Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum

» Welcome to the Gopher Lawn Care Business Forum
GopherHaul Landscaping & Lawn Care Business Marketing Forum

GopherHaul Landscaping & Lawn Care Business Marketing Forum (http://www.gopherforum.com/forum-index.php)
-   Truck, Trailer, and Outdoor Power Equipment Discussion, Repairs. (http://www.gopherforum.com/forumdisplay.php?f=31)
-   -   Do use a Consumer or Commercial Mower? (http://www.gopherforum.com/showthread.php?t=7328)

Steve 07-20-2008 08:46 AM

Do use a Consumer or Commercial Mower?
 
Which kind of mower do you use?
Commercial
or
Consumer
lawn mower model?

VPS Lawn Care 07-20-2008 09:58 AM

Quote:

Originally Posted by Steve (Post 39876)
Which kind of mower do you use?
Commercial
or
Consumer
lawn mower model?

I currently use on most lawns my Toro Time cutter Z, It is a consumer mower i had b-4 i started, and i picked up a gravely 32" walk behind used that will get me in most gates. I plan on getting a new Commercial Z prob. a toro maybe a scag next season as long as things are going ok, i dont want the debt, i would rather pay cash, but if i do finance i never finance anything unless i can pay at least 2/3's of the price at the time of purchase, a little trick i learned from my father many years ago. Then it was on a car, and his thought on getting a loan to buy is this " if you are going to buy something that you need, and will always need, why pay more. For example, buy out of need not out of want and you will be much better off in the long run. So if i was to buy a new truck and put 2/3's the price down then i would be able to pay it off in a year or 2 and no long term debt, right? But the trick to it is, i will most likely keep and use this truck for 4 to 8 years, so when i pay it off say in 2 years with payments of aprox 350 a month, i dont stop paying that payment since i can already afford it in my budget, i just instead of putting paying it to the bank, i just put it into a savings account, and then i will have enough to put towards a new one when the time comes.
WOW i Really got off base and jabber jawed , sorry :o

Steve 07-20-2008 12:30 PM

Sherman,

That is really good stuff! So even when you are not looking to purchase anything, you are banking money as if you were going to?

Can you help me and other readers try to figure out how much we should be budgeting to do that?

I mean how does anyone do that?

Should we just save everything we can and then we are alright?

Steve 07-20-2008 12:48 PM

1 Attachment(s)
I was doing a little research to look into this matter more which I am very glad you brought up.

Now say you were going to take out a loan for a pickup truck for $20,000.00 paid off over 4 years.

I am including an amortization chart of the payments thanks to this site
http://www.bankrate.com/brm/auto-loan-calculator.asp

Please look at the chart.

Your monthly payment is $477.53.
Of that $60.84 on average each month is your interest payment.

Now the question is this.

How on the financial edge are you? How on the financial edge is your business?

If you had $20,000.00 sitting in the bank, is it worth it to you to pay $60.84 more per month to keep it there and take out the loan or is it better to take that $20,000.00 out and pay for the truck?

Or if we used the theory you presented. Let's say you paid out 2/3 of the trucks $20,000.00 or $13,333.32 and then took a loan out for $6,666.68.

Your monthly payments would be $298.04.
Of that, $20.25 would be interest.

It's very interesting to think about because money is the life's blood of a business. When you have a lawn care business and it's seasonal, the more you can horde cash in reserve the better chance you will have to smooth over the rough spots.

Would you rather have cash in the bank available at a moments notice in case of emergencies or opportunities? Would you rather have a loan and keep your cash on hand? Or would you rather invest the cash as a down payment on a piece of equipment?

Can you make more with that monthly loan investment into that piece of equipment by utilizing it than you are paying? Is it making you money plus a profit?

These are all very important things to think about!

What is your breaking point? When is it better to have cash in the back waiting for an opportunity or when is it better to invest that cash into a piece of equipment in the form of a down payment?

justin_time 07-20-2008 01:10 PM

Commercial and only commercial

The latest push mower I just bought was commercial

http://i290.photobucket.com/albums/l...0076_large.jpg

Built to last 20 yrs, the motor will probably go before the body of this mower

It weighs 132 lbs but thank god for self propelled

And I am getting a ZTR in the spring so I will have all commercial equipment

Steve 07-20-2008 01:15 PM

Justin,

What is the cost of such a commercial push mower? Did they give you a lifespan rating on it? How many hours?

justin_time 07-20-2008 01:18 PM

Quote:

Originally Posted by Steve (Post 39886)
Justin,

What is the cost of such a commercial push mower? Did they give you a lifespan rating on it? How many hours?

