Scag Pricing

Discussion in 'Lawn Mowing' started by pblc, Apr 1, 2010.

  1. pblc

    pblc LawnSite Member
    from South
    Posts: 227

    I was at the dealer today picking up a new idler pulley for one of our TTs we'd toasted. While the guys were picking out the parts I was talking to the owner about purchasing new machines. He told me we could trade in our machines every year (with 400-500 hrs) with 2k to boot (each machine) for new ones. I'm seriously considering this. Kicker is we'd have to trade for at least 2 machines a year - really not a problem though. They are TTs with 29 lc & fi kawis 61'' cut. How many other guys are doing this?
     
  2. TLS

    TLS LawnSite Fanatic
    Posts: 7,940

    So, you take your 2 year old ZTR and add $2K of your money and get new every 2 years? That seems like a good deal. Buy for $10K, trade in for $8k and add $2K of your own....then repeat in 2 years.

    I usually trade up in the 4-5 year range (<2Khrs). I sell locally (homeowners) for $4-5K. My machines are garage kept and owner operated. I always buy top of the line models with all options. So I get about 1/2 back every 4 years. I avoid heavy maintenance items and it keeps me in somewhat newer technology at all times.
     
  3. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Posts: 7,053

    No, that's not what he said. He has to trade "two" mowers "each" year to get the deal. In other words, it will cost him 4k each year to do it. Almost like leasing them really.
     
  4. TLS

    TLS LawnSite Fanatic
    Posts: 7,940

    2x's it then :dizzy:

    So, take initial investment 2x $10K = $20K for two ZTR's

    In 2 years trade them in and add $4k of your own money for new.

    Thats what I read.
     
  5. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Posts: 7,053

    The real question is, does he want to spend 4k each year to have new machines at the start of each season? Also (I'm sure it possible) how easy can you make them pay for their self? You better have a lot of account to justify that much more expense each season. If you do, then it would be a good deal.
     
  6. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Posts: 7,053

    Please re-read his post. He clearly said it would be "each year" in his post.
     
  7. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Posts: 7,053

    That would ruffly be $10 an hour of use for the machine. I think?
     
  8. TLS

    TLS LawnSite Fanatic
    Posts: 7,940

    Sorry. Totally missed the ONE year part.

    Not really a good deal.
     
  9. pblc

    pblc LawnSite Member
    from South
    Posts: 227

    I'm missing how it's not a good deal. We put at least 400 hrs on them each year. Say you keep it for 4 years = 1600 hrs. I doubt I'd be able to get 3500 out of them with those hours. (I bought a 27 kawi last year with 385 hrs for $4800.) 12,000 inital - 3500 = 8500 / 4 = 2,125. That's the cost of holding the machine. No where near the real cost of the machine - with 1600 hours there will be lots of maint cost and repair costs to add to that 2,125. Or am I doing my math wrong....... thoughts?
     
  10. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Posts: 7,053

    It sounds like a good deal to me. The big plus is, they will always be under warranty while you have them. Helps save on maintenance costs or otherwise costly repairs that may be out of warranty if you kept them and racked hours.
     

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