Clevinger Forest Services, LLC

09/02/2026

Stop underpricing your work — and your business.

If your rate starts with what everyone else charges instead of what your equipment and business actually cost, you may be pricing below your own break-even point without realizing it.

If you’re getting ready to start an equipment-based business—or you’re already running one and still aren’t 100% sure how to figure out your hourly equipment rate—this is one of those lessons you want to understand before you put hundreds of hours on a machine at the wrong rate.

I’ve been in the forestry mulching business since 2014, and while it’s a competitive industry, this applies to just about any equipment-based business.

One of the most important things I’ve learned is that your price needs to start with your own specific equipment and business costs—not somebody else’s hourly rate.

Here’s the basic framework:

Step 1: Build your Cost Foundation

There’s an established methodology for figuring out what equipment actually costs to own and operate.
O&O Cost + Overhead Cost = Your Break-Even-Point Cost (BEP)

Then:
BEP + Desired Profit = Your Target Equipment Rate
That gives you a starting point based on your equipment, your utilization, your expenses, and your business.

Step 2: Let the market test it

From there, the market gives you feedback.

-If you’re consistently covered up in work with a huge backlog, that’s usually a sign you may have room to raise your price.
-If you’re consistently losing comparable jobs specifically because of price, you may be above your market.
-If you have a healthy backlog and a good closing rate, you’re probably getting closer to the right price for your market.

Your costs establish the floor. The market helps determine the ceiling.

You should adjust your prices as you go. But if you consistently charge below your BEP, you’re losing money on the equipment.

Bottom line: If you understand both of these steps, you’ll build a much stronger foundation for pricing profitably and running a sustainable equipment business.

If you’re thinking about starting an equipment business—or you’re already in one and you’re not positive how to work through the pricing side—just ask. I’m happy to explain the methodology in more detail.

09/01/2026

Stop underpricing your work — and your business.

If your rate starts with what everyone else charges instead of what your equipment and business actually cost, you may be pricing below your own break-even point without realizing it.

If you’re getting ready to start an equipment-based business—or you’re already running one and still aren’t 100% sure how to figure out your hourly equipment rate—this is one of those lessons you want to understand before you put hundreds of hours on a machine at the wrong rate.

I’ve been in the forestry mulching business since 2014, and while it’s a competitive industry, this applies to just about any equipment-based business.
One of the most important things I’ve learned is that your price needs to start with your own specific equipment and business costs—not somebody else’s hourly rate.

Here’s the basic framework:

Step 1: Build your Cost Foundation

There’s an established methodology for figuring out what equipment actually costs to own and operate.
O&O Cost + Overhead Cost = Your Break-Even-Point Cost (BEP)

Then:
BEP + Desired Profit = Your Target Equipment Rate
That gives you a starting point based on your equipment, your utilization, your expenses, and your business.

Step 2: Let the market test it

From there, the market gives you feedback.
-If you’re consistently covered up in work with a huge backlog, that’s usually a sign you may have room to raise your price.
-If you’re consistently losing comparable jobs specifically because of price, you may be above your market.
-If you have a healthy backlog and a good closing rate, you’re probably getting closer to the right price for your market.

Your costs establish the floor. The market helps determine the ceiling.

You should adjust your prices as you go. But if you consistently charge below your BEP, you’re losing money on the equipment.

Bottom line: If you understand both of these steps, you’ll build a much stronger foundation for pricing profitably and running a sustainable equipment business.

If you’re thinking about starting an equipment business—or you’re already in one and you’re not positive how to work through the pricing side—just ask. I’m happy to explain the methodology in more detail.

09/01/2026

Stop underpricing your work — and your business.
If your rate starts with what everyone else charges instead of what your equipment and business actually cost, you may be pricing below your own break-even point without realizing it.

If you’re getting ready to start an equipment-based business—or you’re already running one and still aren’t 100% sure how to figure out your hourly equipment rate—this is one of those lessons you want to understand before you put hundreds of hours on a machine at the wrong rate.

I’ve been in the forestry mulching business since 2014, and while it’s a competitive industry, this applies to just about any equipment-based business.

