This installment of Drilling In-Site, episode 23, brings back Buddy Sebastian, vice president and general manager of Sebastian and Sons Well Drilling based in Springport, Michigan. We continue our discussion about the ins and outs of planning for buying big equipment like drill rigs. He talks a lot about making sure your drilling company is the type of business that prepares to upgrade years before the need arises.
“You have to start with your costs, and then add your profit to that,” Sebastian says. “The rule of thumb used to be 30%. I’m here to tell you, in the drilling industry, if you’re only making 30%, you’ve bought yourself a job.”
A long-time industry friend, Sebastian also serves as president of the Michigan Ground Water Association. He has spoken at industry events about job costs, company sustainability and the future of drilling companies.
This episode covers topics like:
- Weighing new versus used. When does it make sense to go worry free and buy a new rig? When does it make more sense to look at used?
- Buying versus leasing major equipment.
- Common pitfalls contractors make when they buy drill rigs.
- Who to have on your team when making a rig buying decision, starting with your banker and accountant.
Check out today’s episode to hear more. Watch the video here or listen to the audio version of our conversation at www.thedriller.com/insite-podcast. You can also find our show on Apple Podcasts. Search for Drilling In-Site, then hit Subscribe.
If you missed part one of our discussion with Buddy Sebastian, find Drilling In-Site episode 23 here. In that episode, we talk planning for purchases, pricing your work for growth, and the cost-benefit analysis of maintenances versus upgrading.
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Sebastian and Sons Well Drilling on Facebook: www.facebook.com/Sebastian-Sons-Well-Drilling-1230600086970234
Sebastian and Sons Well Drilling website: www.sebastianwell.com