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$ per hour

nobull1

Charter Member
Joined
Dec 20, 2003
Messages
198
Location
Nova Scotia Canada
Occupation
Same as interests
We are in the transition stage from cheap to going up rates. For the last year in our area, business was very good, the economy just kept going along. There is a lot of anticipation of what the higher rates will do, hopefully nothing. The Feds have to raise rates as inflation is starting to show it's head again, especially housing prices. The other thing is the Canadian dollar has increased to the US dollar to just about par from a little over 70 cents just a year and a half ago. Not a good time to be exporting to the US, and higher interest rates are not going to help. Just give me my two cents for digging a hole and I will be happy:)
 

littlejoe4

Member
Joined
Apr 18, 2010
Messages
16
Location
Colchester CT.
Occupation
construction
yeah here in Connecticut it is over $100 an hour for mini ex or skid steer work, usually no extra charge for load and unload as long as it is a full day worth of hours.
 

Hendrik

Senior Member
Joined
Mar 5, 2009
Messages
1,232
Location
Adelaide South Australia
The mortgage rate is hovering around 7% it went up ¼ % only last week and its tipped to rise at least ½ % by the end of the year…
As for building activity in Melbourne it’s still strong at the moment and there is a far amount of machinery moving about still.
Krudd's school hall building program?
Good thing for the bigger boys but the smaller operators are not seeing much of that.
Nah I reckon that last increase has shut the wallets for a while.
If the RBA are not whacking up the rates the so and so banks are doing on their own accord. Don't get me started on them:mad::mad::mad:
Anyway I am going off on holidays in June to the States. Buy some cheap clothes from Wallymart or something. Which leads me to another pet hate, Colesworth who don't like Costco setting up shop in Oz. Either we live in a economy with competition or not? Heck I have to compete with the other Dingo people down the road who have just bought a little Cat ex to compete with me I suppose:)
 

kx41

New Member
Joined
May 17, 2011
Messages
1
Location
british Columbia
Hi Everyone,

New poster here

I realize that this is a somewhat dated thread, but the subject is applicable to my question so i thought i would resurrect it and post my related question until I get privileges to post new content. I am located in the lower mainland of British Columbia. I have a background of working in the bush building logging roads with excavators, cats, rock drills etc.

The logging industry went to hell here a few yrs ago and our family business was sold just before things got really bad. I went back to school and worked in business for a couple of years doing computer and business related (suit and tie). I just don't enjoy it like i did working outside and so I am thinking about purchasing a couple of small excavators with a track carrier and a dump trailer. I am in a financial position where I don't have to bid work that loses money, but i don't want to purchase the equipment to just let it sit and rust.

I would primarily target home owners and specialize in work that required small machines that can get into areas with tight access. So my question is....would this be viable as a business assuming I don't try and compete with the big boys and keep it small. I am thinking two very small machines such as a Kubota K008 and a K41-3. In addition to the machines i thought a small track carrier to get material in/out of those tight spaces. This would require a fairly substantial investment on my part, but I have some money saved up and I wouldn't go into debt to get started. I already have a dump trailer and a pick up for transport of the machines and removal/delivery of material etc...I thought I might be able to rent the machines when there is no work available as well.

My concerns are as follows:

- I am not from the area and do not have the contacts so would have to rely on advertising to get me started
- I would be competing with large rental companies that have these types of machines
- The rates seem ridiculously low in some areas for a machine and operator especially here in BC as noted in some of the posts above

Thanks in advance for any responses

Jarod
 

joispoi

Senior Member
Joined
Mar 1, 2008
Messages
1,284
Location
Connecticut
Jarod, take your concerns and relabel them as ''cons''. Now make up a list of ''pros''. What is it about you that sets you apart from the competition? What edge will you have that will get you in contact with paying customers over the other guy?
 

KSSS

Senior Member
Joined
Feb 27, 2005
Messages
4,319
Location
Idaho
Occupation
excavation
Jarod,
I would also look at what similiar services others are providing in the area. Try and find out if they are busy,what their rates are and get an idea if there is room for another. I would pick one excavator to get started with and the small loader and add the second as things got rolling. Plan on being diversified, I would use the money saved initially from not buying the other ex for attachments, a rock rake, hammer, thumb for ex and whatever else you think would keep your machines moving. The secret for these niche services I think is in the attachments. Its the one area you can seperate yourself from the rental houses and other contractors.
 

xcmark

Senior Member
Joined
Feb 28, 2010
Messages
357
Location
Foxboro , Ma.
Occupation
construction
Jarod , KSSS is right ! find work that other guys in the area may not be doing or want to do. Small jobs and word or mouth is the the best money spent on advertising. Do the best possible job down to the last detail and make sure your help is as good as you! I find at times as a tradesman we can be some what unpolished and to quick to move on to the next task and leave a mess behind. Really all the custumer recalls is the mess or the high cost with leaving a mess. Get paid to do the job and sell the person on your team being the best and cleanest and you will have more work then you want in short time!

