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Equipment Rate Costing Spreadsheet -- Does anyone use one?

Discussion in 'Business Fundamentals' started by merrimacmill, Aug 30, 2010.

  1. merrimacmill

    merrimacmill PlowSite.com Addict
    from MA
    Messages: 1,822

    I am looking for a spreadsheet to help quickly figure hourly rates for various pieces of equipment based on each individuals expenses, operator pay scale, etc..

    Does anyone have or know where I can find such a thing? I have searched the internet and not come up with to much.
     
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Can't you make your own? If not rent a book keeper for a few hours to make one up.
     
  3. merrimacmill

    merrimacmill PlowSite.com Addict
    from MA
    Messages: 1,822


    I'm really not to good with excel, especially when it comes to programming those spreadsheets. I generally find free ones online, or ones that I have to buy which are usually very cheap anyways. But for this particular use, I can't find one. It would just be nice to have something that automatic for this purpose rather than figuring it out on paper.
     
  4. Triple L

    Triple L PlowSite Fanatic
    from Canada
    Messages: 5,989

    I've just always figured it out on paper.... Take a evening and run the numbers... Its pretty interesting seeing the end result... For summer work, remember, that pick-up is still tied up at the site, even if it isnt being used...
     
  5. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

    check out that snow calulator in the commercial section..... really opens your eyes in terms of what to charge and what your costs are......
     
  6. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    where is this "snow calculator"? on this site? really ? i will have to see this



    you dont need an excel spread sheet.

    just figure all your cost over the life of a peace of equiptment. then add money for its useage and depreation, then add in money because you dont own it just for the sake of owning it...you own it to make money

    example - this is per mile , you could do this per hour used , or flat out over a daily/yearly time frame - i use miles/hours becasue i have found very little depreation cost on a peace of equiptment while it sits still. there is some yes, but your not going to see alot. If your really good you would do both and figure it all out

    3/4 ton pick up truck - in my mind these days should last about 200,000 miles before its totaly gone, and not worth a penny.

    tires last 40,000 miles - for what i do..it will very for you - so in those 200k of the trucks life it will need 4 tire changes (plus the set it comes with) 4 changes at $800 = $3200

    another example - i figure in those 200k there is at least 1 major rebuilt or either the motor or trans , so thats 2500 cost.

    oil changes - $30.00 every 3 k = 66 oil changes = $2000.

    now im not going to do all the work here but you get the point - breaks....air fitlers...add it all up then divid by your miles so in the above example $3200+$2500+2000=/ 200,000 miles =.038 cents per mile cost (there is way way more to add into this factor) now thats just for maintenance

    depreation - again i figure a 3/4 ton truck making it 200k - so if your truck costs 40,000 and it can be driven for 200 k - than $0.20 cents per miles goes to replace your truck when its time for a new one. now this is not an exact figure becasue of inflation, trucks will go up in cost, as well as i doubt a 40 k truck new, is worth $20,000 with 100k on it...so there is a little bit of a curve here. if you want to take the time to figure it out go ahead but this is a simple way to get in the ball park (fyi if you save this part of yoru money in theroy this plus your trade in should come close to buying a new truck)

    then you can figure out your fuel mileage - thats not hard

    how about insurance cost - hard to do, but based on yoru policy you might be able to break it into average amount of miles driven per year

    add all these costs up - and thats what it really costs to use that truck

    equiptment is the same, just break it into hours
     
    Last edited: Aug 31, 2010
  7. snowman55

    snowman55 PlowSite.com Addict
    Messages: 1,071

    mick- to what are you referring too? I would like to see it. I for the life of me cannot understand how anyone can plow for even $100/hr. here's just my list of costs for a 2006 3/4 with a 9" blade

    assume best possible scenario for a sub in my area 12 events and 10 hrs per event (12x10x$100)=$12000-
    1. depreciation of truck $2,125
    2. fuel usage $1080
    3. insurance $1500
    4. maintenance $500

    total direct costs=$5205

    leaves $6795 out of that you need to deduct cost of sales,any overhead, damage to equip or property, cost of invoicing and cash flow until paid, not being paid,being sued,advertising,all that extra stuff on your truck- beacon -lights-fire ex-gloves etc, might leave you with $4000 for being on call 24/7 for 5 months, working in dangerous, miserable conditions on holidays, numerous sleepless nights watching the weather,and a but load of stress. That's if you run the truck yourself. now add a legitimate employee and you can deduct another $3750 for payroll and you just made a whooping $250 for the season off that truck.

    I know of guys plowing for $47/hr and they think they are making money when what they are doing is making the guy they sub for money.

    Know your costs and charge accordingly. You can stay in a nice warm bed and make no money
     
  8. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

  9. merrimacmill

    merrimacmill PlowSite.com Addict
    from MA
    Messages: 1,822

    I found a real good one through a friend. I'm not sure where he got it, but here is a screen shot of it I just took. Plowsite doesn't allow me to post a excel file, but if anyone wants it PM me your e-mail and I'll send it to you.

    Its just a lot easier to punch in few quick numbers and compare what different equipment types will cost you, etc. Rather than sitting around running numbers manually. I know the screen shot is hard to see, but I had to zoom it out to be able to see the whole thing, otherwise it just cuts half it off. But it covers everything from equipment depreciation, ownership cost, fuel cost, maintenance, repairs, lube, tire costs, employee operator costs, insurance %, and then at the end it breaks it all down into the totals.

    Machine Rate Calc Screenshot.jpg
     
    Last edited: Aug 31, 2010
  10. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Elite,why don't you deprecate with IRS charts and do it over 5 or 7 years.
     
  11. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    i do as fare as actuall accounting goes, and whats calculated for taxes and other finacial purposes

    this method is used only internally to figure out the cost of using equiptment. my theory of miles VS years is like this ... in my mind a truck or peace of equiptment depreates much faster being used in a short amount of time, than 1 that sits still over a long amount of time.


    which is worth more in your mind - a 4 year old truck with 30,000 miles on it, or a 2 year old truck with 160,000 on it... my vote is the older truck, i think that more actual depreation on what someone is willing to pay for a used vehical is based off of miles/hours than it is the year (assuming that we arnt talking the difference between a 2 year old and a 15 year old truck)

    typicly tires, transmissions, motors dont go bad by sitting still. so its generally no the "time" that kills them, its the driven miles. after all , why even have an odometer in the truck if its a 2008 you should be go to go right?
     
  12. merrimacmill

    merrimacmill PlowSite.com Addict
    from MA
    Messages: 1,822

    To all those that I have sent the spreadsheet to, how is it working out for you?