Forum Discussion
BurbMan
Jun 09, 2014Explorer II
15,000 hrs expected life running 24 hrs/day = 625 days. Labor day is 77 days away...assuming the little Honda is new he'll likely be OK.
If he bought it new and runs 120 days in a season that still 5 years of use.
If he paid $2000 and it lasts 15,000 hrs, that means his amortized ownership cost is $0.13/hr. If gas is $4/gal and a gal lasts 24 hrs, his operating cost is $0.16/hr, for a total cost of $0.29/hr.
He probably sells a bottle of water for $3, so I would say his overhead is in line with a solid profit margin as long as sales are there.
If he bought it new and runs 120 days in a season that still 5 years of use.
If he paid $2000 and it lasts 15,000 hrs, that means his amortized ownership cost is $0.13/hr. If gas is $4/gal and a gal lasts 24 hrs, his operating cost is $0.16/hr, for a total cost of $0.29/hr.
He probably sells a bottle of water for $3, so I would say his overhead is in line with a solid profit margin as long as sales are there.
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