Good luck
 

strott

Senior Member
Joined
Jan 10, 2009
Messages
425
Location
Swindon, United Kingdom
Occupation
Mini Excavator and dumper operator
Jarod - I have the exact same setup you are talking about.

A K008-3 and KX41-3 complete with tracked high lift dumpers to match each machine.

I had no contacts in the area so had to start from scratch with advertising e.t.c - it still is one of my biggest costs though.

The recession hasn't helped but I think there is a market for this type of service.

I think you'll find most homeowners are not into the idea of self drive hiring so I wouldn't worry about the hire rates being cheap - I know what you mean though - the cheaper the hire rate the more expensive operated hire looks.

If the operated rates are cheap then you may have an issue - can you confirm the prices others are working for?

Cheers,

Steve
 

Forklift123

Member
Joined
Jun 5, 2011
Messages
6
Location
Indiana
Wow, we get $75 an hour U.S. for a skid steer and $85 an hour for a 7,300 pound mini excavator. We usually charge one hour for load/unload, all of our driving is within reasonable distance, no more than 20 minutes of actual drive time.

Are you working for a company or yourself? The pricing sounds about right but, like small time we charge for travel. Anything over 30 miles or more we charge 0.40 cents a mile. Those excavators aren't as bad as dump trucks on fuel, but their thirst is well noted. I have never had any negative feedback, but then again, it is all stated in the bill, and if a customer has a question about a charge I will walk them through it.
 

cutting edge

Senior Member
Joined
Mar 27, 2010
Messages
575
Location
upper canuckistan
Hi Everyone,

New poster here

I realize that this is a somewhat dated thread, but the subject is applicable to my question so i thought i would resurrect it and post my related question until I get privileges to post new content. I am located in the lower mainland of British Columbia. I have a background of working in the bush building logging roads with excavators, cats, rock drills etc.

The logging industry went to hell here a few yrs ago and our family business was sold just before things got really bad. I went back to school and worked in business for a couple of years doing computer and business related (suit and tie). I just don't enjoy it like i did working outside and so I am thinking about purchasing a couple of small excavators with a track carrier and a dump trailer. I am in a financial position where I don't have to bid work that loses money, but i don't want to purchase the equipment to just let it sit and rust.

I would primarily target home owners and specialize in work that required small machines that can get into areas with tight access. So my question is....would this be viable as a business assuming I don't try and compete with the big boys and keep it small. I am thinking two very small machines such as a Kubota K008 and a K41-3. In addition to the machines i thought a small track carrier to get material in/out of those tight spaces. This would require a fairly substantial investment on my part, but I have some money saved up and I wouldn't go into debt to get started. I already have a dump trailer and a pick up for transport of the machines and removal/delivery of material etc...I thought I might be able to rent the machines when there is no work available as well.

My concerns are as follows:

- I am not from the area and do not have the contacts so would have to rely on advertising to get me started
- I would be competing with large rental companies that have these types of machines
- The rates seem ridiculously low in some areas for a machine and operator especially here in BC as noted in some of the posts above

Thanks in advance for any responses

Jarod

Jarod,

I strongly suggest you rethink yuor business plan and opinion of where the forest indusrty is right now in ths province (and for the forseeable future)

There are a thousand and one guys with the setup you are thinking of buying in the lower mainland.

The competition is stiff and cut throat.If you don't have a current list of customers,I would advise against it.

Logging,however,is booming,even close to where you are.

Before I left the lower mainland last year,i went to calls all over the place in the hills north of Mission and Harrison....they're into the 2nd growth now,and going hard.

You might want to take a second look at logging.

good luck.
 

