Originally Posted by muddywater
Yeah i am figuring out very few co that do over a mil have a very good profit margin!
I do remember idealscape out of nc posted for a while had 30-40 trucks and paid cash. Even had a d4 he bought new with cash. Pretty impressive. He was completely debt free with a 300k shop.
I do just over a mil w 10 employees and i pay cash for all my trucks and equipment. Of course i take a month or two on each purchase when buying used and find super deals that saves even more and helps my profit margin.
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Also if you go back and read Idealscapes thread thoroughly he also states in there that he does finance equipment WHEN IT MAKES SENSE
! I think what you are missing is that not in every situation is it the smartest financial decision to pay cash, and on the opposite side it is also not the smartest decision to always finance. A lot of companies that are a million dollar companies sometimes have their money tied up in other investments. To lay it out there for you in case that is not perfectly clear. This is a made up situation, but if I were to buy a new truck and for instance pay 2.9% interest on 50k. I can guarantee damn tee you I can invest that 50k in something else that is going to bring be a return of way more than 2.9%. Don't take this the wrong way Muddy this is not directed at you, but I firmly believe there is a big difference between a landscape/hardscaper and a business man. On this site I believe there are a lot more hardscapers then business men.