Why does it cost so much to repair a tractor?

[MoKelly]

I'm curious about your payroll taxes north of the border. The US Social Security taxes are 6.2% each for employer and employee (up to a wage of $113,700 in 2013) and Medicare taxes are 1.45% each for employer and employee (without limit).

Steve

The Medicare rate has increased in 2013 for "high income" individuals to 3.8% on wages (equally paid by employee and employer) and 3.8% on all "unearned" income (all paid by individual). Makes saving and getting interest/dividends even less beneficial.

MoKelly

 

[3930dave]

I'm not in HR or accting, and sad to say don't have any recent paystubs.... these #'s may be close

CPP 4.95% for both, capped at $2,306.70.

Canada Pension Plan - Wikipedia, the free encyclopedia

1.95% employer end for health tax. Individuals on a sliding scale, dependent on income. Tiny companies pay less, or may be currently exempt. In one form or another, fee based medical care has been creeping in here for 15 years - Canadian health care is no longer totally "free", hasn't been for quite a while.

Employer Health Tax

T4032ON - Payroll Deductions Tables - Income tax deductions - Ontario - Effective January 1, 2013

EI has primarily been used as tax revenue... the feds have done a great job of running up a huge EI surplus, last I checked. (Same scam as any insurance company - collect premiums, then don't pay claims).

I don't work in any payroll related area, so a qualified Canuck may correct/enhance my numbers.

Business wise, I classify Payroll taxes as any (ex. Safety training, Sensitivity training....) cost that the employer is mandated to deal with, due to having an employee on staff. That may not be a proper accounting definition, but rather represents my simplistic view.

Rgds, D.

 

[CDN Farm Boy]

There's also Worker's Comp to account for either for an employee or even as a legitimate sub contractor (construction) Cost me 9.4% right of the top on my labour if I'm working for anyone other than directly for a homeowner. That's the rate for carpentry, roofers for example are nailed at 14%

 

[3930dave]

There's also Worker's Comp to account for either for an employee or even as a legitimate sub contractor (construction) Cost me 9.4% right of the top on my labour if I'm working for anyone other than directly for a homeowner. That's the rate for carpentry, roofers for example are nailed at 14%

Great point Farm Boy, forgot about that one - I now recall there have been big "enhancements" to that legislation in recent years. Yikes, those rates hurt !

Rgds, D.

 

[Turbys_1700]

I've lived on the farm most all of my life while my dad was a tractor salesman for over 30 years...
Service is expensive due to overhead, insurance, taxes, and equipment...
We always repaired as much on the farm as we could ourselves but sometimes you have to let a dealership or service truck handle the repair...
I remember dad taking his D4D Cat to the Caterpillar dealership to get the pins turned...
My neighbor had his 170 Allis rebuilt years ago by a well respected tractor mechanic here in the area and it was not cheap...
It is the cost of ownership...

 

[jeffrey196]

I have a Case 530 Construction King and it needs a new clutch. Any idea on how much it will cost for parts and labor?

 

[duke7595]

I have a Case 530 Construction King and it needs a new clutch. Any idea on how much it will cost for parts and labor?

Check out what the parts will cost on line, it's probably a good idea to get a few estimates on labor. When you do get an estimate, check to see
if the parts are in line w/ the prices you found on line. I have learned some mechanics will hit you hard for parts.
When you change out the clutch, you may want to think about replacing the P.P. and T.O.B.

 

[Pappy52]

I am trying to setup a tire shop in South Texas. Farm tire service calls and shop repair are not clear. I find calling around there seems to be a wide variants in pricing. I want to charge a fair price for both the customer and my business.
Looking at the above bloggs...I still am at a loss.

Love's & T/A both charge $99/hr + $1.50 per mile (This is base on Tractor/Trailers, but a specific rate to reference). So if I take the above example (3 hours labor, 2 miles from shop 2x4=8, plus parts).
Calculation: 3x99=$297 + 4x1.50-$6.00 + patch ~ $15 Total charge= $318 vs $275

Here is my take on the service call. First I would be prepared (bead breaker, tire irons, etc.) to service on-site if all possible.
Obviously there are variables that would de-rail my estimate (tractor location-in the field, muddy conditions, ect), but normal scenerio I would see 2 hours of labor...making the call ~ $100 less for the customer.

In saying this, I am a startup and need experience to guide me in the "real world"
Thanks
Pappy

 

[RDrancher]

I am trying to setup a tire shop in South Texas. Farm tire service calls and shop repair are not clear. I find calling around there seems to be a wide variants in pricing. I want to charge a fair price for both the customer and my business.
Looking at the above bloggs...I still am at a loss.

Love's & T/A both charge $99/hr + $1.50 per mile (This is base on Tractor/Trailers, but a specific rate to reference). So if I take the above example (3 hours labor, 2 miles from shop 2x4=8, plus parts).
Calculation: 3x99=$297 + 4x1.50-$6.00 + patch ~ $15 Total charge= $318 vs $275

Here is my take on the service call. First I would be prepared (bead breaker, tire irons, etc.) to service on-site if all possible.
Obviously there are variables that would de-rail my estimate (tractor location-in the field, muddy conditions, ect), but normal scenerio I would see 2 hours of labor...making the call ~ $100 less for the customer.

In saying this, I am a startup and need experience to guide me in the "real world"
Thanks
Pappy

My inlaws were broke down this morning near Abilene. While trying to arrange for a mobile mechanic, I found out something I didn't know before. Mobile mechanics and tire repair companies pay insurance based on mileage from their home base or business. One of the mechanics said his insurance was based on 100 mi. Just something to think about.

 

[two_bit_score]

I am trying to setup a tire shop in South Texas. Farm tire service calls and shop repair are not clear. I find calling around there seems to be a wide variants in pricing. I want to charge a fair price for both the customer and my business.
Looking at the above bloggs...I still am at a loss.

Love's & T/A both charge $99/hr + $1.50 per mile (This is base on Tractor/Trailers, but a specific rate to reference). So if I take the above example (3 hours labor, 2 miles from shop 2x4=8, plus parts).
Calculation: 3x99=$297 + 4x1.50-$6.00 + patch ~ $15 Total charge= $318 vs $275

Here is my take on the service call. First I would be prepared (bead breaker, tire irons, etc.) to service on-site if all possible.
Obviously there are variables that would de-rail my estimate (tractor location-in the field, muddy conditions, ect), but normal scenerio I would see 2 hours of labor...making the call ~ $100 less for the customer.

In saying this, I am a startup and need experience to guide me in the "real world"
Thanks
Pappy

Welcome to TBN and GOOD LUCK on your new business venture! :thumbsup:

Two things I suggest:

>>Have a clear understanding about what your costs are to run your operation. Make sure you include all your overhead and all your expenses.

>> Do your homework to determine if you can be competitive in your market if you charge enough to cover your costs and enough to make a profit so you can stay in business, expand and make money for yourself.

Charging a 'fair price' has nothing to do with you staying in business. Being competitive in your market at a price that allows you to cover all expenses and make a profit has everything to do with you staying in business.


Again good luck in your new business! I hope you do extremely well!