Major Decision

Steve that's a lot to cover for over the next 5yrs. You gotta take into consideration slow times especially during the off seasons. I know how you feel about the temptation. I'd be thinking about it too if I was in your spurs.
 
And how much is insuring and maintaining the mec and truck chassis going to be? I don't own a crane and know it's costs but I do know what it takes to maintain a class 8 truck. I'd think I'd want to budget at least $1500 a month for maintenance and repairs.
 
Well Rick Yoos charges 1400 a day with the grapple saw. I was gonna start out there. I'm looking at the fire station/tree schedule. So I have a possibility of working 14 tree days a month. So IF and its an IF I had all 14 days. $19,600 less $6400 is $13,200, less $1500 fuel misc $11,700, less my pay $3360, is $8340 lets say for the sake of argument I work 10 mos out of the year $83,400 less insurance, taxes and misc.
 
Honestly I think the day rate without the MEK could be 1400. You can rent a 33t here for between 125 and 150 and hour. Add the Mek and I think its worth 200 to 225 an hour. Those are 60t rates though. People aren't gonna understand until they see the machine.
 
1400 a day seams cheap in my mind for that equipment. But that's just my way of thinking.
I don't think you want to count on the 14 days a month. Not saying you won't have the work, but weather maintenance and anything else that comes up will throw a day or a couple days out per month possibly. You mentioned taxes but $19,600 = $4,900 to Uncle Sam (roughly (about 25% of gross income, not counting expenses), leaving $3,440.
 
See this is why I love this. I can't think of everything. It's a delicate balance of what I want to do and what my gut tells me. I SHOULD wait 6 years until I retire but I might miss the boat and the market get cornered in my area. I just don't know. 3440 is not much of a buffer monthly
 
What are you getting for $375k? That's $40k more than I have in mine with tag, insurance, 30 Alturnamats, rigging, chainsaw, spares, and a 46 yard dump trailer with gas powered pump. That $40k difference equates to $1k/month with your terms.

Also, why on earth would you want to spend $375k to make $1400-1600/day? I haven't put in the effort of running your numbers, but that doesn't seem sustainable, much less a solid investment strategy.
 
That tax calculation is worthless, you pay tax on profit, not on gross. He is pulling a wage out already which should account for withholding.

But, 25% is taking 3 days off and working a half day.... rain could easily make that happen. Equipment breakdowns/service could make that happen.

Your hourly rate is as a sub, so you have to be competitive since subbing is 100% of your business plan, correct?

The Mek isn't a crane for a tree guy, it's a crane, climber, and groundy.
 
Lumberjack said:
The Mek isn't a crane for a tree guy, it's a crane, climber, and groundy.
Click to expand...
That's an awesome comparison! :D Hell I want one too! Who in the tree biz wouldn't? Ive also been drooling over Meks for quite some time now.
Steve, have you ever seen your boy in a toy store wanting that shiny new toy blasted all over TV?
That's you right now. Be patient and wait a bit longer for better financing. I feel you should be doubling that 1400 daily ..... at least.
 
Don't forget the return on your investment, assuming 8% average in the market, that's $9k of profit you need to make to "break even" on your down payment.

I've considered selling my Mek to put the capital back in my trading account, it's all about the return when it comes to business! My Mek is making money, but my success trading keeps me thinking.


The Mek being a climber, ground, and crane is the only way I could afford to have a crane since I don't have a 3 man crew to fill the positions to run a traditional crane. A 2 man crew would be a happy place, Mek and grapple truck... even better if one person is a climber/can ride the crane and do aerial work.
 
Pictures from yesterday as every thread is better with pictures!

75 minutes from the first picture to the last, two pines, $750 + $100 for the stumps. The job site box is temporarily held by the strap, last night I bought another matching box for more storage, one clean (like climbing gear, rain gear, etc) and the other dirty (rigging, spares, etc). Popular belief is they will be bolted behind the head board.
2017-06-08 07.15.05 HDR.webp 2017-06-08 07.15.06-1-1.webp 2017-06-08 07.15.07.webp 2017-06-08 07.15.06-1.webp 2017-06-08 07.15.06.webp
 
3 trees to removed on this job after the pines above, not bad production for starting after lunch! Last month I took 21 trees out, took under 5 hours to have them topped and 5 loads of debris in the grapple truck.

I used the grapple saw to cut the limb in the telephone wire below the wire and left the chunk hanging on the wire. I made 7 cuts by hand yesterday, Mastermind ported 461. The two trees were on the property line between this house and Fire Station 1.
2017-06-07 17.10.09-1.webp
2017-06-07 18.06.24.webp

You can see the three stumps here, two on the right and one on the left side of the picture. All 3 removed from this setup.
2017-06-07 18.27.13 HDR.webp


The two boxes in TSC's parking lot.
2017-06-07 20.28.27.webp


Not my best video perspective wise, but here's the start of the 21 trees last month.
 
