Compact Equipment Helps Manage Risk
Randy VanConett
Back in 1993 it seemed like a risky proposition. In an area where big construction equipment was the rule, Randy VanConett ventured into an untapped market—smaller jobsites and projects that could be completed in several hours instead of days or weeks. VanConett had drive, determination and $18,000 in cash, which he used to buy a 5-yd. dump truck, a modest car for estimating jobs and a new Bobcat® 753 skid-steer loader.
“For the first two years I often worked from before dawn to after sundown on any job I could find, such as removing trees or cleaning up debris at construction sites,” says VanConett, owner of Accurate Construction and Excavation (ACE), Grand Junction, Colo. “I was too afraid of failure to look back.”
Today, he and his 19 employees operate a fleet of equipment that includes a Bobcat System consisting of an 873, three S250 skid-steer loaders and three 337 compact excavators.
This equipment saves time and labor on jobs ranging from residential backfilling and grading to commercial site work and digging underground utilities. He has also used his successful experience to help five other contractors in his area launch businesses with compact equipment.
Making money
“I started with Bobcat equipment and 11 years later I’m still using Bobcat machines,” he says. “I’m not one to stick with something if I’m not happy with it.”
What’s made him the happiest is the profitability of his Bobcat equipment. “You make your money with construction equipment by keeping it working,” VanConett says. “Each of our Bobcat machines averages about 30 hours of work each week throughout the year.”
However, as he points out, it takes more than high equipment utilization to turn a profit. VanConett reports that the amount of money his Bobcat equipment earns per hour in relation to its cost is much higher than that of bigger, more expensive machines. “The profit margin on our Bobcat equipment is very good,” he says.
VanConnett says the performance of his Bobcat equipment has proven to be a good fit for his business. His 337 excavators, for instance, have the speed and power to handle about 95 percent of his digging and loading chores. “I can’t justify buying bigger bigger loader or excavator for that one day a month when I might need it.”
Managing risks
The reliability and durability of his Bobcat loaders and excavators have played a key role in reducing business risks. “I’m very impressed with their reliability,” VanConett says. “If they weren’t so reliable, we wouldn’t be as profitable and financially healthy as we are.”
One time he rented another brand of compact track loader to clean sediment from a pond. “The lift arms and cylinders broke,” he reports. “I can’t afford to run equipment that won’t work under our jobsite conditions. That incident reminded us of why we stay with Bobcat products.”
Convincing skeptics
While his Bobcat equipment has proven its value time and time again to VanConett and his many satisfied customers, his biggest challenge is landing business from prospects unfamiliar with his company’s capabilities. “I’ve had guys laugh at our equipment when we show up,” he says. “But when we completed the job, their jaws were on the ground in amazement because of how well we did the work.”
A case in point is a hillside project this past winter involving a large cut where he and his crew installed 24-in. diameter concrete pipe. “From the first day, the project manager doubted we could do the work properly,” VanConett says. “Not only did our work pass density testing, which wasn’t even in the bid specifications, but we did a nice neat job in a limited access area without disturbing the sensitive desert landscape around it. When we finished, the project manager wanted us to do more work for him.”