Crazy idea?

Discussion in 'Lawn Mowing' started by Mowtown Mike, Jul 22, 2006.

  1. Mowtown Mike

    Mowtown Mike LawnSite Member
    Posts: 70

    Is it a crazy idea to buy two used scags from a guys who wants to get out of the business. He can't find good help. I would buy these machines so no one else would get into the business. I don't need the machines but I definetly do not need more competition. Of course, price is a factor, but, I like to think ahead.
     
  2. Likestomow

    Likestomow LawnSite Senior Member
    Posts: 997

    Mike - don't be afraid to pay full price for these mowers. It will be worth it if you can put them to rest and keep another low-baller from using them. And, as you make more money, maybe you could continue to look for more used equipment and buy it up too. Soon you'll have it all.
     
  3. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,949

  4. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,328

    I don't think it is a good strategy to buy up all the used equipment in an area to keep competition down. A lot of new guys get these promotion loans to buy new equipment.
     
  5. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    It sounds like you could have more money than sense, this is a rare problem but fortunately the cure is easy.

    If this is the case what you do is spend money until the level of sense and money get in line with each other.
    This way, no matter how you look at it, by the time it's all said and done you should have about as much money as sense.

    If, per chance, you should later find yourself with more sense than money, that is alright.
     
  6. horsequick

    horsequick LawnSite Member
    Posts: 131


    Is competition really that bad? Here in Memphis the builders keep adding what seems like a 100 homes a day. More home = more grass. There's definitely more grass than LCO's
     
  7. HOOLIE

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    Must be a tiny market up there if buying 2 machines will keep the competition out...
     
  8. Idealtim

    Idealtim LawnSite Senior Member
    Posts: 939

    I'm with topsites on this one. If you have some spare cash.
     
  9. procut

    procut LawnSite Bronze Member
    Posts: 1,853

    Buying those two machines will do absolutly no good to stop competition IMO.
     
  10. AAELI

    AAELI LawnSite Senior Member
    Posts: 362

    Where or where do these ideas come from? How big is your storage facility? You may be cash full now but will soon be running on empty with this approach to business. Competition will spring up while you tie up your capital in parked equipment.

    I have a customer at our dealership who is also a competing LCO and he has your business philosophy. Destroy the used equipment so as to limit a new lowballer competitor. He has had several high 6 figure contracts in the past that he just lost to a new guy on the block. New guy bought all new equipment.

    Just goes to show you all the wasted money. Put your money into something that will bring a return and not just sit idle.
     

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