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Old 02-08-2007, 11:24 PM   #21 (permalink)
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Default Re: Business plans for Mulching

A good business plan is a must, and a vital part of that plan is which machine to buy. Run them all, no 80 hp unit I ran came close to the 100 hp but that is just my opinion.
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Old 02-08-2007, 11:30 PM   #22 (permalink)
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Default Re: Business plans for Mulching

You are absolutely right. As they say "No replacement for displacement"
A member sited that Bobcat made several improvements to there tractor and solved all there issues. They are still 20 H.P. and ??? torque out of the game.

That's why they make so many different size mulching tractors because there is always a need for more H.P. I've learned from my demos the tree size limitation is in direct relation to H.P.

Just my .02 cents. Robbie
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Old 02-08-2007, 11:46 PM   #23 (permalink)
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Default Re: Business plans for Mulching

I agree with you robbie, bobcat hopefully has corrected their issues, but I am not going to take their word for it. I will wait for the real world results from the next joe mitchell. Thats what makes my decision. He is not the only one as others have had the same issues as him. 20 hp does make a difference.
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Old 02-09-2007, 09:04 PM   #24 (permalink)
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Default Re: Business plans for Mulching

Ok I talked with the local dealer here in NC, and I am feeling pretty good about this type of business.
The dealer in my area mainly deals with ASV and Loftness and after talking with him for over 40 min he seem impressed with the knowledge I have learned the last few weeks. I am now leaning towards the Timber-ax head vice a carbine tip head, in part due to the fact we more pine trees than hard woods and few rocks in our area. Robbie I do have a question about the Timber-ax statement from Loft-ness (Efficiently cuts and mulches up to 6 inch diameter material with as little as 38 hydraulic horsepower. Intermittently cuts up to 12 inch or larger diameter material.) I am just confused on the Intermittently part is this a true working capacity or just a one time thing. Has anyone 100 % finaced all the equipment from the dealer and what was the experince like? I am now working on the wife, she is almost scared that this could fail? And lastly the going rate around here is $125-150 and more work than people are doing it which could be helpful!
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Old 02-09-2007, 09:38 PM   #25 (permalink)
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Default Re: Business plans for Mulching

And as far as pricing here's what I am looking at for initial startup based on a 40 hr month startup at $150.00

$100 for loan repayments $4000.00 a month
$35 for operating cost $1400
$15 for my salary $600
For a total of $6000.00 a month

Fuel cost as operating cost about $1250-1300 a month is this realistic figures
I am basing 40 a month initially but should and could be more just have to maintain my full time first. But I only work 40 hours there no more than that ever.
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Old 02-10-2007, 12:12 AM   #26 (permalink)
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Default Re: Business plans for Mulching

Okay, here we go.

Timberax is good, its makes the best use of hyd. H.P. of any head. As long as there aren't many rocks your good. You'll have the sharpening issue that me and Uva cover in the Mulching Project thread. I can give you ideas on that later.

Okay the cutting issue. It can handle 6" material with 38 hyd H.P. ASV's put out something like 77 HYD H.P.. That's where the extra capacity comes from.

The intermediate statement comes from how much material you engage. Look at the pictures on Mulching Project. When I started the path I encountered a wall of pines. I was mulching multiple 6-8" pines at once. That would be the continues duty part. If there was a larger pine (10") I would isolate the larger tree and mulch it by inself. Multiple 6-8" trees and the 10" together would bog the head down to much.

Know onto size. Realisticly the max is usually 6-8" hardwood and a 10" pine. Anything bigger and the base of the tree is just to dense, about the last 3-4' of the base. Know the reserve comes into play like on the pictured job he wanted a path exact. so if I encountered a larger tree it needed to go. But at that size your at the limit of the head, you can push the head some to complete the job just wouldn't want to do hours on end of it.. A carbide toothed head can SLOWLY deal with a 8-10" hardwood and a 12" pine. Maybe a slight bit bigger in a pinch. It's in the forward rotation and smaller teeth bite size that allows this. It grinds down where a timberax cuts at 90 degrees to the tree.

