10/21/2026
This is how I price my forestry mulching equipment.
These screenshots show my actual owning, operating, and overhead costs for my Bobcat T770 with a Fecon BH74SS mulcher included in the pricing.
My equipment's break-even point (BEP) is $155.68 per productive hour. (includes operator wage in operating cost) This BEP is the point where every ownership, operating, overhead, and labor wage expense is covered.
For my business, my truck's break-even cost is $1.93/mile and my trailer's is $0.52/mile. I use this to figure out my mobilization fee.
I never, ever charge less than this break-even-point cost. I normally shoot for a 30-40% profit margin on top of my job estimate total cost. The profit margin is the part I can adjust, either up or down, depending if my job backlog is short (I lower the profit %), or long (I raise the profit %).
These are my numbers. Everyone's equipment, utilization, financing, repairs, insurance, overhead, and business goals are different, which is why I've never believed someone else's hourly rate is the right answer for my business.
Before I think about what the local market is charging, I want to know exactly what it costs me to put my equipment to work. Once I know that number, I can make pricing decisions with 100% confidence. I stay out of the “race to the bottom” pricing, and don’t wonder if I am over-bidding and losing jobs. I know what I need to charge, and I read the market based on my back-log numbers.
I've been running my forestry mulching & bush-hogging business since 2014, and this is how I manage my business.
I just wanted to put this out there because I think understanding your own numbers is the foundation of any equipment based business. It is not a variable you guess on. There are a lot of variables in developing a good estimate, but your pricing needs to be solid.