Are Contractors rates having to go up.

[Wellytrack]

When the contractor sells up that’s the profit!

 

[dave mountain]

When the contractor sells up that’s the profit!

til the tax man gets his hands on it

 

[Courier]

til the tax man gets his hands on it

Only if all the equipment was bought and paid for - So much of it is still owned by finance companies…..

 

[dave mountain]

Only if all the equipment was bought and paid for - So much of it is still owned by finance companies…..

very true, there are a few small contractors locally who buy almost everything 2nd hand and outright, and keep their business small. i would guess their payday when they sell will give them more than than big boys around financed upto their neck. tbh i wouldnt be surprised if they make more profit currently as well.

 

[Sid]

with the greatest respect, i think this statement demonstrates how much you understand about running a business

So from what your saying I'd I buy a tractor on hp stick it in the shed it will make money

 

[Sid]

very true, there are a few small contractors locally who buy almost everything 2nd hand and outright, and keep their business small. i would guess their payday when they sell will give them more than than big boys around financed upto their neck. tbh i wouldnt be surprised if they make more profit currently as well.

What return do they get on capital invested then?

 

[dave mountain]

So from what your saying I'd I buy a tractor on hp stick it in the shed it will make money

I'm saying dont go out if you aren't going to make a profit, and if that happens so often you can't make the payments then you should get rid of it and do something else.

 

[dave mountain]

So from what your saying I'd I buy a tractor on hp stick it in the shed it will make money

Please explain

 

[dave mountain]

Tractor is still "costing" when sat in the shed. The monthly still has to found.

But cost are greater when being used, fuel,tyres,wages etc

Ring a haulage company and ask if they fancy doing some work at cost price to "help them make their monthly payments". Let me know what they say.....

 

[Sid]

I'm saying dont go out if you aren't going to make a profit, and if that happens so often you can't make the payments then you should get rid of it and do something else.

So you make a profit on every single job.

Ring a haulage company and ask if they fancy doing some work at cost price to "help them make their monthly payments". Let me know what they say.....

Don't see many lorry parked up doing nothing.

 

[dave mountain]

So you make a profit on every single job.

yes, at least if it goes to plan, otherwise why are you doing it? might as well get the same wage somewhere esle and carry no risk. if you set out on a job with no margin then something goes wrong your are instantly losing money

Don't see many lorry parked up doing nothing.

because they are run as a business like they should be, rather than buying machines they dont need then running them for free half the time "to make payments". i dont understand why you are trying to make doing jobs with no profit margin sound like a good business decision.

 

[Pennine Ploughing]

This word "Profit" that is banned about on a tractor ,
Can anyone explain in detail of the rates, costs and this thing called profit ?

 

[Sid]

yes, at least if it goes to plan, otherwise why are you doing it? might as well get the same wage somewhere esle and carry no risk. if you set out on a job with no margin then something goes wrong your are instantly losing money



because they are run as a business like they should be, rather than buying machines they dont need then running them for free half the time "to make payments". i dont understand why you are trying to make doing jobs with no profit margin sound like a good business decision.

Did you do any straw baling last year ? Obviously not.
Seen plenty of haulage companies go bust, working all hours keeping the wheel turning to pay the capital tied up in the vehicles.

 

[ollie989898]

Profit is what is left once everything else has been paid for. Surely people understand that, even if it is possible to continue running a business for a long time having made no overall profit, their balance sheet may well show a big + figure through other reasons.

I don't know anyone out there running a truck for fun, they must have to run X days a week to be able to pay for the truck, after that initial period, they obviously make a bit more money each week/month as there is only running costs to contend with.

 

[Lofty1984]

Profit is what is left once everything else has been paid for. Surely people understand that, even if it is possible to continue running a business for a long time having made no overall profit, their balance sheet may well show a big + figure through other reasons.

I don't know anyone out there running a truck for fun, they must have to run X days a week to be able to pay for the truck, after that initial period, they obviously make a bit more money each week/month as there is only running costs to contend with.

Until a breakdown

 

[Sid]

3 days a week for finance capital
1 day for fuel ,servicing ,repairs,tyres
1 day for wages
Saturday is profit

 

[d williams]

3 days a week for finance capital
1 day for fuel ,servicing ,repairs,tyres
1 day for wages
Saturday is profit

52 weeks of the year???

 

[dave mountain]

3 days a week for finance capital
1 day for fuel ,servicing ,repairs,tyres
1 day for wages
Saturday is profit

It's this sort of calculating that keeps the race to the bottom right on track.

 

[Pennine Ploughing]

3 days a week for finance capital
1 day for fuel ,servicing ,repairs,tyres
1 day for wages
Saturday is profit

So with contracting by your breakdown of the above,
Saturday and Sunday will be profit, is that why most work is done on a weekend ?

 

[dave mountain]

So with contracting by your breakdown of the above,
Saturday and Sunday will be profit, is that why most work is done on a weekend ?

must be.
go baling all week (£80/hour gross profit) to break even, then go hedgetrimming all weekend at £32 (£5/hour loss) to make your profit.
it all makes sense now