One of the most important things I’ve learned is that your price needs to start with your own specific equipment and business costs—not somebody else’s hourly rate.

Here’s the basic framework:

Step 1: Build your Cost Foundation

There’s an established methodology for figuring out what equipment actually costs to own and operate.
O&O Cost + Overhead Cost = Your Break-Even-Point Cost (BEP)

Then:
BEP + Desired Profit = Your Target Equipment Rate
That gives you a starting point based on your equipment, your utilization, your expenses, and your business.

Step 2: Let the market test it

From there, the market gives you feedback.
If you’re consistently covered up in work with a huge backlog, that’s usually a sign you may have room to raise your price.
If you’re consistently losing comparable jobs specifically because of price, you may be above your market.
If you have a healthy backlog and a good closing rate, you’re probably getting closer to the right price for your market.

Your costs establish the floor. The market helps determine the ceiling.

You should adjust your prices as you go. But if you consistently charge below your BEP, you’re losing money on the equipment.

Bottom line: If you understand both of these steps, you’ll build a much stronger foundation for pricing profitably and running a sustainable equipment business.
I
f you’re thinking about starting an equipment business—or you’re already in one and you’re not positive how to work through the pricing side—just ask. I’m happy to explain the methodology in more detail.

08/20/2026

This is how I calculate the $43.14/hr depreciation cost on my Bobcat T770 w/ forestry mulcher.
That $43.14/hr means I need to recover about $22,000/year at 510 productive hours.
If I don’t recover that cost in my rate, it comes out of the profit and capital I’ll eventually need to replace the machine.
And this has nothing to do with whether the machine has a monthly payment or is completely paid off.
A paid-off machine can still be expensive to own.
I’m not talking about tax depreciation here. I’m talking about recovering the portion of the machine’s value that I expect to use up while I own it.
Here’s the math on my T770 w/mulcher:
Purchase price: $115,000
�Expected resale value: $49,000
That leaves $66,000 of value to recover while I own the machine.
I’m using a 3-year useful life and 510 annual productive hours.
3 years × 510 productive hours = 1,530 total productive hours
$66,000 ÷ 1,530 = $43.14/hr depreciation
At 510 productive hours per year:
$43.14 × 510 = $22,001/year
That means every productive hour I put on this machine is consuming about $43 of its value before I account for fuel, repairs, overhead, or my own wage.
There are two assumptions in this calculation that I think matter more than most people realize:
• Useful life — how long I realistically expect to keep the machine in my operation before replacing it. Not necessarily how long the machine could physically survive.
• Annual productive hours — the hours I realistically expect the machine to spend doing productive work that can recover its cost. Not every hour on the meter, not every hour I own it, and not the number of hours I hope to keep it busy.
Those two assumptions can make the same machine look cheap or expensive by the hour—without changing the purchase price by a dollar.
If I overestimate useful life or productive hours, I can make the machine look cheaper per hour than it really is.
That’s why I try to use realistic numbers from my own operation instead of optimistic guesses.
And the $43.14/hr depreciation cost is only one part of owning this machine.
When I add my other ownership costs, my total owning cost comes out to $54.15/hr before operating cost, overhead, and operator wage are added.
That’s why I don’t want to price equipment based only on fuel, repairs, or the monthly payment.
Somebody else’s hourly rate doesn’t tell me what my machine needs to earn.
I want every productive hour to recover the value of the machine I’m wearing out today so that money is there when it’s time to replace it.
Are you calculating depreciation by the productive hour on your equipment—or is this a cost you’ve never really put a number to?