volvobl

Well-Known Member
Joined
May 13, 2009
Messages
116
Location
uk
i wish anyone starting a new business all the best, I like to see people who really work hard and going at it themselves. here in Wales digging is slow i have 1 backhoe 2 mini excavators and are likely to be siting right now scratching as we call it the grab wagon have maybe moves once a week to be fair ive had a few problems myself now it hasnt moved for a few weeks at all i do take it kinda personally when things are quiet i dont know why but i do. The logging here is booming at the moment been thinking of resetting a few things to buy a truck to haul logs and keep the digging side going for the time being also i know i wont be a millionaire but im sure id be a happier person inside. However im also of thinking of emigrating somwhere else alltogether and start up small again any advice
 

strott

Senior Member
Joined
Jan 10, 2009
Messages
425
Location
Swindon, United Kingdom
Occupation
Mini Excavator and dumper operator
i wish anyone starting a new business all the best, I like to see people who really work hard and going at it themselves. here in Wales digging is slow i have 1 backhoe 2 mini excavators and are likely to be siting right now scratching as we call it the grab wagon have maybe moves once a week to be fair ive had a few problems myself now it hasnt moved for a few weeks at all i do take it kinda personally when things are quiet i dont know why but i do. The logging here is booming at the moment been thinking of resetting a few things to buy a truck to haul logs and keep the digging side going for the time being also i know i wont be a millionaire but im sure id be a happier person inside. However im also of thinking of emigrating somwhere else alltogether and start up small again any advice

Hi,

Long time no see!! (I think the last time we spoke was during the heavy snow)

I would of thought that you are experiencing a temporary blip, as you seemed to be quite busy during the worst of the recession? Would you agree with that?

The problem with moving is a lack of regular customers and the high cost of advertsing to get some.

I Know how you feel about taking it personally - but I would of thought everybody is in the same boat at the moment
 

volvobl

Well-Known Member
Joined
May 13, 2009
Messages
116
Location
uk
Hi,

Long time no see!! (I think the last time we spoke was during the heavy snow)

I would of thought that you are experiencing a temporary blip, as you seemed to be quite busy during the worst of the recession? Would you agree with that?

The problem with moving is a lack of regular customers and the high cost of advertsing to get some.

I Know how you feel about taking it personally - but I would of thought everybody is in the same boat at the moment

yes the heavy snow hoe could we forget actually i got a little lucky i got to go and clear some snow for the council. Yes i did take it personally and been a little depressed about things but i realize now that we are all on that big boat in all this.
seems to be that Wales here in the centre is last to catch along and yes advertizing is one big scam few words easy £50-£100 pounds per week and you cant guarantee any work from it here we have a small community and all your regular customers shopping around for the cheapest job nad then you have to cut your throat to get back in in that place especially farms theres always digger work to be done on farms even if they are not big jobs but they are still jobs to do. I however am not the cheapest or the deerest but feel sometimes where im going wrong ok now i have a few nice jobs but the issue is MONEY they take forever to pay and you have to struggle to pay the bills now even i am taking precautions when i have money in i only fill the diesel tank a little compare to filling it to the top like i used to. then MONEY does run dry so you cant carry on then you have to ask for money upfront all the while makes you wanna :pointhead so hows things with yourself is things busy for you
 

lectro88

Well-Known Member
Joined
Oct 24, 2009
Messages
171
Location
Charlotte, NC
Occupation
master electrician/owner
makes you wanna :pointhead so hows things with yourself is things busy for you[/QUOTE]

I 'think' I know how you feel. I really wonder how we ALL survive sometimes. The little guys don't have the overhead and ballooned cost to operate as the larger guys. But it is still staggering and sobbering to compare. However. I don't get money up front (I need it) But I find I have to wait for money or hold on to a check 3 days after 2 weeks from next Tuesday afer lunch. LOL. and some you just don't get paid for.
I refuse to sit still. And like most others I have to really beat the bushes to find work(any work). Its not coming to me.
Be it eartmoving, electrical, welding or any other way to turn a $
 

strott

Senior Member
Joined
Jan 10, 2009
Messages
425
Location
Swindon, United Kingdom
Occupation
Mini Excavator and dumper operator
The phone went through a busy spell but not a massive amount has come of it yet!!

I think the problem is the increasing cost of all the ancillary services that goes with earthmoving such as muck away - these all are getting more and more expensive which just makes the whole job seem less worthwhile to the potential customer.
 

justridinby

Member
Joined
Jun 13, 2011
Messages
23
Location
Australia
Occupation
Earthmoving contractor
The biggest obstacle iv'e struck running small earthmoving machinery as a business over the years is clients trying to compare my rates with general hire companies,sometimes you really have to spell out every advantage of hiring an experienced contractor than doing it themselves on a hire machine . It can get laughable when you see a total goof take 2 hours to pick up then return a hire machine then spend the first 3 hours hire on trying to learn how to operate a certain machine only to make a total screw up of the job , then still having to hire someone skilled enough to finish the job properly .Another aspect is never sell the smaller machines short , Iv'e had clients compare my rates with those of larger machines , firstly I ask if they can even get a large machine where they want the job done , then when the large machine arrives if it can trench , bore postholes , rotary hoe ,or clear and level for landscaping or concreteing .It does get easier after the first seven years .
 
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