Advice on downsizing..

Discussion in 'Business Operations' started by mkroher, May 20, 2007.

  1. mkroher

    mkroher LawnSite Senior Member
    Posts: 539

    I have two trucks...

    96 F250..with a plow on it.
    02 F350 psd... no plow.

    The F250 sits all year until it snows. It has 120K miles on it. The truck is paid for, but (of course) it costs money to run. Rear main seal is leaking, it's a gas motor (8 mpg?). It's a good strong truck. Plowed 7 years straight with no downtime during a storm...knock on wood..

    I'd like to go to one truck. I'm guessing I can save at LEAST 2 grand a year in insurance costs and repair costs if i get rid of the F250.

    Why I want to keep it: backup truck when my F350 goes down. Also, the F350 won't see salt since it won't plow, allowing it to last longer.

    I can sell the older truck to put a plow on the newer one. But is it worth getting rid of old faithful to lower my costs and raise my net profit?

    Thoughts/opinions would be greatly appreciated..Thanks.
  2. gene gls

    gene gls LawnSite Gold Member
    Posts: 3,213

    I went through this last year. I was up the creek when my dump went in for repairs. Just for peace of mind, I bought another 1 ton dump for back-up, 7 miles to the gallon, only used when needed.
  3. umbach

    umbach LawnSite Member
    Posts: 12

    i think if you are providing service to more than a handfull of customers, you probably need a back up-especially if you are plowing..
  4. thefed

    thefed LawnSite Senior Member
    from Ohio
    Posts: 350

    is the 02 4x4?
  5. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Compare how much it costs you per year vs. on average how much it makes for you...simple.

    You need "backup" when you are in the snow plowing business. People generally won't care or say alot if you're a day late or so mowing their grass one week. Be a day late to show up getting snow off people's driveway so they can get to work and you'll see the difference (as in "see ya").
  6. mkroher

    mkroher LawnSite Senior Member
    Posts: 539

    yes it is 4x4
  7. Bill S

    Bill S LawnSite Member
    Posts: 184

    The truck owes you NOTHING! Keep it! Give it a kiss every morning and thank it for being there for you for whenever you might need it!

    I have 2 trucks that don't go out much, but it sure it nice when we get an influx of jobs to add a couple laborers and send out an extra crew or when there might be down time with a regular truck for maintenance or break down.

    These trucks have been paid for some time ago, yes they need repairs every so often but the peace of mind is SO well worth it!
  8. Evan528

    Evan528 LawnSite Silver Member
    Posts: 2,144

    A backup truck is definitly a must. I have down sized and am back down to running only 1 truck (03 ram 3500 diesel). My 93 chevy 3500 has sat at my shop 363 out of the last 365 days wich was when my dodge needed service. The chevy has been long payed for and well worth keeping even if its only used 2 or 3 days a year. Staying home those couple of days would have cost me several thousand in revenue.
  9. RedWingsDet

    RedWingsDet LawnSite Gold Member
    from Detroit
    Posts: 3,556

    I would keep it. I have a 00 F350 with a 9ft Dump and a 06 2500hd with a dump insert and im in the process of getting a 5500 Switch and go, I wanted to sell the F350 but I am not keeping it since I want a backup.

    Plus since yours is paid off, Keep it. Also if your insurance is that much, get Commerical auto. I pay less than 100 per month for full coverage on each truck.

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