Major Decision

I meant to post a while back, but got busy and you were on standby so there wasn't a pressing need.


My suggestion has been to not spend your last dollar buying a Treemek. For a smooth transition into ownership, you will need cash reserves to help make the payment, outfit the truck, repairs, and other unforeseen expenses.

I bought my Mek with more in cash reserves than I put down, and I still feel/felt the squeeze not being able to do what I wanted when I wanted (although my wants are certainly far from needs) while keeping cash reserves on hand for trading.
 
I could not imagine building a 300k truck on a 17 year old truck with a quarter million miles. That's the type of truck I would like to have around for at least ten years after that type of investment. Do you see yourself ever operating a truck that is 27 years old?

You might also want to ask the finance company their opinion on a truck of that age. Might be a no go for them.
 
RoyalTree said:
I could not imagine building a 300k truck on a 17 year old truck with a quarter million miles. That's the type of truck I would like to have around for at least ten years after that type of investment. Do you see yourself ever operating a truck that is 27 years old?

You might also want to ask the finance company their opinion on a truck of that age. Might be a no go for them.
Click to expand...
That's a million mile engine. I have absolutely no problem with it. The majority of the trucks out there are around that age. Maybe 2007 2008. The build is completely new. Just what it sits on is used. Nobody can afford another 150k on a new body when you're looking at over 250k on the boom
 
Lumberjack said:
I meant to post a while back, but got busy and you were on standby so there wasn't a pressing need.


My suggestion has been to not spend your last dollar buying a Treemek. For a smooth transition into ownership, you will need cash reserves to help make the payment, outfit the truck, repairs, and other unforeseen expenses.

I bought my Mek with more in cash reserves than I put down, and I still feel/felt the squeeze not being able to do what I wanted when I wanted (although my wants are certainly far from needs) while keeping cash reserves on hand for trading.
Click to expand...
Gotcha and I also have that covered. I'm only taking a portion of what I have for the down payment.
 
A few things to add to this thread from a new K-boom owner.

-Rick and his staff at Westminster Hydraulics are great people to work with.
-It sounds like you don't want to sub contract as a climber because the companies you work for are unprofessional. Are you going to like subcontracting with them more as a crane owner?
-I took delivery of my k-boom in February of this year. I'm just now feeling like operating it is a routine task. After 4-5 months of full-time operation I would now be comfortable selling myself as a contract crane operator--and I don't have a grapple saw on mine. You're going to need some time to practice with this thing before charging people $1400/day.
-You certainly want some reserve cash around. My used chassis had a few issues off the bat that quickly ran into the thousands of dollars. This has been the experience of most people I know that build on used trucks. Sure, the engine is good for a million miles, but other things will nickel and dime you. For me it was the turbo, transmission ECM, exhaust brake, air compressor.
-If you order a truck now you'll be taking delivery late this year or early next; not exactly the ideal time to take on the financial burden if work is seasonal at all.
-Your primary use for this truck is as a crane contractor. Why not set it up the best way for that and rear-mount the crane? Do companies really need you to move wood for them every day? Rear mount would allow you to save money on a dump body, potentially step down the size of your crane while having the same reach, and be more functional for your clients. You could still carry logs on the deck or in a dump trailer (what I do) when needed.

Just some food for thought!
 
Evan_WI said:
A few things to add to this thread from a new K-boom owner.

-Rick and his staff at Westminster Hydraulics are great people to work with.
-It sounds like you don't want to sub contract as a climber because the companies you work for are unprofessional. Are you going to like subcontracting with them more as a crane owner?
-I took delivery of my k-boom in February of this year. I'm just now feeling like operating it is a routine task. After 4-5 months of full-time operation I would now be comfortable selling myself as a contract crane operator--and I don't have a grapple saw on mine. You're going to need some time to practice with this thing before charging people $1400/day.
-You certainly want some reserve cash around. My used chassis had a few issues off the bat that quickly ran into the thousands of dollars. This has been the experience of most people I know that build on used trucks. Sure, the engine is good for a million miles, but other things will nickel and dime you. For me it was the turbo, transmission ECM, exhaust brake, air compressor.
-If you order a truck now you'll be taking delivery late this year or early next; not exactly the ideal time to take on the financial burden if work is seasonal at all.
-Your primary use for this truck is as a crane contractor. Why not set it up the best way for that and rear-mount the crane? Do companies really need you to move wood for them every day? Rear mount would allow you to save money on a dump body, potentially step down the size of your crane while having the same reach, and be more functional for your clients. You could still carry logs on the deck or in a dump trailer (what I do) when needed.

Just some food for thought!
Click to expand...

I don't mind subbing to them as a crane owner. I'm counting on the majority of the jobs using the Mechanil saw. If not I can be my own climber. I have a line on training from a personal friend. He feels like 2 or 3 weeks of use and I'll be good to go with room for improvement based on what he knows of me and my experience. I hear you about the used chassis. Specifically why I'm avoiding certain years, makes and models. But the worst can and will happen. I hadn't intended on working this so late in the season. I have been working the financing end since march. It hasn't been easy. It will be a rear mount crane. I had never considered a mid mount and I have no need to haul logs. Everyone around here gets them moved for free by the local loggers who work off our free wood. I appreciate the input. Thank you.
 
Somewhere along the way I misread something about it being a cab-mount. Rear mount is the way to go!

I think this is a good business model if you can make it work. If I had somebody in my area doing this I wouldn't have bought a crane. Best of luck!
 
Steve Connally said:
That's a million mile engine. I have absolutely no problem with it. The majority of the trucks out there are around that age. Maybe 2007 2008. The build is completely new. Just what it sits on is used. Nobody can afford another 150k on a new body when you're looking at over 250k on the boom
Click to expand...
Also got to keep in mind pto hours...that motor may already have over 500,000 on it...
 
I feel your pain Steve. Kind of in the same boat here. I could continue sub climbing but for how long? Employee shortage makes a traditional startup tree service almost impossible.

I think the best answer is to invest in the k-boom/dump body and a mini articulating loader - I could practically do everything by myself or at least with one low skilled employee, or if I had another high skilled guy then watch out we'd be a two man tree crushing profit making machine.

Or I could just fade away into a city job and forget my personal satisfaction in favor of long term stability, it's a very hard decision indeed I wish you the best no matter what you decide.
 
Steve, I think this is great! I think you will make this work and have already pushed further than many would have. There will always be uncertainties....those are uncertain because we can not see the future. One piece of advice I would give you...that no one really gave to me when I started my business is..."Have a plan to deal with a shit load of work" When I started my business my fear was NOT having enough work to keep myself busy...never mind three full time employees. Now, My fear and stress comes from trying to service all these clients who are banging on my door for my services. Yes, we had a slow spell in the winter...mainly because of bad weather....but we are making up for it now. I tell you this because you do not want to be booked out 6 weeks and then have your truck go down...what will you do? If one of my trucks goes down...we can still get the job done because we have a tool-box of tools. You have one tool....make sure its the best running and maintained.
Also, sometimes you can drive yourself crazy trying to have a solution to all the imaginary problems that your thinking might arise. You just have to move forward and deal with each issue one at a time. I just lost another employee and have a large job to do next week...where now I will not be able to have the log truck onsite. I would have been stressed a few years ago...now I just deal with it the best I can. It always works itself out.
I'm excited to see where your headed. I see great things in your future:)
 
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