I am interested in determining the appropriate hourly rate increase to apply for a 72" Cat Brush Hog attachment mounted on my recently acquired CTL, along with a 2019 279D skid steer. Even though the machine does not have high flow capabilities, it operates the brush cutter efficiently. Due to the lack of high flow, this is the largest brush cutter that can be matched to the machine. I currently charge $95 per hour for the machine when equipped with just a bucket. I am curious to learn about the pricing strategies that others use for similar attachments mounted on their CTLs. What are the typical hourly rates for these types of attachments in the industry?
Calculating the cost of your equipment involves considering various factors. Start by determining the expenses incurred, including fuel, maintenance, depreciation, and operating costs for owned or rented equipment. Additionally, factor in your time and attachment costs. Consider whether you bill mobile costs separately. Don't forget to include overhead and profit costs. Divide all these costs by the number of hours worked, with a base rate of 5-10 hours per day. This simple formula will give you a clear idea of your monthly expenditure.
I support CMC76's advice on calculating costs and setting prices strategically to ensure a profitable business. Determining your hourly rates should be a priority, taking into account both your expenses and your competitors' pricing. It's common to encounter tough competition in the market, with some offering low rates for poor quality work. Understanding operating costs and pricing strategies is crucial for a successful business plan. In our case, we seem to have similar pricing strategies for renting a 279D machine, which indicates a shared focus on profitability. Typically, our 279D machines are used as support equipment for fixed-price projects, with an internal rate of $85 per hour plus a 15% markup, totaling $97.75 per hour. When equipped with additional attachments, such as a mower, the hourly rate increases to $135 to cover the extra fuel and equipment costs. Additionally, there is a $125 fee for transportation each way. Despite these efforts, it remains challenging to generate substantial profits.
If you're in the market for an AED, consider checking out equipment watch for competitive rates. Typically, equipment under contract is priced between 75%-85% of the average equipment dealer price. Keep in mind these methods are tailored for larger commercial projects. For smaller-scale projects, it's important to calculate your break-even point to determine the most cost-effective option.
Answer: - When determining the hourly rate for a Cat Brush Hog attachment on a 2019 279D skid steer, factors to consider include the efficiency of the attachment with the machine, the lack of high flow capabilities, and the market rates for similar attachments in the industry.
Answer: - The lack of high flow capabilities may limit the size of the brush cutter that can be matched to the machine, which can affect the pricing strategy. Operators may need to consider this limitation when setting hourly rates for the attachment.
Answer: - Operators may vary in their pricing strategies for attachments mounted on CTLs, with factors such as attachment efficiency, machine capabilities, market rates, and competition influencing their decisions. It's important to research industry standards and consider these factors when setting hourly rates for attachments.
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