But a summary. Our market is brush up to 6-8" material. If you regularly encounter larger material and jobs, there are larger tractors that suite the job better. I can elaborate later. I hope all of that made since.

As a saftey margin you might consider figuring at 125.00 per hour. If I were in your area and hiring someone to do this work, if two people are the same price I will go with the one who has been in business longer and heard of more. They would be more productive than an novice. That's just my .02 cents.

Your best financing is going to be at the dealership. Banks are hard to sell on equipment. Been there done that. Get everything you want/need upfront to give yourself the best chance. I had to purchase a grapple recently and that cut into profits abit.

you know your operating cost and payments. I am still working my full time job at night and running the mulching business during the day. In the startup faze you'll do good to make the payment each month. There is a ton of stuff you'll need down the road. As in my case and sounds like yours, somthing needs to be payed off to make a comfortable profit. Just the beast. My wife and I agreed to do both for 1 year and see where we were at that time.

A 40 hr month is a good number. Here's a few numbers to keep in mind. Blades for the head 1000.00 a set. They wear pretty even. If you have a problem with the high flow hoses (it happens) 350.00 a set. My dealer included a set of blades with the purchase which helped alot.

Sounds like your getting a plan going. Just remember this, if you plan for the absolute worse and can get by in that case, you have a good plan.
Several of us have learned these lessons the hard way and were making it. Didn't find this site until months after I started. Oh well.

Let me know what you think of all this and talk later. Robbie
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Old 02-10-2007, 09:48 AM   #27 (permalink)
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Default Re: Business plans for Mulching

Makes some sense to me, the dealer did say something about an extra set of blades as well. In general where the areas that are really thick we are talking small pines and huge amounts of under growth, I know that is not everywhere but as long as you have that, I am sure you can get it done in a timely manner. I hear about about price and after going over the numbers after I posted last night I could agree with you. I was figuring close to $3000 a month repay but after taking a closer look I should figure closer to $2000-2500. And I believe operting cost should be more like $40-45 per hour to also cover the extras like oil, hyd fluid , filters, and blades. Which brings up other point what are some of maintenance schecludes like? How often is oil changed at 8 gals that can add rather quickly.
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Old 02-10-2007, 01:03 PM   #28 (permalink)
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Default Re: Business plans for Mulching

Service at 50 hours is oil and hydro fluid change..cost me about $200 along with having the level gauge replaced (covered in the asv face down thread lol ) Next service due at 150 hours..nothing too major...just oild and filter change and checking the hydro...they change it at 50hrs because of break in...you need to figure in the cost of air filters..they need to be checked/cleaned with compressed air daily...they are good for a few cleanings...i cant recall how much they are off the top of my head robbie may know....there is not much that needs to be checked on the timber ax accept the blades and the bolt torque...you will also need to take the cover off the hydro pump on the timber ax and clean the debris out of it....I would recomend financing through ASV...we got the timber ax on our John Deere Farm Credit plan...the interest rate will be different for the ASV and the Timber Ax even if they both go through ASV financing through your dealer because of the TImber Ax being a non-asv product....I would STRONGLY recomend the Forestry kit..or and the MINIMUM the rear end guards...I have a buddy that backed his into a tree while grading a drive way and crushed the whole engine cover and radiator to the tune of $5000.00 he had no rear guarding...just my .02

Ryan
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Old 02-10-2007, 02:21 PM   #29 (permalink)
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Default Re: Business plans for Mulching

Ok now I am curious I have not seen the thead about the ASV face down, I've seen it mention a few times does anyone have the link.
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Old 02-10-2007, 03:31 PM   #30 (permalink)
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Default Re: Business plans for Mulching

http://www.tractorbynet.com/forums/s...face-down.html
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