Hello, this is my first post and I'm glad I found this site! Lots of useful information on here!! Anyways, I have been tossing around the idea for purchasing a Bobcat skid-steer and then renting it out to people. I've considered all the basics such as maintenance and insurance. What I am more interested in, is if you guys (the presumed professionals) think this would be a good idea? I have a normal full time job and could use a Bobcat around the house, but not enough to justify buying one. I was thinking of just putting up an add on craigslist and maybe the newspaper. I would charge under the local daily rate of $160.00 to hopefully gain more interest. I also have a trailer and a diesel pick up, so I could deliver if needed. My thought is, I spend in the ball park of 35k for a basic Bobcat with a bucket attachment. We'll say 40k with all things considered. 40k divided by 110 bucks a day, means I would have to rent out 363 days to pay it off. Again this is all ball-park. So after that point, even if spread out over 2 years, would leave me with a paid off Bobcat, with roughly 3300 hours on it. Does that sound like an ok idea? Slow months I can easily make the payment myself and in the harsh Minnesota winter, I could either rent out to a snow removal contractor or do it myself. I already have a plow for the truck. Are there other things I'm not considering or I should know? I would love to hear your opinion as I don't know too much about these kinds of things. Thanks in advanced for any advice offered, I truly appreciate it!
Help Support SkidSteer Forum:
skidsteer.ca
Well-known member
- Joined
- Jan 20, 2006
- Messages
- 3,853
Well that is how I got started with skidsteers. But I did have other logging and trucking equipment ahead of time. I don't regret getting a skidsteer, us it almost every day for a few minutes. sometimes a few hours. In fact I usually try to keep 3 around here. but we still only clock 200 to 250 hours per machine annually.
We are also almost attachment poor, as you never know what a customer will want next. Some are a no brainer, you need them often, like a bucket, forks, auger, hoe and a grapple. Others, like a concrete mixer I thought we would use a lot, but people seem to order a yard of ready mix instead.
I'd say first off look at how many other people in you area are offering this type of service. Also what they have for attachments and what you can rent for attachments or are willing to purchase to round your package out to make it the most flexible. I doubt in 2 years you will have anywhere close to 3300 hours on a machine. If you do there is a serious demand in your area that is not being met presently.
There is no doubt that having a skidsteer around is one of the handiest machies ever. They are so flexible.
The problem with doing custom work or rentals is they work too good. Most of our jobs are only 1 to 4 hours. This is why most places only rent for a full day minimum. or if you go to do a job, that you should bid it.
The customer will be much more willing to pay a reasonable price for what they think is a full days work before hand, then they will be to pay you a reasonable rate after you complete the job in 2 hours, but still need to cover the cost of travel, being ready to provide the service, etc.
Currently with the housing slump there are more good used machines then ever on the market at a good price and more and more people like yourself are buying on instead of renting it.
Personally in your shoes, (as best I can be) I'd start a little smaller and look for a used machine with 1000 to 1500 hours, that has not been trailered in the salt in the winter or looks like someone took a sledge hammer to it. (if you do snow the salt is very hard on them) and consider putting the other 15 to 20k into attachments that you think you need or can't rent as needed in your area.
Eventually the investment will pay itself off if you take care of it, but it is going to take longer then you think imho.
We have spent 10 years up grading the fleet from the first used loader I bought with 6 used attachments to this. It has made me some money, but I still work contracts in the logging business as a main income.
Where are you in Mn?
Skidsteer.ca
We are also almost attachment poor, as you never know what a customer will want next. Some are a no brainer, you need them often, like a bucket, forks, auger, hoe and a grapple. Others, like a concrete mixer I thought we would use a lot, but people seem to order a yard of ready mix instead.
I'd say first off look at how many other people in you area are offering this type of service. Also what they have for attachments and what you can rent for attachments or are willing to purchase to round your package out to make it the most flexible. I doubt in 2 years you will have anywhere close to 3300 hours on a machine. If you do there is a serious demand in your area that is not being met presently.
There is no doubt that having a skidsteer around is one of the handiest machies ever. They are so flexible.
The problem with doing custom work or rentals is they work too good. Most of our jobs are only 1 to 4 hours. This is why most places only rent for a full day minimum. or if you go to do a job, that you should bid it.
The customer will be much more willing to pay a reasonable price for what they think is a full days work before hand, then they will be to pay you a reasonable rate after you complete the job in 2 hours, but still need to cover the cost of travel, being ready to provide the service, etc.
Currently with the housing slump there are more good used machines then ever on the market at a good price and more and more people like yourself are buying on instead of renting it.
Personally in your shoes, (as best I can be) I'd start a little smaller and look for a used machine with 1000 to 1500 hours, that has not been trailered in the salt in the winter or looks like someone took a sledge hammer to it. (if you do snow the salt is very hard on them) and consider putting the other 15 to 20k into attachments that you think you need or can't rent as needed in your area.
Eventually the investment will pay itself off if you take care of it, but it is going to take longer then you think imho.
We have spent 10 years up grading the fleet from the first used loader I bought with 6 used attachments to this. It has made me some money, but I still work contracts in the logging business as a main income.
Where are you in Mn?
Skidsteer.ca
Thank you for the information, definitely some good stuff to think about. I'm in the St. Cloud area of Minn.
