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Sand Gravel wheel loaders


 
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gary hanchett
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PostPosted: Fri May 25, 2007 10:23 am    Post subject: Sand Gravel wheel loaders Reply to specific post Reply with quote

I am developing a sand and gravel pit operation and have a few questions for an experinced pit operator willing to share his knowledge with me,are there any mentors out there? E-mail me,I have an 800 no. for you. Also looking for opinions on 2.5 to3.5 yd wheel loaders for 20 thou or less thanks, gh

 
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Case450
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PostPosted: Fri May 25, 2007 5:11 pm    Post subject: Re: Sand Gravel wheel loaders Reply to specific post Reply with quote

What are ya looking for? out of sheer morbid curiousity...are you wondering about screeners or what kind of material can be used for what or crushers or truck loading or cost per yard????

 
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noncompos
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PostPosted: Fri May 25, 2007 8:33 pm    Post subject: Re: Sand Gravel wheel loaders Reply to specific post Reply with quote

If you haven't already thought of it, you might find some kindred souls/mentors/sympathisers at stripmine.org (if that doesn't work try .com and ,net, I know it's out there somewhere...). Good luck.

 
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Roy Suomi
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PostPosted: Sat May 26, 2007 3:15 am    Post subject: Re: Sand Gravel wheel loaders Reply to specific post Reply with quote

Wheel Loaders can be had at auction readily..One of my customers bought a 5 yard Yale loader at auction 2 years ago for 12 G's..Looks respectable , runs better.. The only repair has been a leaking fitting and shift cable..Large operations usually won't keep a loader past 10 years..Look for a company that buys out other companies, sometimes they will liquidate older pieces, as in this case...Go on line for local equipment dealers to see what they have..I was at a mulch business yesterday , they had 3 wheel loaders sitting around in various stages of disrepair..51 series Terex loaders..Good size pit machines..Good Luck..

 
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gary hanchett
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PostPosted: Sat May 26, 2007 4:17 am    Post subject: Re: Sand Gravel wheel loaders Reply to specific post Reply with quote

I am trying to find what policy and procedures I should have in place to stay out of trouble, royalties, leases,transportation costs for differant trucks Quad's, leads, and off-road trucks.Honest info is hard to come bylocally as I am a newby, and I have competition for a road projectto be let in mid july. Ihave the only permitted sand pit in the constuction zone. the next closest pit is 5 miles away , but I don't feel as tho I have this in the bag , I need to determine a fair premium for my sand because of its location. Idont want to be greedy, but I don't want to leave a lot of money on the table either.Sorry this post is so long &thank you all for any ideas!gh

 
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Case450
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PostPosted: Sat May 26, 2007 8:03 pm    Post subject: Re: Sand Gravel wheel loaders Reply to specific post Reply with quote

I'm just a homestead type guy, aka, not into the business of it but i'm sure your municipality has zoning regulations stating size of pit, signage, noise levels, dust levels, use of roads, etc. Further, local bylaws will state how much per yard is to be remitted in the form of royalties, taxes, etc. If you are only selling the sand then you charge by the yard. That's usually set with the job foreman on the construction site or its stipulated in your bid. If you load someone elses trucks, you charge a bit more per yard, if your loading your own trucks you charge a bit more per yard. Also, if your screening your own material that will help set the cost per yard. See what other guys are charging and that will tell you the going rate.
Like I said, i'm not in this business but thats how i have seen others do it 'round my parts.

 
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Davis In SC
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PostPosted: Sat May 26, 2007 9:14 pm    Post subject: Re: Sand Gravel wheel loaders Reply to specific post Reply with quote

Any thoughts about letting someone in the sand/gravel biz come in and mine your pit? You might could sit back and collect a check, without all of the risks and headaches.. Just a thought..

 
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john_bud
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PostPosted: Sun May 27, 2007 7:28 pm    Post subject: Re: Sand Gravel wheel loaders Reply to specific post Reply with quote

You want to set the price for your product (sand and convenience) correctly.

The price for the sand is easy - it's exactly what the competition sells it for. Check around other locations,not just the one close by. Also see what volume purchase price is, not just small qty. Remember, sand is a commodity. It is not differentiated.

The price of convenience is a bit more complicated.

First off there is a 10 mile round trip. Figure 30 mph average speed and 3-4-5 mpg.

Travel time is 20 minutes. Figure 40 bucks an hour for the truck and driver is the cost for the company. 1/3 of 40 bucks is $13.33

Fuel cost 2-3 gal. Figure they have a large contract for fuel and it's at $2.75. Fuel is then $5.50 - 8.25

Using your competitor, if they can run for a load of sand, come back, dump and run out again all in 1 hour - then they will get 8 loads a shift per truck. If they get sand from you, they can do that in 40 minutes a load - meaning that they can dump 12 loads a shift. That's 50% more productivity. That's big money. It's bigger than the direct fuel/time savings. It's like them having 50% more dump trucks.

Your convenience is saving them 13.33 + 5.50 = $18.83 (up to $21.5Cool. PLUS having the effect of making their dump trucks 50% more productive.

So if you charge a $18 per load premium, it would be attractive to them. It would probably still be ok at $25 per load, but might generate some hard feelings. Don't discount that! It may make you a target for a law suit just for "pay back". Human nature shows time and again that to be the case.

You do have a severe barrier to entry into this business. Namely, they can't trust that you are able to fill their trucks promptly. They don't have a feel for the quality of the sand either. Is there a premium for early hours, late hours, weekends, holidays?

You need to address those concerns when you submit your quote.

It may also be better to just charge for the sand at the same price as the competition - with the construction company doing the digging and loading. Less overhead, less time, much much less liability.

jb

 

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gary hanchett
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PostPosted: Tue May 29, 2007 4:33 am    Post subject: Re: Sand Gravel wheel loaders Reply to specific post Reply with quote

Thanks to all for their replies! John Bud your input was very helpful.I'm not always sure of what numbers to use,from my pit off-road articulating trucks could be used , creating another factor to figure in. Anyway, thanks again ,Any one with more to contribute ,Please post! gh

 
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