About 1000$ + taxes.

It's built out of cast aluminum. I could bash it with a hammer all day and it wouldn't break. I would break my hand before anything

I would have to check my books for the lifespan but I'm sure it's alot

Steve 07-20-2008 01:23 PM

Very interesting! If you'd like, I will do some research on the lifespan of it if you know the model?

justin_time 07-20-2008 01:38 PM

W21S - S for self propelled (i think)

VPS Lawn Care 07-20-2008 02:08 PM

Quote:

Originally Posted by Steve (Post 39883)
Your monthly payment is $477.53.
Of that $60.84 on average each month is your interest payment.

Now the question is this.

How on the financial edge are you? How on the financial edge is your business?

If you had $20,000.00 sitting in the bank, is it worth it to you to pay $60.84 more per month to keep it there and take out the loan or is it better to take that $20,000.00 out and pay for the truck?

Or if we used the theory you presented. Let's say you paid out 2/3 of the trucks $20,000.00 or $13,333.32 and then took a loan out for $6,666.68.

Your monthly payments would be $298.04.
Of that, $20.25 would be interest.
?

Well steve all good questions, think about this though. Why are finance companys in business? To make money, and they do. So instead of paying them the interest, why not pay yourself the interest? Ok, cash is king always, so what you do is this, you still save all that you can, you still do that if you have a truck or a mower financed right?, this way, you set up another alltogeather savings account labeled Equipment, and you continue to put the amount of the payment in this account as if you were still paying the bank, this way it is as you are paying yourself the same interest the bank would have been getting, and since it is all going into your equipment acct, you will have enough to purchase the equipment when you need it faster then you would pay a loan off, so you are actually saving even more over time. Also think of this, you said what if! there is always what if's, and what if something major did happen would it also be nice not to have a bunch of payments you had to make every month, since you were paying yourself those payments if you had to you could put them off with no repercussion's. so if you financed that truck you would be paying that finance co. $3,342.71 in interest, that comes out to $835.67 a year of a 4 year term which intern is 69.63 a month more. Dont know about you guys but even over 4 years 3342.71 is still alot of money to give away, throw away. Just my thoughts, remember that even when your paying that payment you most likely are saving something anyway, this is besides that, and as far as that 20k, if you did not pay it to yourself each month and payed the finance co then would that 20k even be in the bank?


All times are GMT -5. The time now is 08:40 PM.

Powered by vBulletin® Version 3.7.1
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
(C) 2011 Riggs Publications - Terms of use & Privacy Policy

