Is this a good deal (Hino)

[bins]

Thank you minibins. I have to cross a state scale everytime I go to the dump except for concrete and dirt. That is why I am going to go with a 33,000 gvw truck also b.c I feel I am getting a good deal on it.

I am going against the grain and buying a F-750 with a cat motor only b.c the dealer seems to be great. My Hino salesman will not return my call or emails. He couldnt get us financed b.c of it being a new business.

I am getting a little scared at starting this company b.c it costs so much to really get into it and make money. I feel as though I will not be making serious money until I have 40 cans and can flipped them 3 times a month.

Here is my numbers. Tell me what I need to fix.

By Jan 1, 2008
20 cans flipped 3 times a month at $175 each after tipping fees

20x3=60 x $175= $10,500

Truck payment $1600
Can payment $1000
Storage yard $500
Secretary $1600
Fuel $1000
Insurance $350
Driver (me) $2400
repairs $500
Advertsing $1000

Total $9950

PBT $650

March 1, 2008
30x3=90 x $175= $15750

Truck Payment $1600
Can Payment $1500
Storage Yard $500
Secretary $1600
Fuel $1300
Insurance $350
Driver (me) $2800
Repairs $750
Advertsing $1500

Total $11900
PBT $3850

May 1st

40 cans

40x3=120 x $175= $21000

Truck Payment $1600
Can Payment $2000
Storage Yard $500
Secretary $1800
Fuel $1600
Insurance $350
Driver (me) $3500
Repairs $1000
Advertsing $2000

Total $14350
PBT $6650

Which means I will not have to drive anymore if I dont want to and focus on second truck and other business.

 

[minibin]

Bins,

I am under a deadline tonight, so i'll be brief and get back to you on the weekend. Remember I am no expert but I just went through the same thoughts and excercises you are now. I took a minute to read back though your older posts and some other members have given great feedback. I really agree with "CM1995" when he said the money is in the homeowner market and samll contractors, the cash flow difference is a big one when starting up. One of my competitors complains constantly about revievables and collection challenges. I take payment when I drop the can and charge more If they are over the maximum weight. I find the flat rate system to be the most straight forward for the customer when the are comparing costs.

I chose to go with the smaller cans but make them all dual lift so if I am over loaded I can call a larger truck (rarley-never) and If I chose to grow them I can add a roll-off to the fleet. I find there is less of a grind in the smaller can market. My customers who need more than a small can (10-15), I will bring them 2 cans. I have some containers that are nestable meaning they can be placed one in side the other or I will put 1 on the truck and a second on a deckover trailer to tow behind. Now I have put down a 2x12's=24yards or 2x15's=30. This is more work but I can service all markets, and If you do the the math on my weights using the GVW vs the GCWR I can carry alot of payload legally. and when the market wants more and I am swamped with work I will get a larger truck and larger cans. I find that the the demand for smaller cans is good and only going to get better with new restrictions coming in when it comes to mixed loads. I have 3 bins on 1 site 1 drywall, 1 metal, and 1 debris. You will find that one size bin feeds the other so plan your equipment for flexibility.

One thing I should have done is researched my locally competitors more, i did when it comes to market and pricing but I should have aligned myself with similar equipment. So that I could buy them out or sell to them. Sometimes you' want to help one another out when the other is busy or has equipment problems.

You have done some good numbers but a couple of things jumped out and I will look more closely on Friday night.

Your statement that "I feel as though I will not be making serious money until I have 40 cans and can flipped them 3 times a month."

40x3 is 120 cans in 20 days /a month = 6 per day. Those are big days, The equipment is capable, but I find the time component my biggest challenge and cost of doing business.

1. Customer calls, once , twice then orders the bin
2. bin from yard to customer
3. customer to landfill
4 landfill to yard (hopefully to Customer instead)

to do that and turn 6 bins fully over in a day is challenging, now I live in a city environment so traffic is an issue.

Can you get your truck payment to $1600 a month?

Check into Liability insurance for other peoples property(driveways...)

Have you done a start-up budget for tools , truck boxes, tarps, tiedowns, vehicle lettering and all the misc things that do add up. I will look through my budgets and see what I can get you.

Untill Friday!

Bret

 

[bins]

What is your average tipping weight minibins.

 

[bins]

Other companies here offer 12,16,and 20cyd cans. I dont want to service 3 different sizes b.c then I will be running back to the yard alot more. Could I do it with only 12 and 20 yd cans. Then price the 20 yd can about $15 higher then my comp. 16 yard containers. Only thing is the 20 yd box is 16' long and 5' high and that is the inside size.

 

[SunServicesLLC]

Bins i would say that the avg. weight on the 20yds is b/w 2.5-3 tns for construction debris and a little lighter for household cleanup. At least in the dc area 6 cans a day per truck is def. obtainable(a good 8 hrs), but it does depend on the route.

