When people are new to the business, they want all the big, cool toys.
With this newbie mentality, overhead and profit are relative unknowns. After a few years, , the newness wears off and reality sets in. Gently used equipment is sold for next to nothing.
We still run our first skid steer, a 1997. She purrs better than any new skid steer out there.
Our dump truck is a 2001 that I bought new. Been Paid for for eons.
I just bought a 14,000 GVW trailer. 4 years old, owned by an old man, the decking doesn't have a scratch on it. paid $3000.00 cash.
My company truck - is. 2004 with 252,000 miles! I have no intentions of replacing it.
I'm as low overhead as one can be. If you're a local contractor in my area and your prices are lower than mine - then you won't be around much longer. Posted via Mobile Device
I'd buy a 97' f350 in a heartbeat but I just can't seem to find one with nav and bluetooth so I'll stick with the truck I have. But I'm all for recycling, its nice to see that someone buys the used crap I get rid of.
I'd buy a 97' f350 in a heartbeat but I just can't seem to find one with nav and bluetooth so I'll stick with the truck I have. But I'm all for recycling, its nice to see that someone buys the used crap I get rid of.
I'm not sure used stuff is always a better value. I have purchased my '00 pickup twice now since I bought it new in repairs I've done to it in the last 3 yrs. Transmission, new engine, another transmission, frame work, starter, brakes, water pump, thermostat, raidator, plugs, wires, exhaust work, tires. I should have traded it in back in '09 when it started getting expensive. Oh well, you win some, you lose some.
I'm not sure used stuff is always a better value. I have purchased my '00 pickup twice now since I bought it new in repairs I've done to it in the last 3 yrs. Transmission, new engine, another transmission, frame work, starter, brakes, water pump, thermostat, raidator, plugs, wires, exhaust work, tires. I should have traded it in back in '09 when it started getting expensive. Oh well, you win some, you lose some.
I'm the one who brought up having over $100k in equipment at a job site. I guess what I was trying to say is that if you went out and bought all the equipment new or slightly used that I bring to a job site it would be over $100k.
My F450 dump was $52000 that I bought new in 2008
T200 Bobcat was $25000 bought used in 2005
MT55 Bobcat was $18500 new in 2009
Equipment trailer was $4500 bought new in 2003.
Little stuff like saws and laser was like $4000 bought new at various times.
Heck, I think I have over $500 just in shovels, rakes, hammers etc.
Just my knowledge alone is worth quite a bit:laugh:
The list goes on but if I bought all that stuff plus all the little stuff at one time you can see where the $100k comes from.
Yes, there is alotta money tied up in building patios. And that's why a majority of the guys that try hardscapes only make it less than 6 years.
It's hard to make money when you're working for the banks.
One of my Pet Peeves is when other contractors in the area price work for so much less......yet they're riding around in new trucks and tugging new skid steers up and down the road. Posted via Mobile Device
Yes, there is alotta money tied up in building patios. And that's why a majority of the guys that try hardscapes only make it less than 6 years.
It's hard to make money when you're working for the banks.
One of my Pet Peeves is when other contractors in the area price work for so much less......yet they're riding around in new trucks and tugging new skid steers up and down the road. Posted via Mobile Device
I just cant believe how long those contractors can stay in business. And when they go under, another contractor/finance king fills there spot almost instantly. Its a never ending cycle.
I guess the average time span is about the same as their 5-year note on their king ranch Posted via Mobile Device
Yes, there is alotta money tied up in building patios. And that's why a majority of the guys that try hardscapes only make it less than 6 years.
It's hard to make money when you're working for the banks.
One of my Pet Peeves is when other contractors in the area price work for so much less......yet they're riding around in new trucks and tugging new skid steers up and down the road. Posted via Mobile Device
Is it really fair to assess another business simply because you saw some of there equipment rolling down the road?? Not saying I disagree. I do believe there are lots of people out there that are "finance kings" but I also know that just because he can do it cheaper then me does not mean he is necessarily a low baller.
I find that the younger ones spend the most on the big trucks and equipment, I see it here all the time and they don't stay in business long. It just goes to prove how easy it is for someone to get a loan and mortgage themselves to the hilt. When I started business in '87 I bought myself a 78 half ton pick up with 3 speed on the column, it cost me 600 dollars and I had to borrow the money to get it running. I paid it back and spent a year in that thing. Today you don't see any of the new guys buying old trucks and fixing them up, they want the king ranches and ltz's on day one with a power-tilt float and track loaders, its a shame really, cause they wanna be like us older guys who own the king ranches but they're missing the point. Why be in business if all you're going to do is pay for equipment. Oh and the work they are doing is shamefull.