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
This sucks...
Matther777
Yesterday 04:56 PM
Today 06:46 PM
by ExtremeLawncareServices
3 123
Scag turf tiger hydrolic...
ExtremeLawncareServices
09-04-2014 10:55 PM
Today 05:59 PM
by ExtremeLawncareServices
11 775
Mowing 7 acres
avetslawncare
08-31-2014 04:24 PM
Today 03:29 PM
by acrajchel
6 943
snowplowing
jshak40
09-01-2014 07:20 AM
Today 11:49 AM
by Steve
23 1,301
Looking for feed back on...
ExtremeLawncareServices
09-17-2014 08:38 AM
Today 08:17 AM
by ExtremeLawncareServices
9 269
Lowballers scrubs &...
Darksteel
01-13-2014 07:35 AM
Yesterday 06:32 PM
by Northwoods Outdoors
58 6,701
Hello from upstate NY!
A&MLawn&Snow
Yesterday 11:19 AM
Yesterday 04:10 PM
by Sprinkler Buddy
2 128
Price to apply fertilizer
SS.Lawncare
09-15-2014 11:10 AM
Yesterday 01:16 PM
by Steve
9 380
Trailer tires
J.A.S.LawnService
09-01-2014 10:17 AM
09-17-2014 09:57 PM
by curts lawn care
4 877
new to the forum
SGlawncare
09-16-2014 11:20 PM
09-17-2014 08:29 PM
by curts lawn care
3 206
Help With Snow Blowing...
Robertf31
09-13-2014 10:55 PM
09-17-2014 12:34 PM
by Steve
11 564
Non-Stop Summer?
SouthallMowing
09-14-2014 10:51 PM
09-17-2014 10:48 AM
by stevef1201
6 356
Tribulations of working...
stevef1201
09-13-2014 08:37 AM
09-16-2014 10:43 PM
by SGL1
6 392
Poll - net income
Dan5082
11-15-2010 08:08 PM
09-16-2014 04:44 PM
by jrs.landscaping
12 3,164
Getting lowballed!
PineHillLawn
06-27-2012 07:23 AM
09-16-2014 01:25 PM
by jrs.landscaping
24 4,828
Compare this summer to...
Steve
09-03-2014 12:52 PM
09-16-2014 11:20 AM
by Hanks Lawn Care Services
15 1,052
thinking about throwing...
veteranslawncaresystems
09-09-2014 10:31 PM
09-15-2014 03:41 PM
by Steve
12 749
Hello
Robertf31
09-12-2014 10:34 PM
09-15-2014 03:17 PM
by Steve
2 351
Newbie......Again
Jibber
09-13-2014 12:17 PM
09-15-2014 02:54 PM
by Sprinkler Buddy
2 389
Replacing a Shindi T-27
Dan Tanner
09-13-2014 12:59 PM
09-15-2014 02:31 PM
by Steve
1 357
need help with starter...
GoGreenerKS
09-12-2014 04:23 PM
09-15-2014 02:25 PM
by Steve
3 366
Brake job!
kslawn
08-30-2014 07:49 AM
09-15-2014 02:16 PM
by Steve
12 1,064
Hello
jawnebgoode
08-28-2014 08:37 PM
09-15-2014 02:15 PM
by Steve
3 836
Employee uniforms
Gerardo_Landscape
01-21-2014 11:11 PM
09-15-2014 02:12 PM
by Steve
5 967
Greetings from the north
Northwoods Outdoors
09-13-2014 08:55 AM
09-15-2014 02:07 PM
by Steve
1 333
darleneh
darleneh
09-15-2014 12:33 PM
09-15-2014 02:07 PM
by Sprinkler Buddy
1 231
My 1st bid
WesleySnips
06-11-2014 03:13 PM
09-15-2014 02:05 PM
by Steve
29 1,749
New Aerator
Chaz
09-09-2014 11:43 PM
09-15-2014 01:50 PM
by Steve
9 581
Yearly contract Pricing
jrob0691
08-21-2014 08:57 AM
09-15-2014 01:23 PM
by stevef1201
8 1,228
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
09-13-2014 09:14 PM
by ExtremeLawncareServices
116 8,015
getting ready to start
calebmoss
05-23-2011 09:35 PM
09-11-2014 12:21 PM
by Steve
34 11,238
Stihl pull cord replace
SGL1
09-03-2014 09:22 PM
09-10-2014 12:25 PM
by Steve
9 757
Softball field
kslawn
08-15-2014 09:28 AM
09-10-2014 12:16 PM
by Steve
18 1,491
Lawn Route Templates
Landscaper1165
08-30-2014 01:52 PM
09-09-2014 08:05 PM
by Landscaper1165
4 980
New truck and trailer...
Johnny Rocket
05-14-2012 03:41 PM
09-09-2014 07:23 PM
by Matther777
18 6,575
What gets you bad press?
Steve
09-09-2014 11:48 AM
09-09-2014 07:21 PM
by Matther777
2 459
Signs on your snow plow?
Steve
01-15-2007 01:07 AM
09-09-2014 11:42 AM
by Steve
19 6,206
Exmark Lazer Z S-Series...
BLC7
08-22-2014 10:18 AM
09-08-2014 08:08 PM
by avetslawncare
12 1,277
New to the business
