Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Closed Thread
 
Thread Tools Display Modes
  #181  
Old 02-20-2009, 08:33 PM
PROCUT1's Avatar
PROCUT1 PROCUT1 is offline
LawnSite Platinum Member
 
Join Date: Dec 2003
Location: TN
Posts: 4,839
Quote:
Originally Posted by Sammy View Post
I think that having a F-350, fully loaded 4 door p/u w/diesel motor is a little over kill.
A lot of the young guys want this type of truck. Does it make them Kool ?
It sure puts most of them in debt !
Yep. But it was only 600 a month.
__________________
Trying to figure out how to get rich and not leave my bed.
  #182  
Old 02-20-2009, 08:45 PM
goodgreen's Avatar
goodgreen goodgreen is offline
LawnSite Senior Member
 
Join Date: May 2002
Location: Grand Haven, Michigan
Posts: 332
I've been solo for nearly 10 years and it's been fine. But it's age that makes me want to get a young helper at some point.
__________________
Dan's Lawn Care

Ford F150 XL Truck
6 x 10 Trailrite Trailer w/ramp
ExMark Phazer 34" laser 2006 mower
Big Dog C142 2011 mower
Wright Grass Gobbler
RedMax BCZ2401S Trimmer
Stihl FS-55-T Trimmer
Husqvarna 570BTS Backpack blower
Husqvarna 445 Chain Saw
Redmax HB280 hand held blower
Echo HC-150 gas hedge trimmer
Jungle Jack
Arien's dual stage 625E snowthrower

  #183  
Old 02-20-2009, 08:49 PM
qualitylandscaping's Avatar
qualitylandscaping qualitylandscaping is offline
LawnSite Bronze Member
 
Join Date: Jan 2003
Location: Honeoye, New York
Posts: 1,595
Quote:
Originally Posted by PROCUT1 View Post
Yep. But it was only 600 a month.

My new 08 F350 ($50k) $787.62 a month for 5 years.
My new 08 F350 now worth ($25k) @ 1 year old.
Loss of $25k in one year!!!


2001 F350 bought in 2006 for $16,000
2001 F350 value in 2009 $14,000
Loss of $2k in 3 years!!


I love having brand new equipment. It really makes you stand out, and you feel cool for owning something so nice. In reality, your "coolness" comes at a huge cost, that does nothing to improve your business financially. Put a dent in that brand new truck, and you're sick to your stomach over it. Put a dent in an older truck, no big deal.

Same thing with my camper. I go camping 2-3 weekends during the summer with my dad. We used to take a tent ($120 at Walmart). I got tired of going to the campgrounds only to see huge, sweet rigs. Soooo, I broke down and spent $30k on a fifth wheel loaded to the brim with luxuries. Could have met myself in the middle with a used coach, or a new pop up; but nope I had to have the best.

Where has that left me? $22k in debt for something I use 2-3 times a year. I've taken it to be appraised thinking I could sell it and go buy more equipment. Its worth $11k. Now what? I sell it and lose my britches or I keep it and let it collect dust in the driveway.

I'm not hurting financially, just trying to make a point. Really consider your options when purchasing equipment, and don't be impulsive about it. Make sure you absoutley NEED that machine/truck. Don't get it just because its nice and you really like it, and you want to be better than everyone else. As soon as you start into the payment book, you will change your mind.
__________________
Steve M. Krieger
President/ CEO
Quality Lawn & Landscape, Inc.
www.qualitylawncare.biz
Serving Western New York since 1998.


"Everyone has bad breaks but everyone also has opportunities. I think luck is the sense to recognize an opportunity and the ability to take advantage of it..." -Samuel Goldwyn
  #184  
Old 02-20-2009, 08:50 PM
mattfromNY mattfromNY is offline
LawnSite Bronze Member
 
Join Date: Jan 2006
Location: Central NY
Posts: 1,580
WOW! great post... I finally got to the end, started reading it 3 different times, over the last 3 days, keep getting interupted to plow snow, only to come back to 3 more pages of reading...
I'm definately in the content of this post somewhere, but my demise was right at the beginning, having bought lotsa nice shiny new equipment and not enough work to cover the expenses, using credit cards when cash flow wasn't there, hiring a helper and finding 'busy work' to keep him paid, 'over-insuring' myself so I could land some larger commercial accounts, etc...
Two years ago cancelled all the CC's, if I cant write a check I dont need it, if no work employee is sent home now, business plan in effect and running pretty smoothly now, just a little worried about the economy this next year or two...

PROCUT, great post, should be mandatory reading for anyone looking to start up.
You werent Chittin' when you say WC is outrageous in NY!!!!! I've got an audit Monday.
  #185  
Old 02-20-2009, 08:57 PM
qualitylandscaping's Avatar
qualitylandscaping qualitylandscaping is offline
LawnSite Bronze Member
 
Join Date: Jan 2003
Location: Honeoye, New York
Posts: 1,595
Quote:
Originally Posted by mattfromNY View Post

You werent Chittin' when you say WC is outrageous in NY!!!!! I've got an audit Monday.

