Summer outlook

[TreeAce]

Is anyone else here freaked out about the future of our economy? I almost couldn't sleep last night thinking about the 5.00 a gallon fuel that the news is going on about. I am so torn about whether or not to bust a move on a bucket. Not a new one but still an expensive deal for me. If I thought our economy would remain "ok" like it was the last couple years then I would go for it. But man IDK.....I had the work to support the truck last year but if fuel prices tank then I just worry that the phone will slow way down. I am not so worried about fuel cost to me, I am worried that people will just not be messing with there trees. Wont have the extra money. I do think that much of what we hear through the media is BS or atleast doctored up to seem more "news worthy" and I dont generally go for a "sky is falling!" thing but this hole Iran thing is making me wonder if 5.00 a gallon may be for real. Any thoughts?

 

[Blakesmaster]

I spend a lot less on my bucket per month than I do on fuel. I don't know, hard to follow the world politics game and how it will directly affect my biz, my bucket only costs $600 a month after insurance and payments. That's a quick 2 hour job. Can't justify NOT having it at this point.

 

[Blakesmaster]

That being said, I had to cut my accountant a check from personal savings as the biz account is currently "eek!"-worthy.

 

[2treeornot2tree]

My bucket only cost me $300 a month. Saves me loads of times instead of climbing.

 

[Toddppm]

For not having any snow this winter, there should be a huge surplus of fuel and they're raising prices anyways. If this summer is anything like this year so far it's gonna suck, we were rolling FT around this time last year.

 

[capecodtree]

The warm weather has been great for business already this year. Its not just good working conditions, the phone is ringing and we are busy.
Several years ago? fuel prices were way up $5+/gal. for diesel, I held my prices in order to get work and my bottom line took a beating. We survived, just the gross profit was down.
I'm investing over 11k to get all my logs and wood chips ground into landscape mulch this week. In a couple of days I will have over $80k of mulch on the ground @ $20/cy.
People are going to spend money this year. It is up to us to offer a superior product/service and market ourselves accordingly. The strong/smart will survive. I would definately buy a bucket if you do not have one, a bucket will drastically change your work output and profitability. Jim

 

[TreeAce]

I dont have a big down payment so I am estimating 700-1000 a month. i am not questioning how useful a bucket is or how much time it will save etc... I already know what they can do. I am just wondering if NOW is a good time for ME to make the jump. I am just worried that people will be hurting finacially and it will effect tree work. i know its so hard to say. Let me ask this....IF gas actually was 4.50 a gallon or more....how much can we expect that to effect our market?

 

[superjunior]

It seams like just a few years ago gas was over 4.00 a g. it goes up and down just like the market. I wouldn't base an equipment purchase on just speculation of fuel prices. Plan for the worst and hope for the best. For me that decision would be based on if work did slow down could I still afford the payment

 

[TreeAce]

It seams like just a few years ago gas was over 4.00 a g. it goes up and down just like the market. I wouldn't base an equipment purchase on just speculation of fuel prices. Plan for the worst and hope for the best. For me that decision would be based on if work did slow down could I still afford the payment

I think you just hit the nail. And I dont know.....crap. well if work did slow down then I would rather not have the payment. If the work is slow then whats the gain to bust out two jobs with the bucket vs one a day climbing. Except I would save on labor. But they need money to......or they will have no choice but to move on. My workers need hours. its alot to think about.

 

[capecodtree]

treeace-summer outlook

I understand what your asking. Only you can figure out the answer. Lets say your gross revenue is cut by a third, or by one half. could you still survive and make the new payment? At what point dollar wise is the truck plus increased fuel costs minus revenue not worth it? Only you, knowing your gross sales and customer base can figure this out. good luck.

