Landscape Management, October 2010

Spend smart Landscapers avoid frivolous spending and focus on efficiency and vendor relations W hen it came to keeping crews outfi tted with the right equipment to get the job done in 2010 landscapers on average maintained last years spending The National Federation of Independent Business calls it being in maintenance mode replacing vehicles or equipment only as needed To carry this out some have instituted policies to reduce excessive purchasing on unnecessary items Were big on equipment because if you want to do the job right you need the right equipment But our policy is no new equipment unless its a must says Matt Griffi n president of Prime Lawn Prime Design Kingwood TX who spent 20000 to 30000 on equipment this year Theres really no need to go buy more if we already have what we need And we have backup equipment available so if a machine breaks we have something to replace it while its being repaired Leasing or renting fi rst helps Andy Felix solidify purchasing decisions We did replace a number of vehicles this year but havent really added anything major says the president of Foxboro MAs Tree Tech Were kind of doing some wait and see to see what the economy will look like Just as the economy impacts consumer spending small business spending is also affected Were really trying to conserve cash theres too much uncertainty right now admits Brian Golembiewski president of Paramount Landscape in Tempe AZ Others are avoiding incurring unnecessary debt loads For Kirk Brown business manager of Joanne Kostecky Garden Design in Allentown PA large equipment purchases are on hold We are being extremely cautious about purchasing anything that would increase our inventory holdings he says While some landscapers were able to keep current equipment running longer others realized stuff wears out You cant always wait to buy points out Chris Senske president of Kennewick WAs Senske Lawn Tree Care who made approximately 70 to 80 of the equipment purchases he normally does this year Joe DiRoma agrees The bottom line with equipment is if we know were doing a job and we dont have something well get it says the owner of DiRoma Landscaping Lisbon CT Thats just what you have to do The NFIB September Economic Trends report concurs stating that spending fi nanced with credit TAKE AWAYS 2010 Equipment Purchasing Setbacks 1 Incurring debt loads and excess inventory 2 Concerns over spending cash 2011 Equipment Purchasing Goals 1 Invest in necessary pieces avoid frivolous spending 2 Invest in equipment that improves effi ciency 3 Build stronger vendor relationships negotiate with vendors 4 Lease or rent before purchasing to ensure need LANDSCAPEMANAGEMENT NET OCTOBER 2010 S20 VISUAL AIDS Sometimes old equipment reaches a point where it doesnt best represent a business brand Thats when contractors realize spending the money may prove more benefi cial than saving the cash We dont like to show off junky equipment explains Jeff Bowen president of Stuart FLs Images of Green adding he has been able to stick to his equipment spending budget this year If something needs to be replaced we do it We have to Our equipment represents our business