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Can old equipment make a business profitable

Can old equipment make a business profitable

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Bumpus
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Can old equipment make a business profitable in a company.

I'm talking about cable power, or small hydrolic size equipment.

Don't care about the paint, just interested in the ability to work with out falling apart.

Starting out with one peace, and working up to who knows where.

I'm listening ! ! !
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Fri, Jul 9, 2010 2:29 AM
gwhdiesel75
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An interesting question. Lots of contractors on this board. I'm not one. Never was one. Nevertheless, I'd venture that my dad used older equipment. 2 problems. 1st, old equipment seems to break down more often leading to more down time and expense. 2nd, the older it is, the harder it can be to get parts. But old equipment is cheaper than new, and with that, you could avoid paying monthly principal and interest. That payment has got to be killing a lot of contractors - if they aren't already killed. GWH
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Fri, Jul 9, 2010 3:52 AM
Bumpus
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Reply to gwhdiesel75:
An interesting question. Lots of contractors on this board. I'm not one. Never was one. Nevertheless, I'd venture that my dad used older equipment. 2 problems. 1st, old equipment seems to break down more often leading to more down time and expense. 2nd, the older it is, the harder it can be to get parts. But old equipment is cheaper than new, and with that, you could avoid paying monthly principal and interest. That payment has got to be killing a lot of contractors - if they aren't already killed. GWH
.
Another reason I ask this question is there was a man many years ago that had ( 3 ) old small dozers on a job at a trailer park on top of a hill, and they moved out all of the trailers, and took a lot of the top dirt off, and moved it out to the outer edge of the top of the park to make more level land for more trailers.

These were small dozers, standard shift, and something like D2 size with hydrolic blades and each one of them had a ripper tooth mounted on the right side of there blades, which stuck down about 3 - 4 inches and they did not rev up the motors much more than idle and moved over about quarter to half a blade each time they backed up and made a new pass toward the end of the fill.

They never had to cut hard ground even though it was clay, and they
also moved only in first gear.

They moved a lot of easy loose dirt, and I believe the old man made good money.
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Fri, Jul 9, 2010 4:16 AM
bruce oz
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Reply to gwhdiesel75:
An interesting question. Lots of contractors on this board. I'm not one. Never was one. Nevertheless, I'd venture that my dad used older equipment. 2 problems. 1st, old equipment seems to break down more often leading to more down time and expense. 2nd, the older it is, the harder it can be to get parts. But old equipment is cheaper than new, and with that, you could avoid paying monthly principal and interest. That payment has got to be killing a lot of contractors - if they aren't already killed. GWH
hello Bumpus ,the other thing about older equipment is productivity ,your limited with some work that you can do with cable blades without rippers.takes longer to do the work?.the other is you would be limited to farm work ,no government work ,the contracts mostly state size and specs of dozer to do there work .
you at least need hyd machine ,bruce oz
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Fri, Jul 9, 2010 4:24 AM
ol Grump
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Reply to bruce oz:
hello Bumpus ,the other thing about older equipment is productivity ,your limited with some work that you can do with cable blades without rippers.takes longer to do the work?.the other is you would be limited to farm work ,no government work ,the contracts mostly state size and specs of dozer to do there work .
you at least need hyd machine ,bruce oz
I've got several pieces of older equipment; a D4 7U with 4A blade, 1967 Ford 600 dump truck, Ford 555A backhoe, 12E Grader and they all get used fairly frequently. I'm not out to make a killing with any of it but I figure that as long as they pay their own way and keep me busy, I'm happy. I'm retired for a few years now and the little extra cash these critters bring in is quite welcome. As far as making a living with 'em, I could probably do it but it would mean some real long hours.
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Fri, Jul 9, 2010 8:21 PM
Bumpus
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Reply to ol Grump:
I've got several pieces of older equipment; a D4 7U with 4A blade, 1967 Ford 600 dump truck, Ford 555A backhoe, 12E Grader and they all get used fairly frequently. I'm not out to make a killing with any of it but I figure that as long as they pay their own way and keep me busy, I'm happy. I'm retired for a few years now and the little extra cash these critters bring in is quite welcome. As far as making a living with 'em, I could probably do it but it would mean some real long hours.
.
Well ol'_Grump what you have said is probably more in line of what I would really be interested in because I am also retired .

