$ An Hour Vs Equipment Cost

denick

A recent conversation about rates charged by the hour for a tri-axle dump truck and how it was hard to get $65.00 to $70.00 per hour prompted these thoughts.

In 1976 B and R model Mack dumps were getting &32.00 to $36.00 per
hour. Trucks cost new $40,000 to $50,000.
Insurance, fuel and registration 25% of todays cost. Driver 66% of
todays W/C and Liability 30% of today. Benefits today $$$$
New trucks $110,000 and up. $65.00 per hour

In 1980 CAT 225 new cost $ 99,000 we were getting 90 to $100.00 per hour.
Insurance, Fuel and lubricants 25% of todays cost. Operator 50% of
todays. W/C and Liability 30% of today. Benefits today $$$$
This size machine today $200,000 and up. $130 to $150 dollars an hour

Does it make sense?

These are CT prices.

Nick

jmic

No. But then not to many things make sense anymore. By the way I'm paying $80.00 - $85.00 / hr. for trucks.

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Joe

denick

It must be those 50 miles. That still isn't enough.

Older guys told me they used to divide the cost of the new equipment by 100 and that was the hourly charge. Maybe thats why many of them retired to the south and lived happily ever after.

Time to raise rates?

Nick

jmic

Actually I know of that formula, and thinking of what we've paid for our machines and what I bill out it does work out for me plus.

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Joe

rino1494

hmmm.....never heard of that formula, but it wouldn't fly in my area. In my area, the excavating business is very competitive and there are always people out there that are cheaper. We raised our rates quite a bit last year to compensate for the rising costs of fuel, insurances, workman's comp, etc...

I think this year, we are gonna have to raise them again.

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