Running costs of a chipper

[Big A]

just bought a chipper and I was just wondering how much it costs to run per day, (how to cost it into the price) as I've always hired in and just added a small percentage for myself.

 

[Buzzlightyear]

Have you bought it outright or hiring, leasing, loan etc. not to hard to work it out that way. Carry on as you were before if it worked just the money goes in your pocket now instead of someone elses

One little scary thing i do is add up all my fixed overheads including what i'd like to earn a month ! and divide it by the roughly 20 working days there are in a month then add on 20% for the business and see what figure i've got. Most days i get what i need / want but others i bum out It seems the right result jobs are getting a little thin on the ground lately !!

 

[Big A]

bought the little beaut outright, didnt want to borrow money! just wondering rough prices on blade sharpening etc, as its second-hand from a reputable local dealer.... PROCHIP... (Timberwolf150's business) depreciation shouldn't be too much of an issue. Really just wondering how to put by to cover running costs.

 

[SteveBullman]

snap Big A, i just bought a machine from timberwolf150 too.
what do you get?

 

[PTS]

I just got two sets of four knives back from the sharpener and it ran me $40-$50 for them all. Don't know if that is good or bad. I thought it was decent.

I don't figure in the cost of the chipper. I price the job on what it is worth to remove the tree and if the chipper makes my job easier and faster then it is in my best interest to use it and own one. In Iowa the residential trees are all tops so there is tons to chip and with a 12 inch throat vermeer it really takes the work out of it.

 

[gorman]

that's what i pay for one set bro.

 

[PTS]

So your saying I shouldn't call the company and complain

 

[xander9727]

I've been paying $105 to have the four twelve inch double sided knives for my woodsman sharpened.

I charge $70 per chipping hour for my chipper. This does not include the truck that drags it there or the guys that feed it. I add the cost of a chipper (maintenance) per year (for five years) to the price of a new one, plus the interest on the loan, plus insurance, minus the residual value after five years (what I can sell it for). I multiply this number by 1.25 and divide by the number of hours I chip per year x 5 and that is how I get my hourly rate. Every January I recalculate all my equipment costs and figure my 1/4, 1/2 and full day rates as well as my machine time. That way I'm competitive but don't lose money.

Hope this helps.

 

[PTS]

I've been paying $105 to have the four twelve inch double sided knives for my woodsman sharpened.

I charge $70 per chipping hour for my chipper. This does not include the truck that drags it there or the guys that feed it. I add the cost of a chipper (maintenance) per year (for five years) to the price of a new one, plus the interest on the loan, plus insurance, minus the residual value after five years (what I can sell it for). I multiply this number by 1.25 and divide by the number of hours I chip per year x 5 and that is how I get my hourly rate. Every January I recalculate all my equipment costs and figure my 1/4, 1/2 and full day rates as well as my machine time. That way I'm competitive but don't lose money.

Hope this helps.

Must be nice. Around here you could never get that. You are looking at over $100 an hour just to chip brush. I can see having an hourly rate if JQ Public calls and wants you to come over and remove downed limbs or brush they have been stockpiling. I could also see it if is a Time and Material project.

 

[begleytree]

that's what i pay for one set bro.

Yup, I'm paying $1/inch 4 blades x 7.5" x 2 for the other side + tax is about $70 a set to sharpen.
Nope no complaint calls, PTS
-Ralph

 

[xander9727]

Must be nice. Around here you could never get that. You are looking at over $100 an hour just to chip brush. I can see having an hourly rate if JQ Public calls and wants you to come over and remove downed limbs or brush they have been stockpiling. I could also see it if is a Time and Material project.

I have a 15" chipper with a winch. Most large trees take less than one hour (usually much less) to chip so I usually add $70 for every job I do. If I am doing an extra large tree, multiple trees or land clearing then I will add the appropriate extra time. If I do not do this I WILL be losing money on these jobs. I'm not in this for the practice. There are plenty of people in Iowa that spend over $50K on a truck or SUV. A $20K minivan would work just as well but they want to have an SUV. They have the money........you just need to convince them to spend it. Don't use pressure or double talk, find their needs and meet them......at a profit. Who wants to be known as the cheapest company around? Be one of the most expensive and justify it with service, quality and reliability. Most people don't think about fertilizing, cabling, bracing, using tree growth regulators, installing bio-barriers, pruning, etc. These are great services to offer and have greatly increased profit margins. Additionally, these require return trips for follow ups which give you the opportunity to sell again. Removal based tree work is a game of constantly seeking out customers. Plant health care is one of managing a customer base.
Once you figure out what your cost are you know what you have to charge. If your going to lose money or be poor, do it spending time with family...........not breaking your back. Figure out what trucks, equipment, insurance, employee benefits and pay you would like to have and offer. Figure the cost of that now and start charging it. Eventually you will be able to afford it provided you can sell the work. If sales aren't your strong point, improve your skills through seminars, education and practice, or higher a great sales person. Part of success in business is knowing what you should do and what you should delegate. One person cannot be the best at everything but, one person can find the best people.

