Going independent..

Hi guys,

I currently work as a heavy equipment mechanic for a large company with a fleet. I am wanting to transition into doing my own thing. I've read several threads on here with a lot of good advice.

My biggest concern is I want to test the waters before jumping from the security of my full time job. How would one go about that without diving in and buying a service truck?

Currently my tools are loaded on the company truck. I suppose I could load up what I anticipate I will need into my pickup truck when working after hours.. this would come with its own headaches and surely I would end up needing every tool I didn't bring!

Looking for some stories of how you independent guys go into it.

Thanks

I transitioned into it by setting up the biz stuff first. The LLC, IRS ECN#, Registered Agent, Bienniel report, bank account, state and borough biz licenses, DOT number, MCS-150, insurance lined up, biz credit card and accounts set up with the parts houses. Choose a accounting software package so you can invoice.
Consider a credit card service for billing, except I haven’t done it.

I went with Quickbooks for the first year. It was way more than I needed. Just switched to FreshBooks. Way easier to use and less money for the subscription.

All that takes time. Maybe $3,000 tops to get that done.

I should have talked with a CPA before getting started. I messed up my LLC doing it myself. Hired a CPA to fix it. Should have went with a CPA to begin with.

Do all that, and then leave your steady job so you can get productive right away.

I’ll let the other guys talk about the service truck challenges.

I started out using GnuCash (free). My own home computer and printer and a pad of work orders and a pickup truck. Only incorporated later when the volume demanded it.

Used Square for credit card acceptance. Beware, they are getting more like Paypal now.

#1 thing, answer the phone whenever somebody calls even if up to your eyeballs in grease. Answering the phone is everything.

I was able to work for a friend steady while moonlighting and bringing the business up to speed.

Birken Vogt said:

#1 thing, answer the phone whenever somebody calls even if up to your eyeballs in grease. Answering the phone is everything.

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Very, very good advice. I'm a small contractor with a fleet just big enough to have the iron we need but more than we can wrench on ourselves and not enough iron to afford an on the payroll mechanic.

There is a bounty of plenty for a mechanic on their own that can show up, diagnose and repair equipment for the small contractors. The hard part is building the client base that appreciates a good mechanic and pays as quick as the machine is fixed.

CM1995 said:

Very, very good advice. I'm a small contractor with a fleet just big enough to have the iron we need but more than we can wrench on ourselves and not enough iron to afford an on the payroll mechanic.

There is a bounty of plenty for a mechanic on their own that can show up, diagnose and repair equipment for the small contractors. The hard part is building the client base that appreciates a good mechanic and pays as quick as the machine is fixed.

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Totally agree there. I do many repairs simply because I haven't been able to find any mobile mechanic who I trust who isn't going to charge an outrageous amount and actually knows what they are doing. If i'm paying a guy $190/hr I expect them to know equipment inside and out and be way more knowledgeable and quicker then me. Have yet to find that.

When I opened my business I tried doing it part time wile keeping a job it don't work customers want to know that they can get you when they need you it took about a year to get a customer base. If you are good at what you do and don't rip off anyone you will get plenty of business.

You might look into buying one of those earbuds or headsets you can wear while working and then just tap the side to answer the call.

A buddy of mine has his smartphone connected to his hearing aids and he just taps his ear to answer a call. At first, I thought he was crazy as he looked like just started a conversation by himself. When he showed me his set up, I was a bit jealous I didn't hearing aids to do the same.

Dave Neubert said:

When I opened my business I tried doing it part time wile keeping a job it don't work customers want to know that they can get you when they need you it took about a year to get a customer base. If you are good at what you do and don't rip off anyone you will get plenty of business.

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The only reason I kept a job is it took a couple of years to get full time work and my skills were still needed at the other place. By all means if your workload is enough to keep you running, then quit your day job post haste.

I’m still on the fence trying to make a case for purchasing a service truck or not.
There are plenty of trucks around and available for that type of service.

I’m finding that a pickup is enough for most of my work. Actually, a mini-van would probably work better. But, I can’t and won’t do that. It’s just wrong.

I see a lot of dealers switching to the Sprinter/Transit Euro van concept. And look what they do in Australia. Those guys down under get an incredible amount of work done with a “Ute” with a service body on the back.

Pisses me off. - I mean disappoints me greatly, we can’t purchase those in the states.

I know a plumber who used to have a few Sprinters/Mercedes vans. He has gone back to conventional vans and looks for decent older ones. Sprinters were great on fuel and the higher roof was nice but he said they didn't hold up well. The hinges on the doors were a big problem with the constant opening and closing.

Which brings up a good question;

What are you road warriors charging for windshield time? Mileage? Mileage and time?

I’m billing $1.25 per mile for a pickup.
My cost per mile is about $1.10, best I can calculate. I’m not charging travel time.

I’m using that as a promotional thing. Everyone else is charging around $75 an hour travel time. A canceled flight, weather delay, traffic jam could cost a customer $3,000 just to get a mechanic on site. Not including lodging, meals , tickets, car rental, yada yada.

it’s not hurting me to not charge travel time during a flight. There are other productive things I can be doing. I may consider billing travel time in the future if it becomes an issue.

Drive time is full rate. Because if you weren't driving you would be working someplace else.

Mileage is $1.00 per mile both ways. Because the truck wears out fast.

If they don't like it then they can look for someone who is not as good at math.

