'nother one joins the race to the bottom

[Giles]

Working at factory one of the guys asked us if they could hire a machine over the weekend his mate was going to drive it don’t worry he was mint in machines…

I said no thanks we don’t do self drive

Following week he was crying that his mate had ripped half the cab off the machine he’d hired but he wasn’t paying as it shouldn’t be possible to touch the cab with bucket even after asking for biggest bucket they had….he was going to fight it.

Not sure who it’s down to but best quote about self drive plant is

“Only thing that won’t get damaged is the grease gun “

 

[Lynchy]

Self drive unless your a big rental outfit is a no no to me used to work in office for firm bout half n half self drive,operated,adt n shovels,spent half my time chasing damage claims,other half drivers that didn't turn up....best excuse bail conditions wouldn't allow him to travel,err you knew that when you took job 100 miles away ,was on he 13 t earlier in year,1600 hrs n had tilting bucket lol

 

[Danny]

Yep that's the going rates for self-drive

Some idiots out there but just get them to take out insurance. I've gained a lot of work from hiring machines to people then them asking us to undertake the groundworks for them

 

[Lynchy]

.

 

[DaveDCB]

No doubt that’s the rate for a lonngggg term rental?

 

[GazCro]

No doubt that’s the rate for a lonngggg term rental?

That's the thing to bear in mind, at that price they'll be kept on a job on long term hire and probably barely used so as a second hand low hour machine they'll have a high residual. Factor in the price they will have paid for how many machines and they'll probably sell at 3 year old for more than they paid for them. We all look at pittance per week hire charge but we aint paying peanuts for new plant.

 

[Lancs Lad]

That's the thing to bear in mind, at that price they'll be kept on a job on long term hire and probably barely used so as a second hand low hour machine they'll have a high residual. Factor in the price they will have paid for how many machines and they'll probably sell at 3 year old for more than they paid for them. We all look at pittance per week hire charge but we aint paying peanuts for new plant.

Sactly when you buy 50 minis at a time you save a few bob.

 

[TiltyShaun]

Sactly when you buy 50 minis at a time you save a few bob.

Whilst they will be getting a deal. There is only so much the manufacture can drop. If the mini is £15k to one man band. What do you think they are paying?

 

[V8Druid]

Whilst they will be getting a deal. There is only so much the manufacture can drop. If the mini is £15k to one man band. What do you think they are paying?

for 50 off ... max 70% of that

 

[GazCro]

Whilst they will be getting a deal. There is only so much the manufacture can drop. If the mini is £15k to one man band. What do you think they are paying?

As the one man band/small outfit we pay the premium price to allow them to sell cheap to the big boys.

 

[Lancs Lad]

Whilst they will be getting a deal. There is only so much the manufacture can drop. If the mini is £15k to one man band. What do you think they are paying?

30%?

 

[Quattromike]

Whilst they will be getting a deal. There is only so much the manufacture can drop. If the mini is £15k to one man band. What do you think they are paying?

Back 10-12 years ago we took on a decent size job fitting stainless steel pipework onto road tankers, there was 8 butterfly valves on each one, we did the first to see how it would work out and the valves were £62 ea. Once we were happy everything worked as should we priced up and shopped round for the materials there were approximately 400 of these valves required altogether and by the time we placed the order the valve cost was only £26 ea. Couldn't believe the mark up some companies take . Was the exact same valve from same supplier at same spec.

 

[TiltyShaun]

Back 10-12 years ago we took on a decent size job fitting stainless steel pipework onto road tankers, there was 8 butterfly valves on each one, we did the first to see how it would work out and the valves were £62 ea. Once we were happy everything worked as should we priced up and shopped round for the materials there were approximately 400 of these valves required altogether and by the time we placed the order the valve cost was only £26 ea. Couldn't believe the mark up some companies take . Was the exact same valve from same supplier at same spec.

That doesn’t surprise me. Most people are unaware how much it costs to have a box sitting on a shelf in a warehouse waiting for someone to buy ONE!!!
The scale of economy to sell 400 direct with only one invoice and transaction cost is immense.
Still not quite on the scale of a £15k JCB. I am not sure they would get 30% off but would think if the £15k was a true reflection on what someone like @Gunners would be paying, they would be squeezing a further 10-15%.

 

[Lancs Lad]

That doesn’t surprise me. Most people are unaware how much it costs to have a box sitting on a shelf in a warehouse waiting for someone to buy ONE!!!
The scale of economy to sell 400 direct with only one invoice and transaction cost is immense.
Still not quite on the scale of a £15k JCB. I am not sure they would get 30% off but would think if the £15k was a true reflection on what someone like @Gunners would be paying, they would be squeezing a further 10-15%.

I once heard a tale of a certain hire company getting micros etc buy the 40ft box load direct from Kubota into their yard...weather it's true or not that's got to be a big saving...
Then apparently they were selling them for more than they paid 3 years on...the hire was just on top..

 

[TiltyShaun]

I once heard a tale of a certain hire company getting micros etc buy the 40ft box load direct from Kubota into their yard...weather it's true or not that's got to be a big saving...
Then apparently they were selling them for more than they paid 3 years on...the hire was just on top..

For any of the main stream manufactures I would call that as fake news!! When I used to work at an independent plant company everything still came after a PDI.

 

[GazCro]

For any of the main stream manufactures I would call that as fake news!! When I used to work at an independent plant company everything still came after a PDI.

Jcb have a sales side which deals direct with the big company orders and cuts out the dealers, although i think often machines still pass through a dealer before delivery.

 

[Lynchy]

Was plant mgr for firm in 90's big buyer of Volvo,A30 were just out,only to preferential customers,not for resale,used them 6 months,sold them out of the country for more than new price,

 

[Monkeybusiness]

Was plant mgr for firm in 90's big buyer of Volvo,A30 were just out,only to preferential customers,not for resale,used them 6 months,sold them out of the country for more than new price,

There is a big plant hire place local to me who run/turn over a lot of Cat machines. I’ve heard that they often have new machines running on the yard to stick a couple of hundred hours on, as they aren’t allowed to sell brand new machines… Make of that what you will!

 

[CPS]

There is a big plant hire place local to me who run/turn over a lot of Cat machines. I’ve heard that they often have new machines running on the yard to stick a couple of hundred hours on, as they aren’t allowed to sell brand new machines… Make of that what you will!

I once unloaded 3 brand new Komatsu 40 ton dump trucks and was told not to drive them across the yard and dirty the tyres as they are going to Australia

 

[TiltyShaun]

I think the stories of the big kit could will ring true. Very limited supply and when someone wants one, they want one!!
If you have the ability to spend sufficient cash to purchase a big dumper that the manufacturer wants to have certainty that it is going out the door when it is made, there is a lot is sense in what is being said.
The crux of the issue comes down to this, as a contractor, owning the machine makes sense if it is working.
As a plant hire company, owning the machine makes sense if it is being paid for.
The 2 are different issues!!