I'm the one who brought up having over $100k in equipment at a job site. I guess what I was trying to say is that if you went out and bought all the equipment new or slightly used that I bring to a job site it would be over $100k.
My F450 dump was $52000 that I bought new in 2008
T200 Bobcat was $25000 bought used in 2005
MT55 Bobcat was $18500 new in 2009
Equipment trailer was $4500 bought new in 2003.
Little stuff like saws and laser was like $4000 bought new at various times.
Heck, I think I have over $500 just in shovels, rakes, hammers etc.
Just my knowledge alone is worth quite a bit:laugh:
The list goes on but if I bought all that stuff plus all the little stuff at one time you can see where the $100k comes from.
I think what everyone is getting at is Do you really need a 52k f-450 to do the job, or will the used 15k truck to the same job at the same pace. We still have the first dump truck I bought, it is a 1995 3500 dump. Bought it for 1500 bucks and slapped a 2k bed on it. It is still in our fleet and goes out every day with well over 250k miles on it. Sure it needs repairs from time, but you take a 800 a month payment thats $9600 a year. Thats a heck of a lot of money.
I partially agree with this thread, most of my bigger equipment was bought gently used so that somebody else took the big hit and I still ended up with clean late model trucks, skids, etc. And I am very patient when making a new purchase, I will search for months. I started looking for a used mini excavator in January and I had no luck finding one, people seem to run them into the ground. Every mini that I found in good condition was almost the cost of a new one and every mini I found in the $25,000 range had 2000-3000 hours on it and would most likely need undercarriage work. So in this case I think it made sense to buy a new machine. I wasn't sure about my decision until we got it out on a commercial retaining wall and wow did it save me a lot of time over my old mini. Another thing I typically by new is trailers, the used one seem to be about the same price as new. But I will probably never buy new dump trucks they are crazy expensive.
This kid spent 72k on a dodge 3500 from a dealership. I didn't even know that was possible. Then he works out of the thing. and it sounds like he makes his workers follow him around to jobsites because he doesn't want them dirtying up his truck. Unbelieveable.
This kid spent 72k on a dodge 3500 from a dealership. I didn't even know that was possible. Then he works out of the thing. and it sounds like he makes his workers follow him around to jobsites because he doesn't want them dirtying up his truck. Unbelieveable.
You know, sometimes I get buyers remorse... But after reading that thread, my god! That is nothing but a "hey look what I bought" wow could you imagine spending 70000 on a work pickup truck. What my father would do to me......
This kid spent 72k on a dodge 3500 from a dealership. I didn't even know that was possible. Then he works out of the thing. and it sounds like he makes his workers follow him around to jobsites because he doesn't want them dirtying up his truck. Unbelieveable.
Any descent new pickup with all the fixins runs at least 72k, my pickup listed 83k but I had a good deal on it. I also don't want my dirty employees in it either. Of course I could of spent 20k less but it wouldn't of been what I wanted.
Any descent new pickup with all the fixins runs at least 72k, my pickup listed 83k but I had a good deal on it. I also don't want my dirty employees in it either. Of course I could of spent 20k less but it wouldn't of been what I wanted.
Is that 72K Canadian? Any truck around here loaded wouldn't be 72K. I just looked at diesel duallies (Dodge) the other day and they were 58K loaded.
Steve
Its one thing for a seasoned, veteran contractor that's been in business for over 10 years to spend money on big ticket items.
But another for someone thats been in business only 3-7 yrs to spend.
There is another internet forum, "The Premier Site", and all 3 of the partners that started and manage the site.....are no longer in business.
All these new guys are doing is working for the banks. I've been there and done that.
I could never spend more than 20k for a pick up. And no more than $50k for a med duty dump truck. My heart is in other things in my life - like projects at home, Carribean vacations, and my kid. I pay cash for all those things, I dont even own a credit card. If I bought big ticket items for the biz, we would not have what we have and the collectors would be ringing my phone from sun-up to sunset!
Any descent new pickup with all the fixins runs at least 72k, my pickup listed 83k but I had a good deal on it. I also don't want my dirty employees in it either. Of course I could of spent 20k less but it wouldn't of been what I wanted.
Well i just cant set that much cash on fire. My little 2010 tacoma i bought for 14k with 20k miles does me just fine. And it keeps me from doing any real work and focused on running the business. I actually prefer it over my last loaded 2500 duramax.
I guess if you have the money and want it that's great . You've probably heard this before , the number one item you should never buy new is a vehicle. .I shop for everything used, in good shape first before I buy new. If your patient you can find what your looking for. I have a shop filled with all kinds of tools but don't have alot invested. I own 5 skid steers and only have about 70K into them whereas I know guys buying skids for 50K plus each.
Steve
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