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  #71  
Old 07-20-2013, 11:37 AM
RWI RWI is offline
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Quote:
Originally Posted by kc2006 View Post
Some of the stuff said in this thread cracks me up.

The 50% of gross in savings is probably my favorite. Most guys don't even make 50% profit on jobs lol, explain how they'll have 50% saved!

You need to reread what i said about gross and savings in the bank. You did not get it.
  #72  
Old 07-20-2013, 11:40 AM
RWI RWI is offline
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Quote:
Originally Posted by kc2006 View Post
Some of the stuff said in this thread cracks me up.

There's either alot of kids living with parents, guys who's wives make ALOT of money and pay all their personal bills (IE home/auto/utilities), or alot of people that don't grow much per year and hang on to equipment for 15-20 years and continually bandaid it to get by. Not saying there aren't some people that are debt free or can purchase equipment cash but geez EVERYONE on here is that way? Lawnsite must be only the smartest most business minded LCO's out there, because from what I've seen in the real world, LCO's are usually idiots that charge too little. The 50% of gross in savings is probably my favorite. Most guys don't even make 50% profit on jobs lol, explain how they'll have 50% saved!

I just can't believe EVERYONE on here purchases their trucks and everything cash and never finance a thing, unless we're all running trucks for 20 years, mowers for 10-15 years, especially with the cost of equipment these days. I financed my mower, and paid it off in the first year just because I didn't want to be out 14k in one hit. I financed my new truck, but I was smart about it and bought a left over and got them 15K off msrp and will pay it off in a year and a half because it was only 20K. If for some reason I have to sell the truck guess what, they had 2 year old used trucks on the same lot for 7K more than I paid new, so I think I'm safe.

No debt is good debt, smart debt is acceptable, some debt is real life.
If you are so damn successful why CAN'T you pay cash?
  #73  
Old 07-20-2013, 03:58 PM
RSK Property Maintenance's Avatar
RSK Property Maintenance RSK Property Maintenance is offline
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Quote:
Originally Posted by RWI View Post
If you are so damn successful why CAN'T you pay cash?
some people just don't feel secure if they take the money out of the bank and pay cash for something like a mower or truck. I personally feel just fine doing so, and do so whenever possible. I hate getting a statement in the mail and having a bill to pay. paying cash is for people who have money, financing is for people who don't generally. usually if you have the cash for something you can find the same thing a few years old in like new condition and save a lot of money. as to where if someone doesn't have the money. the money they will go out and finance brand new or almost new. why else would someone want to pay more for something. like a truck or trailer or piece of equipment. I wouldn't, and i'm far from the smartest guy on here, and far from the dumbest. but i can figure that out. even at 0% your still paying more vs. paying cash right then and there. I guess if your looking at trucks and your dead set on a newer truck and its gonna cost 30,000 and you have 35000 saved i could understand why someone would want to finance it vs. taking almost everything they have saved to buy the truck outright and then register it and insure for a year. that safety net is nice to have. I sleep easier at night with a nice safety net in the bank vs. when i don't have that.
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  #74  
Old 07-20-2013, 04:16 PM
larryinalabama larryinalabama is online now
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Quote:
Originally Posted by kc2006 View Post
Some of the stuff said in this thread cracks me up.

There's either alot of kids living with parents, guys who's wives make ALOT of money and pay all their personal bills (IE home/auto/utilities), or alot of people that don't grow much per year and hang on to equipment for 15-20 years and continually bandaid it to get by. Not saying there aren't some people that are debt free or can purchase equipment cash but geez EVERYONE on here is that way? Lawnsite must be only the smartest most business minded LCO's out there, because from what I've seen in the real world, LCO's are usually idiots that charge too little. The 50% of gross in savings is probably my favorite. Most guys don't even make 50% profit on jobs lol, explain how they'll have 50% saved!

I just can't believe EVERYONE on here purchases their trucks and everything cash and never finance a thing, unless we're all running trucks for 20 years, mowers for 10-15 years, especially with the cost of equipment these days. I financed my mower, and paid it off in the first year just because I didn't want to be out 14k in one hit. I financed my new truck, but I was smart about it and bought a left over and got them 15K off msrp and will pay it off in a year and a half because it was only 20K. If for some reason I have to sell the truck guess what, they had 2 year old used trucks on the same lot for 7K more than I paid new, so I think I'm safe.

