For many landscaping and snow removal companies, replacing worn-out equipment frequently is a standard cost of doing business. Although doing enough business to warrant regular replacement is a good problem to have, it still means that you need to budget for new equipment as part of your cost of doing business, and the cost of those upgrades and replacements can add up.
Many new landscaping and snow removal company owners simply keep some cash on hand in case of emergency. When a mower throws a connecting rod in July or a snowblower breaks an auger in February, they simply purchase a replacement in order to keep their business running and profits coming in. This presents several issues that can easily be prevented with proper planning and some strategic creativity.
First, depleting your cash reserves puts you dangerously at risk, and exposes you to potential harm should you require cash for another pressing need. Keeping a healthy amount of cash on hand is critical to keeping a small business healthy. Second, although your downtime may be limited if you can act fast to replace your sidelined snow removal or landscaping equipment, you will still experience some loss of financial momentum – which you would of course avoid if you could.
Third, replacing your equipment when it fails means that you will be forced to secure a replacement during its peak use season – when manufacturers, retailers, and wholesalers charge the most for their wares. Buying that mower in July or that snowblower in February all but guarantees that you will pay top market price; if weather patterns demand higher use, supply may be limited, and retailers may add exorbitant markups to their base prices, knowing they have a captive audience.
Fortunately, with a little planning, you can work around these issues and potentially save a substantial amount of money every year. Replacing your equipment in the off-season allows you to take advantage of discount pricing when demand is low, and often this is coupled with clearance sales on the previous season’s models. Unless a major innovation has come to market, there is often little significant technological difference from year to year, so getting your mowers in January and your plows in June can keep your business stocked with fresh, reliable equipment at a fraction of the cost of replacing in-season.
Rather than waiting until your aging equipment fails completely, plan ahead and replace your landscaping and snow removal equipment one or two seasons before peak use, preparing you for whatever the weather brings. You can also reduce the financial impact of these regular replacements by financing your equipment with a provider like TimePayment. By financing your equipment and tools, you enable your business to plan for the future without depleting your cash reserves. You can also schedule replacement of worn-out equipment around pricing trends rather than waiting until you have enough cash saved up – which you could quickly run through while waiting for equipment that is temporarily sold out due to high demand during peak use seasons.
To learn more about leasing your landscaping and snow removal equipment, the financial products available to you, and how you can plan your equipment acquisitions to take advantage of significant discounts, contact a representative of TimePayment today.