What's your operating costs?

[Localmotion]

Hi all

Just a bit of general interest chit chat...

Given the different regions of the world we all live in, I'd be interested to know the differeces in input costs of operating our machines...!

Where I am (Spain), I just paid 1.03€ per litre (approx $6.75 per gallon) for a can of red (rebated) diesel. Normally I buy in bulk, but even that is 0.97€ /litre for 1000L at the moment - potentially crippling for a small business like our own.

The cost of hiring machines (which we don;t need to do often) isn't much better - a self drive 7-tonne excavator costs 145€ ($210) - and you've still got to provide the diesel!

On the upside, so many business are hitting the wall that used machinery have gone dirt cheap - although tractors are still holding their own at the moment. Average cost for a 5 year old 70-100hp tractor is around €10,000 ($14,500).

What's it like wherever you are? And any useful tips to save money / save fuel??? :thumbsup:

If any body comes back with really cheap diesel - please send me some :laughing: !

 

[ArtMech]

Average cost for a 5 year old 70-100hp tractor is around €10,000 ($14,500).

What's it like wherever you are? And any useful tips to save money / save fuel??? :thumbsup:

Yes, you're right. I've obtained my 7 years old M9000DTF (1250 hrs) from Texas. It completely costed me 13033 euro including sea delivery, VAT(21%), repairs and rebuilding. It's a good machine I really like it, but in these days, when the fuel price increased terribly high ($7.42/gal for petrol and $6.93/gal for diesel in my country - well it drops now a little bit), I'm starting an engine only in case of real needs, or don't do smaller works until I'll collect some more of them. That's what I'm doing to save money/fuel. 'Cause an engine spits out a real fuel until it warms up and that maddens me much :mur:
We also have excise free (green) diesel fuel and I'm getting it according to a farmland size and job type, but it's not much enough to feel free from scrimping.

 

[davygp38]

Hi, I live about 80 miles north of New York City, where three states come together. There are also a lot of companies out of business, but it does not seem to have an impact on the cost of machinery. The price of machines seems to have held up pretty good. In fact I was looking for an opportunity to pick up a small excavator 5-6 tons, but I have seen no real steals. The price of Fuel is of course much cheaper here, ($3.89-$4.00,) depending on the state you're in. My biggest cost, is maintenance. The price of filters,and hydraulic fluid, not to mention labor, if it is something I cannot fix myself.

 

[Localmotion]

Saracenas - I agree totally! It is no longer worth while taking a machine out for just 2-3 hours work as the cost of transporting it & starting it is too much. We used to charge by the hour for our excavator - but now charge a minimum half day rate. Even that is too little really (€100 for 4 hrs), and only just covers drivers wage (normally myself) plus fuel and maintenance. I cannot afford to factor in depreciation (luckily it is already an "old" machine) as to do so would make us more expensive than our competitors. Likewise with the tactors - although we still have to provide an hourly rate as the farmers here are also struggling!

Davy - cannot agree more re: cost of repairs / maintenance and filters etc.... I am not a mechanic (nor have really wanted to be) but I find my self doing more and more complicated repairs, simply because my time is cheaper than that of a qualified mechanic :ashamed: That said I do have some very useful friends who will help if I get really stuck in return for a few beers! :drink:

 

[ArtMech]

Hi, I live about 80 miles north of New York City, where three states come together. There are also a lot of companies out of business, but it does not seem to have an impact on the cost of machinery. The price of machines seems to have held up pretty good. In fact I was looking for an opportunity to pick up a small excavator 5-6 tons, but I have seen no real steals. The price of Fuel is of course much cheaper here, ($3.89-$4.00,) depending on the state you're in. My biggest cost, is maintenance. The price of filters,and hydraulic fluid, not to mention labor, if it is something I cannot fix myself.

Do you pay income taxes to all three states? :laughing::laughing:

Correct me if I'm wrong. But I've noticed a difference among Americans and Europeans in doing ground works.
Americans like to do it themselves, they purchase a machine needed, perform the concrete project and sell it afterwards. Maybe that's why the price of machines doesn't drop.
Europeans are hiring a machine with operator, ask to do the job, pay his (if he is the owner, or company's) bill and say bye-bye.
I'm not sure, which kind of business organization is better, but having a possibility to compare, you may choose the cheaper one.

If about maintenance, I prefer to do it myself, including filling up all greasing points. I'm also fixing my tractor(s) myself (ah well, not an engine or transmission). So it also helps to save some money. The Kubota dealer is too far from a farm (~120 km/75 miles) to bring a tractor there. I'm thankful to a dealer I can order parts from him although the tractor is bought from different trader. But there's no way to avoid filters, fluids, grease and all necessary maintenance parts purchase.

 

[Localmotion]

Correct me if I'm wrong. But I've noticed a difference among Americans and Europeans in doing ground works.
Americans like to do it themselves, they purchase a machine needed, perform the concrete project and sell it afterwards. Maybe that's why the price of machines doesn't drop.
Europeans are hiring a machine with operator, ask to do the job, pay his (if he is the owner, or company's) bill and say bye-bye.

I totally agree it does appear that the Americans are more "hands on", although I think that may simply because forums such as this have mainly American contributers?

Back in the UK I knew lots of people who got physically involved in their ground work projects - although they would generally hire the equipment on a self drive basis rather than buy it to sell on later. Here in Spain the culture definately leans far more towards hiring a machine with operator - in fact many of the "self drive" hire companies will only hire out to business users who have to prove their experience and competence.

Personally I would always rather have a self drive and do the job myself - but then I've spent all my life around tractors and machinery. I tell my customers exactly the oposite - they should only hire a machine with an experienced operator (such as myself) Seriously though, I believe it often works out cheaper for the customer to hire a machine with good operator who can complete the work to a high standard in a good time, rather than pay a daily rate for a machine that they cannot use to its full potential.

Another interesting cost... tyres & tracks? How long do yours last, and whats the cost of replacing them?