Getting More Work?

[Copenhagen]

I have been in the fence building/light landscaping/snow removal business for about three years now. I'm looking at leasing a Cat 236B for the fencing and snow removal side of things.

I stay about 70% busy through the summer but snow removal is my bread and butter through the winter.

I need to jump start things so that I can put that skid to work earning it's keep. My lease details require that I put 400 hrs per year on the machine. Right now, it would only see about 250.

What avenues are you guys using to advertise your business? What type of people would I be looking to make good contacts with for commercial work? I need quite a bit more summer work so I can cover the lease payments as well as the increase in liability insurance.

At a minimum, I need to work get 8 billable hours per week on the machine. It doesn't sound like much but if I go a few weeks without work, those numbers start to add up.

 

[joispoi]

Don't buy or lease unless you can put over 500 hrs a year on the machine. Have you looked into renting?

 

[Copenhagen]

Don't buy or lease unless you can put over 500 hrs a year on the machine. Have you looked into renting?

Part of the problem is that I spent $14,000 on renting skid steers last year. For me it's time to s**t or get off the pot. I drove around today and there are many smaller jobs going right now and a few large jobs as well. I know I can put the machine to work I just need to get my foot in the door. I'm just not sure which door to stick my foot in though.

 

[joispoi]

I hear what you're saying, but $14,000 is the depreciation in the first year on a new machine. It sounds like you should be looking at a used machine. You're not going to put a lot of hrs on it and it sounds like you have some built in down time where you can make repairs if needed. Don't burden yourself trying to double your work load just to justify an expensive purchase. Find the deal that fits your needs and your current budget, not your "best case scenario" budget.

 

[SE-Ia Cowman]

That is great advise from joispoi. Right now the skidloader market is in the tank if you are selling one, but a dealer wont tell you that. You can buy a good late model machine with 500 hrs for 1/2 of new and have hard equity in it instead of renting or leaseing that is like throwing your money down a rat hole in my mind. Check out craigs list or Iron planet auctions check machinery trader for auction prices in comparison to asking price. If you spend $20000 on a used machine set up on 5 year loan pay 6% intrest you would have a $ 386 payment/month and only have to put 200 hrs/year on it. You cant rent a machine for $386 per week let a lone per month. Thats just my thoughts good luck

 

[lgammon]

i will sell you a 236a for 12,000 you save two grand your first year!! message me.

 

[Copenhagen]

I pretty much told the Cat salesman to pound sand on the "power by the hour" deal. Would have been $25 an hour, 400 hr minimum but the buyout for the machine was $43k. Way out of my budget.

I told him to look at every option he had available to get me into a machine. New, used, lease return, rental fleet, whatever it takes.

Right now, my only problem is the down payment money for financing a machine. I always rat hole my money in the winter because you never know what mother nature will throw at you. Each storm costs me about $6k in wages, fuel, rental, etc. If we have a long storm, that number gets even bigger.

I'm going to wait until he calls me back with some options before I even think about doing anything. I did check iron planet and every skid on there seems beat to heck.

Back to my original question, how are you guys drumming up your commercial work?

 

[Raildudes dad]

Back to my original question, how are you guys drumming up your commercial work?

Not much to drum up around here. A friend of mine made a good living for years with a skid steer, mini exc and tandem dump truck. 2 years ago this spring, he parked it all and in now driving truck OTR, gone all week on the road

 

[Wardiker]

Drumming up work, I live in cottage country so I keep my eyes open for potential development work. Advertise on sites your working on, maybe do some charity/community work to get your name out there. Advertise on the side of your truck and equipment, talk to real estate salespeople maybe offer them a referal fee. Look for people on property and approach them. Talk to others in your business and get info from them, a lot of times they love to talk and boast so listen carefully, do lots of listening not so much talking. Sometimes you can hook up with a dump truck operator and compliment his business with yours. Dont undercut your competition or speak bad about them, maybe they get a job that they cant finish because of breakdowns etc and will call you to finish it, offer them a fee for work like that, maybe its too small of a job for them but by offering a few bucks to them they will refer it to you knowing theyre still gonna get a little something. Do a quick web page and have lots of business cards. Maybe leave cards at the local lumber/hardware store. Always ask you customers if they might know of any opportunites and stay in touch with them , ask if you can use them for a reference. Knowing your in Colorado you wont compete with me so I dont mind telling you this. But keep these strategies to your self.
Hope that give ya some ideas.

 

[Copenhagen]

Well, thats basically the same as I do with snow removal. I just wasn't too sure about walking up on the work trailer at a larger site.

 

[dforbes]

I keep an add on craigslist and it usually brings in 4 or 5 extra jobs a month in the summer. Get lots more inquirys but not everone wants to pay my price.

 

[RTSmith]

See about some volunteer work at Habitat for Humanity. Also, see about joining the local Chamber of Commerrce. May be some good mileage in joining the BBB. All are avenues that will lend credibility to your operation. In the construction business, many of us want to deal with someone we've had some experience with first. Shoot- I just got a guy to help me with some electrical work that I've been seeing at Boy Scout meetings for 2 years now. Also- the biggest contractor in my town is always helping out with some charity project or another. People see him, and know his name.

 

[joispoi]

RTSmith is giving you some good advice.

Join your local volunteer fire department. It´s worthwhile work and more than likely, you´ll meet a good group of people and make some friends. By giving back to your community, you will open new doors and find yourself with more opportunities. Don´t bother joining if it´s only to wear the hat and prospect for work. That can work against you in some cases.

Think about it. You never know if the life saving skills you learn will be put to use helping a friend or a loved one.

 

[Copenhagen]

RTSmith is giving you some good advice.

Join your local volunteer fire department. It´s worthwhile work and more than likely, you´ll meet a good group of people and make some friends. By giving back to your community, you will open new doors and find yourself with more opportunities. Don´t bother joining if it´s only to wear the hat and prospect for work. That can work against you in some cases.

Think about it. You never know if the life saving skills you learn will be put to use helping a friend or a loved one.

I've been a vollie for 9 years. Looking at starting paramedic school this summer. I have a feeling the economy is going to take another crap real soon so I want to have a backup plan.

 

[calvin]

These are all real good points. I like the volunteerism. Word of mouth is probably the most powerful advertising

 

[calvin]

Not to hi-jack your thread. But how many 'replies' must a new member make in order to make a post? I need to find some used equipment.

 

[EGS]

Not to hi-jack your thread. But how many 'replies' must a new member make in order to make a post? I need to find some used equipment.

You have to make three posts to start a thread.

 

[Jfarris]

What part of Colorado are you at? I'm in the process of relocating to the Castle Rock area.

 

[KSSS]

Just a couple observations and points to consider. 43K for a 236B? Do I have that right? I am not sure that relying on that salesman is a good idea. Not every machine on IP is beat up, watch and wait and you can find good deals. Equipment values overall have been rising. Making money with a skid steer alone with few attachments would be difficult at least here. You need to be able to a lot of different types of work to keep a machine moving. The key to that is usually niche attachments in my view if your only piece of gear is a ssl.

 

[SKM Excavation]

That is a great web page you have KSSS what does it cost to have something made like that.