Basics or Bells and Whistles?

Contractors can save money by limiting skid-steer options, but going too far may compromise long-term machine productivity

Like the rest of America, installation contractors are re-evaluating the way they spend money. Ups and downs in business and a shaky economy have made major purchase decisions, particularly those around new equipment, more difficult than ever.

When that decision involves a skid-steer loader — often the workhorse of the fleet — it can be even more challenging. Because the machines are used heavily on the job, contractors can’t afford to skimp on quality. Yet, for the same reason, owners know skid-steers don’t typically receive the best treatment from crews.

“The skid-steer is much like the employee pickup that everyone drives,” says Rob Breiding, a sales representative for John Deere dealer Erb Equipment, based in St. Louis, Mo. “In terms of maintenance, it’s the most neglected machine in a fleet.”

When is used best?

According to Breiding, who has been selling skid-steers for more than 15 years, buyers have shown more interest in used machines this year. He attributes that to a desire to find the best possible value. When helping his customers wrestle with the new-versus-used decision, Breiding suggests they answer three questions:

1. Who will operate the equipment? “Consider if this is going to be the first piece of equipment a new operator will cut his teeth on,” says Breiding. Whereas a used machine may be suitable for a contractor buying for a rookie operator, it may not be as attractive to an owner/operator who plans to be at the controls eight hours a day.

2. Is there a warranty? And if not, can you afford needed repairs? Breiding warns that a used skid-steer may need repairs that cost more than the value of the machine. Most dealerships do not repair used equipment before the sale because that would mean a higher selling price. Therefore, the repair cost falls to the new owner.

3. Can new equipment incentives and financing help you afford a new machine? End-of-year tax benefits and dealer incentives have real potential to affect the new-versus-used decision. Buyers should consult their tax advisors to see if there is enough benefit in buying new.

Keeping it simple

After considering these factors, contractors who decide to buy new iron can still save money by choosing a more basic model, without the bells and whistles many manufacturers offer. “Large-fleet owners have been purchasing bare-bones machines for some time,” said Gregg Zupancic, skid-steer product marketing manager with Deere & Co. “Now we’re seeing more basic models being purchased by mid-sized companies and middle-level fleet owners.”

When purchasing a scaled-back skid-steer, certain options are considered luxuries. For example, foregoing a complete cab enclosure can save thousands of dollars (although a cab may be imperative for crews working in heat or cold).

Other options contractors can trim include creature comforts, such as a deluxe suspension seat. Of course, creature comforts may be more necessity than luxury if operators must work long hours, or if the job environment is tough.

Two-speed transmission and high-flow hydraulics may be less easy to leave off the list, but for contractors who do not need higher travel speeds, a two-speed transmission is not essential for high performance.

According to Zupancic, a skid-steer with standard hydraulics will power 80 percent of the attachments available, so a high-flow option may not be necessary. A contractor who expects to need attachments that require high-flow (such as a trencher) only occasionally might be better served by renting a high-flow machine for those jobs.

More essential

There is of course such a thing as going too bare-bones. Kelly P. Moore, skid-steer product manager for Gehl Company and Mustang Manufacturing Co., believes there are certain options contractors should resist scratching off their lists.

These include heavy-duty tires. Buyers should consider factors including the type of debris typically encountered on the job and the kind of terrain the machine will traverse. He recommends selecting the most durable tire appropriate for jobsite conditions. “Tires are a sound investment in the machine’s future performance,” he says. “Equipment owners who choose inexpensive or basic tires can end up very disappointed in the long run.”

Buyers also should not skimp on safety features, such as backup alarms and strobe lights. Decisions made at the time of purchase have a major bearing on the amount and type of work the machine will be able to do. Zupancic notes that the most important thing buyers can do when skid-steer shopping is to think ahead, outfitting new units with no less and no more than their needs will require.

While many options — such as weight kits, towing hitches or radio and auxiliary plug-ins — can be installed later in the field, other decisions can only be made at the time of purchase. That requires buyers to be diligent.

Another factor all equipment buyers should consider is environmental rules where they plan to work. For example, many states are tightening emissions standards, and localities are requiring equipment to meet noise regulations. “The machine a guy chooses could prevent him from bidding on jobs in certain areas,” says Zupancic.

What you buy today will determine the work you can do in the future. Whether buying used or new, loaded or basic, skid-steer buyers must look ahead, matching their vision for the business with the equipment they need to make that vision a reality.

­Kelly L. Moore is a freelance writer based in Des Moines, Iowa. She can be reached at kelly@kellymooreconsulting.com.



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