flamingyouth87
09-05-2014 11:52 AM
09-08-2014 11:55 AM
by Steve
3 668
Hello from Ohio
kurtwin
08-28-2014 05:06 PM
09-08-2014 11:51 AM
by Steve
7 952
Facebook
element009
03-23-2011 08:36 AM
09-07-2014 07:35 AM
by avetslawncare
24 7,744
Help pricing cut down 7...
Bradcook21
08-26-2014 11:17 PM
09-06-2014 02:09 PM
by Bradcook21
8 1,044
billing matters
sbuchanan8154
09-05-2014 09:56 AM
09-05-2014 03:00 PM
by Steve
3 646
Thoughts
googus
09-05-2014 07:28 AM
09-05-2014 02:23 PM
by Steve
2 596
Backflow Tester
flowcheckllc.2014
09-03-2014 04:37 PM
09-05-2014 02:15 PM
by Steve
3 688
Collections & collection...
jscarolina
09-03-2014 04:39 PM
09-04-2014 03:14 PM
by Steve
2 700
Sod
RosalesLawnCare
08-27-2014 03:47 PM
09-04-2014 02:42 PM
by RosalesLawnCare
4 955
Lawn needs top soil What...
jymie
08-26-2014 11:01 AM
09-03-2014 12:07 PM
by Steve
7 1,025
Hello! New here and...
CaliforniaFriendly
08-29-2014 11:30 AM
09-03-2014 11:15 AM
by Steve
4 934
New to the industry-...
Lsmain
08-31-2014 10:53 AM
09-02-2014 02:58 PM
by Steve
1 852
Read more about these lawn care business marketing categories.
General Business:
GopherHaul, Podcast
How to Estimate - Services To Offer:
Aeration, Apartment / Condo, bed edging, Color Change Plantings, Dethatching, Edging, Fall Leaf Cleanups, Foreclosed Homes, Gutter Cleaning, Hardscaping, Hedge Trimming, Home Safety Inspection, Irrigation, Landscape Project, Lawn Mower Repair, Mowing, Mulch Jobs, Outdoor decoration, Parking Lot Cleanups, Pet Waste Removal, Pressure Washing, Property Management, Snow plowing, Stump Grinding, Tree Removal
How to Estimate Jobs:
Lawn Care Business:
Barter, Bikini Lawn Care, Business Failure, Business loan, Business Plan, Debt, Debt Collection, Estimate or Proposal Form, Franchise, Fuel surcharge, How to sell, Insurance, Job Tracking, Lawn Care Contract, Lawn Care Customer Survey, Lawn Care Uniform, Lawn Care Videos, Operational Costs, Overhead Costs, Prepay, Pricing, Start up, Tiger Time Lawn Care,
Lawn Care Business Books:
Lawn Care Customers:
Buying customers, Commercial Customers, Customer Retention, How to get, Residential Customers
Lawn Care Employees:
1 Man Lawn Crew, Bonus Pay, training, Your First Employee
lawn care equipment:
bed edger, Lawn Care Truck, Leaf Sweeper, Mower, New Arrival, Trailer, UltraVac
Lawn Care Marketing:
Billboard, Brochure, Business Card, Community Projects To Promote Your Business, Coupons, Cross Promotion / Synergy, Direct Mail, Door hanger, door to door, Free Giveaway Contest, Free Lawn Care Flyer Template, Gift or Discount Cards, home show, Internet, Lawn Care Business Sales Letter, Lawn Care Logo, Lawn Care Marketing, Lawn Care Truck & Trailer Signs, Lawn Care Website, Lawn Signs, Magazine Ad, Magnets, Mailing list, Marketing on Craigslist.com, Newspaper Ads, Parade, Postcards, publicity stunt, Referrals, Review My Lawn Care Marketing Material, t-shirt, Welcoming Kit, Word Of Mouth
Seasonal Promotion Ideas:
4th of July, Armed Forces Day, Christmas, Election Day, Fall, Halloween, Memorial Day, Spring, Summer, Valentine's Day, Veteran's Day, Winter:
Software:
Estimation Software, Landscaper Software, Landscaping Business Software, Landscaping Estimate Software, Landscaping Software, Lawn Care Business Software, Lawn Care Estimating Software, Lawn Care Software, Mowing Software
Uncategorized:
Video:
Website:
Search Engine Optimization
» Lawn Care Business Discussion Categories
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 08:40 PM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 08:40 PM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy