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Leasing Equiptment from PT LCO

Discussion in 'Rental Equipment' started by DBE022576, May 26, 2009.

  1. DBE022576

    DBE022576 LawnSite Member
    Messages: 41

    This maybe an extremely odd idea but here it goes. I have a brother in law who cuts grass after his day job (most days). I run a Tax Prep Office so I have lots of free time from May until Nov each year. I want to cut grass during the day to make a little extra cash (and stop spending, idle hands-devils playground, etc). Since, my b-i-l doesn't want to commit to yards he can't fit into his evening, he is opposed to hiring day help (for when he is working his 9-5) to cut. I realize that helping out in the evening can mean only a small increase in his profits if I am to be paid a decent wage. So I thought, what if, I start my own lawn care business. I secure my own insurance, license, etc. I lease his equipment on a daily basis for a percent of my gross. If I make the contact with the customer, then all he gets is this daily % of gross. If he refers me to a job (he bids it out at a price I agree to, but then subcontracts it to me) he gets an additional percentage. Now for the hard part, what should these percentages be? Be honest, if there is no way in he!! that you would consider this say so. I'm thinking around 30-35% lease percentage of gross and 10-15% percentage added for those he subcontracts to me. Would this be fair? Keep in mind, that his equipment is currently idle during the day and any money above the increase in maintenance costs/ wear and tear is pure profit. If I can gross $300 per day (6 $50 yards) for 5 days per week, that's $1500. His cut would be $450-$525 at my numbers. After 5 months of 4 weeks per month, that's $9000-$10500. More than enough to maintain his Ferris ZTR, Exmark push mower, blowers, and trimmers. Any thoughts, suggestions, comments, etc?
  2. DBE022576

    DBE022576 LawnSite Member
    Messages: 41

    50 views and nobody has anything to add, comment on or make me think about? Come on guys, I would really like to think this thing through. I think I have but maybe I haven't, thats what I need your input on.
  3. birdman0494

    birdman0494 LawnSite Member
    Messages: 142

    Ok honestly i wouldnt do it, Number one you generaly dont mix money with family and the second one is he may be envious of you and screw you over and not let you use his machines if I were you I would do it until i had enough money for a small set up of my own but wouldnt recomend it.

    STIHL GUY LawnSite Fanatic
    from CT
    Messages: 5,226

    well if you start small and slowly get your own equipment you will make a lot more money then if you are giving 9000 a year to your broher in law
  5. doug1980

    doug1980 LawnSite Senior Member
    Messages: 276

    I would never mix business and family. I have been burned too many times with that. You should just buy a mower and trimmer and start cutting. As you get more money buy better equipment. Sounds easy enough....that's what I'm doing :)
  6. rmdm94

    rmdm94 LawnSite Member
    from 34240
    Messages: 28

    Who fixes the equipment when it breaks? I would be pertty mad if I came home from work ready to go mow my lawns and the mower was broke and no shops were open to get parts.

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