Hello everyone. I'm considering purchasing a ctl and forestry mulcher. I'll probably go with a JD 323 ctl because they are the only dealership local here. I currently work shift work at a paper mill and have for the last 17 years. I'm hoping I can start out doing jobs on my off days and eventually go full time with the ctl and mulcher. I've run skid steers, doziers, payloaders, for several years at the mill so I'm not completely ignorant when it comes to running equipment. I was just wondering/hoping some of y'all could give me some advice on the business side of things. My biggest concern is getting enough business to make payments on equipment. Thanks in advance for any info and advice! Also, I was told JD is discontinuing production of the 333 ctl. That's what I was considering until I was told that. Would y'all stay away from that model knowing they are discontinuing it? Thanks again guys!
I think you want to look at a lot of things beyond the dealer that is closest to you. You want to consider engine hp, torque, hyd hp, hyd flow in gpm and running psi. Deere offers a fan reverser which is good thing in this application. Since you are looking at a smaller machine, know that some of those mulchers are heavy, make sure you have enough ROC to handle the mulcher you want to buy. I would also make sure you have some margin in that ROC number because you frequently are on uneven ground and the mulcher may spend some time in the air. Personally I would want to get the biggest machine possible in the color you choose to run. The production capability between the 333E and the 323E could significant (large enough difference perhaps between making money and not making money), I cant believe that Deere will not offer a tracked machine bigger than the 323. Maybe they are ceasing production of the 333 (I have not heard that), but I am sure they will offer a comparable machine. As to the business side of it. I would be dam sure you have a significant amount of work lined up before signing on the line. I think a RTO would be a great option in this case, if it works you roll the rental into a purchase, if by the end of the season things are not working out, you give it all back. Good luck
Excellent advice by KSSS. I offer mulching, but I'd starve if that was all I offered. When I do snag a mulching job its typically a portion of the overall project. I rent a head and machine from my dealer with demo door, guarding and all the amenities. It's still profitable, the maintenance is on them, and I'm not tearing up my own machine.
I agree with both ksss, and jnb on what they said. Also need to take a look at the market in your area, if everyone wants to get property mulched will sign contracts and no one is doing it within 100 miles of you. Might be decent. But running a mulcher is prob the most expensive service you can offer with a CTL. Might not buy the head, rent it when needed and pick up other services that most everyone needs and can afford. Dirt work, pads, grubbing, trenching, drilling holes, etc. I've never mulched before, people want land cleared but when I tell them price to mulch they say they're fine with burn piles...so that's what we do. Still make money but a more broad service and affordable to the majority while starting out is good....test the waters in dif areas of the market then if you're spending 90% doing the same thing consistently, then devot more resources for that application. That's the best about a CTL, versatility to make you money.
Thank you all very much guys! Sounds like some great advice and things to consider.
Kind of a big investment for a part time gig. For the same investment you could have a lot more versatity with a few other attachments. I still have a full time job and do underbrushing with a brush mower (4-5" material and smaller), light land clearing, driveway work, small building pads, trails, sod prep and light grading work on my "days off.". You could outfit yourself to do all that for about the same money as a mulching setup. Brush clearing/mulching gets boring fast, and when you look at the actual cost of mulching the profit margin isn't any better than other machine work. But if it's an untapped market in your area there will be all the work you can handle. Work has been easy to find here, I don't try to compete with anyone, I need jobs I can knock out in a day or two in most cases. I would say about 50% of my work is mowing. I have not had a day without work for over 2 months and have all my "days off" accounted for for the next month. I do take an actual day off every now and then. I started out with an older machine I'd owned for years but within 3 months I saw the need for something better and the work was there. All the profit goes back into buy new attachments and equipment in order to have enough diversity to be able to make a living when I quit my day job in a year or so. Be personable, dependable, make people happy, and be clear on what you will do, and your business will grow.