No debt is good debt, smart debt is acceptable, some debt is real life.
Ive been in business 6 years and have not borrowed a penny. Last year I reinvested over 7000$ in the business. If my truck lasts another 20 years Id be thrilled, and it just might.
  #75  
Old 07-20-2013, 04:36 PM
RWI RWI is offline
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I bought this 06 Isuzu diesel with 79k miles for $7300. I had to send one of my guys to Mississippi to pick it up. It originally had a crappy flatbed on it. I bought the box for $800 from a friend of mine, we mounted the box and painted the box ourselves, welded a dovetail for it ourselves, changed two tires on it ourselves(I have a tire machine)... I think I have about 12k in it now. One of my friends that owns a tree service offered me 25k for it, but these crew cabs are hard to find a good deal on so I am going to keep it. My graphics designer is working on a complete box and cab wrap design for it now to match my other trucks.
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  #76  
Old 07-20-2013, 04:51 PM
larryinalabama larryinalabama is online now
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Nice truck RWI, I paid 6k for for my 3500 cab over chevy 2000 model with 18' bed and 90k miles, that was 6 years ago. I had to put 4 tires in the rear and that was 700$. Last winter I put about 500$ in parts in it. I use it on a dailey baises.

I would be ashame to but my smelly axx in a new vehicle after working all day.
  #77  
Old 07-20-2013, 05:26 PM
RWI RWI is offline
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Quote:
Originally Posted by larryinalabama View Post

I would be ashame to but my smelly axx in a new vehicle after working all day.
Ha! You mean you dont want to totally destroy a 60k cowboy cadillac?
  #78  
Old 07-20-2013, 05:48 PM
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vegandude vegandude is offline
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Join Date: May 2013
Location: eastern wa
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Quote:
Originally Posted by kc2006 View Post
Some of the stuff said in this thread cracks me up.

There's either alot of kids living with parents, guys who's wives make ALOT of money and pay all their personal bills (IE home/auto/utilities), or alot of people that don't grow much per year and hang on to equipment for 15-20 years and continually bandaid it to get by. Not saying there aren't some people that are debt free or can purchase equipment cash but geez EVERYONE on here is that way? Lawnsite must be only the smartest most business minded LCO's out there, because from what I've seen in the real world, LCO's are usually idiots that charge too little. The 50% of gross in savings is probably my favorite. Most guys don't even make 50% profit on jobs lol, explain how they'll have 50% saved!

I just can't believe EVERYONE on here purchases their trucks and everything cash and never finance a thing, unless we're all running trucks for 20 years, mowers for 10-15 years, especially with the cost of equipment these days. I financed my mower, and paid it off in the first year just because I didn't want to be out 14k in one hit. I financed my new truck, but I was smart about it and bought a left over and got them 15K off msrp and will pay it off in a year and a half because it was only 20K. If for some reason I have to sell the truck guess what, they had 2 year old used trucks on the same lot for 7K more than I paid new, so I think I'm safe.

No debt is good debt, smart debt is acceptable, some debt is real life.
I wonder if some people plan their purchases several years in advance so that the money is saved in a separate NEW EQUIPMENT ACCOUNT. Jeez. What a concept
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  #79  
Old 07-20-2013, 06:14 PM
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Efficiency Efficiency is online now
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What if you grow faster than cash flow allows? (rhetorical question)
Since we are all smart business people, im sure you all first thought of this:
http://en.m.wikipedia.org/wiki/Sustainable_growth_rate
I'm sure your next thought was
http://en.m.wikipedia.org/wiki/Operating_leverage

If you want, I can start teaching entrepreneurship courses...

Last edited by Efficiency; 07-20-2013 at 06:21 PM.
  #80  
Old 07-20-2013, 06:29 PM
RWI RWI is offline
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Quote:
Originally Posted by Efficiency View Post
What if you grow faster than cash flow allows? (rhetorical question)
Since we are all smart business people, im sure you all first thought of this:
http://en.m.wikipedia.org/wiki/Sustainable_growth_rate
I'm sure your next thought was
http://en.m.wikipedia.org/wiki/Operating_leverage

If you want, I can start teaching entrepreneurship courses...
I really dont want to be big. I actually fire clients every month to replace them with better richer clients. I dont want to make 5 mil a year and net 500k, i want to do 2 mil and net 500k. And i want to run everything myself. You do not deal with a dumbass supervisor on your landscape design, you deal with me. I know it limits my growth, but i need the personal satisfaction of creating it, my guys installing, and my guys maintaining for the next 20 years.
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