Quote:

Originally Posted by jmac My hourly operating costs get lower the more I use the machine if you consider initial cost. The hours used per year are the unknown. (Heavy Equipment Forums)

Right on jmac. This is why contractors who really want to know their costs start off the year (or next 12 months) with an estimate or forecast based on current conditions. We have a tool that will track the hours on a machine when fueled or every week, if you like.

We use this to project what will happen over the next 12 months if business continues like it has been running. I normally suggest to clients that they adjust their forecast every month or every quarter.

This data also used to for Productivity Variance reports. This lets clients know what machines need to be sold or bought.

"The sooner you close the barn door or gate, the less stock you loose." You do not want to wait until year end to to find out that you 750 hour forecast, should have been 325 hours.
Dan