Next season

Discussion in 'Heavy Equipment' started by Rubber City Landscaping, Jan 25, 2020.

  1. Rubber City Landscaping

    Rubber City Landscaping Member
    Messages: 83

    Hey guys Ive been in business for 3 years and for next season im looking to expand my services I offer in the winter. Currently I have my own truck I have a sub that works for me and i have a shoveler in each truck with us. Next season im thinking about Either getting a second truck to be run as a dedicated salt truck or buying a skid steer and finding a property to put it on for the winter. If i go skidsteer it would alow me to add new services to my summer services (new lawn install, small hardscape jobs...) I operate in northeast Ohio but we are not in the primary snowbelt so salting services would have more applications so i would probably get more use out of the truck but i think i like the extra options of revenue i can generate year round with skidsteer. What direction would you guys recommend I go. Also do you guys like the lease options on these machines or do you get screwed in the turn in process and im better off buying?
     
  2. Kinport

    Kinport Senior Member
    Messages: 191

    Sounds about like 6’s to me. The skid will cost more to get into, both will make you money. If I was in your shoes, I would buy the salt truck first because it costs less and carries less risk if it doesn’t work out, and then grow the salting side of the business until it becomes profitable AND manageable(sounds like it should be doable where your at) and then purchase the skidsteer.

    The caveat to that: I would consider a skidsteer over a salt truck if I had a sizable amount of guaranteed work lined up for it after the snow melts. And I mean guaranteed, contracts/work orders signed. I wouldn’t buy or lease one and hope I’d land some work for it. Too expensive.
    The other caveat is if I could pay cash and not totally drain all my working capital. If you’ve got an extra $30k to pick one up ($30k used, $60k new) that you won’t miss while the machine recoups that investment, then I would do that.

    Some food for thought: we do excavation as our main work and plowing during the winter when dirt work slows down. On our dirt projects A brand new skidsteer bills out for about $80 an hour and costs around $60k to purchase, or roughly $2500/month for a short term rental, which we do sometimes on special projects. Our plow trucks on the other hand, make 2 or 3 or 4 times that much per hour, and I have yet to spend more than 12k on a plow truck.
     
  3. JMHConstruction

    JMHConstruction PlowSite Fanatic
    Messages: 6,194

    How are you loading the salt truck without a skid?
     
  4. Kinport

    Kinport Senior Member
    Messages: 191

    We do not like lease options. It’s all fun and games until a customer that owes you a large sum of money gets arrested for domestic abuse and doesn’t pay you for 10 months and you get to keep making payments on the machine during that time...short term rentals are more expensive but easy to get out of. Of course paying cash and owning it outright is the best.
     
    Last edited: Jan 26, 2020
  5. Kinport

    Kinport Senior Member
    Messages: 191

    A word of caution: this is all pretty generic advice that may be wildly inaccurate for your situation. Without knowing your numbers, income, debt to income ratio, capital, or what work you have on the books it’s hard to give real solid advice so take everything I say with a grain of salt
     
  6. OP
    OP
    Rubber City Landscaping

    Rubber City Landscaping Member
    Messages: 83

    We have salt companies that stay open all night that load local guys up. Also half of my route is mine the other half is sub work. And the guy I sub for is awesome and busy so I know as a fall back he will keep my equipment busy if I can’t.