When do you know it's time??

ROYCE

ROYCE

Carpal tunnel level member
Location
Vermont
To buy a bucket truck? I have only started my business this early spring. I have been real busy and have two weeks of work lined up and am working on filling up the third week very fast. The phone is ringing pretty steady and I am looking at a lot of work. However, winter is coming pretty fast. Who knows how much work I will have throughout the winter.
So, what pushed you fellow buzzers into purchasing a bucket truck. What was your decision making process? And looking back, what would you have done different, if anything? Do you have any regrets?
 
Tom, So you mean if you can save enough money throughout the year to pay the payment on the truck through the winter?
 
Will a bucket truck make you more money? Why do you need one? Buying its easy. Registration, needing a cdl, drug test program, truck inspections, tires. I dont regret mine, but ive prob used it only 12 times this year. 50k would look better in my bank than in the backyard!
 
Do you have a clear idea of what your cash flow is through a whole year? Look at what the payments will be and ensure you'll have a net positive flow. What projections have you made for sales for next year? Walk before you run because once you've got those payments they don't go away. As Brendon is pointing out there's a lot more to the decision than just paying for the truck.
 
I want to purchase a bucket truck because I believe it will help me be more competitive. I am looking at a lot of jobs and very often they would be easier with a bucket truck. We have TONS of small dead elm trees that are all over peoples back yards. They pop up all the time for me. They are too dangerous to climb. A bucket would be a big plus for me in that regard. Also, we get some severe storms that pop up quit regular. I want to be prepared to service my clients when a storm rolls in.
I have not been in business for a year yet, so have no idea what my cash flow will be. All I know is if your saying no to work because you do not have a bucket truck, then that makes me think that its time to purchase one.
 
Renting one is not an option for me. The rental place is too far away to make it worth while.
 
ROYCE said:
I want to purchase a bucket truck because I believe it will help me be more competitive. I am looking at a lot of jobs and very often they would be easier with a bucket truck. We have TONS of small dead elm trees that are all over peoples back yards. They pop up all the time for me. They are too dangerous to climb. A bucket would be a big plus for me in that regard. Also, we get some severe storms that pop up quit regular. I want to be prepared to service my clients when a storm rolls in.
I have not been in business for a year yet, so have no idea what my cash flow will be. All I know is if your saying no to work because you do not have a bucket truck, then that makes me think that its time to purchase one.
Click to expand...

Competitive is not what you want to be. You want to stand out from the other companies in the area, so people come to you and are not looking for bids. this is done by caring for your customers, their trees, and property. Bucket trucks and back yards don't get along very well. And if I remember right you moved last year a little farther north?
Turning down work is not always a bad thing, you know your limits. But you sell that to the customer so that they call you back next time not the other guy. If you are turning away 4, 5 or even 10 jobs a month (in the summer) because you don't have a bucket those jobs will not pay for the truck in the winter. One thing I believe in is that if you grow too fast you will soon shrink. Make sure the work is there to follow the big purchase.

You will probably have a hard time getting a loan for any decent truck anyhow, as you have only been in business for a year. The banks look at that as too much of a risk.
Good luck
 
Let me add a little more background info and see if this helps with advice. About two months ago I purchased an existing tree companies name, web-site, phone number and client list. This company has been in business for 40 years. I now have a lot of work ahead of me. I received no equipment in the purchase besides a PHC trailer, with a 300 gallon tank and all the guns and needles for soil injection and so forth.
So, I have the client list and am going to send out a letter in a few weeks about how I purchased the company and how I plan to continue offering a great service. I am nervous about how much work this will generate, I want to be able to keep up with it all.
As you can imagine, I am really not operating a NEW business. The phone rings steady, and I have a lot of clients that are re-peat and I want to go meet them all and get to know their property.
So, this is my situation. If I purchased this company at the beginning of the season I would have bought a bucket truck right away. Just not so sure it's the smarts thing to do with winter coming.
Thoughts please.
 
