Rates for Boom Mower?????

[Traindriver]

:msp_ohmy:Hello Thanks for looking, I have the opportunity to buy a 90h.p. John deere with a 25ft boom mower that has a 50 inch rotary head. I think I Have work for this but i do not know where i should start as far as pricing. I have heard to start at $90/hour. Any info would be great. It would be used for Clearing back trees in ag fields, along with working with the dot, and municipalities to help assist with reclaiming and general maintnance.:msp_confused::msp_confused:

 

[Fairbanks Stump]

Get a pen and paper!

Ok figure out your rate!
How much fuel per hour does the rig burn?
How much will the operator make ( multiply x 1.6 = effective wage rate)
How much PM time per 8hr work shift ( ie grease, fuel, blade sharpening)
How much mobilization is to be included or do you have to show up ready to work regardless of how long it takes you to get there?
What is the Amortization period and how many hours per year to you expect to devide the yearly value by to set your equipments hard dollar cost at?
How much profit do you expect ? Ie 25-30 %

Now that you have determined that figure the same info based on a brand new piece of equipment your number will be significantly higher! The number with the new iron is the price you should charge! Your negotiation can occurr in the arbitrage between the new and the used price!
Check your number by calling a local rental store or contractor that rents his side arm mower out plus wages, mobilization, and profit
This should give you a better number to start with!
So in short I am telling you to do a bit more home work $90/hr is pretty cheep for a $175/hr piece of equipment!

Thanks
Jon

 

[DavdH]

If you have year round work 1% of purchase value / hour + all the above mentioned. Fuel is now more than an operator so I expect wages will follow soon.