Lumberjack said:
What are you getting for $375k? That's $40k more than I have in mine with tag, insurance, 30 Alturnamats, rigging, chainsaw, spares, and a 46 yard dump trailer with gas powered pump. That $40k difference equates to $1k/month with your terms.

Also, why on earth would you want to spend $375k to make $1400-1600/day? I haven't put in the effort of running your numbers, but that doesn't seem sustainable, much less a solid investment strategy.
Click to expand...

As far as what I'm getting. PK50 on a cab forward cab and chassis with a steerable drop axle. Auto lube on the boom, strobe package, integrated grapple controls on the crane control box. Joysticks instead of buttons. 2 job boxes mounted, rack mat fabricated and mounted. Job boxes painted to match the bed. and I'm at a loss of exactly what else. I know This builder is a little more expensive than yours but I have to go on relationship and recommendation.

As far as the daily. I was merely going off what Rick Yoos charges based on his market at a starting point. I feel like I have to be competitive because I feel like, until the unit proves itself everyone is gonna say. Why do I want a crane like that when I can get a 60t for the same price and take the tree in 2 pics or something along those lines. You gotta remember this area hasn't seen a unit like this. Hard headed, we've always done it that way kinda guys.

Yes I was going to be mainly a rental unit with no hauling or debris removal. 1 man one show.
 
As far as the investment. It's a huge risk. I'm considering I would be working 3 to 4 days a week. I can't quit the fire department. Too close to retirement. I wouldn't make near the potential I could running it 5 days a week but its a investment in a post retirement income source. If it got off the ground well I can always try to hire a part time operator for when I'm at the station and pay top dollar for his few days a week. I am so sick of working for crappy companies as a climber. I'm constantly desiring more of something I can be proud of and something I have some kind of personal (not financial) ownership. If work didn't suck I'd not be considering it. I'm scare more about contract climbing than I am investing so much money. I can't make my own daily hours contracting. They're gonna want me until the job is done if that's 3:30 or 8:00pm. I think I can work hour parameters with the mek better than as a sub climber. There is no exit strategy for me to leave the fire department when I retire. No healthcare coverage from the city. No cola raises for retirees. I am trying to build an after future if you know what I mean.
 
I look around me. What am I going to do when I retire in 6 years? No major players to work for. No foreman jobs I would want. No sustainable future in tree work with any hope of upward mobility or position changes. I can climb till I can't do it anymore then what? Nothing, simply no options. I can't see relocating until Jack is out of school. He's in 3rd grade now. When I can relocate I'll be as old as Moses. Nobody is gonna hire an old guy like that for anything. I knew a guy who worked until he couldn't stand or hold a saw anymore. They used to lift him into the bucket because his knees wouldn't allow him to climb up into it. He retired and died shortly after. What do I do? I'm thinking the MEK is the wave of the future. I'm trying to get on the wave before somebody else does and then it's even harder to make it work. I don't know if this makes any sense to you guys. Try to look at from my standpoint before you respond. I know it's utterly ridiculous to have a 350k(ballpark) probably like 330-335 when all said and done (350 allows wiggle room but I would likely come out under that with the mats and all) piece of equipment like that collecting birdshit 5 days a month because I'm at the fire station. It killed my profit margin when I had trucks and chippers and stump grinders, but again I had employee headaches out the wazoo. Multiple equipment and a ton of responsibilities as an owner operator. This would take away a lot of stress and wouldn't be as much of a drain when it's sitting. All I need to do is market and schedule after hours, and some maintenance. It makes sense in my mind. Please convince me otherwise if you think it's a horrible idea and a money sink hole of and investment. I'm all ears. I have nobody to talk to about this because nobody here understands. Here being in my area. I'm simply trying to make something for myself.

Carl, you are very financially smart. I'm not nearly where you are and I value your input. You've just gotta tell me like I'm an idiot.
 
I don't necessarily have any educated input on the purchase itself as that is well out of my own budget. If you do buy it, I would think for such a big expense it would be best to have it working as much as possible, even at the cost of hiring someone. Have you looked into worker's comp for a single employee for this line of work? The rates may drop from the last time you had employees since there will be no climbing, minimum cuts with a chainsaw and no chipping.

You may even be able to hire a sub yourself. I know the general rule is a subcontractor has to provide his own tools or their really just an employee, but I don't think most sub-climbers provide their own cranes.

It may be worth looking into, the extra couple of days it's working a week may make all the difference during slow periods.
 
You must log in or register to reply here.

New threads New posts

Kask Stihl NORTHEASTERN Arborists Wesspur TreeStuff.com Teufelberger Westminster X-Rigging Teufelberger
Back
Top Bottom