I am looking into starting a stone slinger service. I am currently running the numbers to see if this is something worth doing. These are some rough numbers and I am trying to go worst case... $15k/year for truck maint. $52k/year/driver (figured at $18/hr plus 40% of that for work comp, insurance etc = $25hr x 2080 hrs/year) $7k/year for insurance on truck $4k/year for truck registration/license $30k/year for payment on truck loan (rough guess havent heard back from the bank yet) $110k/year for fuel (figured at 1600 hrs of truck running 55mph for 88k miles @ 4mpg = 22,000 gallons @ $5/gallon, rough math I know...) That gives me $218k a year assuming I havent overlooked anything. To figure what that averages per day to break even... 52 weeks x 6 days a week = 312 days (say 300 days of the truck running per year to keep the math easy) $218/300 = $727/day I have seen quotes of other slinger trucks across the country of $100-125/hr. That means it would have to run atleast 8 hours of everyday (300) that it runs. If I charge by the ton at say $7/ton and the truck holds 15 tons, thats 2076 full truck loads a year, or 7 per day it runs. Thats just to break even. I would be the only slinger truck in the area so that helps. Am I missing anything? Way off base on anything? I'm all ears to anyone with experience out that there that is willing to throw some knowledge my way. I am approaching this as just the owner, the business would have to stand on its own. I'm not looking to make a killing, I currently have a full time job,if I can stay in the black and have some extra cash at the end of the year I would be happy. If the business takes off and looks like it will grow I would consider quitting my current job to have more time to manage it.I do know that since the truck would be the first in the area it will be a tough road to convince contractors to use my over typical dumps and having their guys spread it. Sorry this got a little long winded but if you are still with me and hav any pointers please share! Thanks in advance!
I think your numbers are very optomistic. Here is what I would expect. 15k in maintence sounds close, thats a set of rubber and 7k for other issues that arise. Driver- I'd be driving it myself untill I had a steady work load, but your right, driver needs paid too. Ins. & reg sound close for pa rates. 30k truck payment, I assume thats for a new ride? I'd be thinking of a used rig untill I had the biz established simply because the depreciation ofer a years time for an already used piece is minimal compared to a new unit. As for fuel and truck hours per year, for the first year out of the gate, I'd be suprised if it worked 100 days out of the year. For me to be interested in buying a speciality truck like that, it would be an addition to a fleet of dumps that are already operating.
I know nothing of the rock slinging business but I do know a little about business. #1 don't forget the tax man ---he's always got his hand out. # 2 you need a GOOD cpa---don't make a move without him. # 3 if you can't afford to not make a profit for 3 years you can't afford to do this. That said, I wish you luck.
No way you work 300 days a year with a brand new business, no matter how great and economical for customers. It takes time to build a customer base... especially when you are creating a new market.(For planning purposes I consider being the first in a biz in the area creating a market) In my businesses I simply cannot justify buying new equipment with used equipment values being what they are currently. I have thought for some time that the slinger business would be a great one to get into, but I think you would really have to beat the bricks to make it happen at first. I wish you the best of luck, but I would seriously consider shopping for a used or repo unit as opposed to a new one.
find a used truck at a cost that is already depreciated out, run it your self to test the amount of business that is out there, then you will be able to get realistic numbers to go on. If you have enough business to hire a driver you can do so then. If you find out that it isnt going to work like you planned, it will be far less painful to get out of the deal with low cost equipment. Good luck.
i started in buisness may 2011 delivering aggregates 3500kg gvw tipper and case backhoe for site work /loading agg no bank loans etc and im working 5/6 days a week ,my backhoe is a 82 case 580 in tidy shape but no finance a 2011 machine wont dig a more expensive hole wish you all the best
Do it yourself and make money. Hire one driver and break even. Hire two drivers and go broke. Hire three drivers and that suction sound you'll be hearing is your bank account as the money is drawn out.