Running Cost of Chipper Per Annum

[Highland Forestry]

An extra tenner a day to tow the chipper - I don't want your fuel bills!!

 

I only did about 7000 miles in the landy last year, and less than half of that would be towing the chipper. Also my chipper only weighs about 450kg and the difference it makes to the poor MPG of a landrover isn't even noticed.

 

I would say the extra cost in towing the chipper would be covered by the extra runs you have to do when carrying brash

 

Like I said.... two very different businesses I suppose..

 

My ranger is only a year old and I have done 31000 miles in 12 months!!

It's not just the added cost of towing, it;s wear and tear on a trailer which also has to be maintained.. the tyres on our trailer are £80 a pop, and then there's smashed lights etc etc.

 

450kg? Lucky you! Our set up weighs in at 2800kg!!! (It fairly puts your MPG down!!!)

[Highland Forestry]

I did a thread on it I think quite a while ago;

 

You can only calculate chipper costs on an hourly running cost not per day.

 

My chipper sometimes only runs 10 minutes some days

 

I think my calculation went something like

 

Chipper cost £18,000

 

Epected hours before renewal 2000

 

18,000 divided by 2000 hrs = £9 per hour

 

service cost every 100 hours @ £120 = £2400 or £1.20 per hour

 

Fuel £10 per hour

 

Blades £4.50 per hour based on 30 hours use sharpened after 10 hours and costing £90 to buy

 

I worked out that if I charge £30 per hour or 50p per minute running and put that money aside. I would after 2000 hours have enough money to pay for a new chipper, it's fuel and service costs over its service life

 

And that is only covering cost, so realistically a chipper should be charged out at a minimum of £35 per hour running time

 

I like that way of thinking dean - all very true.

 

But do you charge 280 a day for the chipper for having it on-site or only for the time used per day?

 

I would have to charge for the whole day as it could be earning money chipping on another site if I didnt.

 

Some days you win, some days you loose... often our machine is chipping away for a minimum 7hrs a day but sometimes only for 30 mins or an hour..

[Dean Lofthouse]

Mine does about 100 hours per year because I stack brash and never have the chipper running for prolonged periods with nothing going through, I think a running chipper with nothing going through is like a car sat at lights with the foot hard on the throttle

 

I have my basic day rate and when I price a job I guage how much chipping will be to do and add on accordingly

[Highland Forestry]

Mine does about 100 hours per year because I stack brash and never have the chipper running for prolonged periods with nothing going through, I think a running chipper with nothing going through is like a car sat at lights with the foot hard on the throttle

 

I have my basic day rate and when I price a job I guage how much chipping will be to do and add on accordingly

 

I suppose it depends on the type of work you are doing, and from job to job.

We have been doing lot of clearance work recently which has involved the chipper slogging it's guts out all day.

 

Have to agree about the chipper sitting on full revs with nothing going through it -pet hate.

 

100 hrs a year is pretty good.. she'll last you many years of good service!

[Mesterh]

No No No

 

You do not lower your rate you increase your (hourly) rate as you can achieve more in a hour.

 

That £300 tree is still a £300 tree only you do it in 4 hours not 5 so you can get a cheeky £100 conifer in on your way home therefore make more money in the day

 

Yes yes yes.

 

When no one had chippers or for that matter decent chainsaws the cost of tree work was more expensive.

 

I/we have to compete and efficiency is the only way.

 

I cant charge £300 for a £300 tree if my competitors are charging £200.

[Dean Lofthouse]

Yes yes yes.

 

When no one had chippers or for that matter decent chainsaws the cost of tree work was more expensive.

 

I/we have to compete and efficiency is the only way.

 

I cant charge £300 for a £300 tree if my competitors are charging £200.

 

Thats were most tree firms fail, they are good at tree work but rubbish in business, they do not calculate costs correctly.

 

They end up with knackered chippers with no money to buy new or just always have clapped out equipment that breaks down time after time

 

Putting in a cheap price will come back and bite your ass

[Mesterh]

Thats were most tree firms fail, they are good at tree work but rubbish in business, they do not calculate costs correctly.

 

They end up with knackered chippers with no money to buy new or just always have clapped out equipment that breaks down time after time

 

Putting in a cheap price will come back and bite your ass

 

Yeah but so will a high one.

 

I would rather have some work and earn money than no work and earn nothing.

 

Sometimes I think I live in a different world to some people.

 

Its one where cost matters.

[Dean Lofthouse]

Yeah but so will a high one.

 

I would rather have some work and earn money than no work and earn nothing.

 

Sometimes I think I live in a different world to some people.

 

Its one where cost matters.

 

It sounds like you live in a world of bad business

 

I have priced jobs against people who are cheaper, I still win jobs though

[Highland Forestry]

Yeah but so will a high one.

 

I would rather have some work and earn money than no work and earn nothing.

 

Sometimes I think I live in a different world to some people.

 

Its one where cost matters.

 

Talking from personal experience... there was a period last year where i decided it was much cheaper (and easier) for me to sit on my arse at home earning nothing and having a chance to develop my business than going out cheap and working my bckside into the ground for nothing..

 

Anyone can be a busy fool.. my dad told me that when I started in this game and I didn't believe him, I thought it was better to be out every single day I could and earn something rather than nothing and one day it would come good...

Now I realise that he was right, working for cheap because you're competitors are cheap dosent do you any favours, you end up stressed, with knackered kit, no money in the bank and wondering how you ended up there.

[ukminch]

Thats were most tree firms fail, they are good at tree work but rubbish in business, they do not calculate costs correctly.

 

They end up with knackered chippers with no money to buy new or just always have clapped out equipment that breaks down time after time

 

Putting in a cheap price will come back and bite your ass

 

:congrats: