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Equipment leases, who has them?

Discussion in 'Commercial Snow Removal' started by Eronningen, Jan 11, 2012.

  1. Eronningen

    Eronningen Senior Member
    Messages: 442

    With the lack of snow I was wondering how many of you guys have monthly leases your paying for equipment to sit?
     
  2. Landcare - Mont

    Landcare - Mont Senior Member
    Messages: 351

    Yup - that's why seasonal contracts are great.
     
  3. SCS

    SCS Junior Member
    Messages: 8

    2-skids. Seasonals are a blessing.
     
  4. WIPensFan

    WIPensFan PlowSite Veteran
    Messages: 3,508

    You seasonal guys are in for a nightmare next year.
     
  5. alsam116

    alsam116 Senior Member
    Messages: 217

    you know whats funny i just said that to the old lady at lunch...glad we bought insted of renting this year. the rental place makes you have a 3 month min do back april so they will be making $$$ this winter.
     
  6. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,953

    Making them see beyond the end of their nose is the key......I had two property managers tell me that, "ah, makes up for the last couple years, right?"
     
  7. Jacobsmovinsnow

    Jacobsmovinsnow Senior Member
    Messages: 315

    No way, Give quality work for the price and specs agreed and youll have a seasonal contract renewed year after year. Either way they have to pay for the equipment, through your contract or someone elses. contract is the only way to go in snow removal, but just make sure you give em priority service and not be seen elsewhere while leaving their lot unattended other wise youll be out on your butt quicker than you can say snowremoval.
     
  8. Eronningen

    Eronningen Senior Member
    Messages: 442

    For the record I don't lease. The old grape vine has told me some stories of a few fellows in my neck of the woods with big lease agreements on equipment and no seasonals or not enough anyways. Troubled times. For the folks with seasonals than its business as usual.
     
  9. Landcare - Mont

    Landcare - Mont Senior Member
    Messages: 351

    Not so much - There's snow in Montreal every year. There will probably be enough snow towards the end of the season that the customers won't remember the easy start to the winter. All our customers are commercial/industrial or municipal. Their snow contracts are like their insurance policies - you pay the premium and hope you don't need the service. Probably 75 percent of our customers have been with us for at least 10 years; some of them have been with us a lot longer.

    What would you consider the difference between making a lease payment and making a loan payment? It's all cash flow. Yeah, at least at the end of the loan, we own the equipment but ...
     
  10. WIPensFan

    WIPensFan PlowSite Veteran
    Messages: 3,508

    We'll see.