Calculating your equipment cost is not only important for measuring your profitability, it is also important because many mills spend a great deal of time estimating equipment costs in order to set logging rates. Specifically, they estimate the costs per productive machine hour that a contractor should be able to achieve for each machine involved in harvesting a cut block. This rate-setting exercise theoretically ensures that you as the contractor earn enough to cover your equipment costs and earn a decent return on your investment.
We now have an on line equipment cost caclulator that allows you to build up to the hourly cost of operating your equipment. Here
www.caribousoftware.com/MechEdge/EqCostWorkSheet.aspx is the link to the calculator for the US and here
www.caribousoftware.com/MechEdge/EqCostWorkSheet_CA.aspx is the link for Canada.
posted @ Thursday, February 17, 2011 3:23 PM