JPSouth
Well-Known Member
Lost a considerable sum in work lately, due to the fact that the sand-embedded river cobble found some areas around here is pretty unstable, easy to dig but requires a great deal of material removal to achieve depth and safe working conditions. My KX161 does fine, but the 24" bucket takes time compared to a midi. My rates are fair and allow me running/replacement costs plus profit. My machine works well for 60%-70% of my jobs. The time factor is what's costing me work - I can't reasonably charge the same as a guy who's completing the work in maybe half the time with a bigger machine.
My business plan is to rent when I need a piece of machinery that isn't scaled to my operation, expensive or specialized. Both jobs were trenching for water line and tying into a sewer line - simple enough digging, but with a time constraint - I had to refer a guy who does a great job and of course now loves me. Had checked out front on renting a 10-20 ton machine with bigger reach and bucket capacity. Found out that of 5 equipment rental places here, none rented those sizes out - minis and 30+ ton machines you could have all day long, week minimum on the 30s and up, day on the minis, which I of course already have. Explanation - everyone who needs that size already owns it, no call for it. Due to approach and clearance problems, a big hoe was not an option either place.
So now I'm considering whether to look at something that will drag a bigger bucket or referring yet more work. Those 2 jobs were 30 minutes away and a very easy 'n profitable week and a half's work for the 161. Most of my jobs would accommodate a slightly larger machine, but leery of taking out even a small loan to cover the difference between a good used hoe and selling mine, which is a paid-for '99 with 1300 hours and whistle clean. If I whack my rates to make up for taking longer, I feel I'm cutting my own throat. I just hadn't figured on the rental scene - according to a friend, it has only morphed into the present situation in the last 5 years or so.
If any of you have come to this fork in the road in the past, I'd be interested in what you came up with.
My business plan is to rent when I need a piece of machinery that isn't scaled to my operation, expensive or specialized. Both jobs were trenching for water line and tying into a sewer line - simple enough digging, but with a time constraint - I had to refer a guy who does a great job and of course now loves me. Had checked out front on renting a 10-20 ton machine with bigger reach and bucket capacity. Found out that of 5 equipment rental places here, none rented those sizes out - minis and 30+ ton machines you could have all day long, week minimum on the 30s and up, day on the minis, which I of course already have. Explanation - everyone who needs that size already owns it, no call for it. Due to approach and clearance problems, a big hoe was not an option either place.
So now I'm considering whether to look at something that will drag a bigger bucket or referring yet more work. Those 2 jobs were 30 minutes away and a very easy 'n profitable week and a half's work for the 161. Most of my jobs would accommodate a slightly larger machine, but leery of taking out even a small loan to cover the difference between a good used hoe and selling mine, which is a paid-for '99 with 1300 hours and whistle clean. If I whack my rates to make up for taking longer, I feel I'm cutting my own throat. I just hadn't figured on the rental scene - according to a friend, it has only morphed into the present situation in the last 5 years or so.
If any of you have come to this fork in the road in the past, I'd be interested in what you came up with.