Good choice on getting the heavier used truck, you won't regret it.

Also make sure you have a backup plan for when your truck breaks, because it will.

Where in VA are you?

 

[CM1995]

I am going against the grain and buying a F-750 with a cat motor only b.c the dealer seems to be great. My Hino salesman will not return my call or emails. He couldnt get us financed b.c of it being a new business. .

Totally understand that. Dealer support is paramount.

I am getting a little scared at starting this company b.c it costs so much to really get into it and make money. I feel as though I will not be making serious money until I have 40 cans and can flipped them 3 times a month.

Here is my numbers. Tell me what I need to fix.

By Jan 1, 2008
20 cans flipped 3 times a month at $175 each after tipping fees

20x3=60 x $175= $10,500

Truck payment $1600
Can payment $1000
Storage yard $500
Secretary $1600
Fuel $1000
Insurance $350
Driver (me) $2400
repairs $500
Advertsing $1000

Total $9950

PBT $650

Those first numbers are too skinny. $650 bucks a month can disappear in a small business very quickly. You are basing you numbers on all your cans turning the first month - which will probably not happen until you establish your business. Be prepared with extra cash to support it in the beginning, I would feel comfortable with having at least $10K available. Your insurance budget looks a little low. Truck insurance, WC and GL will probably run closer to $8k-10k a year. Also need to include employers tax contributions on payroll - medicare, FICA, SS, etc.

Where will you dispatch/office be?

March 1, 2008
30x3=90 x $175= $15750

Truck Payment $1600
Can Payment $1500
Storage Yard $500
Secretary $1600
Fuel $1300
Insurance $350
Driver (me) $2800
Repairs $750
Advertsing $1500

Total $11900
PBT $3850

May 1st

40 cans

40x3=120 x $175= $21000

Truck Payment $1600
Can Payment $2000
Storage Yard $500
Secretary $1800
Fuel $1600
Insurance $350
Driver (me) $3500
Repairs $1000
Advertsing $2000

Total $14350
PBT $6650

The numbers start to work out much better when the # of cans increase as well as your customer base. I would add more for fuel (we don't know what it will cost a year from now) and repairs. I would also keep my advertising budget at $1k. When you get established, you may not need to advertise more than you currently are.

Which means I will not have to drive anymore if I dont want to and focus on second truck and other business.

At that point you can drive Sat. and cut down on the drivers overtime.

Bins,
I find that the the demand for smaller cans is good and only going to get better with new restrictions coming in when it comes to mixed loads. I have 3 bins on 1 site 1 drywall, 1 metal, and 1 debris. You will find that one size bin feeds the other so plan your equipment for flexibility.

One thing I should have done is researched my locally competitors more, i did when it comes to market and pricing but I should have aligned myself with similar equipment. So that I could buy them out or sell to them. Sometimes you' want to help one another out when the other is busy or has equipment problems.

2 very good points.

40x3 is 120 cans in 20 days /a month = 6 per day. Those are big days, The equipment is capable, but I find the time component my biggest challenge and cost of doing business.

I agree as well. It is tough for us to do 6 cans per day. That's an hour and 20 mins per can for an 8 hr day. Pick up, dump and deliver - that's pretty skinny for my neck of the woods and the driver didn't stop to get fuel or eat lunch. With urban/suburban traffic the average for us is 4-5, per truck on a good day.

Have you done a start-up budget for tools , truck boxes, tarps, tiedowns, vehicle lettering and all the misc things that do add up. I will look through my budgets and see what I can get you.

These are the costs that sneak up on you in the beginning. Also don't forget can repair. In a perfect can world, you will bill the customer when they damage a can, but sometimes you will not notice a handle or other part of the can damaged until it has been turned several times and ends up at the yard needing a repair. The % of can repair will also increase the longer the cans are in service, the more cans you are turning and when you hire another driver - it's human nature, no one will take care of your stuff like you will.

 

[bins]

nevermind

 

[bins]

I cant expect to make a profit the first couple of months anyway. I will have money on hand. These are just rought numbers. Thanks for the help with my numbers. Phone book ad is $600 a month for 1/2 page.

 

[bins]

Right now I will have to pay $7.25 a cyd but once I start dumping 200 tons a month I will be paying only $22 a ton for C & D. So my cost will go from $145 to dump a 20 yard done to about $66.

 

[6DoubleDuece]

Hello,
I just wanted to get in on this topic and see if I we could learn from each other.

I have just gotten into the mini bin rentals as well. I have been working on it since october of '06.

Here the local government is your biggest enemy! I have to have a C&D agreement with the city just so I can rent out bins and then they want 9% of the gross!!!! Not to mention your regular business license. Then theres your Million dollar insurance for the truck and you need a seperate one for liability. To top it all off some citys have been bought off and give out a excusive to ONE COMPANY and won't allow others to drop of debris boxes in the city limits.