08/20/2026

This is how I calculate the $43.14/hr depreciation cost on my Bobcat T770 w/ forestry mulcher.
That $43.14/hr means I need to recover about $22,000/year at 510 productive hours.
If I don’t recover that cost in my rate, it comes out of the profit and capital I’ll eventually need to replace the machine.
And this has nothing to do with whether the machine has a monthly payment or is completely paid off.
A paid-off machine can still be expensive to own.
I’m not talking about tax depreciation here. I’m talking about recovering the portion of the machine’s value that I expect to use up while I own it.
Here’s the math on my T770 w/mulcher:
Purchase price: $115,000�
Expected resale value: $49,000
That leaves $66,000 of value to recover while I own the machine.
I’m using a 3-year useful life and 510 annual productive hours.
3 years × 510 productive hours = 1,530 total productive hours
$66,000 ÷ 1,530 = $43.14/hr depreciation
At 510 productive hours per year:
$43.14 × 510 = $22,001/year
That means every productive hour I put on this machine is consuming about $43 of its value before I account for fuel, repairs, overhead, or my own wage.
There are two assumptions in this calculation that I think matter more than most people realize:
• Useful life — how long I realistically expect to keep the machine in my operation before replacing it. Not necessarily how long the machine could physically survive.
• Annual productive hours — the hours I realistically expect the machine to spend doing productive work that can recover its cost. Not every hour on the meter, not every hour I own it, and not the number of hours I hope to keep it busy.
Those two assumptions can make the same machine look cheap or expensive by the hour—without changing the purchase price by a dollar.
If I overestimate useful life or productive hours, I can make the machine look cheaper per hour than it really is.
That’s why I try to use realistic numbers from my own operation instead of optimistic guesses.
And the $43.14/hr depreciation cost is only one part of owning this machine.
When I add my other ownership costs, my total owning cost comes out to $54.15/hr before operating cost, overhead, and operator wage are added.
That’s why I don’t want to price equipment based only on fuel, repairs, or the monthly payment.
Somebody else’s hourly rate doesn’t tell me what my machine needs to earn.
I want every productive hour to recover the value of the machine I’m wearing out today so that money is there when it’s time to replace it.
Are you calculating depreciation by the productive hour on your equipment—or is this a cost you’ve never really put a number to?

08/20/2026

This is how I calculate the $43.14/hr depreciation cost on my Bobcat T770 w/ forestry mulcher.
That $43.14/hr means I need to recover about $22,000/year at 510 productive hours.
If I don’t recover that cost in my rate, it comes out of the profit and capital I’ll eventually need to replace the machine.
And this has nothing to do with whether the machine has a monthly payment or is completely paid off.
A paid-off machine can still be expensive to own.
I’m not talking about tax depreciation here. I’m talking about recovering the portion of the machine’s value that I expect to use up while I own it.
Here’s the math on my T770 w/mulcher:
Purchase price: $115,000�Expected resale value: $49,000
That leaves $66,000 of value to recover while I own the machine.
I’m using a 3-year useful life and 510 annual productive hours.
3 years × 510 productive hours = 1,530 total productive hours
$66,000 ÷ 1,530 = $43.14/hr depreciation
At 510 productive hours per year:
$43.14 × 510 = $22,001/year
That means every productive hour I put on this machine is consuming about $43 of its value before I account for fuel, repairs, overhead, or my own wage.
There are two assumptions in this calculation that I think matter more than most people realize:
• Useful life — how long I realistically expect to keep the machine in my operation before replacing it. Not necessarily how long the machine could physically survive.
• Annual productive hours — the hours I realistically expect the machine to spend doing productive work that can recover its cost. Not every hour on the meter, not every hour I own it, and not the number of hours I hope to keep it busy.
Those two assumptions can make the same machine look cheap or expensive by the hour—without changing the purchase price by a dollar.
If I overestimate useful life or productive hours, I can make the machine look cheaper per hour than it really is.
That’s why I try to use realistic numbers from my own operation instead of optimistic guesses.
And the $43.14/hr depreciation cost is only one part of owning this machine.
When I add my other ownership costs, my total owning cost comes out to $54.15/hr before operating cost, overhead, and operator wage are added.
That’s why I don’t want to price equipment based only on fuel, repairs, or the monthly payment.
Somebody else’s hourly rate doesn’t tell me what my machine needs to earn.
I want every productive hour to recover the value of the machine I’m wearing out today so that money is there when it’s time to replace it.
Are you calculating depreciation by the productive hour on your equipment—or is this a cost you’ve never really put a number to?