 

[epicklein22]

I'm in my last semester of college and have a couple finance classes. The threat of a recession is real; whether caused by gas prices, the european debt crisis (if Greece or another country fails, it will have a ripple effect worldwide) or issues on the home front like our own debt issues/ wall street reform. Currently nothing has tilted the pendulum enough to cause any true concern. Hopefully it stays that way and we can keep the growth going.

I'm cautiously optimistic about this summer. I've already gotten a few jobs for my own company this year, when usually nothing is brewing at this moment. The tree company I work for has been working steadily through the winter, the first time in years. People seem to be in a pretty good mood too.

My buddy and I were aggressive this winter buying equipment, scoring both a crane and chipper. The good thing is we purchased them at nice prices and paid cash. So no worries about payments, only breakdowns.:bang: If things go good, a forestry package or a large chip truck will be added and a stump grinder. If things sour, we"ll just readjust accordingly, plus I'll have my regular 7 to 3 tree job anyways. I'm not afraid to spend money if I know I can make it back with relative ease, whether equipment or knowledge/credentials. I got my CDL A earlier this winter, taking the chemical apps test in April so I can treat Ash trees, plus getting my college degree in May. After that will be the saga of becoming a CA. We'll see if this all pays off or is a waste of time.:hmm3grin2orange:

You might wanna wait on the bucket and see how the spring goes. That will give you time to feel out the economy and add more money for the down payment. I can't stress how important it is to pay as much as possible up front. All companies uses credit, it's how you use it that makes it a smart move or not.

 

[Blakesmaster]

Don't forget that as you start adding more equipment it becomes that much more imperative to have working capital for insurance, maintenance and loan payments or if something breaks. When I went to buy my bucket I was only going to finance half of it and pay the other out of the account. My banker talked me into only putting down 20% and keeping the rest as a cushion. Glad he did, by the time I paid the taxes, did a PM, a couple tires, took care of some other little mech issues and got it insured I didn't have much of a cushion left.

 

[superjunior]

I'm in my last semester of college and have a couple finance classes. The threat of a recession is real; whether caused by gas prices, the european debt crisis (if Greece or another country fails, it will have a ripple effect worldwide) or issues on the home front like our own debt issues/ wall street reform. Currently nothing has tilted the pendulum enough to cause any true concern. Hopefully it stays that way and we can keep the growth going.

I'm cautiously optimistic about this summer. I've already gotten a few jobs for my own company this year, when usually nothing is brewing at this moment. The tree company I work for has been working steadily through the winter, the first time in years. People seem to be in a pretty good mood too.

My buddy and I were aggressive this winter buying equipment, scoring both a crane and chipper. The good thing is we purchased them at nice prices and paid cash. So no worries about payments, only breakdowns.:bang: If things go good, a forestry package or a large chip truck will be added and a stump grinder. If things sour, we"ll just readjust accordingly, plus I'll have my regular 7 to 3 tree job anyways. I'm not afraid to spend money if I know I can make it back with relative ease, whether equipment or knowledge/credentials. I got my CDL A earlier this winter, taking the chemical apps test in April so I can treat Ash trees, plus getting my college degree in May. After that will be the saga of becoming a CA. We'll see if this all pays off or is a waste of time.:hmm3grin2orange:

You might wanna wait on the bucket and see how the spring goes. That will give you time to feel out the economy and add more money for the down payment. I can't stress how important it is to pay as much as possible up front. All companies uses credit, it's how you use it that makes it a smart move or not.

Every tree service I know in the area had a really good season last year, sounds like you did too. Good to hear man What kind of crane and chipper ya get?

 

[Bomber]

Tree Ace, If I were in your shoes I would probably wait and see what November elections bring as far as the economy. I know a lot of people who are saving their money to see where the economy goes. I would start setting money aside for a bucket though. If you were expecting to make payments of say 600-1000 a month make those payments to yourself and save that for a downpayment in the future.

