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Danscapes
03-27-2009, 08:51 PM
I have a situation. I just got asked to place a bid on my first commercial account, but all I have right now is a 36" WB. As of right now all I do are residentials and this commercial account I know will take a bigger mower to be profitable (and me not look like a dumbazz out there with a 36"). Well there is a guy selling a almost new Wright Stander 52" for $3500, and thats too good of a deal to pass up and i would use it for this account plus knock out my residentials faster. The problem is my business line of credit is almost maxed out with my truck and trailer, so should I acquire another loan or just pass up the chance to grow for now until I pay down my debt? What would you guys do?

Nick's Lawn Care
03-27-2009, 08:53 PM
I have a situation. I just got asked to place a bid on my first commercial account, but all I have right now is a 36" WB. As of right now all I do are residentials and this commercial account I know will take a bigger mower to be profitable (and me not look like a dumbazz out there with a 36"). Well there is a guy selling a almost new Wright Stander 52" for $3500, and thats too good of a deal to pass up and i would use it for this account plus knock out my residentials faster. The problem is my business line of credit is almost maxed out with my truck and trailer, so should I acquire another loan or just pass up the chance to grow for now until I pay down my debt? What would you guys do?

Where's it for sale in cincy? I'll take it off your hands for you:laugh::laugh:

It might seem like a deal buy i think you will find some great deals this summer because companies will be going south... I would not want to rake up any more debt, i would use the 36" till you have some cash to spend...

Just my $.02...

Nick

topsites
03-27-2009, 08:53 PM
I don't buy a piece of equipment for just one account, no matter how good a deal.

LouisianaLawnboy
03-27-2009, 09:12 PM
Do it the Dave Ramsey way. Cash only.

Columbia Care
03-27-2009, 09:12 PM
I will not accept any debt in order to purchase equipment. With the current economic situation we are all facing, you never know when a customer will stop paying or even drop you due to lack of money. If you are counting on that income to pay your debt (and current bills), then you will be in serious financial trouble. I use my 42" WB for larger jobs, if people are laughing at me, that is fine since I owe no money to anyone. As I get cash saved, I will upgrade on "good used equipment" in order to keep my cost down.

QualityLawnCare4u
03-27-2009, 09:58 PM
I made the mistake of buying a 60" ztr on a big appartment complex few years ago and lost the account in less than 2 months getting lowballed and did not have a contract at that time:nono: Wound up selling off some of my equipment to pay bills with. Do NOT finance it if you are already maxed out. I have a rule of thumb, no matter how bad I need/want it I will not finance anything ever again!

lifetree
03-27-2009, 10:03 PM
... It might seem like a deal buy i think you will find some great deals this summer because companies will be going south ... I would not want to rake up any more debt, i would use the 36" till you have some cash to spend ...

This is also my advice to you !!

lifetree
03-27-2009, 10:05 PM
I made the mistake of buying a 60" ztr on a big appartment complex few years ago and lost the account in less than 2 months getting lowballed and did not have a contract at that time:nono: Wound up selling off some of my equipment to pay bills with. Do NOT finance it if you are already maxed out. I have a rule of thumb, no matter how bad I need/want it I will not finance anything ever again!

I'm sorry you had that experience ... however, you apparently learned a very valuable lesson fron it !!

jsw2008
03-27-2009, 10:08 PM
Cash is king. If I can't pay for it outright, I don't buy it. There's always one more good deal that will come along and you'll want to buy something else and get more debt. Just be happy with what you currently have and don't get any more debt. You'll sleep better at night.

djagusch
03-27-2009, 10:20 PM
How fast can that account pay for the mower? I personally buy everything with cash but if you can get a return in 2 to 3 months and use it on other properties to be more efficient then I would consider it.

integrityman
03-27-2009, 10:41 PM
I will not accept any debt in order to purchase equipment. With the current economic situation we are all facing, you never know when a customer will stop paying or even drop you due to lack of money. If you are counting on that income to pay your debt (and current bills), then you will be in serious financial trouble. I use my 42" WB for larger jobs, if people are laughing at me, that is fine since I owe no money to anyone. As I get cash saved, I will upgrade on "good used equipment" in order to keep my cost down.

So well stated- and there are a lot of good deals on used stuff.....

old oak lawn
03-27-2009, 10:54 PM
I will say don't buy a mower for 1 account, buy one to to make you more productive on your current ones and to help you gain more. Sometimes you have to borrow money to make money, just be careful not to get in over your head in payments. I will say look into writing a business plan, it will help you see where you want to be in this business and how to get there.

slamjamrockinman
03-28-2009, 01:04 AM
Just mow it with the 36. you might want to look into a sulky of you don't have one. Just my .02.

pclawncare
03-28-2009, 01:13 AM
Dave Ramsey all the way. The barrower is always slave to the lender. My adivce would be to pay off all the debt that you have right now. It may slow your growth some but who is to say that slow growth is bad. Slow and steady is the way I have grown my business. Have patience. BTW i have no debt what so ever and have a significant amount of money in equipment trucks and other items each paid in cash at the time of purchase. Be very focused with your growth. Know where you want your business to be headed and plan for what you will need to get there, but if it takes you 2 or 3 years what is the hurry. I really dont want to sound like I am trying to sound like I am better than anyone else and I will probably get bashed all over the place which is fine. This is simply how i have run my business. It has worked great for me, and i have no intentions of going in to debt. If you want to be in debt, to each their own.

J & D Greens
03-28-2009, 01:40 AM
It would be a sad thing if you got the mower only to lose everything if some people got themselves in trouble and canceled on you. I'm with everyone else on the subject of credit. It is a trap. And I for one want to be some day debt free, I don't feel the pressure would be worth it. Besides as soon as you have the cash some one will be selling something just as good or better! Wait you will see.

HOOLIE
03-28-2009, 02:17 AM
Not sure how much faster you would go overall on your route with a 52 vs. a 36, but if it say freed up half a day for you, you could pick up enough extra work to pay for the mower within 3-4 months. Not a bad risk if you ask me. You can save your pennies if you like, or you can spend some money to make more money.

sven1277
03-28-2009, 09:33 AM
You need to acquire the account first with a signed contract. I agree with the others, as long as you can handle it with your current equipment, do it. Buy something later in the season.

cod8825
03-28-2009, 09:43 AM
Never, Never, Never finance anything period causes too much stress on you your family and will affect business decisions. I do only fert and squirt and I get some serious looks when I am pushing a seven acre property with only my hopper. I hate that it takes me around six hours of straight pushing to get it done. I am saving money for my ride on spreader/sprayer Z-Spray unit. There is always a good deal somewhere.

Matt