Dilemma

[Jeff 232]

I have quite a dilemma:eek: . I am solidly booked on large projects and doing 2 projects many of the weeks for the next 8 weeks and then after that we are pretty booked up and through most of July and some in August.

I had a PM company call today on a bid I gave a couple months ago. Its a large project aabout 15K take 4 guys about a week. I got the bid and she (PM) asked me to schedule it. I told her its about 8 weeks out. She said .......OH. She said its a problem the place is dirty and a few weeks would be no problem, but 2 months no way. She told me the next bid was only a few hundred higher and the property might want to go with them if they can get in quicker.

I played it off a little and said let me get back to her Monday. I wanthis job, because I'm not in biz to do bids and then dont do the job. But I really cant figure out yet WTF I'm going to do to fit this in. I got 5 guys and 5 machines running 10-11 hours a day now, jobs are going great.

This PM is a PM company I do one biannaull job for and I've been trying for over 2 years for them to use us on other projects and now they are going to and Im booked

I can hire and train more guys and even buy a couple more 5.6's , and use my small open trailer and my brother in laws truck. If I buy this equipment, Im really not going to need it probably that much unless it stays crazy like it is now. I cant be telling PM's sorry you have to wait 8-10 weeks, these properties want their spring cleanings

I cant pass this job and pm up, this is what I wanted and Im getting it. Should i buy the extra equipment? Even if I may not need it in 3, 4 months

What the hecks a guy to do

I Love This Biz:)

[MMI Enterprises 289]

Coulda cleaned part of it instead of gabbin here at TGS.....HAHA.J/K

Never turn down good paying work..Sounds like you need more middle men management to worry about these headaches. That way when they screw up you can yell at them for loosing the important clients instead of yerself.. :)

[Doug Dahlke 114]

Can you rent the equipment?

[squirtgun 122]

How much is it worth to get us and our rig there?

[Jeff 232]

Can you rent the equipment?

I can rent 4gpm machines all i want, but they just to slow. there is one 5.5 at sunbelt but it isnt even set up right no tank and they have quite a few problems with it. Its almost $400 a week to rent and need it for a few weeks at least , i might as well pay another $1000 or so and buy and own one

[Jeff 232]

How much is it worth to get us and our rig there?

I dont know if I have the time to train you LOL

[John T 744]

I would either push the other jobs off a week and tell them you fell a little behind schedule because your swamped. For 15K I'm sure you can get them to understand. Also if your that busy I would buy that extra machine for a few reasons. One being that its a write off and since your so busy its good to have extra machines so there is less down time.

Its great to be busy like that. It gives you all kinds of options..Lastly the last thing I would do is sub this job out unless you just cant get to it...

[squirtgun 122]

I dont know if I have the time to train you LOL

Dude,my wife will work circles around you and I.I'll just be along to pull the rig..........lol.

[squirtgun 122]

I can rent 4gpm machines all i want, but they just to slow. there is one 5.5 at sunbelt but it isnt even set up right no tank and they have quite a few problems with it. Its almost $400 a week to rent and need it for a few weeks at least , i might as well pay another $1000 or so and buy and own one

I guess buying a new machine is cheaper than what I would charge per day.

[Jeff 232]

I would either push the other jobs off a week and tell them you fell a little behind schedule because your swamped. For 15K I'm sure you can get them to understand. Also if your that busy I would buy that extra machine for a few reasons. One being that its a write off and since your so busy its good to have extra machines so there is less down time.

Its great to be busy like that. It gives you all kinds of options..Lastly the last thing I would do is sub this job out unless you just cant get to it...

I hate subbing PM work out, I want the money. I really cant put off the other jobs, they want their stuff cleaned too. Know whats crazy, I dont even have time to build a trailer. I might buy, it wonnt hurt to have extra

Got to love it, end of this month I crowning myself the KING LOL what a dilemma

[squirtgun 122]

I would rather sub out work vs. buying a new rig and hiring and training new guys on short notice.

When I come across big bids that I know we can not handle on our own I immediately start to think of who I know in BBS land that is experienced and has the equipment to help who will be able get in,do it right,get out and get paid.

