
  5. mouse

    mouse Well-Known Member

    Joined:
    Jul 27, 2008
    Messages:
    166
    Occupation:
    (wishfully) avoiding work as much as possible
    Location:
    Sydney, Australia
    it is simplistic to ignore your cost of ownership if you are trying to work out a true hourly rate.

    if you are trying to put a figure on what rate to hire it out at then just do your research and price it to the market, that will give you a retail rate. just be aware that if you are price matching that the hours they run and the hours you run may vary considerably.

    for hire for a tracked machine of the T190 size I would budget at least 15 per hour for track wear as the tracks will not last near as long when being used by indifferent operators.

    there are a few publicly available life cycle costing tools that may help you put a figure on hourly costs.

    but no i'm not going to nominate a hourly cost, you'll need to work that one out for yourself... :)
     
  6. brynbaily

    brynbaily Well-Known Member

    Joined:
    Sep 28, 2008
    Messages:
    94
    Occupation:
    Equipment Operator
    Location:
    N.E. Ohio
    Local guys are getting $75-$80 for skid steers and $100-$110 for track machines right now. Thats just the few I looked into, I'm sure it varies with reputation and company size.....
     
  7. John DiMartino

    John DiMartino Super Moderator

    Joined:
    Oct 31, 2003
    Messages:
    94
    Occupation:
    Greenskeeper/mechanic
    Location:
    Walden, NY
    I try to figure out my costs per hour,but I think the true number is just an educated guess for me at least.On top of all the costs mentioned above,maintenance,fuel,tires,etc. I figure a number per yr for repairs,and the cost of the machine vs the hrs of its useful life- the residual value at trade in time.

    So,say on a 30,000 dollar SS to keep things simple,your going to run it up to 1500hrs,and get a new one,it seems like that is a very common time to sell.If the machine is maintained and in decent shape at that time,you can expect to get 15000 back in 3-5 yrs time with 1500 hrs on it.So your actual cost is 10.00 per hr on the machine itself.Because its a new machine,repairs arent much the first 3 yrs,but figure season 4 and 5 at $500,and $1000 repectively.This is just for minor repairs beyond maintenance,like new switches,quick connectors,and small things. Major items shouldnt be an issue on this new a machine.So theres another $1.00 an hr there.

    If you run a machine longer than 1500 hrs,your cost per hr will vary with the level of repairs needed. If you start with a used machine,plan on spending some money down the road.If you dont run the full 1500 hrs ,and get a new one,your cost per hr may be slightly higher ,but you should recover a portion of it in higher resale,but you still lose in time depreciation.
    It gets complicated with SS's because there are so many attachments,that also depreciate,and can cost more than the SS itself if you have a few of them,they need to be figured in as well,but they may be kept for the new machine if in decent shape. When its all said and done,I guess at my actual cost,and never look back,esp with my SS,I dont know what Id do without it now that I have it.:drinkup