Business plans for Mulching

[Robbie Hegwood]

Hey guys. If I'm not mistaken a gyro salesman siad they are doing away with the GT-18, sticking with the 13 and 25. Also I have the current prices on them. Let's see 1 GT-13 or 3 RC-100/heads? No brainer!!! Atleast double the income with 100's.

And yes for dedicated mulching those tractors you described are about the best. But at a price. They tear the ground up pretty bad. Alot of my jobs wouldn't go for that. Some of my pickyer clients even my 100 disturbs alittle much. You still need a tractor for sensitive jobs. I would like to have a 130 for a second machine to complement my 100. Plus after running both I can literally run circles around a tracked tractor. Again it's what bill your trying to fill. That's why there are so many variations of mulching tractors. No one tractor works everywhere.

Another big factor is price. You can shop around and find a 100 with head for around 75's. Tracked tractors go for 100k plus. 25k will fund you for a year. I guess it boils down to budget and customer requirements. Plus a tracked tractor will wreck a trailer deck.

Plus if you factor in the higher price of a tractor your operating cost goes up and so does your hourly rate. It's easier moving up in tractor size after running one awhile and seeing where a bigger tractor would and could fit in.

Robbie

 

[rutwad]

And yes for dedicated mulching those tractors you described are about the best. But at a price. They tear the ground up pretty bad. Alot of my jobs wouldn't go for that. Some of my pickyer clients even my 100 disturbs alittle much. You still need a tractor for sensitive jobs.

Robbie

Hey Robbie,

I've heard rubber tracks are more sensitive to the ground, but I've wondered about that. When I turn my RC100, it "pushes" the ground just as I figure steel tracks would. In straight travel, neither will harm the ground. What is the big difference?

Also, I've seen times when I think I would not have gotten stuck if I was running steel tracks, but who knows?

 

[DirtyWorks]

Rut, Some tracked tractors have single and some have triple grousers. The 87L has tripple so there would be less disturbance than single but more than rubber. One small trade off is traction.One big plus to metal is when you get stuck, and you inevitably will , steel tracked machines are WAY easier to unstick than rubber. also easier to change and less expensive in the long run.

Robbie said it right, it depends on what your goal is.

 

[Robbie Hegwood]

Hey guys.
Rut, I know what you mean about turning, but a tracked machine does it far worse. Our rubber tracks being thicker and contured (spell) on the side will not grap as bad. Metal tracks have a sharper corner and would rather dig than float. You can manuver carefully with a 100, I just didn't see not tearing up the ground with the C-130 I demoed. But at the point where you are using a 130 that isn't an issue. It's a tradeoff for being able to clear larger material.

As far as getting stuck. The tracks on a 100 are really designed to float over the ground. The track luggs don't really help. When in mud the pack smooth with mud anyway. It's just a floatation issue. I have not been in mud with metal tracks but can definitely see the advantages there.

But it's not just a track issue in the comparisions. It's the total packages and the prices they carry. Also the ability you need. We of course all "need" bigger tractor but it's that darn monthly reminder that's a bummer!!! Then there's always the hauling aspect. Bigger tractors require much bigger trucks. It's a snowball effect big time.

Robbie

 

[Mark One]

Thank You all for the advice and comments. I will be making a decision within a couple of weeks and will stay tuned here. I have studied this business, the variety of equipment and have compiled what I believe is a thorough business model. I am definately getting in as there are only a couple of other guys into it within a 100 miles and all are steady at $200+ per/hr. I feel confident the work is there and that with careful decisions and aggressive maintenance I can profit at that rate. The next step is the "Big One" in writing the check.

One thing that really sealed my deal was mentioned earlier by someone else. My wife is 100% ready to get this moving. We did a demo on our farm with the FTX 90 and she ran the machine most of the time. This will help greatly having her committed to the cash outlay and willing to share in the work.

I will be glad to share any of my research with anyone who it may help. I have a couple of other questions. Are any of you marketing your business through a web site with video of your work and before & after pics? What advertising has gotten you the best results?

Thanks Again
Mark

 

[Robbie Hegwood]

A husband and wife running a pair of FTX 90's. I can think of nothing better. Our wives involvment is crutial. My wife knows more about these tractors than some salesman. She put the poor gyrotrac salesman thru the ringer. She knew when he was qouting unrealistic numbers. I was quite funny.

With the hourly rates your area is supporting and the background work you have done you sound set. Plan for the worst, enjoy the adventure.

Have a look at our web site Trinity Mulching - Atlanta Georgia Mulching Company The best advertising money we spent. Have a knockout web site and let your other media refer back to it i.e. truck logo, newspaper ads, flyers, etc. Then have your web site with video and good before and after pictures. It has worked extremely well for use. Oh Yea. Most important, We are faithfull and it was God's plan. Were just enjoying the ride and doing his work along the way!!! Robbie

 

[Mark One]

Very Impressive web site. Thank You very much for your suggestions and advice.

I hope I can return the favor somehow, someday. This will definately help us getting started.

Mark

 

[rox]

You know what Mark,
"No guts o Glory."
"No Pain No Gain"

You have the most important asset to your success, the Love and encouragement adn support of your spouce. God forbid if you go down flaming at least you don't go alone, you have your partner at your side. No matter what happens in life you can always always recover. You never need to stay down for long. The worst is when you don't see eye to eye and one holds the other back. Sometimes with good reason, and sometimes simply do to Risk Aversion. You have the backing of your partner and that is the most important thing. She got your back...

Everyone here wishes you MUCH MUCH Success. No Guts No Glory, Mark.

 

[Mark One]

Thank You for the kind words and advice. I have a few remaining questions. When you contract to do work for a client, Do you have them sign any waiver of damage or injury caused by the machine? Do you have them sign anything acknowledging that they are responsible for the property they are having cleared? Do you get any deposit or payment up front? and.....last but not least, do you charge for transporting the machine to the job?

Thanks in advance for your help with these questions.

Mark

 

[LoneCowboy]

I don't have a mulching business, but here's what I think, both as owning a small business and a customer.
1. i hate deposits. If I special order something (seed, a furnace, a hot tub), then I should expect to put down a deposit, but for just labor? no, i hate it and I don't do it to my customers. You should be big enough to survive waiting out a couple thousand dollar job, otherwise I'm going with a competetor. Now, if it's a really huge job, I do think it's reasonble to have some payments. Maybe 20% upon 25% completion (or so many acres) or something like that, because it's not fair to you either to be on a job for 2 to 3 weeks and not get paid.

2. Damage or injury is why you have liability insurance, you do have liability insurance right?

3. No, I don't charge travel time. In a regular job, do you get paid to travel to work? of course not. If i'm working by the hour (and generally I don't, most people like a direct bid), my time starts when I arrive and ends when i do the bill. I'ts your responsibility to get there, so bid correctly for how far away a job is.

BTW, good luck on your new venture, very exciting.