cash down versus financing

Discussion in 'Lawn Mowing' started by derekseger, Mar 8, 2004.

  1. derekseger

    derekseger LawnSite Member
    Posts: 12

    Thinking about purchasing a new mower, I currently have a 54 " Derby Stallion,21" Lawn boy, Echo weed whip and a blower . I am bidding on some commercial accounts and I think Iwill need another mower. Q. should I wait till I have the money to purchase it, or should I finance, whats the best way? :confused:
     
  2. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    do you need it right now? Why not wait until you see what happens with the commerical accounts.
     
  3. lawnGUYnMD

    lawnGUYnMD LawnSite Member
    Posts: 72

    If it was me I would look at the need of the equipment and then look at my cash and if I had more than enough to cover it I would pay it in cash but if I needed the equipment and didnt have enough cash to get it and run the busn then finance. Just do what you feel is best for your needs.
     
  4. noiseyvoyzey

    noiseyvoyzey LawnSite Member
    Posts: 74

    that all depends, if you pay cash is that gonna drain you (hopefully not). if it will leave you with very little cash on hand, finance, then you got a luttle cash to fall back on if something breaks. just my opinion
     
  5. LB Landscaping

    LB Landscaping LawnSite Bronze Member
    from Maine
    Posts: 1,309

    Check out the finance deals at your local dealer. Shefield has no money down no payments or interest until Sept. Get the mower now save up the money you'll make with it and pay it off in Sept before the interest kicks in. Make sure you'll have the business to do it though.
     
  6. derekseger

    derekseger LawnSite Member
    Posts: 12

    Thanks for the replies. Also I live in a town of about 3000 people where my minimum charge is about $15.00. The commercial accounts that I'm bidding on, are in one of our neighboring cities their population is about 26,000. In the past I've just done mowing trimming and blowing. But this year I'm doing edging and weed control in landscaping: rocks, cracks in sidewalks etc. What do you think my minimum charge should be now?
     
  7. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    a word of advice, make sure that you a licensed for pesticide use if you are going to use any type of application for weed control
     
  8. noiseyvoyzey

    noiseyvoyzey LawnSite Member
    Posts: 74

    all depends, how much do YOU need to make profit? I cant answer that without knowing costs of operation.
     
  9. derekseger

    derekseger LawnSite Member
    Posts: 12

    To give you an idea, I had about 22 lawn last year ranging from $15-150 per time my lawn mowers didn't use a lot of gas. We have to have 1,000,000 dollar insurance around here which costs $600.00 roughly. Usual maintenance on mowers, weed whip cord etc. Since our town is so small we usually just drove our equipment from one job to the next. We have a descent trailer and we used our personel vehicle. This year we will need to replace the trailer and purchace a truck. Since we will be driving to other cities. So the usual expences that go along with that also.
     
  10. noiseyvoyzey

    noiseyvoyzey LawnSite Member
    Posts: 74

    what you have to do is figure out how much it cost per hour to operate example:

    insuranse = $600

    figure you work 36 weeks out of the year

    so divide 600 by 36

    600/36 = 16.6

    do you work part time? or full time?
    divide the 16.6 by hours worked

    16.60/40 = 0.41 cents per hour
    so your insurance cost 41 cents per work hour.
    if you figure that out then you can decide how much profit you would like to make add that to your expenses and that is your goal to make per hour. here is an example

    hourly expenses = $5.00
    profit = $45

    hourly rate = $50

    as long as i make my hourly rate I dont really worry about a mininmum. hope this helps a little
     

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