40 years is a long time. Any idea what the previous owner's workload was like? Did he own a bucket? All in all I would probably go through a year of it 1st just to see how the seasons work out for you. A bucket is great but I'm learning the hard way, don't make it your only truck. If any part of it breaks down you gotta still be able to go out and make $ while it's being fixed. Of course where I live not many people want wood or chips left onsite.
 
The former company had a bucket truck. A really nice 75 footer with all the bells and whistles. I do agree that it would be nice to go a year and see what kinda jobs come in. I guess just see how long I can go with out a bucket. Although that still doesn't help with the jobs that I am looking at presently that NEED a bucket truck.
 
You know your area Royce. I just don't want you to have to go through the headache of paying for the bucket during the times it's not bringing in its due. But sometimes that's how it works.. BTW, the 75 footers are heavy. I have a 60' forestry setup and even it's heavy. I wish I had listened to everybody and gone rear mount. But it wasn't in the cards for me because I needed a chipbox too. 2 for 1 deal you know? You live and you learn.
Don't forget that rental is always a possibility. Even with spider lifts I believe. And it gives you a chance to try things out. Don't forget about demos either. If you're serious about buying then you should try things out. Sometimes you can be lucky enough to do a job when you're testing your potential equipment.
 
Tree-Logic Thanks for the great advice. I am looking into a 60 footer rear mount, as I already have a chip truck. I also can climb and feel I would have no problem leaving the bucket behind to climb a day or two a week.
Any idea what a day rate, or weekly rates is for a bucket rental?
 
You're welcome. Rental rates? No sorry, I've never rented one but I'm sure somebody on here can help with that. Good luck. Post pics if/when you get it.
 
Royce, Some of the uncertainty can be address with a look at how the company performed over the previous 3-5 yrs. I'm wondering if you saw the books for the last 3 yrs of business? That would give you a clear idea of what the business was really generating and what the monthly cash flow was. Did you work for the company? Have key clients met you and are you much alike to the previous owner? There's always going to be some loss of clients due to the ownership change. How much, really depends on how well you manage the client base and meet their expectations. If he was using the bucket on a regular basis then those numbers of his will reflect that. The only difference will be whether there was financing costs. You've really got to manage your money such that your retaining earnings now to cover any shortfalls during the low season. I think you're going to have to get on a bucket sooner than later as there's a certain degree of expectation on the part of the clients and the business you bought is based on that type of equipment. Not having it will mean you'll be hard pressed to maintain the productivity level.
 
Treehumper- That sums up my feelings about the situation. I have a good understanding about the cash flow the business had. Also, I believe many people called this company because of their equipment. I have already heard a dozen times from people who have called that they want to hire this company because of the equipment they had. I agree that I will be hard pressed to meet production with out a bucket.
I have managed to get by with just climbing so far. But, this is the busy season for us, right before winter.
I agree that I have to be able to offer the same service or better in order to keep the clients. So far this has been working great. Also, the past owner was the only certified arborist in the area, and the only one offering any type of PHC. That is why I purchased the company, because he provided quality service at a high price, and his customers loved him. I believe I can continue this service and even make it better by up-dating some of his practices and getting things a little more technical. I email the estimates now and so many customers love this.
It looks like I should really start looking at buckets.
 
ROYCE said:
To buy a bucket truck? I have only started my business this early spring. I have been real busy and have two weeks of work lined up and am working on filling up the third week very fast. The phone is ringing pretty steady and I am looking at a lot of work. However, winter is coming pretty fast. Who knows how much work I will have throughout the winter.
So, what pushed you fellow buzzers into purchasing a bucket truck. What was your decision making process? And looking back, what would you have done different, if anything? Do you have any regrets?
Click to expand...
 
I usually ask 3 questions before we make any purchase. Will it make us more money? Will it make us more efficient? Can we afford it (and not just the purchase but everything that goes with it). If those answers are yes than its on! Lots of people say buckets are unnecessary, but ours has made us more competitive and to be honest, a lot of jobs require one in different ways.....
 
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