Hey everyone, I'm a new guy so please let me know if I'm not posting in the best place or something. I recently purchased a Cat CS-433C compactor which I will use on a few construction projects I have going. I also have a friend that does work with a grader and needs a machine like this from time to time. So I want to figure out what a fair rental price is for this machine.
I figure he can rent one from the local place for 3500 per month. if you figure that gives you 40 hours a week for 4 weeks then you have 160 hours on the machine.
So if you take 3500 / by 160 that's $21.875 per hour. I supposed he would get a slightly newer machine at the rental place since mine is a 97 model with 4600 hours on it. so I figure I'll let him use it and just charge him based on the hour meter at like $20 per hour. He would also be responsible for all the fuel and tires, abuse etc. just like a rental.
Anyone have any thoughts on this?
I figure he can rent one from the local place for 3500 per month. if you figure that gives you 40 hours a week for 4 weeks then you have 160 hours on the machine.
So if you take 3500 / by 160 that's $21.875 per hour. I supposed he would get a slightly newer machine at the rental place since mine is a 97 model with 4600 hours on it. so I figure I'll let him use it and just charge him based on the hour meter at like $20 per hour. He would also be responsible for all the fuel and tires, abuse etc. just like a rental.
Anyone have any thoughts on this?
Setting a fair rental price (establishing operating cost per hour.
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