Buying a Drill Rig? Part 2 of Our Talk about Big Equipment Buys
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.”