Ordering a new 312CL

Discussion in 'Heavy Equipment & Pavement' started by Scag48, Apr 17, 2006.

  1. Scag48

    Scag48 LawnSite Fanatic
    Posts: 6,068

    Well guys, it's pretty much a done deal. If you've been keeping track of my other thread, my dad and I have been kicking around some ideas. He went to talk to one of his long time friends who is in the excavation biz. His friend has 2 excavators, a small dozer, and a couple other pieces, plus 2 dump trucks and a lowboy to haul his Cat E200BL. So my dad talked to him today about me getting a job working for him this summer. I know the guy, I've jumped up on his machines a couple times while he was on the phone and he knows what I'm capable of as far as operating goes. This could be complicated to explain, but I'll try my best.

    My dad does not want me getting my CDL and driving a dump truck. He just doesn't want the liability/insurance issues. So he's got his buddy with an established excavation business, he's been in business for 6 years, always has way too much work to do and not enough equipment and manpower to do it all. My dad proposed to him that we buy a 312 with the 36 month zero payment option, they would split the gross profits (into a certain percentage, I'm not really sure what it is) if Todd (my dad's friend) would haul the excavator and supply the jobs for the machine. Sounds like a decent deal. I get the experience, Todd can teach me everything I need to know about the business, and I'll have fun and make a little coin too, but at this point, I don't care what I'm making. I am running numbers for used machines, although my dad has the finances and wouldn't have any problem getting approved for the loan. My dad has looked over Todd's books to see what kind of revenue he's made and it's been consistent enough that we should have no problem paying for the machine and putting a decent amount of change in our pocket after the 3 years has gone by.

    Basically, we're going to be subcontractors for Todd. I'll be working for my dad (paycheck wise), I'll be covered under dad's insurance and L&I. Todd will move the machine and supply jobs, we own the machine, and dad and Todd will split the revenue. This way, we've taken the risk out of getting into the business. We are guaranteed work, we'll be working for a reputable excavation contractor, I get the experience I want, and both my dad and Todd put some money in their pockets.

    With all that said, I'm in charge of spec'ing the machine. Here's what I'm getting:

    -Hydraulic thumb
    -Cat dedicated hydraulic coupler, we'll get a much better deal going with Cat brand than CWS or PSM, but I will check into what it would cost to do a CWS coupler and thumb
    -Medium stick
    -Standard boom
    -Work lights on cab
    -18" trenching bucket, 48" cleanup bucket, and 36" GP bucket
    -High ambient cooling system
    -Swivel guard? Lower rock guards? Idler guards? What do you guys think?
    -A/C is standard, radio is standard

    Please guys if you don't think this is a great idea, don't bash me. This is basically a dream come true, I don't owe a dime and I'm going to learn a ton about the business. At this point I would like some helpful criticism, but not something like "You're stupid, you're going to go broke, this is the worst idea I've ever heard". Eventually, my dad will phase out of the landscape business completely and we will be a competitor in the excavation business. He has already told me, against his own will, that's what he has planned. So he figures even if we don't make a whole ton of money with this excavator, as long as we pay for it, the experience and the knowledge we gain in the long run will be worth millions.

    Thanks everyone!
     
  2. Scag48

    Scag48 LawnSite Fanatic
    Posts: 6,068

    Just got off the phone with my sales guy, 18" bucket won't work because the thumb will be in the way (duh). 24" bucket, 60" cleanup, and the 36" GP. I think we're just going to go with the Cat dedicated coupler and thumb, they have the machine ready to go with the high ambient cooling and all of the other options sitting in Seattle and can be delivered in 2 days. When NC Machinery orders new machines, they order them spec'd like they rent them incase they don't sell them they put the new machines in the rental fleet and the rental machines always have all the options.
     
  3. Qualey

    Qualey LawnSite Member
    Posts: 144

    Haha...........congratulations!! Are you going to quit college now?
     