I wonder if there are ways around this? Is a "Mini Bin" a debris box? I think it could be worked out, It's all in the verbage :Banghead Anyone else have any local problems?

As for equipment I have a 1997 Ford superduty with a 84-12-8 Stellar hooklift and a 2003 International 7400 with a 108-11-20 Stellar. I run two sizes of bins 12x8x4's and 12x8x2's the short ones are for concrete, dirt, ect.

Our disposal rates for the county transfer here is $89.90 a ton then there is a C&D only yard that charges $69.00 a ton.

I would like to know how you guys set your rates? How do you calculate them? What all do you factor in? Since you don't know what you are going to be charged exactly for disposal fees.

Thanks
Brenden

 

[Countryboy]

Welcome to HEF 6DoubleDuece! :drinkup

 

[nedly05]

Hello,
Here the local government is your biggest enemy! Thanks
Brenden

Ut Oh.......

 

[6DoubleDuece]

nedly05,
Don't lump me into the same group that doesn't have the guts to go out and try to get something rolling.

The government is your worst enemy, but that is in almost all business.



Thanks
Brenden

 

[bins]

I have two options for trucks. Tell me what you think the best would be

2007 F-750

7.2 Cat 260hp 660 ft lb
single stack exhaust
3500 allison 6 speed auto
sl240 swaploader
roll rite tarp
33,000 gvw
air brakes
air seat
cd/fm/am radio
2 year unlimted mile warranty

$79,500 ( havent tried talking him down yet)
Been on the lot since atleast July.

or

2007 gmc c7500
duramax 215 hp 520 ft lb
2500 allison 5 speed auto
20,000# stellar hooklift
no tarp
25,950 gvw
air brakes
air seat
cd/fm/am radio
3 year unlimited mile warranty
$74,900 says that is the low as he can go.

 

[CM1995]

I have two options for trucks. Tell me what you think the best would be

2007 F-750

7.2 Cat 260hp 660 ft lb
single stack exhaust
3500 allison 6 speed auto
sl240 swaploader
roll rite tarp
33,000 gvw
air brakes
air seat
cd/fm/am radio
2 year unlimted mile warranty

$79,500 ( havent tried talking him down yet)
Been on the lot since atleast July.

or

2007 gmc c7500
duramax 215 hp 520 ft lb
2500 allison 5 speed auto
20,000# stellar hooklift
no tarp
25,950 gvw
air brakes
air seat
cd/fm/am radio
3 year unlimited mile warranty
$74,900 says that is the low as he can go.

The items highlighted in red are worth more than the $5k difference in price. My choice between the 2 would be the Ford. Although the extra year of warranty on the GMC is something to think about.

The heavier GVW truck will obviously last longer with beefier components. If you don't have your CDL, don't let that sway your decision. I got my class A CDL in April and it was not difficult.

 

[6DoubleDuece]

I think that between the Ford and the GMC I would go the Ford. I would rather have the Stellar though.

That being said I went two states over to get my International. I am going to post a link for you to take a look at. http://www.truckpaper.com/listings/detail.aspx?OHID=1523684&guid=13CF9314C34444B4986ACEB9CAE10CAE This is a picture of my truck. They had 22 of them at one point. There is one left and the sales manager said he would like to move it. I think with some bargaining it could be had for close to $50,000

These trucks are extra heavy duty, 39,000 GVW and handle heavy boxes with ease! I personally like Stellar, They will pick up a lot more than they are rated for.


Thanks
Brenden

 

[nedly05]

nedly05,
Don't lump me into the same group that doesn't have the guts to go out and try to get something rolling.

The government is your worst enemy, but that is in almost all business.



Thanks
Brenden

I was just playin' boss (hence the smiley). You have done a ton of homework, and a lot of research which tells me you are serious about giving it a go. Perhaps I need to be less of a smart axx, I surely did not mean to offend you. Good Luck!,
Nedly05

 

[nedly05]

Do you own this truck now, if not I would look really hard at this truck, I think you will be happier with it than the other two.

 

[6DoubleDuece]

nedly05, No problem. Yes I own the international in that ad. The company is still using the picture to try an sell the last one.

I have been operating for the last 3 months and have had some killer days/weeks and some sloooow weeks but I think as word gets out I will get more and more work.

I am a little worried about advertising to much because I only have 6 boxes so far, and I don't want to put anyone off. I want to always take care of my customers.

You guys were talking about contracts. This one has some really good Idea's. Look it over and maybe it will help you make up your own. http://www.1-866-junk-be-gone.com/dumpterms.html


Thanks
Brenden

 

[nedly05]

How do you like your international? It's definitly a rugged looking unit.