Pondering Cost Control

Jasonk said:
What if you don't get that job because Mrs smith wants the job turn key loamed and seeded on completion. (And is willing to pay $) this is what was happening to us. Bought an egg 50 for $15k and made it back in the first year!
Click to expand...
Yes, it is nice to be full service and do the jobs in one shot, so much less complicated that way.
 
Jasonk said:
What if you don't get that job because Mrs smith wants the job turn key loamed and seeded on completion. (And is willing to pay $) this is what was happening to us. Bought an egg 50 for $15k and made it back in the first year!
Click to expand...
That would make a difference, but I would imagine that's something the sub could handle too?

So far, our market usually doesn't require grinding period. And of the grinds that we have had performed, less then 5% have wanted the grindings hauled and replaced. My contractor has handled that when that's what the client wanted.

I'm not aware that we have lost a bid because of subbing the grinding, or even that the grinding was performed on a different date.

It's going to come down to prioritizing the purchase of new equipment, and what will us the best ROI. Grinder is coming soon, but bigger chip truck is more often a pinch point in our operations.
 
Sure. Some areas have a much better market for sub contractors. We had no one who would do grinding and clean up. We also have only two crane services in the area. These kind of things play a big part in where you put your money in what order.
 
Jasonk said:
Sure. Some areas have a much better market for sub contractors. We had no one who would do grinding and clean up. We also have only two crane services in the area. These kind of things play a big part in where you put your money in what order.
Click to expand...
Got it. There are two stump grinding companies who offer full service stump grinding. They keep busy with direct sales, and subbing for tree services.
 
Jason brings up some very good points. If your profitable and are in business for a number of years it gives you the ability to use those profits to make more profits later on. What I mean by this is rent what you need to now, and when the time comes you can start to buy the equipment that your currently renting. As time goes on, you'll have more money to use to buy the things you need and you'll rent less.
Sure it doesn't make sense to buy a stump grinder if all your doing is 5% on stumps. But when you have all the equipment you need, and your accountant tells you that you need to buy something...that is the time to get that grinder...even if its sits for a few days a week. Once you own it I am willing to be you'll start to sell it.
Also, when you have that grinder on site, and do not have to go back to grind...You have your whole crew available to help with clean-up. Thats three or four guys and that can make a half dozen stumps go by pretty quick. (Thanks Jason for that advice)
 
ROYCE said:
Jason brings up some very good points. If your profitable and are in business for a number of years it gives you the ability to use those profits to make more profits later on. What I mean by this is rent what you need to now, and when the time comes you can start to buy the equipment that your currently renting. As time goes on, you'll have more money to use to buy the things you need and you'll rent less.
Sure it doesn't make sense to buy a stump grinder if all your doing is 5% on stumps. But when you have all the equipment you need, and your accountant tells you that you need to buy something...that is the time to get that grinder...even if its sits for a few days a week. Once you own it I am willing to be you'll start to sell it.
Also, when you have that grinder on site, and do not have to go back to grind...You have your whole crew available to help with clean-up. Thats three or four guys and that can make a half dozen stumps go by pretty quick. (Thanks Jason for that advice)
Click to expand...
Without a doubt there is some serious value in doing it while on-site, both to you, and to the client in that it's closer to "turn-key".

I was just pointing out that subbing it out shouldn't mean you have to make a separate visit after the sub.
 
I've done sub grinding for Davey in Toronto with my first employer. The office would accumulate stumps then send the list to us. They spec'd the job and we performed to the spec. It allowed us to afford having a grinder and then doing our own.

What it all amounts to is the business owner needs to be managing from a plan with articulated profit targets. Know what you need to make that margin and work towards that. Planning, planning, planning. Then execute efficiently.
 
treehumper said:
I've done sub grinding for Davey in Toronto with my first employer. The office would accumulate stumps then send the list to us. They spec'd the job and we performed to the spec. It allowed us to afford having a grinder and then doing our own.

What it all amounts to is the business owner needs to be managing from a plan with articulated profit targets. Know what you need to make that margin and work towards that. Planning, planning, planning. Then execute efficiently.
Click to expand...
You got it treehumper!

Plan your work and work your plan applies to business management too.
 
No, they are not exploring a loophole. They are running illegally (according to our state definitions). Two very different things when something happens.

Levi.CO said:
Good points. In regards the the state regs on subs, yes we have them and one is as you described. All I know is that these guys have never been flagged or fined in the 10+ years they've done it this way. In regards to the issue of posterity, yes, that is a concern. The oldest of these guys I'm talking about is making moves towards hiring on employees and stepping back from the field work as he ages.

On the other side of the coin, there is another outfit in my area that runs subs only who are treated very much like employees. The owner does not work in the field and just sends out the crew of subs in company owned vehicles to use all equipment owned by the company. They are just exploiting a loophole. That I disagree with, I think they should be entitled to WC.
Click to expand...
 
Not an illegal thing in NY. If everyone's insured with general liab. Employees don't get DBAs, insure themselves, and get tax federal ID numbers.
Something was mentioned earlier about using other company's equipment on a shared job and becoming an employee just by grabbing the other teams rope or any other tool. What happens if I was to borrow a saw on my own solo job .... accident occurs and fence gets wiped out. The saw owner can become legally responsible?
The day that happens here, I'm done trying to play by the rules of the legal system. Not trying to sound like an ass but geeesh.
 
You must log in or register to reply here.

New threads New posts

Back
Top Bottom