My $.02

 

[Redbull]

Very good post Xander. I still think there needs to be a forum on this board that focuses on business related issues. There's a lot of great info on this board regarding trees which is what it's for, but there is more to running a business than just a knowledge of trees. We could all benefit from the vast knowledge that we all have about business experiences, mistakes, what works and what doesn't. Even the guys that don't own/operate a business could benefit by seeing just what is involved in order for them to get a check at the end of the week.

 

[Koa Man]

My rate for chipping is $150 an hour, plus travel rate of 50 cents a mile and travel time of $25 an hour. I have a 1 hour min. and if I need to also dispose of the chipped debris, the disposal fee and travel time to the green waste facility, as I do not fill up my free dump spots with chipping only jobs. The $150 and travel time needs to be paid in advance, as soon as I show up. If the job is more than 20 miles away, they need to give me a $100 cash deposit before I drive there. I have had quite a few accept those conditions and many who wanted me to chip, but I did not have time for them. I prefer to do my own tree work instead of chipping for other people. I also tell them they will need to feed the chipper, I do not drag brush and would only be there to operate the machine. My chipper is a Woodsman 18X.

 

[Redbull]

I charge $100 for "disposal" on any job, up to a full load. Doesn't matter if I'm chipping or just piling brush in the dump truck, cost is the same. On smaller jobs it's just easier and more cost efficient to load the bush in the truck. To me, it doesn't make sense to pull the chipper, lower MPG on the truck, and use the gas in the chipper for 2-3 stacks of brush. Cost to the customer is the same though. A very, very full load in my truck costs $60 to dump. I've never paid this much as they usually charge me 40-50 for a good size load. Also, I do mostly pruning and small-medium removals, so the type of jobs you do will also make a difference in how you charge. For large removals the brush and logs gets subbed to my buddy with the claw truck, then the customer gets charged according to what it costs for him to come out and a few dollars for my time setting it up.

 

[xander9727]

If someone wants to have me chip and haul debris I charge $200 per hour and have a $300 minimum. This will get 15 yards of chips hauled, each additional load is an additional $100.In my area a 12" chipper is about $275 per day to rent. Then you have to pick it up and bring it back, put fuel in it and feed it yourself. With this in mind $300 is a deal. Most chip jobs are done in 30 minutes or less. So I can still make my necessary margin. If I am leaving the chips on site I charge $170 per hour with a $300 minimum. Like Wesley I'd rather do my own tree work than chip stuff for do-it-yourselfers or other companies.

 

[Redbull]

I hate chip jobs. No one seems to understand the concept of at least stacking everything in the same direction, let alone, the idea of making piles less then 10ft tall. :angry2:


But, they can be good money makers

 

[Big A]

snap Big A, i just bought a machine from timberwolf150 too.
what do you get?

I got a real smart jensen with a couple of hours on the clock. small world isnt it! Suppose you bought one of them timberwolf thingys, then.

 

[Koa Man]

I hate chip jobs. No one seems to understand the concept of at least stacking everything in the same direction, let alone, the idea of making piles less then 10ft tall. :angry2:


But, they can be good money makers

That's why you have them feed the chipper. All you do is operate the feed bar (if you have a hyd. feeder) and make sure foreign objects are not being put in. They will quickly realize what hard work is and the longer they take is fine with me. $2.50 a minute adds quickly.

 

[Redbull]

Right on Koa Man, I hear ya! I make them drag to the chipper, but I feed it, less liability. Most people that I do chip jobs for have never operated a chipper before and I'd feel real bad if they went through mine.

 

[xander9727]

Right on Koa Man, I hear ya! I make them drag to the chipper, but I feed it, less liability. Most people that I do chip jobs for have never operated a chipper before and I'd feel real bad if they went through mine.

Not to mention the clean up.