Thanks General I would have to say that you and I are 2 prime examples of how 2 different ways of obtaining the same goal can be successful within about the same time frame. I think I said that right.
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Originally Posted by GeneralStark
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Thanks General I would have to say that you and I are 2 prime examples of how 2 different ways of obtaining the same goal can be successful within about the same time frame. I think I said that right.
Quote:
Originally Posted by GeneralStark
From a producer/soon to be MBA graduate there are benefits to both purchasing new and used. Either way you get depreciation value but with used equipment you may have bought someone else's problem... At the same time it is nice to see the money in pocket. It largely depends on how your product is being marketed and confidence level of the producer as to how much debt they can take on versus the projected/potential income. We live in a world of inconsistent income so base your expenditures on one of your least productive years to create a cushion, diversification is a key element to business.
Most businesses have the ability succeed and thrive but it is how business is conducted that separates the successful. Hasty decisions without proper research and narrow minded thinking coupled with unwillingness to keep up with the industry results in failure.
Maple Man 85
I spent the first 4 years with a used 2 x 6 Leader lightning that I picked up for $1500 , the guy was great that I bought it from and he even delivered it. He threw in some extra equipment that he had, I was a rookie Sugarmaker and he was very helpful. I quickly out grew it and researched for a bigger rig, there just weren't any available so I started looking at new ones. I went with D & G on a 3 x 10 and I don't regret it. I take every thing I make and put back into the business , I don't sell bulk, all retail. We have a pretty good market that goes along with our blueberry farm. We paid it off in a little over 2 years, it doesn't have all the bells and whistles, its wood fired but it works for us. Every year now I try to add a new piece of equipment, this year it will be adding power to the sugarhouse , we run a 12/2 wire to a 20 amp breaker now ,it runs the lights and AUF but I cant run a RO or Vac system that's why the investment into the power. Im still a rookie at this but I learn a little more every year , the people here are very helpful and I have learned a lot by reading the forums. If you invest wisely you can get the rig you want without killing your budget, figure out what you think youll make , plan on making less and there is your payment schedule. If you make more then pay it off early. Hope this helps and Wish you the best in the coming season,Al
Something that has just come to light to our business is leasing. We are in needs of upgrading a truck for our feed mill but no bankers can me swayed to do a loan on a truck that is out of the emissions control era. The added cost of purchasing your computer program license every 6 months is very costly, to repair these units. The older models are more reliable and get great fuel economy compared to a truck that has to go thru an exhausted burn off every 200 miles.
I found a place that would lease me the truck of my choice on line. They gave me a better rate than my local bank that I have been with since the 1970's, the accountant likes the contract, and at the end of the lease I can by the unit for one of three options: $1, 10% of initial value, or pay the 10% through added payments. I can also not keep the unit if I don't want it.
Ounce you are in the system they will be able to do quick additions of other equipment and they have a crew that goes out and inspects the equipment prior to the purchase. You will pay a small fee for this but it makes purchasing used equipment a breeze; since you can buy items in other states with confidence, without taking the time to travel and check it out yourself.
I will find out Monday if they will entertain maple equipment leases and post their contact info if they will.
Ben