Shaun, I am curious what brand and weight oil you are using in your Kohler?
The oil debate is endless. To me, the brand and viscosity matter less than the interval. I use the same stuff I put in my car, truck and motorbike... It's nothing special, castrol 'modern engine' and from memory I think it's 15w40 or something like that. I don't buy cheap crap but I don't think synthetic is worth the high price tag. I'd rather buy mid priced oil and change more often. I don't buy miracle oils, oils with sludge protection, oils with an extremely wide viscosity range (too many viscosity modifiers equals less oil), oils with teflon, oils that stick etc etc... Just a good basic oil. I buy it when it's on special and buy a lot.
I do the oil and filter on my 20hp kohler commander at 50 hour intervals. It only takes half a gallon from memory and with oil and filter that adds up to about $12. I expect to get about 700-1000 hours out of my engine (I bought new and don't slay it) and when it lets go I'll put in a 27hp. I've allowed money for the engine replacement cost in my $60/hour running cost. Below is how I arrived at the $60/hour rate;
$4.30/hr for engine ($3000 for new engine, some belts and fitting /700hrs =$4.30)
$3.30/hr for teeth ($100/set and get 50 hours out of a set with sharpening, conservatively estimated 30hrs)
$2/hr for sharpening (8-10 hrs between sharpens, $20/sharpen)
$10/hr for fuel (a bit high, but I use premium no ethanol)
$10/hr for damage (100hrs = I can be covered for $1000 worth of damage to pipes, windows etc)
$2/hr for chains and tools (pretty self explanatory)
$4/hr general maintenance (tyres, switches, belts,oil, filers etc)
$20/hr wages for operator
$5/hr depreciation
Depreciation is the hardest one to figure. The machine was $18k new. After 1000 hours I can re-power with the money put aside for an engine replacement, and all the ongoing costs of the machine and damage I may cause won't be coming out of the profit. When it's getting up close to 2000 hours the machine really won't be worth much at all. Maybe a few thousand if you're lucky. That 'depreciation' money will have added up to about $10k by then, which when put together with a few thousand from the machine sale should come close to a new machine.
Most guys just don't figure the real cost of operating. If you don't allow for things (especially depreciation) then you are basically stealing money from yourself. You borrow money to buy the machine (from yourself, or from a bank), you need to pay that money back... and all that money comes out of the 'profit'. There are idiots out there grinding stumps for less than their true running costs over time. Its no wonder they are always short of cash when it comes time to repair/replace, even though they think they made good cash off it because they put some cash in their pocket that day. They don't realise the cash they put in their pocket is just being 'borrowed' from the cost of running the business, which they will have to 'pay back' to the business later on out of their own pocket.
Another interesting aside is the issue of insurance. Stump grinding isn't covered under my public liability, it's classed as 'excavation' which needs a seperate and expensive policy. Even if I had the excavation policy, the excess is $1000 which means for the type of damage I generally do I'd still be out of pocket. Many stump grinders don't carry any insurance which is an issue I'll leave aside. I'm primarily in the tree game. Most stump grinders in australia have their clients sign a waiver stating something to the effect that since there are no plans for services, unless the client can locate and identify services the grinder will not cover damages. They also put something in there about how services should be buried more than 12" under (a myth, no such law exists) and that they do not grind more than 12". Many guys really won't pay for damage they cause. Naturally, they have a hard time getting paid when they cause damage.
Last year, my guys hit 2 water pipes, one telephone cable, a stormwater pipe and cracked one window. They're fairly careful, but as noted there are no plans available execept for public services. On private property there are no records. We identify meters and take a best guess, manually excavate if there looks to be a hazzard but things happen.
This year I started offering my customers 'insurance'. I tell them about how we cant identify the services and nobody can. I tell them that damage isn't covered. I then offer them insurance for an extra $10. Almost every customer this year jumped on it. They love it. I put the $10 in the insurance fund (a big money box) and still take care. This year we've hit one phone cable so far. I'm coming out well ahead, and my customers are happy. I'm basically self-insuring. Only a few customers have said no. If anything happened, I think I'd probably still repair it at my cost... Would sure generate some good will.
Shaun