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  #51  
Old 10-01-2012, 07:40 PM
muddywater muddywater is offline
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Quote:
Originally Posted by DVS Hardscaper View Post
Except there is no such thing as zero percent financing. The interest is baked into the product cost. The finance company will not write 2 weeks worth of loans at zero percent! I fell for that gimmick.
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0% is like santa claus, everyone wants to believe its real, but it isnt.
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  #52  
Old 10-01-2012, 08:12 PM
Krafty Krafty is online now
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....just another thought to mull over!
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  #53  
Old 10-01-2012, 08:19 PM
lukemelo216 lukemelo216 is offline
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We usually do have a string of cash coming in becasue we do residential work which is always 50% and 50%, 33-33-33 on some larger or further scheduled out work. usually when it comes to financing its only about 3 years then we pay it off. Its hard in any business to just shell out 50k on one piece of equipment in the middle of the season. And the big reason we finance stuff is because we would rather make a payment on it and continue to be able to pay all of our suppliers to keep them under 90 days so we can continue to work with them.

I will say that this year we have made a big push to increase our residential sales becasue that is a constant cash flow for us, and as we proceed forward that is our goal with the company.

It works for us, and unfortunately we arent like everyone on here that just has piles of cash sitting around to pay for everything they by.
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  #54  
Old 10-01-2012, 09:03 PM
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White Gardens White Gardens is offline
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Cash is all a mentality, a habit, and discipline.

Dave Ramsey is the man. http://www.daveramsey.com/home/

Basically, running your life on credit started in the late 60's early 70's. Before then it was all cash.

JC Penny's nickname was "Just Cash Penny ".

In the Bible, "The Debtor is a slave to the lender."

I always pay my suppliers the day I pick something up.

So, we run on cash. I only have one truck payment and that will be done with a nice lump sum payment at the end of the year.

I always buy used, work trucks and equipment get used and abused. If your buying new and trying to keep stuff pristine, then your just wasting time in your life.

I also work on all of our equipment. Occasionally I will take something to get worked on if I just don't have the time to do it, or if it will take more time for me to fool with it compared to the money I could be making.

01 C3500HD, 9ft plow, Central Hydraulics, and Under Tailgate salt spreader. 8k for the package and 40k on the odometer.

10k equipment trailer, 800 bucks.

05 F-150, 10k and 150k on the odometer.

04 Vermeer, S600TX and Backhoe attachment. 12k

Used leaf loader, 1k

06 Dixie Chopper run-behind, 2k and has done 12k worth of mowing this year. On top of it, it out-performs a new 60" Kubota diesel mower. (Raced another company )

And I can go on about the little amount of money I've spent on equipment and the repair bills being minimal because of working on them.


..............
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  #55  
Old 10-01-2012, 09:14 PM
DEPENDABLE LANDSCAPING DEPENDABLE LANDSCAPING is offline
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No one is 100% correct in theyre posts. All have valid points, but remember these are our opinions not facts. We all have different circumstances with our businesses. And the way we live our lives.
Good luck to all.
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  #56  
Old 10-01-2012, 09:15 PM
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alldayrj alldayrj is offline
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anyone have a like to this idealscapes thread? when I searched only this one comes up
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  #57  
Old 10-01-2012, 09:22 PM
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zedosix zedosix is offline
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Some of us inherited money and can afford anything so we just sit back and watch this thread and wonder "what is it really like to have to work and pay for something". lol
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  #58  
Old 10-02-2012, 09:02 AM
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DVS Hardscaper DVS Hardscaper is online now
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Quote:
Originally Posted by White Gardens View Post
Cash is all a mentality, a habit, and discipline.


In the Bible, "The Debtor is a slave to the lender."

I always pay my suppliers the day I pick something up.

So, we run on cash. I only have one truck payment and that will be done with a nice lump sum payment at the end of the year.

I always buy used, work trucks and equipment get used and abused. If your buying new and trying to keep stuff pristine, then your just wasting time in your life.

I also work on all of our equipment. Occasionally I will take something to get worked on if I just don't have the time to do it, or if it will take more time for me to fool with it compared to the money I could be making.


..............
The bible coincides with my saying that I write on this forum "all you're doing is working for the banks".

I will usually work my finances so that I do not have more than one loan at a time. I am that guy that had multiple loans out at once, that was way way way before the recession. Had I had all those loans during the recession I would have lost everything, guaranteed. About 6 months ago I had a customer say to me "wow you survived the recession, that's impressive", my response was "that's only because my equipment is paid for and I don't have a desk drawer full of payment books".

I also pay for all materials on the spot. I don't have a single account opened anywhere. I'm a demanding customer, sometimes I need to remind my suppliers "hey, I buy this and that from you and I pay on the spot, if you can't meet my demands then someone else will appreciate my cash.

I too do my own repairs and maintenance. You save a bundle right there.

But reality is hardscapes is a cut throat business. It's very hard to have the extra money to be able to buy equipment and pay cash. This is the first year I have been able to do so. But I had to make some changes. The recession was terrible for me, there were a few nights during the winter where my kid had to eat peanut butter and jelly for dinner because we had no money to buy real meals. And in the end, the recession turned my life around for the better, it forced me to try new ideas, and they're working! In maybe 4 or 5 years I may share my story on here, sharing everything starting with the bad to the good.
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  #59  
Old 10-02-2012, 01:48 PM
muddywater muddywater is offline
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I have had slower growth than some of my competitors because I pay cash for everything. Some say that is a bad business decision, but now they bounce checks with all their vendors or flat out don't pay them. What is the point of doing millions when you don't have a good take home? I want to grow a little slower watch that profit margin like a hawk.

And to me, my quality of life is just plain better with no debt. I am currently trying to pay off my house. I payed off my house prior to this one and my shop, and then I had to go and buy a mcmansion.

I agree with Ramsey the new status symbol isn't a bmw, it is lien free house.
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  #60  
Old 10-04-2012, 12:42 AM
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stuvecorp stuvecorp is offline
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I think the point being missed is it takes a lot of money to do this business(right). It isn't a stretch to have $100,000 worth of equipment/tools on the site to build a $10,000 wall or patio. I don't think you need all new equipment, there are good deals out there if you are patient or know what to look for. I also will over spend for equipment/tools if it allows me to get away from hiring guys but that is just me. And I just plain like equipment and tools.

Financing is a tool for the business but you can get in trouble with it, live by the sword and all. I had to learn the hard way but sometimes there was no other way to get equipment I needed. It's great if you can pay cash for stuff.
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