 

[epicklein22]

Don't forget that as you start adding more equipment it becomes that much more imperative to have working capital for insurance, maintenance and loan payments or if something breaks. When I went to buy my bucket I was only going to finance half of it and pay the other out of the account. My banker talked me into only putting down 20% and keeping the rest as a cushion. Glad he did, by the time I paid the taxes, did a PM, a couple tires, took care of some other little mech issues and got it insured I didn't have much of a cushion left.

Yup, the price you pay for a piece of equipment is obviously just the beginning, all the other factors need to be figured in when making a decision. I've bought a few things in the past that really hit the wallet after the purchase, mostly pickups.

Every tree service I know in the area had a really good season last year, sounds like you did too. Good to hear man What kind of crane and chipper ya get?

We have a 11 ton RO Stinger on a 1983 GMC topkick. 55 ft of main stick and 65 ft hook height. She's old, but I'm hoping it works out good. After being around the cranes at Yarnell, we had to have one ourselves. We know the value of what they can do for ya. Took out a little maple with it last Saturday. Terrible set up spot (really tight), but made the removal easy! The chipper is a brush bandit 250xp. She's got a bunch of hours, but has some real power with the 116hp cummins.

Tree Ace, If I were in your shoes I would probably wait and see what November elections bring as far as the economy. I know a lot of people who are saving their money to see where the economy goes. I would start setting money aside for a bucket though. If you were expecting to make payments of say 600-1000 a month make those payments to yourself and save that for a downpayment in the future.

That's a good idea on the payments, just pretend to pay them this spring and see how it affects the wallet.

 

[TreeAce]

Just keep in mind that without the bucket I can't make as much money so that stunts the saving before the purchase thing. But saving what I can is def a good idea. Taking on a 800-1000 monthly payment is out of the question without a bucket.

 

[2treeornot2tree]

I got a suprise the first state inspection on my bucket truck. The brakes needed to be replaced at a tune of $900 for the back. Dealer said they just put brakes and rotors on when they sold it to me. Well they did but only on the front. They wouldn't help with the bill. Funny, now there outta business. Guess what goes around comes around. I had to replace the 3 rear tires, which I knew about before I bought the truck. They were $250 each, because the core were no good to be retreaded by the dealer.

 

[TreeAce]

I must say I am leaning towards a wraptor and improving on my dump truck and then wait n see how it goes. Even after I get a bucket, n I will eventually, I will still need a good sound dump truck. But when I look at new to me dumps....my God those things get pricey. But I guess a good bucket is still between 10 n 20k more. Pretty much.

 

[superjunior]

I must say I am leaning towards a wraptor and improving on my dump truck and then wait n see how it goes. Even after I get a bucket, n I will eventually, I will still need a good sound dump truck. But when I look at new to me dumps....my God those things get pricey. But I guess a good bucket is still between 10 n 20k more. Pretty much.

yep ya gotta choose your battles. I've been rolling the dice all winter on having another good season this year. Bought my chip truck about 6 or 7 years ago for 15k. This winter it's getting completely revamped. New clutch, throwout bearing, pto cable, beefier springs, new brakes, top torched off and built up and new paint job with company logos - to the tune of about another 10k. It hurts but its still a LOT cheaper compared to a new truck set up the way I want

 

[BigWill1985]

The only way I have been able to feasibly purchase equipment for our business it to outright buy everything. That way, we have no payments and are able to keep a low overhead. That way, when work gets slow, we are still able to keep our stuff!

There is a lot of value in buying used equipment that needs some repair, as long as you have a guy or two that is able to do the work. I bought our dump truck for $3,000, just because it had a bad title. Had it towed to our lot, applied for abandoned title, and had it going in ~45 days after purchasing it. Had to do a few random repairs (power steering hoses, adjust carb, unstick the choke, air filter, fuel system treatment, rebuild master cylinder, and a few other odds and ends), but it was well worth th extra time we had to invest into the truck. Now we have a $5,000 truck that does everything we need, with just a little time and inconvenience added in.

~Will Courtier~