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Chipper Financials - does always hiring one and passing on the cost reduce jobs won?


TimberCutterDartmoor
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I started out with a JoBeau M400 and then upgraded just a tad to a Jensen A530T tracked machine. The latter is currently not earning enough and since I now keep a lot more of 3"+ sticks for firewood,I don't really need the 6" machine. Thus thinking of either getting another JoBeau or just hiring in a chipper for now. Point is, does adding the hire + fuel cost of a chipper at £170 ish per day put the quotes too high and loose me work? For instance on my own jobs I don't charge anything like the hire cost above for the Jensen; I've priced a few jobs recently based on hired-in chipper but have lost them by the very £100 or £200 I'd added... Does this make sense?! Thanks...

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Yes it bound to lose you jobs. A chipper is expected these days to be included in a standard day rate, so unless your day rate is 100-200 less than everyogn else then there is no space to allow for that addition.

 

I used to hire one (6 inch) at about 225 a week if I remember rightly, but buying a new one was only 300 ish a month.

 

Plus, dependign on where your hire company is at, you also have to figure in cost of collection/ return in terms of time and fuel costs, that all comes out of your profit.

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As Rupe said, it will lose you work if your adding on for the chipper. why not get the little chipper, sell the Jensen and make more money most days then hire a chipper when needed and some of the extra money you made by not having a big chipper would off set the hire, you would still be up on not having to service and run a big machine. hope it makes sence

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collection/ return in terms of time and fuel costs,

 

Ive found that being a bit of a killer when hiring gear (mainly tracked chippers)

Well it is when hiring daily, weekly might not be too bad but running around at the beginning and end of the day aint good:thumbdown:

 

If your day rate goes up then yeah it will lose you jobs otherwise you could of just put it up anyway and made a load more money:001_smile:

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But a tracked chipper is an expensive lump to have sitting around. How about changing it to an equivelent tow behind?

 

:thumbup1:

 

Having a £23k hunk of metal not earning its keep is not an option. I could hire it out more aggressively but got fed up with hirers abusing it in the past. Ideally I'd have both and it may end up that way. Interestingly barely ever used a tow behind (soldiered on with the tracked machine in the trailer etc). The JoBeau will chip plenty fast enough for me. My old M400 could seriously pull it through when sharp...

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