Good Luck

[PA Dutchman 14]

I'll rent you my trailer while we replace some roofs ;)

[John Orr 206]

I hate subbing PM work out, I want the money. I really cant put off the other jobs, they want their stuff cleaned too. Know whats crazy, I don't even have time to build a trailer. I might buy, it won't hurt to have extra

Got to love it, end of this month I crowning myself the KING LOL what a dilemma

So sub-out the other work and deal with the PM work yourself. I sub for another pwer ($500/day using my eqipment) in my area. We had magnetic signs to cover my logo and I wear his co's shirt. He trusts me to represent him well - and I do. I'm sure you could find someone to help you out and still sleep at night without worrying about how badly the job will get screwed-up.

[Jeff 232]

So sub-out the other work and deal with the PM work yourself. I sub for another pwer ($500/day using my eqipment) in my area. We had magnetic signs to cover my logo and I wear his co's shirt. He trusts me to represent him well - and I do. I'm sure you could find someone to help you out and still sleep at night without worrying about how badly the job will get screwed-up.

Every job we are doing is PM work, its condo complex after condo complex. I've been passing all my residential calls & jobs onto a local PWer

Thats a lot of my worry with subing is someone screwing up a big job

[Mike Williamson 198]

Oh just buy the equipment...After you pay 4 guys for a week, you'll still have enough to put together a couple decent cold water rigs...even if you break even, you now have the equipment AND the crew to handle the next job you don't have time for...AND you've made a new PM company very happy. You know that's what you want to do, so just DO it!

[Doug Dahlke 114]

Can any of the work be done at night? Just hire some more guys and use the same rig 16 -20 hours a day if the logistics work.

[Jarrod 22]

Sub It Out. Isn't Roger And Celeste Close To You?

[Mike Williamson 198]

I would buy that extra machine for a few reasons. One being that its a write off and since your so busy its good to have extra machines so there is less down time.

Being a write off is no reason to do anything, unless it costs you less than you save in taxes. You spend $10k on a couple trailers and machines etc, and save maybe $3500 in taxes, IF you're in that high a tax bracket...more like $1500-$2500 for most of us.

If you need the equipment and have the funds, buy it. If you don't, a tax write off is certainly no reason to change that. Simple as that!!

[John T 744]

Being a write off is no reason to do anything, unless it costs you less than you save in taxes. You spend $10k on a couple trailers and machines etc, and save maybe $3500 in taxes, IF you're in that high a tax bracket...more like $1500-$2500 for most of us.

If you need the equipment and have the funds, buy it. If you don't, a tax write off is certainly no reason to change that. Simple as that!!

Depends how you look at it. You see successful companies expand for part of the reason being that they need write offs to offset there taxes. A common practice.

Jeff "The Condo King" looks like he is bulging out the sides to expand which means that he's going to have more income coming in and a great reason to buy more equipment because more Money made usually means more taxes to pay unless you can create write offs...such as expanding.

Now of course over doing it can put you in the poor house so you have to do it wisely. I still stick to my answer to Jeff because it seems like the logical way to go for him and to get the write off in the process in essence is more money in your pocket. Its a typical business numbers game.

[Mike Williamson 198]

Depends how you look at it. You see successful companies expand for part of the reason being that they need write offs to offset there taxes. A common practice.

Jeff "The Condo King" looks like he is bulging out the sides to expand which means that he's going to have more income coming in and a great reason to buy more equipment because more Money made usually means more taxes to pay unless you can create write offs...such as expanding.

Now of course over doing it can put you in the poor house so you have to do it wisely. I still stick to my answer to Jeff because it seems like the logical way to go for him and to get the write off in the process in essence is more money in your pocket. Its a typical business numbers game.

Lol...Successful companies do NOT spend money they don't need to in order to save a fraction of what they spend in taxes. That's simply stupid. Bad math.

My point is, buy if you need it. If you don't need it, don't buy it simply because it is a tax write off. I see these kinds of silly comments all the time..."I didn't mind buying it...it was a tax writeoff, afterall." as if the item didn't really cost them anything because they could write it off as a business expense.

Of course, if you need it, and buy it, then it makes sense to take the tax writeoff....but being a tax writeoff is no reason to do something.

