How is this done?

Discussion in 'Lawn Mowing' started by dmk395, Oct 30, 2000.

  1. dmk395

    dmk395 LawnSite Bronze Member
    from Ma
    Posts: 1,003

    I run a small op (fulltime college), but still maintain 35 accounts a week. I think I am doing quite well considering my circumstance, but how are all these guys I see driving around in $35000 trucks 6000 ride on mowers? I know there is money in this business, but seriously it boggles my mind when i see companies with $75000 just in vehicles. Anyone else feel this way, or is this the norm?
     
  2. machine

    machine LawnSite Member
    from OH
    Posts: 101

    It's called Depreciation. The more depreciation expenses the less you pay in taxes.
     
  3. awm

    awm LawnSite Gold Member
    Posts: 3,354

    Ive seen so many try to start at the top.
    2 0 to 30 thousand in equipment and no where
    to mow.Ive always felt sorry for them.
    Now im waiting on one thats got a ztr
    for say, take over payments.Ive been offered
    that deal before but wasnt in market.
    I have about decided its scag,exmark or
    dixie chopper.
     
  4. thelawnguy

    thelawnguy LawnSite Silver Member
    Posts: 2,412

    Good economy=easy credit. Their day will come.


     
  5. LoneStarLawn

    LoneStarLawn LawnSite Bronze Member
    Posts: 1,415

    So whoever has expensive trucks well crash on their faces? I always see it as "They must be doing something right"..First how do you know its a $35,000 truck..they may have less options on it than you think. I have a 2000 Ford-150 and partner has Ford-250.

    [Edited by LoneStarLawn on 10-31-2000 at 03:49 AM]
     
  6. thelawnguy

    thelawnguy LawnSite Silver Member
    Posts: 2,412

    The truck dealers here are full of current year and 1 year old trucks either repo'ed or turned in cuz the big jobs they were supposed to get with that shiny new SD never appeared. And the tax and insurance bill ends up doubling the payment. Sure some make it, usually those who are moving up. Its the ones who jump in with a startup nut to crack of 75k who are destined to fail.
     
  7. LoneStarLawn

    LoneStarLawn LawnSite Bronze Member
    Posts: 1,415

    Thats almost a no-brainer..I'm sure the guys with the expensive trucks have been in the business for awhile..
     
  8. eslawns

    eslawns LawnSite Senior Member
    Posts: 712

    If you have 35 per week and charge $30 each, you make $1050 every week. Why can't you afford a truck and rider with that? I figure a third off the top to reinvest in the biz. $310 a week can buy a nice ride. Just my $.02
     
  9. HOMER

    HOMER LawnSite Gold Member
    Posts: 3,183

    The lease plan I have on my 2000 Dodge Cummings is all about TAX RELIEF! Keep going and one day you'll see the light. I might as well use the money I make or I'll give it to somebody that doesn't work!

    Homer
     
  10. landscaper3

    landscaper3 LawnSite Bronze Member
    Posts: 1,354

    Our company has more into our equipment then we paid 5 years ago for our 2 acre 40plus foot ranch home, Boy when I think of that Im now getting depressed LOL. We do alot of service all year round and 7 years of plowing and lawn service has found out one major thing, your only as reliable as your equipment is. Like the old saying goes you got to spend money to make money. And machine kinda has a point there about depreciation, you see all our equipment is on paper as leases which entitle us to 100% of our payments are tax deductable as in the case of general loans you may claim 1/3 of that on your tax returns. We found you get more bang for your buck with Agrilculture leases do to your return. And the good thing with these leases are when they are up all you pay them is $100.00 and all paper work and equipment is now your to own.
     

Share This Page