I would really like to have a Cable D6 Dozer with Pull Cable Scraper Pan, an old 955 Cat Loader and buy some acreage ( maybe 50 acres ) with some good timber on it.

Cut and sell the timber, sell some dirt to the public, make fills out of the low rough land using dirt from the hill side land.

Sell it off in say 5 acre plots as I go, and do it again later on another acreage if I live that long.

Selling the timber and the improved land I believe will pay for it all ( land and equipment ) and make some profit also for me.

Just my thoughts ... because I am still dreaming.
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Fri, Jul 9, 2010 9:35 PM
M Diesel
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Reply to Bumpus:
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Well ol'_Grump what you have said is probably more in line of what I would really be interested in because I am also retired .

I would really like to have a Cable D6 Dozer with Pull Cable Scraper Pan, an old 955 Cat Loader and buy some acreage ( maybe 50 acres ) with some good timber on it.

Cut and sell the timber, sell some dirt to the public, make fills out of the low rough land using dirt from the hill side land.

Sell it off in say 5 acre plots as I go, and do it again later on another acreage if I live that long.

Selling the timber and the improved land I believe will pay for it all ( land and equipment ) and make some profit also for me.

Just my thoughts ... because I am still dreaming.
.
Yeah the contractor guys are all chuckling, but it's good to have a dream. Just so long as it doesn't turn into a nightmare.
Two things come to mind about older equipment. They are less agile, and light weight in the britches. Having just a simple blade often means a lot of extra motions to get simple stuff done. And the lack of weight means you don't push what you think you can. It all adds up to more time in the seat. If you have that, then smile while pulling the handles. It could be a great way to spend the time.

Where I live now, they use D10s for building pads for houses and grocery stores. They are not considered big. I see D4's or D5's for finish work here and there pushing some gravel around, and maybe once a year a D7 will pop up on a project, but that size is mostly gone now.

It's all in your circumstances.
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Sat, Jul 10, 2010 3:58 AM
D4C Charlie
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Reply to M Diesel:
Yeah the contractor guys are all chuckling, but it's good to have a dream. Just so long as it doesn't turn into a nightmare.
Two things come to mind about older equipment. They are less agile, and light weight in the britches. Having just a simple blade often means a lot of extra motions to get simple stuff done. And the lack of weight means you don't push what you think you can. It all adds up to more time in the seat. If you have that, then smile while pulling the handles. It could be a great way to spend the time.

Where I live now, they use D10s for building pads for houses and grocery stores. They are not considered big. I see D4's or D5's for finish work here and there pushing some gravel around, and maybe once a year a D7 will pop up on a project, but that size is mostly gone now.

It's all in your circumstances.
I am also semi retired and run my D4C my 212 grader and a 545A skip loader. Between my little at home body paint shop some carpentry and the equipment I get by. Young contractors hire me over the phone and it's hard to get equipment in my zone so they are stuck with me. They watch me for a little while and when they see that I know what I am doing they leave. I charge 100.00 an hour and no breaks. I am alway on the look out for problems coming up on the equipment just to stay up with it. When I am at the Cat dealer I see new stuff in there apart just like me. It's good to be a fair mechanic in this business. Good luck, Charlie
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Sat, Jul 10, 2010 8:48 AM
oldtanker
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Reply to D4C Charlie:
I am also semi retired and run my D4C my 212 grader and a 545A skip loader. Between my little at home body paint shop some carpentry and the equipment I get by. Young contractors hire me over the phone and it's hard to get equipment in my zone so they are stuck with me. They watch me for a little while and when they see that I know what I am doing they leave. I charge 100.00 an hour and no breaks. I am alway on the look out for problems coming up on the equipment just to stay up with it. When I am at the Cat dealer I see new stuff in there apart just like me. It's good to be a fair mechanic in this business. Good luck, Charlie
I've seen guys do it and my son in laws is getting started. First he got an older skid steer, then a single under cld dump truck. Then the D4...old one but nice condition. now he just got an old Case backhoe loader. He works full time as Mr. Goodwrench and is starting to make a little extra with the equipment. His dad has a 48 D6 cable lift that he can use for bigger work. Most of what he is doing is the jobs the guys with the newer equipment don't want. Lot of brush clearing for fence lines and such. That's why his dad got the D6. It was cheaper to buy the dozer than to hire someone to clear 12' around 160 acres.

