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Starting A sealcoating Compay..HELP

Discussion in 'Seal Coating Forum' started by phil12984, Nov 17, 2011.

  1. Patriot Services

    Patriot Services LawnSite Fanatic
    Messages: 14,208

    It does seem like a sizeable outlay with no guarantee of business to support it. You really need to study the market and see if it will support another sealcoater. I don't see offering low prices with all new equipment to cover as a viable option.
    Posted via Mobile Device
    Last edited: Nov 23, 2011
  2. BIGBOY2008

    BIGBOY2008 LawnSite Member
    Messages: 146

    First of all do you have business contract written up with this person who is supposed to be the investment partner? If you dont realize the importance of having a formal business contract i hate to waste my time in giving you advice or trying to help you.

    Last year i had five guys call me wanting to sell me used spray set ups for 1/3 and 1/4 of what they cost new and these were not junk rigs but newer models and well maintained equipment. This year i have had five guys call me with the same offers before ThanksGiving Day...wouldnt surprise me if i didnt get another five calls before Christmas. These are the guys pricing pavement at $0.09 to $0.11 ps ft and dont make enough money to survive through the holidays. Those are the guys you will be up against competing to seal driveways for the cheapest price psft and competing just as hard to sell their equipment for the cheapest price to survive through the winter months.

    The equipment is out there and its nice lightly used equipment and you can get it for a real good price and if its an issue of having something shiny and new quote "professional looking" you need to bury your pride and wake up before ending up in a hole.

    Why buy a tank and mount it on a truck bed when you can have one mounted on a dual axle trailer. What happens if you have transmission or wheel bearing trouble or an employee forgets to release the emergency brake on the truck before heading down the four lane at 75 mph. Last thing you want is your spray rig sitting not making money while you wait for five days to a week to get it fixed.
  3. phil12984

    phil12984 LawnSite Member
    Messages: 26

    Guys i understand if i was borrowing money for the equipment. But my partner is investing this money so i wont have to be paying payments on this stuff. i understand ill have a truck payment, insurance, material, gas....but the gas and material comes with getting the driveways...if i dont have driveways i dont buy the material. i have 15-20 driveways lined up for april (friends family neighbors that are helping me get started) not that its alot but helps get the name out. as of now we have a V6 ranger that its gvw is 5300...just trying to figure out if it would handle a 300 gal tank plus blower and crack melter?????

    i do have a lawyer, and papers and being drawn up as we speak.

    you have people asking you to buy there equipment to survive? maybe they are marketing wrong? not arguing with what your saying, im just questioning it. Why are you not sealing all your stuff to survive? what are you doing that they arent? the way you are making it sound is no one is doing good?

    my friend doesnt really advertise, barely puts his signs up cause he does it on the side and charges .16 cents an this year made 55,000 sealcoating and that is on the side and being lazy. i believe marketing is the main thing to get something going.

    everyday i check craigs and ebay and barely find anything... i believe the used stuff is out there i just cant find it.
  4. salopez

    salopez LawnSite Senior Member
    Messages: 271

    first...did you buddy make 55k or did he revenue 55k? big difference. if he rev'ed 55k, take out exspenses including fuel, labor, and truck and what do you have? 20k? then devide that by 2 (with your partner) and 10k...not bad on the side i guess...

    try searchtempest.com it searches all craigslists and ebay for you.
  5. masterofdisaster

    masterofdisaster LawnSite Member
    Messages: 6

    i havent found anything either...
  6. salopez

    salopez LawnSite Senior Member
    Messages: 271

    there is some equipment and a comapany for sale in doyletown pa. on craigslist
  7. pgrzes

    pgrzes LawnSite Member
    Messages: 38

    You might be able to pull a 300 gal. rig with a ranger, but try to stop it!!!!! You will be a cop magnet around here. Any sealcoat rig Legally would need at least a 2500 to make the GVW requirements. The cops in Bucks love to go after landscape type trailers. With the rain we had this year, I find it hard to believe a single man operation new business that does not advertise did $55k. WE had a brutal year, 9 weeks lost to bad weather. When we worked we had to bust it, when it rained it was for a week at a time. If you would like to talk some day msg me offline and we can chat. Again I didn't mean to come off negative in the original post, I was trying to give honest advice from experience. I don't see any doylestown listings on Craiglist, I am looking for a second unit, a truck mount 500 Gal. rig on a NPR. chassis. If anybody knows of anything available.
  8. salopez

    salopez LawnSite Senior Member
    Messages: 271

  9. pgrzes

    pgrzes LawnSite Member
    Messages: 38

    Yeah I have seen pretty much all of those. I was looking for the one you mentioned in Doylestown. I watch pretty much daily on search tempest and most other sites but I am looking for something specific. I missed one on the other forum earlier in the season, probably end up building a rig the way I want it.
  10. BIGBOY2008

    BIGBOY2008 LawnSite Member
    Messages: 146

    Time for me to stop being nice and if you dont like it then figure out a way to deal with it.