Ya you're not kidding.

We're at 9% for W.C.
9.25% for Unemployment

It's ridiculous!!
__________________
Steve M. Krieger
President/ CEO
Quality Lawn & Landscape, Inc.
www.qualitylawncare.biz
Serving Western New York since 1998.


"Everyone has bad breaks but everyone also has opportunities. I think luck is the sense to recognize an opportunity and the ability to take advantage of it..." -Samuel Goldwyn
  #186  
Old 02-20-2009, 10:13 PM
procut's Avatar
procut procut is offline
LawnSite Bronze Member
 
Join Date: Sep 2004
Location: Don't worry about it...
Posts: 1,855
Well, I might as well chime in, too. 19 Pages was a lot to read, but there was definatly some good information mixed in there.

I know what you mean, about the gross vs. net thing. Its so easy to sit back and say, "Whats a $450 payment, thats a fraction of what I 'make' in a month."

One thing I have found helpfull is doing monthly profit and loss statements. They can really bring you back down to earth in a hurry. Its great because you can really see where the $$ are going each month and how much your really 'making.'

I'm going into my 5th year full time and am still very small. People tell me all the time, "You need to get a bunch of work, hire a couple guys and then just sit back and count the money." I just smile and say, "Maybe some day."

PROCUT1, great thread and best of luck with your new venture.
  #187  
Old 02-20-2009, 10:22 PM
ashelton's Avatar
ashelton ashelton is offline
LawnSite Member
 
Join Date: Feb 2009
Location: florida
Posts: 150
Thank you for this post.
  #188  
Old 02-21-2009, 01:30 AM
greendoctor greendoctor is online now
LawnSite Fanatic
 
Join Date: Mar 2008
Location: Honolulu, Hawaii
Posts: 7,302
My best instruction came from being an employee at a "landscaping" company for 16 years. Everything you did wrong, they did it. 20 employees, 10 vehicles, and two owners that should find another line of work. Add to that some of that CEO/MBA greed mentality. I left in 2007 to become a solo LCO. I am not big, have less than 100 monthly clients. But whatever I do, profit is high. I am also not in competition with all of the companies with their lettered trucks and 20+ employees or even the 1001 solo operations here. I do not mow lawns, haul trash, trim trees, install landscapes or entire irrigation systems. I am a lawn and landscape health manager. Yes I spray and fertilize, but that is just one part of what I do. I take a very integrated approach to lawn care. This is one of the roles I played while I was someone's employee, unfortunately management decided they wanted to do jobs that bid at $100,000, but that bit about the overhead and profit came true. What is the point of the $100,000 job if that only equals less than $10,000 profit.

I know my costs and make sure those costs are covered when I give someone a price. Not covering those costs and having a comfortable cushion can come back to bite. In my line of work, some materials cost $200-400 a lb. No problem. When a client needs me to use such a material. There is no scrambling on my part, wondering how I am going to pay for this. When I was someone's employee, there was always this need to be cheap and hold back. How many times I was told that something could not be done because of what it would cost. This is in regards to paying customers who expected us to maintain their lawns and landscapes in perfect condition. Needless to say situations like this snowballed. The company acquired a reputation for charging a big company price, but delivering a cheap product. That has now come back to hurt them and many other companies like them here. In a bad economy, it is hard to gain and retain clients when they do not think you will give them what they are paying for. Yes, I start at $100 a month per 1000 sq ft for lawn care. But my lawn looks a lot different than the one next to it where the "landscaper" does the fert, squirt, and mows it as well for $150-175. How that happens is with high facility, administrative, and capitol overhead, comes the inability to pay someone like me, supply someone like me and retain me as an employee.
__________________
They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety.
Benjamin Franklin 1775

Sell not virtue to purchase wealth, nor Liberty to purchase power.
Benjamin Franklin Poor Richard's Almanac1738
  #189  
Old 02-21-2009, 01:37 AM
PROCUT1's Avatar
PROCUT1 PROCUT1 is offline
LawnSite Platinum Member
 
Join Date: Dec 2003
Location: TN
Posts: 4,839
Just curious. I noticed everyone comes back with a different page count. Another posted just said 19 pages. I see this thread as 5 pages....Why is that? Is there a setting or something?
__________________
Trying to figure out how to get rich and not leave my bed.
  #190  
Old 02-21-2009, 01:53 AM
greendoctor greendoctor is online now
LawnSite Fanatic
 
Join Date: Mar 2008
Location: Honolulu, Hawaii
Posts: 7,302
Yes, it is a setting. I chose to have 20 posts per page appear. So this is a 5 page thread to me.
__________________
They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety.
Benjamin Franklin 1775

Sell not virtue to purchase wealth, nor Liberty to purchase power.
Benjamin Franklin Poor Richard's Almanac1738
Closed Thread

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 07:24 PM.

Page generated in 0.07892 seconds with 9 queries