  4. Scag48

    Scag48 LawnSite Fanatic
    Posts: 6,068

    Not at all. I'm giving my 2 weeks notice at the restaurant I work at, they shafted me around when I told them I needed to take off for my job interview last week, I had my shift covered but my manager felt like pissing me off, so I've already got a reason to quit, this just makes it alot easier. No school on Fridays so I can drive 160 miles back home on the weekends, work Friday, Saturday and Sunday until 'o dark thirty and then drive back to Seattle. This will be for about 2 months until school's out, then it's 12 hours a day, 7 days a week.
     
  5. RockSet N' Grade

    RockSet N' Grade LawnSite Silver Member
    Posts: 2,454

    Let me say to you right off the bat......awesome and go for it! Nice opportunity, and I want you to know, all my posts to you have been anything but bashing and I hope it has not been taken that way.....I wish you unlimited success.....
    Now, for the good stuff....What kinda scope of work will you be doing? An articulated thumb would be helpful to me for what I encounter. I have an extended boom with a counterweight on my machine. I have 2 boom work lights instead of the standard one light. I have a butter blade on a 36" bucket.One of the cheapest and best things I have done is buy a seat cover for the cab seat with pockets on the front, sides and back to hold stuff since space and organization are at a premium inside the cab. I have a rear view mirror set up on my rig. I have a diverter valve with quick-couplers on the boom so I can switch real easy to a compactor....factory installed diverters are cleaner install and less expensive than aftermarket.........so there is a start. Once again, be safe and be open to all the possibilities........
     
  6. RockSet N' Grade

    RockSet N' Grade LawnSite Silver Member
    Posts: 2,454

    Here's another little idea, regardless of machine or type. Buy a couple extra fuel filters and carry them with you. Get a Lincoln battery operated grease gun and make sure you grease that baby every day....grease is one of the cheapest things you've got going for you....
     
  7. Scag48

    Scag48 LawnSite Fanatic
    Posts: 6,068

    I totally understand, you guys are just trying to help, but I'm not looking for "you're just a dumb kid you'll never make it".

    Now, the thumb is a link thumb, that's the only way I'd have it and that's the only way our dealer orders their new machines, EVERYONE has thumb out here, you can't do anything without one. The machine comes stock with a diverter valve on the machine so switching to a hoepac isn't a big deal if we need to. Our buddy has one for his machine(s), so I don't think we'll buy one, but I'm going to get a price on one before it's all over, might as well get a package deal. I'll definately look into a seat cover for the cab, I totally know what you're talking about with the storage. Did you buy car seat covers?

    I need to get a transfer tank for my truck. I know this has been covered before, but just to make 100% sure, any of you WA guys out there know if there's any regulation on how many gallons of diesel I can carry without some special permit? I'm thinking an 80 gallon tank with a FilRite pump. I think I'm going to buy a power grease gun, my hand gets tired greasing our 303. I'll be doing all the maintenance on the machine myself, dad will be running the landscaping crew, so basically I'm in charge of 95% of the machine operations, minus the hauling, that's Todd's deal. I'm so stoked guys, I can't believe this is happening.
     
  8. murray83

    murray83 LawnSite Senior Member
    Posts: 347

    congrats dude! yer own 312 now i'm jealous :cry: now i wanna get my own hoe :(

    owner operator seems like a great idea and you get seat time its win win fer you.
     
  9. Scag48

    Scag48 LawnSite Fanatic
    Posts: 6,068

    This situation, everyone is happy. My dad makes a little money, Todd makes a little money and keeps his customers happy, he doesn't have to tie up a machine, it'll let him get more done at the end of the day, and I'll get some experience that I need. I'll keep posted when we order the machine, all the options are included in the base price of $133K, the thumb, everything, the only thing we're adding on is the 24" trenching bucket and the 60" cleanup bucket, sounds like it's going to come in a little under $140K before tax.
     
  10. mrusk

    mrusk LawnSite Gold Member
    Posts: 3,260

    Who runs the machine when your at college?

    I think you'll do fine with the machine!

    Hell even if you quit school and bought the machine yourself instead of your dad, i'd tell you that you'd do fine!

    I'm the same age as you and i'm buying a 246b with no cosinger this week, and then i'm buying a 1/2 acer lot to build a spec house on with in 1-2 months. When your young and have no commitments or obligations is the time to take risk!

    I am jealous! I want a 312!!
     

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