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went to bulk cost big bucks

Discussion in 'Ice Management' started by John Mac, Oct 24, 2008.

  1. John Mac

    John Mac Senior Member
    Messages: 374

    Went to bulk this year and so far I have about $14,000 invested into it so I will need to sell 200 tons to break even. I sold 33 tons of bagged last year so more than I can load by hand but not enough to pay for bulk, unless I want to wait 6 years, did it anyways so I have to sell alot of salt. Any one else having the same problem. I am hoping that being set up rite, I can salt many more customers but times are hard so who knows? :dizzy:
     
  2. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    i assume a good part of the cost is a loader of somekind
     
  3. hickslawns

    hickslawns Senior Member
    Messages: 619

    Not following. 200 tons to break even? You bought at $70 per ton? You are not breaking even until you cover all your costs, not just materials if this is right. I am thinking I missing something such as you are figuring your applied rate to break even. I doubt you bought at $70/ton anytime recently. If so, good for you. Anyway, good luck with your bulk. I hope you have plenty for the season already delivered. Best of luck.
     
  4. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    well hes talking 70 cost difference
     
  5. John Mac

    John Mac Senior Member
    Messages: 374

    Well I paid $75 a ton delivered 33 tons. I did not buy a loader ( have one) but add up salt truck (just for salt), salter, salt storage, and salt and that 14k. Sell salt @ $150/ton and thats the math. I could be missing something.
     
  6. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    well, why didnt you just use a current truck to salt?
     
  7. John Mac

    John Mac Senior Member
    Messages: 374

    The salt truck I bought at action for $1500 for a 92 3500 duelly with a plow and 454 motor for $1500, put about $700 into it so not to bad. The reason I did that is my work truck is a newer truck, F350 crew cab deisel short box, if I had to do again I would buy a ext cab and a 8' box. I have a tool box and deisel tank in back that I need for work every day. I also couldn't see myself dumping salt over the side of my new truck, I do use this truck for plowing. The salter cost me more than the truck. The salt bin cost quite a bit also.
     
  8. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    yeah it costs well over 1000 to get a bin set up , did you look into a used spreader? 14,000 seems like a lot, (if that doesnt include the cost of salt) , and you said you already have the loader , truck was cheap,
     
  9. John Mac

    John Mac Senior Member
    Messages: 374

    I just did the math again come up with this:

    Truck $2200
    salter $4300
    blocks $2000, made it big enough so I do not have to do it again next year
    roof for bin $1400
    asphalt floor installed myself $600, at $67 a ton ouch

    so add it up and it is $10500 and add $2475 for salt and you $12,975. divide that by $75 profit and you have 173 tons plus fuel and labor to put the salt down.

    For someone in the middle, to much to do by hand but not enough for bulk it is big money and I did this on the cheap, just the set up cost will take over 140 tons to pay for.
     
    Last edited: Oct 24, 2008
  10. John Mac

    John Mac Senior Member
    Messages: 374

    I did look for used but everything was beat, I thought new just because i have enough other things that do not want to work at 2am already.
     
  11. hickslawns

    hickslawns Senior Member
    Messages: 619

    I feel your pain John Mac. Salt spreaders used are tough to find in decent condition. Not sure what your going rate is in your market, but it seems low for the applied price. Many are paying $150 a ton for materials this year.
     
  12. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762


    well that might be true, but you set your self up , more expensive than most ppl would anyway. The truck is an assect to you, you could have just used what you had? unless you needed another truck?

    the spreader? well your choice, but i got a used one this yr for 850 , so far i have 200 in parts, and it runs ....(i havnt tried to spread salt yet with it):confused:

    2000 on blocks? yeah , no , thats not so bad, Im sure JD spent more, i spent less , so thats a toss up

    the roof and the floor , were more of a want than a need... a tarp would have worked


    so basiclly you sent yourself up REALLY nicely , but used dollars to do it......

    the question is , would you do it again?
     
  13. big pusher

    big pusher Senior Member
    from ohio
    Messages: 129

    John Mac I Know that I am not from your area but your applied price seems way too low.
     
  14. John Mac

    John Mac Senior Member
    Messages: 374

    Big pusher, I think my applied price is to low and will try and adjust that, think at least $200 per ton. I have one contract at the $150 but the others are going up.
    Elight, I would do it again, the roof and floor I think are a must just for the same reason I went to bulk, less labor, a tarp in my area with the wind and snow we get could of been a lot of work. The floor is just to save the salt I have, I think my loss from a stone floor could pay for the asphalt floor. Maybe It could of been done cheaper but I hate to do things twice. I try sometimes to do things to cheap, it doesn't work or I end up spending more fixing it the next year.
     
  15. John Mac

    John Mac Senior Member
    Messages: 374

    I also plan on looking to selling salt to other contractors, If I have the salt and the time to load out a 1/2 dump truck to someone I will. I own a 10 wheeler and do trucking in the summer so maybe I can sell salt in the winter (at a very good profit) if not I will be able to keep it for myself as long as I need to. I also think that to buy the salt at the best price you have to store enough to take 33 tons any time of the year. I don't know all of this to be fact, I'm just guessing, thats why I ask you guys that have done this already. I think that I could store dry topsoil over the summer, this is always a problem for me.
     
    Last edited: Oct 26, 2008