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Mini Sub'er?

Discussion in 'Landscape Architecture and Design' started by Acute Cut, Jun 19, 2004.

  1. Acute Cut

    Acute Cut LawnSite Senior Member
    Messages: 980

    Have any of you with mini's thought about subbing yourselves out to other companies? Seems like it would help pay for the equip and would get your more work. I was thinking of advertising as easier than renting and so on. Say 50 or 60 per hour? What do yall think? I figure the machine (dingo 425) would be paid for in about 300 hours at 50$ per hour. Just thinking and brainstorming i guess.............
  2. EagleLandscape

    EagleLandscape LawnSite Platinum Member
    Male, from Garland, Texas
    Messages: 4,350

    What would happen if someone wrecked your equipment? Could you afford the downtime, and the expense?
  3. Acute Cut

    Acute Cut LawnSite Senior Member
    Messages: 980

    i was thinking of doing the work with the machine myself. i want to be subbed, not a rental company.
  4. D Felix

    D Felix LawnSite Bronze Member
    Messages: 1,898

    Is that price including the operator? It seems low if it does.

    How will it affect your day-to-day operations? If you run a crew, can you handle doing both?

    Good idea, though it may not work for some. It could work for you depending on what situation you are in.

    Remember you have to cover your overhead at the end of the day.....

  5. landscapingpoolguy

    landscapingpoolguy LawnSite Senior Member
    Messages: 822

    Actually you have to cover your overhead and have a profit before they sign the contract

  6. Acute Cut

    Acute Cut LawnSite Senior Member
    Messages: 980

    Good thoughts i had not thought of. I was thinking this for example. Buy the Toro 425 (for example) and a few attachments. Say a bucket, two augers, and maybe a trencher or something. Then toss out letters to landscape guys and convince them that paying me 60$ an hour would be cheaper than both just manual labor and/or renting a machine. I figure cost here with one attachment runs about 225$ a day. Then you have to drive there load/unload, fill out paperwork, wait in line, find parking, and drive time. Not to mention if you have to rent a trailer to transport or pay delivery fee. I would bet alot of guys would like to rent but figure they can do it manually with alot of guys faster than all that takes. What if they only needed it for an hour or two. 225$ for two hours plus all that hassle? YUCK!

    They could call me and (strictly for example here) pay me 60$ per hour. Say a 35$ show up fee and 25$ per attachment needed. (covers cost for me to rent something if need be) I have my own truck and trailer and will have a few attachments. I show up at designated time and do the work needed. Hand bill over and go on to the next job.

    I have the man power to be able to do this. My thoughts are this. Most of us buy equipment and only consider its value as the time saved in labor. Is the money saved on labor the only profit you see with machinery? Ya, you can charge machine time on jobs, but i do not have so many jobs that i can really justify it on that basis. Most of the time it will be sitting around.

    I know i know, wait till i really need it before buying it right? Naw, i would rather have equipment in place and ready to go by the time i really need it. I did it with mowers and am GLAD i did. One step ahead vs 2 days behind.:D

    This would also help for the machine to pay for itself faster. Base price for the 425 around here is about 17800$. So 17800/60=296.6 hours needed to pay for that machine. (Not counting overhead, just rough estimating here) So lets say Each job is about two hours or so each. Aproximately 150 jobs is what i would need. Now if i were networking with every landscape company, hardscape company, Irrigation companies and water feature company in town that is alot of clientel possibilities.

    My tunnel vision is 20/20. That is why i am tossing this idea out here. Please, prove me wrong. My wife begs you.:D I'm an equipment guy, i want my toys. Arent we all though? I just have to find a way to justify it to my wife and then she lets me get it. So if i can make it pay for itself...............................
  7. smithf36

    smithf36 LawnSite Member
    from Indiana
    Messages: 61

    You might try calling some of the local landscapers etc. and telling them that you are purchasing this piece of equip. and what you intend on doing - prior to buying it. Tell them you are just touching base with them to see if this could benefit them and explain the costs etc. This would be your way of doing market research on their amount of subbing prior to comitting to the purchase. The info you get from them might also help in determining which attachments to buy. Just an idea.

    Joe Smith
    Earthscapes, Inc.

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