Rule 1: Skid steer O&O costs

|  November 18, 2013 |

Based on a Case 430/440 model, 1700 to 2200 pound operating load, 2007 model, 4 year ownership/depreciation, 750 hours of use per year.

skid steer O&O costs slide one

 

Do the math

Unit costs are a great analytical tool. Take your machine O&O costs per hour, apply that to how many hours it takes to move X amount of dirt, lay X amount of stone or gravel, what have you. Then add whatever your costs are for materials in unit costs as well–yards of dirt/gravel, square feet of pavers, sod and so on. Then you have a unit cost which not only greatly simplifies bidding. But you can also use this as a tool to analyze performance of crews, machines and even subcontractors.

Do the math. The big boys do. That’s how they got big. Put everything into a spreadsheet and rigorously and regularly analyze and refine your numbers.  This will give you valuable insights into how your business is doing, prevent you from over or under bidding, even help you spot fraud.

 

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