08/20/2026

08/20/2026

This is how I calculate the $43.14/hr depreciation cost on my Bobcat T770 w/ forestry mulcher.
That $43.14/hr means I need to recover about $22,000/year at 510 productive hours.
If I don’t recover that cost in my rate, it comes out of the profit and capital I’ll eventually need to replace the machine.
And this has nothing to do with whether the machine has a monthly payment or is completely paid off.
A paid-off machine can still be expensive to own.
I’m not talking about tax depreciation here. I’m talking about recovering the portion of the machine’s value that I expect to use up while I own it.
Here’s the math on my T770 w/mulcher:
Purchase price: $115,000
Expected resale value: $49,000
That leaves $66,000 of value to recover while I own the machine.
I’m using a 3-year useful life and 510 annual productive hours.
3 years × 510 productive hours = 1,530 total productive hours
$66,000 ÷ 1,530 = $43.14/hr depreciation
At 510 productive hours per year:
$43.14 × 510 = $22,001/year

That means every productive hour I put on this machine is consuming about $43 of its value before I account for fuel, repairs, overhead, or my own wage.

There are two assumptions in this calculation that I think matter more than most people realize:
• Useful life — how long I realistically expect to keep the machine in my operation before replacing it. Not necessarily how long the machine could physically survive.
• Annual productive hours — the hours I realistically expect the machine to spend doing productive work that can recover its cost. Not every hour on the meter, not every hour I own it, and not the number of hours I hope to keep it busy.

Those two assumptions can make the same machine look cheap or expensive by the hour—without changing the purchase price by a dollar.
If I overestimate useful life or productive hours, I can make the machine look cheaper per hour than it really is.
That’s why I try to use realistic numbers from my own operation instead of optimistic guesses.

And the $43.14/hr depreciation cost is only one part of owning this machine.
When I add my other ownership costs, my total owning cost comes out to $54.15/hr before operating cost, overhead, and operator wage are added.
That’s why I don’t want to price equipment based only on fuel, repairs, etc. or the monthly payment.
Somebody else’s hourly rate doesn’t tell me what my machine needs to earn.

I want every productive hour to recover the value of the machine I’m wearing out today so that money is there when it’s time to replace it.
Are you calculating depreciation by the productive hour on your equipment—or is this a cost you’ve never really put a number to?

08/12/2026

This is how I price my equipment to make a profit.
From these FB Groups, it looks like a lot people are pricing their jobs based on their equipment payments, insurance cost, fuel bill, or what competitors charge. This is actually called “survival pricing”. Not good. You won’t actually survive that way.
For equipment-based businesses, there is an established industry-standard method for determining your true cost per productive hour. Knowing your true cost per productive hour is the financial foundation of your pricing.

Here’s the breakdown:

Step 1: Owning cost + Operating cost + Allocated overhead = your core cost per productive hour. I use the TRUEHOUR app to calculate my actual costs for me.
Step 2: Add the direct costs specific to the job—labor, materials, subcontractors, mobilization, disposal fees, permits, or anything else required to perform the work.

Adding Steps 1&2 together gives you your sustainable cost floor, or break-even-point cost (BEP). This is what the work actually costs you.

Here’s why knowing these numbers are critical for you. Depreciation (an Owning cost) is one major cost guys are missing in their pricing. For my Bobcat T770 the depreciation cost is $41.14/hr. I bill an average of 510 hours per year. If I was missing this number I would be losing $20,981.40 per year. (41.14 x 510=20,981.40) Are you accounting for depreciation in your pricing?

Step 3: Add profit margin. Determine the profit the business needs to earn and establish your selling price. Personally, I shoot for an average of 30% for my business, but I will adjust that number higher if my job backlog is higher, and lower if business is slower. Backlog vs no backlog- this is how I gauge my market and pricing, not by what others are charging.

The take-aways:
O&O cost + Overhead % + Direct costs + Profit margin = Your Rate
Before you quote your next job, know your cost first. Then decide what price makes sense.
Revenue is not profit. Profit only exists after all of your actual costs of doing the work are covered.

Does this breakdown help anyone on here?