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New to business hows this deal

Discussion in 'Commercial Snow Removal' started by White Oak, Nov 23, 2004.

  1. White Oak

    White Oak Member
    Messages: 41

    I have my own landscape maintenance buiness (60 Accounts) which I have generated 15 plow contracts 2 commercial and 13 residential through a general mailing. 1 push will net $700. I was planning on putting a new plow on my Dodge 3500 diesel flatbed 2wd with 200 lbs ballast costing me $3700 plus tax and a days work missed to pick plow up etc.. I know this will work fine because I am on Long Island with flat drives and lots, others plow with similar set ups. Another plow guy in my town has heard about this and come forward with this offer.

    19 accounts grossing 900-1000 dollars per push last year here 8 storms
    1991 Chevrolet 2500 4wd with 94,000 miles in very good condition, 7'6" 1995 meyer plow, winch, and misc part/tools. Total Package $10,000.00

    What do you think? Stick to my setup for basically $4500 or go the $10,000 for the extra truck and accounts?? Would love to hear from you.
  2. cet

    cet PlowSite Fanatic
    Messages: 7,192

    I'm thinking more like 2000lbs ballast. I plow with 2 2wd trucks but I also have 9 other trucks out if these get stuck. I think you are safe to use your truck and I won't buy the other truck as you have ins., maintenance and you will need to drive it in the summer to keep it going. And storage and many other things.
  3. avalancheplow

    avalancheplow Senior Member
    Messages: 318

    I would keep your truck but you definitly need more than 200lbs for ballast like cet said. :nod:
  4. Tarkus

    Tarkus PlowSite.com Addict
    Messages: 1,113

    Yes I would say 2000lb min and 3000lb or more if it really gets nasty.
  5. White Oak

    White Oak Member
    Messages: 41

    Sorry Typo - I have a 2000 pound block of cement I formed up while pouring the foundation for my house that I load in the back with a loader which i also figured I could use if things got real bad. I have to admit I am leaning towards buying the route since I will already spend 4500 I am basically getting the other truck and accounts for $5500, I can also use a back up truck on the landscape side as well.
  6. jhook

    jhook Senior Member
    Messages: 375

    You got to work out the numbers so they work for you. I have bought routes from other guys in the past and it has worked out well for me. 3 years ago I bought a route from a guy - roughly $10000 gross over the season and paid him about $2500 for it. I still have almost all of the accounts so I think it was way worth it. See if they guy will just sell the route. Or buy it all and resell the truck. Buying business is a good way to build up your route in a hurry, and if the guy has had customers for a long time and he tells them he is passing off the work to you, they will likely stay with you. That was my experience anyhow.
  7. Frozen001

    Frozen001 Senior Member
    from Rome NY
    Messages: 908

    I am assuming you have no plow on any truck when I say if you by the other truck you might still want to get the plow for your truck as a back up + this may allow you to finish quicker... 15+19=34 accounts with one truck might be tough if a big storm hits...(hell it might be alot if you have a small event) just food for thought :waving:
  8. White Oak

    White Oak Member
    Messages: 41

    Good point I was wondering how many average driveways/small lots could be done in 8-10 hours. I also have 1 year round employee who is able to assist by plowing and or shoveling with me. If a second plow may be neccessary than I would have to assume that It will be a good investment ot buy the accounts and truck as I will have plenty of work for myself and be making decent money say 15-1800 for 10-12 hours work.
  9. Frozen001

    Frozen001 Senior Member
    from Rome NY
    Messages: 908

    It is hard to tell how long it take to plow, there are a lot of factors, things like size, number of obstacles, does the snow have to be piles in one area, and of course there is experience plowing. Plowing might not be the most difficult thing in the world, but with experience you learn things that will save you time, and allow you to be more productive. One of the most important things to remember is not to bite off more that you can handle because in the end it will only hurt your business.
  10. White Oak

    White Oak Member
    Messages: 41

    Thanks for the info. I just go t two more accounts todya, it seems as if I will be near 40 byt he time snow starts falling. I have 1 truck, 1 sander and two men so I am hoping to get it done in 8-10 hours.