Rick
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Sat, Jul 10, 2010 9:06 AM
jpfiero
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Reply to oldtanker:
I've seen guys do it and my son in laws is getting started. First he got an older skid steer, then a single under cld dump truck. Then the D4...old one but nice condition. now he just got an old Case backhoe loader. He works full time as Mr. Goodwrench and is starting to make a little extra with the equipment. His dad has a 48 D6 cable lift that he can use for bigger work. Most of what he is doing is the jobs the guys with the newer equipment don't want. Lot of brush clearing for fence lines and such. That's why his dad got the D6. It was cheaper to buy the dozer than to hire someone to clear 12' around 160 acres.

Rick
That's a good question, I'm a contractor although not with heavy machinery. I rely on my van which has over 300,000kms and cost me less than $1000 but for the last 2yrs I've had very few problems and if I had bought a new van I wouldn't be able to make 2 months payments for $1000. And from what I have seen newer vehicles and equipment still tend to have problems, they may be under warranty but if you have to wait a week or two to get the problem fixed your losing a lot of money. I fix my vehicles myself so I can usually be running again within 2 days.

I would argue the question should be reworded to:

Can old equipment make a business AS profitable

I think it can definitely make a business profitable, but as was already stated you would be looking for different jobs than someone with newer/larger equipment. You also will have to know your equipment and try to perform all the preventive maintenance to avoid problems. It also helps if you can repair it yourself, which is harder to do on new equipment. You may also be able to bid less on some jobs than people with more overhead. You might even consider having two pieces of working older equipment(one as a backup) if reliability is a major concern, it would still be far cheaper than one new piece.
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Sat, Jul 10, 2010 11:34 PM
dpendzic
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Reply to Bumpus:
.
Well ol'_Grump what you have said is probably more in line of what I would really be interested in because I am also retired .

I would really like to have a Cable D6 Dozer with Pull Cable Scraper Pan, an old 955 Cat Loader and buy some acreage ( maybe 50 acres ) with some good timber on it.

Cut and sell the timber, sell some dirt to the public, make fills out of the low rough land using dirt from the hill side land.

Sell it off in say 5 acre plots as I go, and do it again later on another acreage if I live that long.

Selling the timber and the improved land I believe will pay for it all ( land and equipment ) and make some profit also for me.

Just my thoughts ... because I am still dreaming.
.
[quote="Bumpus"].

I would really like to have a Cable D6 Dozer with Pull Cable Scraper Pan, an old 955 Cat Loader and buy some acreage ( maybe 50 acres ) with some good timber on it.

Cut and sell the timber, sell some dirt to the public, make fills out of the low rough land using dirt from the hill side land.

Sell it off in say 5 acre plots as I go, and do it again later on another acreage if I live that long.

Selling the timber and the improved land I believe will pay for it all ( land and equipment ) and make some profit also for me.

Just my thoughts ... because I am still dreaming.
.[/quote]

Well Bumpus that is a great dream but don't forget all the side work!
Here in Ma that would require A logging/foresty permit for cutting the trees down
Sell dirt--a mining permit
fills--if near a wetland an environmental permit
subdivide into lots--a subdivision approval that requires a complete survey, contour map, preliminary plan, final plan, public hearing---all prepared by a licensed surveyor and licensed engineer---usually big bucks
Hopefully Virginia has less requirements.
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Mon, Jul 12, 2010 6:52 AM
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