[John T 744]

Mike you just don't understand business when it comes to this. There are plenty of reasons for buying for a write off. If you made millions you want to spend on your business so you can save on taxes and your expanding in doing so. You can spend more then you make and pay little taxes. Its all economics. I know alot of this because on my other job I work around the richest people in the country and this is what they do. These are one of the many reasons the extreme rich probably pay less percentage of taxes then you do.

Your points seem to be somewhat valid if your a one man operation. Jeff is not so he's in a different position then you are. He needs to create writeoffs when he's successful as he is being..not when your losing money which he is not...Simple Math...but to you it just may be "Stupid"

[Scott Stone 604]

Just my opinion. I would go ahead and buy the machine and start another crew. I would think that since you are booked so far out that you could easily start to get some of your backlog taken care of and if absolutely necessary to keep a crew busy, you could start to cherry pick some of the residential jobs. It would also give you the flexibilty to give quicker service to your existing customers. Again, this is just my opinion, and what I would probably do.

[bigchaz 157]

Start the new crew to get a hand on all the waiting list. If you slow down after finishing the PMs you could always start the new crew doing the residentials to keep them busy until you get more PMs

Buy the equipment and start the crew

[Jeff 232]

Oh just buy the equipment...After you pay 4 guys for a week, you'll still have enough to put together a couple decent cold water rigs...even if you break even, you now have the equipment AND the crew to handle the next job you don't have time for...AND you've made a new PM company very happy. You know that's what you want to do, so just DO it!

My problem is if I buy another trailer rig, I now will have to borrow my bro in laws truck, my warehouse only fits our 2 trailers so I'd have to put in my garage at my house which is why I got the warehouse I hate having the stuff at my house with the kids and I cant leave it outside, plus when we slow, we might have months that we dont need it

Mostly the storage and having to get another truck, insurance etc etc.

sorry for the whining, its better than whining I dont have enough work

JL

[Mike Williamson 198]

Mike you just don't understand business when it comes to this. There are plenty of reasons for buying for a write off. If you made millions you want to spend on your business so you can save on taxes and your expanding in doing so. You can spend more then you make and pay little taxes. Its all economics. I know alot of this because on my other job I work around the richest people in the country and this is what they do. These are one of the many reasons the extreme rich probably pay less percentage of taxes then you do.

Your points seem to be somewhat valid if your a one man operation. Jeff is not so he's in a different position then you are. He needs to create writeoffs when he's successful as he is being..not when your losing money which he is not...Simple Math...but to you it just may be "Stupid"

No, John, YOU don't understand business, at least not in this regard. You don't create expenses you don't need in order to get tax write offs UNLESS it is going to get MORE in tax writeoffs than the expense cost you. Simple math, bro...you're just not getting it...you're stuck in the wrong paradigm. :)

When Jeff starts making SO much money, and has SO many investments that he actually has to spend money to save MORE in taxes than he spent, then we can talk. He's not there yet, nor are most of us.

And buying items that are going to depreciate solely for a tax write-off is pure stupid.

Lol...you work "around" the richest people in the world as a cop....doesn't qualify you as a tax accountant...

My other job IS accounting, including tax accounting. :)

Last point...I didn't say he shouldn't expand...I said he should...But to expand if you DON'T NEED TO simply to spend money in order to not pay taxes is STUPID. Yes, "STUPID".

We're taking a couple trailers and machines that will be garbage in 10 years, not a tax shelter or real estate investment.

You don't know as much as you "think" you know, John.

[Mike Williamson 198]

My problem is if I buy another trailer rig, I now will have to borrow my bro in laws truck, my warehouse only fits our 2 trailers so I'd have to put in my garage at my house which is why I got the warehouse I hate having the stuff at my house with the kids and I cant leave it outside, plus when we slow, we might have months that we dont need it

Mostly the storage and having to get another truck, insurance etc etc.

sorry for the whining, its better than whining I dont have enough work

JL

Sounds like you need a bigger warehouse. Hey, why not! It's a tax writeoff!! Hey, you'll probably save more in taxes than it costs you! LOL! :rolleyes: