Tag: O&O costs: Page 3

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Backhoe O&O Costs: Adding things up

Now that we’ve got all the math out of the way, there are at least four things we can take away…   < Operating Cost                 4 Things to Learn >> Back to Intro

December 16, 2013

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Backhoe O&O Costs: 4 things to take away

1. Your operator is your biggest expense. Consider paying extra for enclosed cabs to help retain quality employees and keep them productive. 2. Match the machine capabilities to the job. You don’t want an underpowered machine-that’s another waste of labor time. 3. Quick attach work tool systems also boost operator productivity. 4. Older machines=more downtime=another waste of […]

December 16, 2013

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Backhoe Operating Costs: Include the wages

Clearly, paying your operator is your top expense when it comes to running this machine. Some contractors may not think wages should be included in an O&O calculation, but that’s how it’s done in most heavy equipment fleets. This is especially helpful in determining how much to charge per hour of time a backhoe spends […]

December 16, 2013

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Backhoe Owning Costs: Figure in the residual

The residual price is what you can get for the machine when you’re ready to trade it in or sell it for something new.  A lot of contractors keep their older machines, but that’s like keeping a stock or other investment long after it quit growing or producing dividends. Next, let’s look at operating costs. […]

December 16, 2013

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Rule 1: Skid steer O&O costs

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.   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, […]

November 18, 2013

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3 rules for calculating and managing skid steer Owning & Operating costs

People who work with big equipment have a saying: “You can be going broke in this business and not know it for six months.” And the one cost that can be very hard to gauge, if you’re a small contractor or new to this business, is the owning and operating cost of your equipment. To […]

November 18, 2013

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Rule 2: Skid steer O&O costs

Managing operating costs Your operator is always going to be your biggest expense. With that in mind, here are a few ways to lessen that expense. Invest in training for productivity improvements Enclosed cabs, newer equipment help retain quality employees and keep them productive. Match the machine capabilities to the job. You don’t want an […]

November 18, 2013

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Rule 3: Skid steer O&O costs

Money never sleeps. If it isn’t making you money, it’s costing you money. If you buy stock in a company and after a few years it quits growing or paying dividends, you get rid of it. Right? The same is true of equipment. Letting equipment sit idle is like stashing money under a mattress. That’s […]

November 18, 2013