Tag: equipment owning & operating costs

Construction Equipment

4 rules for calculating Backhoe Owning & Operating costs

What’s it really cost to run a backhoe? Probably a lot more than you think. The following will guide you through an example of how to accurately figure these costs. Before we get into the numbers, be aware that these are just ballpark figures, from a few years ago, for discussion purposes only. The purchase […]

December 16, 2013

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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