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Starting a Skid Steer Business: Ownership, Attachments, and Market Strategy
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Introduction: From Renovation to Earthmoving
For small contractors looking to expand their capabilities, investing in a skid steer can be both a practical and strategic move. One general contractor from Waterloo, Iowa—primarily focused on residential renovations—began exploring the idea of purchasing a skid steer to reduce rental costs and open new revenue streams. This article examines the considerations behind such a purchase, including brand selection, financing, attachment versatility, and marketing strategies to ensure the machine earns its keep year-round.
Terminology Clarification
  • Skid Steer: A compact, maneuverable loader used for digging, grading, lifting, and material handling.
  • Attachments: Tools mounted to the skid steer’s arms, such as augers, trenchers, grapples, and grading blades.
  • Foot Controls: A control system using pedals to operate lift and tilt functions, common in older or entry-level models.
  • GPS Grader Blade: A precision grading attachment that uses satellite positioning to achieve accurate surface leveling.
  • Subcontracting: Offering specialized services to other contractors who lack the equipment or expertise.
Brand Considerations: Case vs. Bobcat
The contractor was torn between Case and Bobcat—two industry staples. Case machines were familiar and comfortable, having been used extensively in the past. Bobcat, on the other hand, dominated the local market and offered strong dealer support. However, the operator disliked Bobcat’s foot controls, preferring hand-operated joysticks for precision and comfort.
This dilemma reflects a broader trend: while brand loyalty and ergonomics matter, local dealer support and parts availability often tip the scales. Bobcat’s ubiquity in urban areas is partly due to its aggressive dealer network and ease of sourcing attachments.
Attachment Strategy: Unlocking Versatility
To make the skid steer profitable beyond seasonal snow work, the contractor considered a range of attachments:
  • Auger: Ideal for fence posts, deck footings, and landscaping—frequently rented, making ownership cost-effective.
  • Stump Grinder: High-demand in land clearing and tree removal, especially when subcontracted to landscapers or arborists.
  • GPS Grader Blade: A niche but potentially lucrative tool for precision grading in driveways, pads, and landscaping.
  • Trailer Ball Mount: A simple welded ball on the front plate allows for trailer maneuvering, useful in tight spaces.
One operator shared a story of using a mid-1980s Bobcat 843 with a backhoe attachment to move a 60-foot trailer with flat tires—demonstrating the machine’s versatility and strength.
Marketing and Work Acquisition
The contractor’s main concern was how to generate consistent work for the skid steer. Suggestions included:
  • Networking with Trades: Plumbers, electricians, and landscapers often need excavation or grading services. A plumber with a Bobcat S185 reportedly doubled his daily income by offering attachment-based services.
  • Cold Calling and Outreach: Contacting local contractors and offering subcontracting services can build relationships and fill scheduling gaps.
  • Online Listings: Posting services on local classifieds or contractor platforms helps reach homeowners and small businesses.
  • Seasonal Diversification: Snow plowing in winter, grading and augering in summer, and stump grinding in fall create year-round opportunities.
Ownership vs. Leasing
The contractor leaned toward ownership, citing a personal philosophy of “taking trucks to the grave.” Leasing was considered less appealing due to long-term cost and lack of equity. With a debt-free business and a supportive banker, financing options included:
  • Bank Loans: Often more flexible and personalized, especially for established businesses.
  • Equipment Lenders: May offer better terms for new purchases but can be less accommodating for used machines.
Field Anecdote: The Trailer Mishap
One operator recalled loading his skid steer onto a car trailer, only to have the machine lift the rear of a Ford F-250 and roll it down the street. The incident damaged the trailer’s axle alignment, underscoring the importance of using a properly rated trailer for transport. Skid steers are deceptively heavy, and improper loading can lead to dangerous outcomes.
Conclusion: Turning Passion into Profit
For contractors with a love of machinery and a desire to expand their service offerings, a skid steer can be a gateway to new business. Success depends on strategic attachment selection, proactive marketing, and a clear understanding of local demand. Whether grading driveways with GPS precision or grinding stumps for landscapers, the machine’s versatility is only limited by the operator’s creativity and outreach. With the right plan, a skid steer isn’t just a tool—it’s a business partner.
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