You could charge a diagnostic fee ($50-$100) if you have to drive out to look at a job. If you can fix the problem when you're there, could reduce or wave the diagnostic fee depending on how long it took. If it's a big job and you have to come back could wave or reduce the diagnostic fee as well. That way nobody gets to waste your time and gets a deal in the end. Charge a mileage fee if it's more than 30 minutes away or so many miles. Lots of landscapers will have a 2 or 3 hour minimum which is fine. Some charge a traveling fee regardless how long the job is or how close it is to the last job. I think a minimum is a better approach. You do a job and a neighbor down the street asks if you can do a quick job for them. You tell them there's a $50 traveling charge and they question it because it's only 300ft. away. You tell them there's a 2 hour minimum, they still balk but are a little more understanding. It also doesn't make the original customer feel like they're getting ripped off. If the 2 neighbors are smart they'll book their jobs at the same time where they both get a better deal. Paying for 3 hours total of work with a 2 hour minimum is better than each paying a 2 hour minimum. You make less but will get much better reviews which should bring in more business.

I could not imagine not having a truck with a crane air compressor and welder if you are planning on doing this full time you need something to work with. I guess if all you are doing is servicing and changing hoses and computer diagnostics then a pick up or van will do. But a customer wants someone who can do everything just my 2 cents from being in the business 30+ years. I charge from the time I leave to the time I get back. If they don't want to pay then I tell them to bring it to my shop and that will cost more than me coming out to the site also get 1.25 a mile

Thanks Dave,

I had very similar thoughts about the utility of a full-meal-deal service truck. How could anyone get anything done without one?

Like you mentioned, I’m staying busy enough with diagnostics, electrical problems, dead batteries and such. Half of my work is located off the road system, anyways.

I’ve been kicking the idea around of going with a 17’ two axle cargo trailer for multi-day projects in Fairbanks and Valdez, on the road system. The cargo trailer idea is very popular with the contractor, carpenter, HVAC/plumbing crowd and I’m seeing some really slick set-ups.

I did about 3.5 years in the field with a truck that didn't have a crane. Yes you can do a lot but man some jobs are a bee-atch without a crane. If I ever pull the trigger on a truck of my own, it will have some sort of crane or hoist. Even if its only good for 1,500 or 2,000 lbs it'd open up a lot more opportunities than not having a crane.

It's amazing how far the technology has come though, a tiny invertor welder that runs on 110 can actually do decent minor welding repairs. If you have a repair that requires a fair bit of welding or something really crucial I know i'd be getting a welder out instead of a mechanic doing it, cheaper and better welding. A compressor would come in handy the rare time if working on trucks, but even a pretty small one would get the job done. It really comes down to if you want to spend a fortune rigging a truck up for everything, or a small amount to cover the bulk of stuff. I've done every repair my equipment has needed, and it's rare I don't have a tool I need on my truck in 2 18x18x48 toolboxes. If it's onsite and urgent it's been electrical, welding, water pump, or hoses. Nothing that requires much for tools.

If I was calling out a mobile HD mechanic, I wouldn't expect anyone to come out for less then $250 even in the city, it's just not worth it.

suladas said:

It's amazing how far the technology has come though, a tiny invertor welder that runs on 110 can actually do decent minor welding repairs. If you have a repair that requires a fair bit of welding or something really crucial I know i'd be getting a welder out instead of a mechanic doing it, cheaper and better welding. A compressor would come in handy the rare time if working on trucks, but even a pretty small one would get the job done. It really comes down to if you want to spend a fortune rigging a truck up for everything, or a small amount to cover the bulk of stuff. I've done every repair my equipment has needed, and it's rare I don't have a tool I need on my truck in 2 18x18x48 toolboxes. If it's onsite and urgent it's been electrical, welding, water pump, or hoses. Nothing that requires much for tools.

If I was calling out a mobile HD mechanic, I wouldn't expect anyone to come out for less then $250 even in the city, it's just not worth it.

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Is that what they're charging out here these days????

I did a lot of stuff out of my F150 with just my road box and weatherguard for quite a while. It got old having to load up an engine drive and stuff eventually though.

Coaldust said:

...I’ve been kicking the idea around of going with a 17’ two axle cargo trailer for multi-day projects in Fairbanks and Valdez, on the road system. The cargo trailer idea is very popular with the contractor, carpenter, HVAC/plumbing crowd and I’m seeing some really slick set-ups.

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We do a ton of pipe and fab work on site so we have a trailer set up with built in benches, some cylinder holders, place to strap down a welder, a chop saw station and plenty of storage under the benches. We can set up and be out of the wind, I've got a vice and a 8' SS top on one side by the welder. Plumbed for air and wired for 120/240 so we just hook up to a service truck.

Comes in real handy on night shut down jobs and like you said longer machine repairs too cause we have more work space. Plus at night it's nice to have probably 25' of lighted work bench.

Reminds me of my mobile Vet. $75 just to come down the driveway. (farm call) He works out of a pick-up truck and a trailer. I can haul horses to him for less than $75, so I do. He likes it better since he has only one set-up (connect to power, set up instruments, open cabinets, etc.) Since transporting 50,000 pounds of HE is expensive, a mobile mechanic can easily justify charging just a bit less than transport. (time and mileage) Give the customer the choice... Haul or pay for site call. Customer Choice makes for a smoother transaction. Seems like having the customer's equipment in hand insures payment for services.