    You come on here asking for 100 lbs of help and you have received well over 1000 lbs of help in the form of advice from numerous well experienced people but you have your head so far up your a$$ you cant realize what a gold mine of help you have here.

    Phil12984 said....

    Also i know plenty about sealcoating ive been doing it for 3 years working for somoeone on the side but doesnt mean i know the pricing for estimates....if you cant help me then please get a life and stop blogging negative crap on my feed....thanks pal.

    You will have to make close to $75.00 an hour excluding your price for raw materials. Because you will need to carry one million worth of liability insurance and will need to have workers comp on anybody helping you.

    Basically what is in our agreement is...im doing the work plus a helper if need be, i collect a set salary every week for 52 weeks. whatever is left in net income we split 50/50 and each year my weekly salary also goes up.

    If thats the case you will neeed to pull $75.00 plus $37.50 which equals $112.50 an hour because you will be paying $37.50 to your partner which will put you right back at $75.00 per hour.
    Your lowballing competition will be looking to clear $40.00 per hour and will not be paying workers comp having had their help sign a somewhat questionable (quote) "Independent Contractors Agreement" that they got online somewhere.

    I asked for help....never asked for advice. i asked for estimating help thats it. if these are things you cant help me with then thats fine no harm no foul. but if you dont want to help me with the questions i ask well then please dont comment on my post. im not looking to be rich im looking to make a living.

    In order for you to make $112.50 an hour you will have to ditch that poor boy mentality because that way of thinking will prove you to be doomed from the begining.
    A long distance runner does not train to win a 20 mile run by running 15 miles once a week...he does it by running 40 miles twice a week.

    You have people asking you to buy there equipment to survive? maybe they are marketing wrong? not arguing with what your saying, im just questioning it. Why are you not sealing all your stuff to survive? what are you doing that they arent? the way you are making it sound is no one is doing good?

    Is there any d*mn thing you dont question on here??? You already had your answer due to the fact it is written in my previous post!!!

    Why am i not selling my stuff to survive? Because i make excellent money doing what i do and my equipment is well maintained and in good working order and not due to be replaced any time soon. And how did i accomplish this? I didnt it by listening to people who knew more than i did and by not being dense, hard headed and argumentative like you are.

    What you will have is numerous out of state "travellers" and "local lowballers" to compete against. These guys will be sealing pavement for $0.08 to $0.10 psft and if you are to make any money you will need to charge from $0.18 to $0.20 psft. Those travellers and lowballers will be charging just enough to make $40.00 per hour and will justify doing so by saying "Duh a Registered Nurse makes $35.00 an hour and ha ha ha look at me i didnt even go to college and im making just as much if not more than a nurse makes". And those guys will be waging fierce bidding wars and competing against each other. Ive witnessed some of them drop prices to as low as $0.06 psft trying to beat the other one down and drive him under. And you Mr."Im not looking to be rich im looking to make a living" will have a choice to either get caught up in their little pi$$ing contest by dropping your prices or hold your prices at the $0.18 to $0.20 psft.
    And judging by the kind of mentality youve displayed here i would bet nine to nothing you will end up caving in dropping your prices to nothing and losing your a$$.

    And what are you going to do when you submit a bid to a homeowner for $0.19 per square foot and tell him that you will give him a heck of a good deal at $0.17 if he will help you acquire two or more additonal jobs in his neighborhood. And then he looks at your bidform and laughs at you and says "I can get this done for half your price from this other fellow. Then when you ask him how much the other guy is charging he says the other fellow has given him a "Confidentiality Discount" under the terms he doesnt tell other seal coating contractors how much he was charged psft.

    What are you going to do when you bid a job at $0.19 psft and the home owner looks at you and says "WTF..ARE YOU CRAZY YOU WANT TO CHARGE ME $0.19 FOR SOMETHING THAT WONT LAST OVER A YEAR WHEN I CAN PAY SOMEONE ELSE $0.09 FOR THE EXACT SAME RESULT?"
    What are you going to do then? You know how to lay sealer and thats fine and dandy but do you have the social skills and abilities to read the human mind in such a manner that you can convince this potential customer to hire your services?

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